(1) After issue is joined but at least 20 days before the trial, the defendant may serve upon the plaintiff a written offer to allow judgment to be taken against the defendant for the sum, or property, or to the effect therein specified, with costs. If the plaintiff accepts the offer and serves notice thereof in writing, before trial and within 10 days after receipt of the offer, the plaintiff may file the offer, with proof of service of the notice of acceptance, and the clerk must thereupon enter judgment accordingly. If notice of acceptance is not given, the offer cannot be given as evidence nor mentioned on the trial. If the offer of judgment is not accepted and the plaintiff fails to recover a more favorable judgment, the plaintiff shall not recover costs but defendant shall recover costs to be computed on the demand of the complaint.
807.01.Settlement offers.
Ch. 807: Miscellaneous Provisions · Last amended 2011 · Last verified July 15, 2026
In one sentenceSection 807.01 lets a defendant offer to let judgment be entered against it or offer a fixed damages figure, and lets a plaintiff offer to settle for a stated sum, each carrying cost consequences and, for an unaccepted offer later beaten at trial, added interest.
Full Text of Section 807.01
(2) After issue is joined but at least 20 days before trial, the defendant may serve upon the plaintiff a written offer that if the defendant fails in the defense the damages be assessed at a specified sum. If the plaintiff accepts the offer and serves notice thereof in writing before trial and within 10 days after receipt of the offer and prevails upon the trial, either party may file proof of service of the offer and acceptance and the damages will be assessed accordingly. If notice of acceptance is not given, the offer cannot be given as evidence nor mentioned on the trial. If the offer is not accepted and if damages assessed in favor of the plaintiff do not exceed the damages offered, neither party shall recover costs.
(3) After issue is joined but at least 20 days before trial, the plaintiff may serve upon the defendant a written offer of settlement for the sum, or property, or to the effect therein specified, with costs. If the defendant accepts the offer and serves notice thereof in writing, before trial and within 10 days after receipt of the offer, the defendant may file the offer, with proof of service of the notice of acceptance, with the clerk of court. If notice of acceptance is not given, the offer cannot be given as evidence nor mentioned on the trial. If the offer of settlement is not accepted and the plaintiff recovers a more favorable judgment, the plaintiff shall recover double the amount of the taxable costs.
(4) If there is an offer of settlement by a party under this section which is not accepted and the party recovers a judgment which is greater than or equal to the amount specified in the offer of settlement, the party is entitled to interest at an annual rate equal to 1 percent plus the prime rate in effect on January 1 of the year in which the judgment is entered if the judgment is entered on or before June 30 of that year or in effect on July 1 of the year in which the judgment is entered if the judgment is entered after June 30 of that year, as reported by the federal reserve board in federal reserve statistical release H. 15, on the amount recovered from the date of the offer of settlement until the amount is paid. Interest under this section is in lieu of interest computed under ss. 814.04 (4) and 815.05 (8).
(5) Subsections (1) to (4) apply to offers which may be made by any party to any other party who demands a judgment or setoff against the offering party.
Official Notes
Cross-reference: For tender of payment, see s. 895.14.
Plain-English Summary
Section 807.01 gives both sides of a civil case a formal way to make a settlement offer with real consequences attached. Subsection (1) lets a defendant, after issue is joined and at least 20 days before trial, serve a written offer to allow judgment to be taken against it for a stated sum, property, or effect, plus costs. If the plaintiff accepts and files proof of that acceptance, the clerk enters judgment accordingly. If the offer is not accepted and the plaintiff fails to recover a more favorable judgment, the plaintiff loses the right to recover costs, and the defendant recovers costs computed on the demand of the complaint instead. Subsection (2) works similarly for an offer about damages: if the defendant offers a specified damages figure and the plaintiff later wins but recovers no more than that figure, neither side recovers costs.
Subsection (3) flips the offer around for the plaintiff, who may serve a written offer of settlement with costs. If the defendant does not accept and the plaintiff goes on to recover a more favorable judgment, the plaintiff recovers double the taxable costs. In every version of this offer procedure, an offer that is not accepted with timely written notice cannot be given as evidence or mentioned at trial.
Subsection (4) adds an interest penalty for refusing a good settlement offer under this section: if the offer is not accepted and the offering party recovers a judgment greater than or equal to the amount specified in the offer, that party is entitled to interest at a rate tied to the prime rate, calculated from the date of the offer until the judgment is paid, in place of the interest that would otherwise apply under Sections 814.04 (4) and 815.05 (8). Subsection (5) makes clear that all of this applies to offers any party may make to any other party who demands a judgment or setoff against the offering party.
Frequently Asked Questions
What happens if I am a defendant, offer to let judgment be entered against me, and the plaintiff refuses but later recovers less than I offered?
Under subsection (1), the plaintiff loses the right to recover costs, and the defendant recovers costs computed on the demand of the complaint instead.
Can my opponent’s rejected settlement offer be mentioned at my trial?
No. Subsections (1) and (2) both provide that if notice of acceptance is not given, the offer cannot be given as evidence or mentioned at the trial.
What happens if I am a plaintiff, offer to settle, the defendant refuses, and I later win a more favorable judgment?
Under subsection (3), the plaintiff recovers double the amount of the taxable costs.
Is there an interest penalty for refusing a good settlement offer under this section?
Yes. Subsection (4) entitles the party who made an unaccepted offer to interest, at a rate tied to the prime rate, on the amount recovered from the date of the offer until it is paid, if that party recovers a judgment at least as favorable as the offer, in place of interest that would otherwise apply under Sections 814.04 (4) and 815.05 (8).
How much time do I have to accept a settlement offer under Section 807.01?
The offer must be served at least 20 days before trial after issue is joined, and the recipient must accept and give written notice of acceptance before trial and within 10 days after receiving the offer.
Amendment History
History: Sup. Ct. Order, 67 Wis. 2d 585, 741 (1975); Sup. Ct. Order, 67 Wis. 2d vii (1975); 1975 c. 218; 1979 c. 271; 1981 c. 314; 1983 a. 253; 1985 a. 340; 2011 a. 69.
Source & verification. Section text and official notes are
reproduced verbatim from the Wisconsin Statutes, published by the
Wisconsin Legislature (Legislative Reference Bureau). Last verified July 15, 2026.
· Official source
Also known as: wisconsin offer of judgment rulewisconsin settlement offer cost shiftingdouble costs unaccepted settlement offer wisconsin807.01 interest penalty rejected offerwisconsin offer to settle before trial