Personal Injury Lawyer’s Secret Weapon: The Offer of Judgment
An OOJ or Offer of Judgment is a tool for parties in litigation used to shift risk to an opposing side. The procedural rule allows judgment to be taken against that party in a specified amount. The offer of judgment is a formal way to make an offer to settle the case; hence, a party may believe the value of the case is worth more (from the plaintiff’s side), or a party may believe the case is worth less (from the defendant’s side) and make an offer accordingly. The risk of such an offer is that is may be accepted at a lower threshold than a jury might award. NRCP (Nevada Rules of Civil Procedure) and the FRCP (Federal Rules of Civil Procedure) both govern this strategic move.
An OOJ can be made at anytime after the commencement of the litigation–hence after an answer is made. Certainly, to be fair to both sides, and surely to meet certain legal factors, an excellent time to do an offer of judgment is a time when both sides are truly familiar with the facts of the case and can make a reasonable judgment as to whether the case is worth settling or rolling the dice at trial. Recently, the Nevada Supreme Court ruled that service by fax of an Offer of Judgment is only valid if, of course, the party to which service is made upon has consented to such service( by fax). Given technical difficulties of fax machines, internet service, and the like, our firm does not allow service or notice by fax. Serving an OOJ by fax is not a good way to notice this serious weapon, and should be served in person by what us lawyers call: a signed ROC, ”Receipt of Copy.” This way, the OOJ is properly served with no argument as to notice.
What exactly happens when a party to a car accident receives an offer to settle involving NRCP 68 or NRS 17.115? Well, a party may have to pay COSTS of litigation AND ATTORNEY FEES in the event of losing. This is a powerful tool to get a case resolved when the stakes are high. Litigation is not a cheap activity, and a failure of a party to not accept a reasonable offer can have dire consequences. In fact, a party can actually be successful at trial (e.g win the case), but lose financially. Exactly how? Real simple. Here is an example: A party wrongly believes their accident case is worth $50,000 so they make an OOJ of slightly lower: $45,000. The Defendant disagrees with the “outrageous” offer. The clients medical expenses are $10,000 and the client has totally healed. 10 days goes by and the offer of judgment is automatically rescinded due to non-acceptance. They proceed to a jury trial. Now, the jury awards $30,000. $15,000 less than if they had accepted the offer. Big Problem. The judge in the matter can then award the Defendant attorney fees and costs!
Those costs might well exceed $100,000. So, this example illustrates that a party who had a good case and won, will lose $70,000! Not a good result. The secret weapon is there! An opposing example: A party offers to settle for $1 million dollars on a wrongful death claim, and the opposing side refuses the offer thinking they can beat it at trial. The personal injury attorney smartly decides the case can be proven and the damages will likely be awarded much higher. The case proceeds to trial and a Nevada jury awards $2 million dollars. The Plaintiff here will make more than just the award of $1M, but also attorney fees (billed by the hour since the OOJ was made), and gets the total costs of bringing the case to trial. This is a win, win. If no Offer of Judgment was ever made the case for an award of fees and costs is discretionary and is optional–which in all likelihood means no award of fees and costs. If you have a case and would like the experience and expertise of Las Vegas Personal injury lawyers Joseph Benson and Ben Bingham, call us today. 702-382-9797
Benson & Bingham ”Here to help you litigate your case.”