For a plaintiff, if they makes a formal offer to settle a case (Demand for Judgment), and the defendant does not accept the offer within thirty days - leading to the offer being denied, and the plaintiff then goes on to win the case for 25% more than the amount of the offer, the defendant will be liable for the plaintiff’s costs and attorney fees in connection with the case going forward. 

            Similarly, if the defendant makes a formal offer of settlement which is rejected, and ends up liable at judgment for less than 25% of the amount offered, the plaintiff can be liable for the defendant’s attorney fees and costs. 

            A plaintiff can make a demand for judgment 90 days after service of process on the defendant, and not more than 45 days before the date set for trial. 

            A defendant can make an offer for settlement to the plaintiff 90 days after the action was commenced, and not more than 45 days before the date set for trial. 

            A key determinant in awarding attorney fees and costs by the court is whether the offer was made in “good faith”.  If not, the court may disallow the award. 

            The proposal for settlement is not submitted to the court until such time as the proponent of the offer is seeking to enforce their rights to attorney fees and costs. 

Copyright 2007 Michael D. Stewart, Esq. 

Michael D. Stewart, Esq.Law Offices of Michael D. Stewart

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