GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2001
S	1
SENATE BILL 416*
     

 
Short Title:	Amend Rule 68 Offer of Judgment.	()	
Sponsors:	Senator Clodfelter.	
Referred to:	Judiciary I.	
March 12, 2001

A BILL TO BE ENTITLED
AN ACT to amend Rule 68 of the Rules of civil procedure by clarifying the definition of "judgment finally obtained" and by changing the time periods for extending and accepting offers of judgment prior to trial and to make other conforming changes as recommended by the civil litigation study commission.

The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 1A‑1, Rule 68 reads as rewritten:
"Rule 68. Offer of judgment and disclaimer.
(a)	Offer of judgment. – 
(1)	At any time more than 30 days before the trial begins, a party defending against a claim may serve a written offer to allow judgment to be entered against the defending party and in favor of the adverse party for the relief specified in the offer, plus any interest that has accrued as of that date, and, as may be awarded by the court, costs and statutorily authorized attorneys’ fees incurred as of that date. The defending party shall not file the written offer with the court at this time.
(2)	If the offer is made more than 60 days before the trial, the adverse party shall have 30 days to accept the offer. Otherwise, the adverse party shall have 10 days to accept the offer. If within the specified time after the service of the offer the adverse party serves written notice that the offer is accepted, either party may then file the offer and notice of acceptance together with proof of service thereof. The court shall determine costs, interest, and statutorily authorized attorneys’ fees and enter judgment accordingly. An offer not accepted within the specified time after its service shall be deemed withdrawn and evidence of the offer is not admissible except in a proceeding to determine costs. The defending party shall file the offer deemed withdrawn prior to the proceeding to determine costs. If the judgment finally obtained by the offeree is not more favorable than the offer, the offeree must pay the costs incurred after service of the offer and shall not be entitled to interest or attorneys’ fees incurred after service of the offer. The fact that an offer is served but not accepted does not preclude a subsequent offer.
(3)	This subsection applies only to claims for monetary damages in which any nonmonetary claims are ancillary and incidental to the monetary claims.
(b)	Conditional offer of judgment for damages. – A party defending against a claim arising in contract or quasi contract may, with his responsive pleading, serve upon the claimant an offer in writing that if he fails in his defense, the damages shall be assessed at a specified sum; and if the claimant signifies his acceptance thereof in writing within 20 days of the service of such offer, and on the trial prevails, his damages shall be assessed accordingly. If the claimant does not accept the offer, he must prove his damages as if the offer had not been made. If the damages assessed in the claimant's favor do not exceed the sum stated in the offer, the party defending shall recover the costs in respect to the question of damages.
(c)	Definitions. – For purposes of this rule:
(1)	'Costs' mean the court costs that the court is authorized by law to award. Costs do not include interest and attorneys’ fees.
(2)	'Judgment finally obtained' means all relief to which the offeree is finally adjudged entitled by the trial court, other than costs, interest, and statutorily authorized attorneys’ fees.
(3)	'Offer' means all relief tendered to the offeree pursuant to this rule. Offer does not include costs, interest, or attorneys’ fees. Further, offer does not mean an offer of a lump sum that purports to include any or all of the following: costs, interest, or attorneys’ fees.”
SECTION 2.  G.S. 1A‑1, Rule 84 is amended by adding a form at the end to read:

"(17)	Offer of Judgment Under Rule 68 (a).

Defendant offers that judgment be entered against it and in favor of the Plaintiff for $ __________, plus interest that has accrued as of the time of service of this offer, and, as may be awarded by the court, costs and statutorily authorized attorneys’ fees incurred as of the time of service of this offer."
SECTION 3.  This act becomes effective October 1, 2001, and applies to offers of judgment made on or after that date.