Understanding Nevada’s “Offer of Judgment” Rule And How It Can Impact Your Case

Going to trial is only one way to resolve a personal injury case, and it’s not even the most likely—something like 95% or more of personal injury cases settle before trial. The overwhelming majority of cases settle before they make it in front of a jury. One way that claims may resolve is through an “offer of judgment.” If you make such an offer and the other side accepts, or if you accept the other side’s offer of judgment, that will be the end of your claim.

If you believe that you received an offer that is smaller than appropriate, you can reject it and go to trial. But, if you win less than the amount named in the offer of judgment, you may be on the hook for the other party’s post-offer costs and attorney’s fees.

Looking at how Nevada’s offer of judgment rule can impact your case and speaking with a Nevada personal injury lawyer can help you make better decisions about making, accepting, or rejecting an offer.

What is an offer of judgment?

Under Nevada law, an offer of judgment is a formal offer to settle a civil case. In state court, any party may serve an offer. Offers of judgment are governed by Nevada Rule of Civil Procedure 68 and NRS 17.117.

As per Nevada Rule of Civil Procedure 68, every offer of judgment – for personal injury cases, as well as other civil cases –  is subject to the following provisions:

• The offer must be made more than 21 days before trial.
• You have 14 days after service to accept the offer before it is considered rejected and withdrawn.
• Unless otherwise specified, an offer resolves all claims through the offer date, including costs, expenses, and interest, and attorney’s fees if permitted by law or contract.

The primary goal of an offer of judgment is to encourage a settlement that prevents your case from going to trial.

In the event that your personal injury case goes to trial and you obtain an outcome less favorable than the one presented to you in the offer of judgment made by the other side, you may need to pay the other party’s post-offer legal costs/expenses and attorney’s fees. However, the court has some discretion in this, and may not order you to pay those attorney’s fees or costs unless certain conditions are met.

Either party in a civil case, the plaintiff or the defendant, may serve an offer of judgment. The same risks apply to both: if the offeree rejects the offer and then fails to obtain a more favorable judgment at trial, they may be required to pay the other side’s post-offer legal costs and attorney’s fees.

How can an offer of judgment impact your case?

An offer of judgment can impact your case in several different ways, including the following.

Accepting an offer of judgment

If you and your personal injury lawyer accept an offer of judgment, you will receive the compensation presented within that offer.

For example, if you were injured by a driver and they offer to pay you $20,000, you will receive $20,000 by accepting that offer.

Some offers of judgment also contain provisions related to your lawyer’s fees. By accepting, you can no longer bring your case to trial to pursue a larger award. Sometimes, accepting an offer of judgment might result in the same or even better results than bringing your case to trial. But this depends on the terms of the offer and facts in your case. Deciding whether to accept or reject an offer can be a big decision and it’s important to consult with your lawyer before making any decisions. Law firms experienced in going to trial will be able to explain offers of judgment to you, including all the pros and cons in deciding whether to accept or reject an offer.

Declining an offer of judgment

If you and your personal injury lawyer decline an offer of judgment, your case will move to trial. The outcome of this trial will determine the ultimate award. Outcomes may include:

• You win the trial and obtain more money than the sum named in the offer of judgment.
• You lose the trial and do not recover anything.
• You win, but you obtain a verdict that offers less money than the sum named in the offer of judgment.

In the event that you win a greater award from the trial, you will not have to deal with the other party’s post-offer attorney’s fees or costs. But, if you win a smaller amount from the trial, you may have to pay certain fees and costs for the opposing party. The law states that:

The offeree must pay the offeror’s post-offer costs and expenses, including a reasonable sum to cover any expenses incurred by the offeror for each expert witness whose services were reasonably necessary to prepare for and conduct the trial of the case, applicable interest on the judgment from the time of the offer to the time of the entry of the judgment and reasonable attorney’s fees, if any allowed, actually incurred by the offeror from the time of the offer.

Note that the penalties start to “run from the date of service of the earliest rejected offer for which the offeree failed to obtain a more favorable judgment.” What this means is that you would not owe ALL the other party’s attorney’s fees in the case, only those they accrued following when they gave you the offer of judgment.

Essentially, declining an offer of judgment can lead to you getting more money than the sum named in the offer if you have a strong case and prevail in court. However, there is also a chance it could lead to you receiving less money and being hit with a hefty legal bill from the other party.

What should you do if you receive an offer of judgment?

Every personal injury case is complex in its own way. You must prove that a particular incident caused you injuries and that a specific party is at fault for that incident. This is how you prove that you deserve some form of recovery from the other party or parties. If you receive an offer, you might not be sure whether or not it’s reasonable. However, you can work with a personal injury lawyer to get a better sense.

Your personal injury lawyer will look at the facts of your case, the evidence you have, and the parties involved. By doing so, they can help you negotiate an offer of judgment that may encompass the settlement you need.

If the offer of judgment does not address the damages you sustained, your personal injury lawyer can help you decide whether to take the case to trial. They won’t just look at your damages, but at the overall strength of your case, and offer advice on whether you should proceed.

Why would you make an offer of judgment as the plaintiff?

Although defendants often make offers of judgment, plaintiffs can also use them strategically to apply pressure and to push for earlier resolution of their claim.

Some advantages of offers of judgment for plaintiffs include:

• Encouraging settlement: Resolving the case before trial by making a formal, reasonable settlement proposal can save time, costs, and the risk of a trial (no results are guaranteed in the case of a trial).
• Imposing risk on the defendant: If the defendant rejects the offer and the case goes to trial, and the final judgment is more favorable to the plaintiff than the offer, the defendant may have to pay the plaintiff’s post-offer legal costs, including attorney’s fees, interest, and expert witness costs. This is a powerful tool that experienced trial lawyers use to their advantage. Under Nevada law, if the defense fails to obtain a more favorable verdict at trial, they are on the hook for the entire contingency fee earned by your attorney. This creates a large amount of risk for the defense, as it can increase their exposure by 40% or more.
• Incentivizing early case assessment: An offer of judgment forces the defense to evaluate its financial exposure early. This way, they must seriously consider the risks of taking the case to trial, and might become more motivated to settle.

Your lawyer can help you determine if making one of these offers would be beneficial in your case.

Speak with a Nevada personal injury lawyer today

Our legal team at Claggett & Sykes Trial Lawyers has helped thousands of people across Las Vegas and Nevada obtain fair settlements and verdicts for the injuries they have sustained and understands the intricacies of offers of judgment.

You can reach out to Claggett & Sykes today. We’re ready to help you evaluate all your options — whether you’re making or receiving an offer of judgment — and protect your interests at every step. You can call us or use our contact form to schedule a free consultation regarding your personal injury case.