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New Jersey's Offer of Judgment Rule
The vast majority of the states follow Federal Rule of Civil Procedure (F.R.Civ.P.) 68, which was first enacted in 1937 and was modeled after then-existing Rules in Minnesota and New York. F.R.Civ.P. 68 permits a defendant to file an Offer of Judgment with the court and plaintiff. If the plaintiff declines the offer or fails to respond, and does not secure a plaintiff verdict greater than the proposed offer, the plaintiff is required to pay the defendant's post-offer court costs.'
The Evolution of New Jersey's Rule
The Federal Rule differs from the New Jersey Rule in two significant ways. First, the Federal Rule is not a bilateral rule ' only the party defending against a claim has the right to file a pretrial Offer of Judgment. Second, it does not permit recovery of attorney fees, but limits the consequences of rejecting an Offer of Judgment and then recovering less than the offer; these consequences can include payment of post-offer court costs, such as docket and printing fees, but payment of attorney fees is excluded. As a result, the Federal Rule has consistently been described as ineffective and inconsequential. Like the New Jersey Rule, the Federal Rule does not apply to an outright defense verdict. Most states, either through legislative enactment or court rule, have modeled their Offer of Judgment or Offer of Settlement Rules on the Federal Rule.
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