When a lawsuit begins, it’s not always clear what direction the case may go. While some cases will go to trial, many are resolved outside of court. During negotiations, one party may send the other a proposal for settlement. Proposals for settlement have certain legal requirements. Therefore, if you are involved in a Florida business lawsuit, you need to know: What is an offer of settlement?
What is an Offer of Settlement?
An offer of settlement or proposal for settlement involves a party formally presenting a potential agreement to the opposing side. In some civil actions, Florida law provides specific rules and procedures for offers of settlement. These provisions provide timelines and processes for the parties to follow during the settlement process.
Florida Rule of Civil Procedure 1.442 states that “a proposal to a defendant shall be served no earlier than 90 days after service of process on that defendant; a proposal to a plaintiff shall be served no earlier than 90 days after the action has been commenced. No proposal shall be served later than 45 days before the date set for trial or the first day of the docket on which the case is set for trial, whichever is earlier.”
How Does an Offer of Settlement Work?
When one party wants to make a formal offer of settlement, they will properly serve the other party without filing the document with the court. The proposed terms should clearly identify the parties, the dollar amount, and whether it includes costs and attorney’s fees. The offer made in accordance with Florida Statute §45.061 shall remain open for 45 days unless withdrawn sooner by a writing served on the offeree before acceptance by the offeree. An offer that is neither withdrawn nor accepted within 45 days shall be deemed rejected. Rule 1.442 – “The offer must be accepted within thirty (30) days, or it will be deemed rejected. Both statutes and the rule allow the offer to be withdrawn, in writing, before it is accepted by the party to whom it was sent.” The rule also provides that a proposal shall be deemed rejected unless accepted by delivery of a written notice of acceptance within 30 days after service of the proposal.”
How Does a Party Accept a Proposal for Settlement?
If an offer is accepted under Rule 1.442, the party accepting must file both the written offer and written acceptance with the Court. The Court will then enter judgment based upon the acceptance of the offer. Accordingly, the acceptance notice should reflect the offer language.
Once the settlement offer is accepted, either party may submit a proposed final judgment to the court for entry consistent with the accepted offer. Under certain circumstances, when an offer is made under these statutes and rejected, there can be sanctions for the rejecting party.
Proposals for settlement have numerous legal requirements and implications, and it’s important to work with an experienced attorney during the process. Your Florida business lawyer can help you develop or evaluate settlement terms and help protect your interests during negotiations and throughout the various phases of your Florida business lawsuit.
Contact an Experienced Florida Business Lawyer
Attorney Richard Sierra at the Florida Small Business Legal Center assists clients like you with commercial leasing, business, and litigation matters. As always, Our Goal Is to Help You Succeed™. For an appointment, you may call us at 1-866-842-5202 or use the contact form on our website. We represent clients throughout the State of Florida, including Coral Springs, Coconut Creek, Boca Raton, Delray Beach, Pompano Beach, Sunrise, Fort Lauderdale, Miami, West Palm Beach, Jupiter, Deerfield Beach, Stuart, Port St. Lucie, Orlando, Naples, Fort Myers, Sarasota, Tampa, and surrounding communities.