Isabella Carter
In Florida, an offer to settle a claim is a way to force the other party to formally accept or reject a settlement. It is a powerful tool for plaintiffs and defendants to bring litigation to a swift conclusion in the right circumstances. The Florida Rules of Civil Procedure outline the requirements for a valid offer, which must be made in writing and include specific references to the statute, relevant conditions, and the dollar amount of the proposal. If a party refuses an offer and receives a less favourable outcome at trial, they may be responsible for the offering party's attorney fees. This creates coercive pressure towards settlements and encourages both parties to seriously consider any offers made.
| Characteristics | Values |
|---|---|
| Purpose | To force the other side to formally accept or reject a settlement |
| Who can make an offer? | Either party may make an offer of judgment and demand for settlement |
| When can an offer be made? | No sooner than 90 days after the case begins |
| How to make an offer? | State the offer in writing and make specific reference to the statute |
| What to include in the offer? | Name of the party making the offer, name of the party the offer is made to, total amount of the offer, any non-monetary terms, whether the proposal includes attorneys' fees, whether attorneys' fees are part of the legal claim |
| When is the offer binding? | When the other side accepts it |
| What if the offer is rejected? | If the rejecting party receives a considerably worse outcome at trial, they may owe the offering party reasonable attorney fees |
| What if the offer is accepted? | The party accepting the offer shall file with the Court both the written offer and written acceptance |
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What You'll Learn
Statutory offers of settlement
In Florida, an offer of settlement is a way to force the other party to formally accept or reject a settlement. It is a powerful tool for either party to bring litigation to a swift conclusion under the right circumstances.
Florida's statutory offer procedure creates coercive pressure towards settlements based on the fear of the statute's consequences for the "unreasonable" rejection of statutory settlement offers. This is known as the "stick" or "hammer". If the party receiving the offer rejects it and does not do at least 75% as well at trial as was offered, they will have to pay the offeror's attorney's fees and costs from the date of the offer.
Florida Statute §768.79 covers offers of judgment in negligence civil actions in the state. The law states that either party may make an offer of judgment and demand for settlement. The offer must be made in writing and must specifically reference the statute. It must also "state with particularity" the relevant conditions, the dollar amount of the proposal, and any other non-monetary terms. The offer must be sufficiently clear and definite to allow the recipient to evaluate the proposed settlement without needing clarification from the offeror. Oral offers of settlement are not enforceable.
Florida Rules of Civil Procedure 1.442 reiterates many of the same rules found in Florida law 768.79. Under Rule 1.442, a defendant may make an offer no sooner than 90 days after the case begins, and the plaintiff may make an offer no sooner than 90 days after the service of process. The offer to settle must be made at least 60 days after the date of the written appearance of the party to whom the offer is being made. A counter-offer may be made within 15 days of the date that the initial offer was served. The offer must be served on the other party, but it does not need to be filed with the court unless the other party accepts it or the offering party needs to enforce it to get attorney fees. The offer remains open for 45 days unless withdrawn sooner by the offering party.
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Fee-shifting for prevailing defendants
In Florida, the general rule is that each side in a civil lawsuit is responsible for covering their own legal fees and court costs. However, the offer of settlement statute in Florida creates an exception to this rule. This statute incentivizes the early settlement of claims by imposing a "coercive pressure" on the offeree to accept the offer. If the defendant in a civil case makes a settlement offer and the plaintiff does not accept that offer within 30 days, the plaintiff must pay the defendant's legal fees and costs if they do not obtain a final judgment that is at least 75 percent of that offer.
For example, if a plaintiff is injured in an auto accident and sues the defendant for damages, and the defendant offers to settle the case for $100,000, but the plaintiff refuses and proceeds to trial, and the jury awards the plaintiff less than $75,000, the defendant can then ask for an award of attorney fees and related costs. This is known as fee-shifting, where the prevailing defendant can recover their legal fees and costs from the plaintiff.
To take advantage of the offer of settlement statute and create a potential claim for fees if they prevail, defendants should consider making a statutory settlement offer to the plaintiff. This offer must be in writing and should specifically refer to the statute, stating that it is being made pursuant to Florida Statute 768.79. It should also name the parties involved, the total amount of the offer, including any compensation for punitive damages, and identify the claims that will be resolved. The offer must be served on the other party and can be withdrawn before the 30-day acceptance period expires.
If the plaintiff unreasonably rejects the offer and the case proceeds to trial, resulting in a judgment that is at least 25-75 percent less than the offer, the Trial Court may sanction the plaintiff by awarding the defendant their reasonable attorney's fees and costs incurred after the offer was made. This fee-shifting provision encourages defendants to make early settlement offers and creates a financial incentive for plaintiffs to seriously consider these offers, promoting the expeditious resolution of claims.
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Rules for offers of judgement
Florida's statutory offer procedure creates coercive pressure towards settlements based on the fear of the statute's consequences for the "unreasonable" rejection of statutory settlement offers. The offer of settlement is an integral part of any Florida civil claim. It is a way to force the other side to formally accept or reject a settlement. It is a powerful tool for either party to bring litigation to a speedy settlement.
- The offer of settlement must be made in writing and must specifically refer to the statute. It must also "state with particularity" the relevant conditions, the dollar amount of the proposal, and any other non-monetary terms. Oral offers are not enforceable.
- The offer must be made at least sixty days after the date of the written appearance of the party to whom the offer is being made. The offer may not be made later than sixty days before the trial.
- A counter-offer may be made within fifteen days from the date that the initial offer was served.
- The offer must include the total amount of the offer, including any compensation for punitive damages, and identify the claims that are to be resolved in the offer of judgement.
- The offer must state whether the proposal includes attorneys' fees and whether attorneys' fees are part of the legal claim.
- The offer is legally binding if the other side accepts it. If a party refuses an offer of judgement and receives a considerably worse outcome at trial, the party may owe the offering party reasonable attorney fees.
- If the Trial Court determines that the offer of settlement was unreasonably rejected and resulted in unnecessary delay or increased costs, and if the damages awarded by the jury were twenty-five percent less than that which was offered by the defendant, the Court may sanction the party that unreasonably rejected the offer.
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Offer of settlement statute
In Florida, the offer of settlement statute is a critical exception to the general rule that each side in a civil lawsuit is responsible for paying their own legal fees and court costs. The offer of settlement statute states that if a defendant in a civil case makes a settlement offer and the plaintiff does not accept that offer within 30 days, the plaintiff must pay the defendant's legal fees and costs if they do not obtain a final judgment that is at least 75% of the offered amount.
The offer of settlement statute is a powerful tool for both plaintiffs and defendants to bring litigation to a speedy settlement. It creates coercive pressure toward settlements, as there are consequences for the unreasonable rejection of statutory settlement offers. The statute's "stick" or "hammer" is the threat that if the party receiving the offer rejects it and does not do at least 75% as well as offered, they will have to pay the offeror's attorneys' fees and costs from the date of the offer.
There are specific rules that must be followed to take advantage of the offer of settlement statute. A settlement offer must be made in writing and must specifically reference the statute. It must also state with particularity the relevant conditions, the dollar amount of the proposal, and any other non-monetary terms. Oral offers of settlement are not enforceable. The offer must be sufficiently clear and definite to allow the recipient to evaluate the proposed settlement without needing clarification from the offeror.
Florida Statute §768.79 covers offers of judgment in negligence civil actions in the state. The statute does not expressly address the conditions that may be included in statutory offers, suggesting that the only item worth mentioning is the "total amount" of the offer. However, Florida Rule of Civil Procedure 1.442(c)(2)(F) requires that an offer state whether attorneys' fees are included and whether they are part of the legal claim. This allows valid offers to either include or exclude attorneys' fees, as the offeror elects.
Florida Statute §45.061 outlines the procedures for making and accepting offers of settlement. The offer must be served on the other party and is not required to be filed with the court unless it is accepted or needs to be enforced to obtain attorney fees. The offer shall remain open for 45 days unless withdrawn sooner by a writing served on the offeree before acceptance. An offer that is neither withdrawn nor accepted within 45 days is deemed rejected, but this does not preclude the making of a subsequent offer. If an offer is accepted, the party accepting it shall file the written offer and acceptance with the court, and the court shall enter judgment based on the acceptance.
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Sanctions for unreasonable rejection
Florida Statutes impose sanctions on a party that unreasonably rejects a settlement offer when the court or jury's judgment is within a certain range. The sanctions for an unreasonable rejection of a settlement offer are designed to create coercive pressure toward settlements. This is done by instilling fear of the statute's consequences in the rejecting party.
Florida Statutes 768.79 imposes liability for attorney's fees and other costs associated with pursuing a legal claim on a party that rejects a settlement offer. A plaintiff who rejects a defendant's settlement proposal under Florida Statutes 768.79 risks having the court offset their judgment by the defendant's attorney's fees and other costs. For sanctions to be imposed, the plaintiff's award must be at least 25% less than the defendant's settlement offer. An offer shall be presumed to have been unreasonably rejected by a defendant if the judgment entered is at least 25% greater than the offer rejected.
The sanctions for unreasonable rejection of a settlement offer in Florida can include the following:
- Payment of the offeror's attorneys' fees and costs from the date of the offer.
- Award of sanctions, including the parties' costs and expenses, such as reasonable attorneys' fees, investigative expenses, expert witness fees, and other expenses related to trial preparation incurred after the offer of settlement.
- In the case of a plaintiff's rejection, the court may offset the plaintiff's judgment by the defendant's attorney's fees and other costs.
It is important to note that the rejection of a settlement offer need not have been unreasonable under the circumstances at the time to trigger sanctions. The rejection is presumed unreasonable in hindsight if the judgment entered is at least 25% less or greater than the offer rejected, depending on whether it is the plaintiff or defendant who rejects the offer.
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Frequently asked questions
The offer of settlement is an integral part of any Florida civil claim. It is a way to force the other side to formally accept or reject a settlement, encouraging serious consideration of a settlement offer.
An offer to settle a claim in Florida must be made in writing and must specifically reference the statute. It should also state the relevant conditions, the dollar amount of the proposal, and any other non-monetary terms. The offer must be sufficiently clear and definite to allow the recipient to evaluate the proposal without needing clarification.
If a party rejects an offer to settle a claim in Florida and receives a less favourable outcome at trial, they may be required to pay the offering party's reasonable attorney fees and costs. The court may sanction the party that unreasonably rejected the offer, resulting in unnecessary delay or increased costs.
