Rule 68.Offer of settlement or judgment

Rule 68 gives parties a formal way to put a settlement number on the table before trial and attach a consequence to turning it down. More than 60 days after the complaint is served and at least 28 days before trial, any party — plaintiff or defendant — may serve a written offer proposing to settle or let judgment be entered on stated terms, with costs accrued to that point added in. The party who receives the offer has 14 days to accept it in writing; once accepted, either side can file the offer, the notice of acceptance, and proof of service.

An offer that is not accepted disappears rather than lingering as a standing proposal, and turning one down does not stop a later offer from being made. Courts also keep a rejected offer out of the case except when sorting out costs afterward; the jury never hears about it, and "costs" under this rule does not reach attorney's fees. The rule also covers cases where liability has already been decided and only the amount owed remains open — the party found liable can still make an offer on that question, though it must arrive at least 14 days before the hearing on damages. The bottom line for the party who says no: if the judgment finally obtained is no better than the offer, that party pays the costs incurred from the point of the offer onward.