§ Rule 68 Offer of Judgment
Rule 68. Offer of Judgment
(a) Time for Making; Procedure. At any time more than 30 days before the trial begins, any party may serve upon any other party an offer to allow judgment to be entered in the action.
(b) Contents of Offer If any portion of an offer made under this Rule is for the entry of a monetary judgment, the monetary award to be made shall be set forth in the offer as a specifically stated sum, which shall be inclusive of all damages, taxable court costs, interest, and attorneys' fees, if any, sought in the case. The offeror may choose to exclude an amount for attorneys' fees, but must specifically so state in the offer. If the offeror excludes an amount for attorneys' fees in the offer, and the offeree accepts the offer, then either party may apply to the court for an award of attorneys' fees, if otherwise allowed by statute, contract or otherwise. The offer need not be apportioned by claim.
(c) Acceptance of Offer; Entry of Judgment. If, while an offer remains effective within the meaning of this rule, the offeree serves written notice that the offer is accepted, then either party may file the offer together with proof of acceptance, and a judgment complying with the requirements of Rule 58(a) shall be entered.
(d) Rejection of Offer; Waiver of Objections.. An offer that is not accepted while it remains effective within the meaning of this Rule shall be deemed rejected. Evidence of the rejected offer shall not be admissible except in a proceeding to determine sanctions under this Rule. If the offeree has any objection(s) to the validity of the offer, the offeree must serve upon the offeror, within ten days after service of the offer, written notice of any such objection(s). Unless the offeree notifies the offeror of any objection as provided under this subsection, the offeree waives the right to do so in any proceeding to determine sanctions under this rule.
(e) Multiple Offerors. Multiple parties may make a joint unapportioned offer of judgment to a single offeree.
(f) Multiple Offerees. Unapportioned offers may not be made to multiple offerees. However, one or more parties may make to two or more other parties an apportioned offer of judgment that is conditioned upon acceptance by all of the offerees. Each offeree may serve a separate written notice of acceptance of the offer. If fewer than all offerees accept, then the offeror may nevertheless enforce any number of the acceptances if (i) the offer discloses that the offeror may exercise this option, and (ii) the offeror serves written notice of final acceptance no later than 10 days after the expiration of the effective period of the offer. The sanctions provided in this Rule apply to each offeree who did not accept the apportioned offer.
(g) Sanctions. If the offeree rejects an offer and does not later obtain a more favorable judgment other than pursuant to this Rule, the offeree must pay, as a sanction, reasonable expert witness fees and double the taxable costs, as defined in A.R.S. § 12-332, incurred by the offeror after making the offer and prejudgment interest on unliquidated claims to accrue from the date of the offer. If the judgment includes an award of taxable costs or attorneys' fees, only those taxable costs and attorneys' fees determined by the court as having been reasonably incurred as of the date the offer was made shall be considered in determining if the judgment is more favorable than the offer.
(h) Effective Period of Offers; Subsequent Offers; Offers on Damages. An offer of judgment made pursuant to this Rule shall remain effective for 30 days after it is served, except that (i) an offer made within 60 days after service of the summons and complaint shall remain effective for 60 days after service, and (ii) an offer made within 45 days of trial shall remain effective for 15 days after service. If the effective period is enlarged by the court, the offeror may withdraw the offer at any time after expiration of the initial effective period and prior to acceptance of the offer. The fact that an offer has been rejected does not preclude a subsequent offer. When the liability of one party to another has been determined by verdict or order or judgment, but the amount or extent of the liability remains to be determined by further proceedings, any party may make an offer of judgment, which shall have the same effect as an offer made before trial if it is served within a reasonable time not fewer than 10 days before the commencement of hearings to determine the amount or extent of liability.