Plaintiff(s) Offer of Compromise
(written offer of compromise filed by the plaintiff(s) with the clerk of the court)
Procedure
When Can They Be Filed? (Conn. Prac. Book § 17-14)
Not earlier than 180 days after service of process; but
Not later than 30 days before commencement of the start of trial (jury selection or evidence in a courtside trial).
NOTE: The plaintiff(s) can withdraw the offer before it is accepted.
Not Accepted (Conn. Prac. Book § 17-16)
Offers not accepted within 30 days, or until the rendering of a verdict by the jury or an award by the court (whichever comes first), are considered rejected;
Offers not accepted within 30 days are not subject to acceptance;
The jury is not informed about the filing of an Offer of Compromise.
Acceptance (Conn. Prac. Book § 17-15)
A plaintiff may only file one offer of compromise;
Contradictory rulings make it unclear whether it is within the court's discretion to extend the time to respond to an offer;
Defendant(s) acceptance must be filed in writing with the court;
After acceptance and receipt of the agreed upon settlement funds, the plaintiff must withdraw the action.
Example: Plaintiff X files an offer of compromise for $30,000. Defendant Y has valued the case at $25,000, but believes there is the possibility of a substantially higher jury award. As a result, Defendant Y accepts Plaintiff X's offer, to avoid exposure at trial and the potential imposition of interest if Plaintiff X were to be awarded more than $30,000 by a jury.
Impact of Not Accepting
When Plaintiff(s) Recover an Amount Equal to or Greater than Offer (Conn. Prac. Book § 17-18)
After trial (final judgment has been reached as to damages) the court will determine whether any offers were filed that were not accepted;
If it is determined that the plaintiff(s) has recovered an amount equal to or greater than the offer, 8% annual interest shall be added to the amount recovered from the date the offer was filed;
If the offer was filed not later than 18 months from the filing of the complaint, the interest will be computed from the date the complaint was filed;
The interest awarded for failing to accept an offer is premised upon the fact that the defendant rejected an advantageous offer which would have terminated litigation;
The interest is computed pursuant to Conn. Gen. Stat. § 52-192a; Because § 52-192a is punitive and mandatory, an insurer must pay the interest, but it may still be subject to the policy limits;
§ 52-192a is a procedural rule, therefore an award of interest after an offer has been rejected does not hinge upon a determination of the substantive issue(s) of the case;
The judicial authority may award reasonable attorney's fees, not to exceed $350;
Statutory attorney's fees included in the recovery are compared to the amount of the offer;
Interest and attorney's fees may still be awarded even if the plaintiff(s) amends the complaint to add a new cause of action after an offer has been rejected;
The plaintiff's pretrial and trial conduct will not affect recovery of interest.
Example:
Plaintiff X files an offer of compromise for $30,000 one year after suit was filed on June 1, 2006. Defendant Y has valued the case at $25,000 and chooses not to accept Plaintiff X's offer. The case goes to trial and Plaintiff X is awarded $50,000 on June 1, 2008. As a result, Plaintiff X would be entitled to recover $8,000 in interest ($50,000 x .08=$4,000; $4,000 x 2 years=$8,000). Additionally, Plaintiff X may be awarded up to $350 in attorney's fees.
Defendant(s) Offer of Compromise
(written offer of compromise filed by the defendant(s) with the clerk of the court)
NOTE: Plaintiffs who prevail at trial always recover their costs, unless a defendant files an Offer of Compromise, which the verdict does not exceed.
Procedure
When Can They Be Filed? (Conn. Prac. Book § 17-11)
Not later than 30 days before trial, an offer may be filed by the defendant(s).
Acceptance (Conn. Prac. Book § 17-12)
Plaintiff(s) have 60 days to accept a defendant's offer;
Schedule of trial is not effected by the filing of a defendant's offer even when trial is scheduled to begin before the 60 days has run except at the discretion of the judicial authority;
The time period for accepting begins to run once the offer is actually received by the plaintiff, not the date it is filed;
Upon acceptance by the plaintiff and receipt of the agreed upon settlement funds, a withdrawal of the action shall be filed.
Example:
Plaintiff X believes that there is a possibility a jury will award him up to $50,000. However, Plaintiff X is aware of issues of liability. Defendant Y has similar beliefs, but believes that a jury will award Plaintiff X at least $15,000 despite the issues surrounding liability. As a result, Defendant Y files an offer of compromise for $15,000. Due to liability issues and Plaintiff X's desire to receive money more quickly, Plaintiff X accepts Defendant Y's offer.
Not Accepted (Conn. Prac. Book § 17-13)
The offer is deemed withdrawn if not accepted before any evidence is offered at the trial and, as a result, the offer will not be given in evidence;
Unless the plaintiff recovers more than the sum specified in the offer, with interest from the date of its filing, the plaintiff will not recover costs accruing after the plaintiff received notice of the filing of such offer, but will pay the defendant's costs accruing after the plaintiff received notice of the filing of the defendant's offer;
Costs may include reasonable attorney's fees not to exceed $350;
Award of attorney's fees is dependent on whether offer is reasonable;
Defendant may not recover costs based upon an offer that contains conditions.
Example:
Defendant Y is clearly liable for Plaintiff X's damages. After taking the plaintiff's deposition and review of all discovery, Defendant Y believes Plaintiff X will not recover more than $30,000 at trial. Plaintiff X, however, has demanded $100,000 without any indication that he is willing to negotiate. As a result, Defendant Y files an offer of compromise for $40,000, which Plaintiff X does not accept, believing the figure to be well below what he will be awarded by a jury. The case goes to trial and Plaintiff X is awarded $35,000 by the jury. Accordingly, because the award was less than the offer of compromise filed by Defendant Y, Plaintiff X was required to pay Defendant Y's costs of trial.
Example:
Plaintiff X has made a demand for $100,000.00. Defendant Y is almost certain that it will prevail at trial on the issue of liability. As a result, Defendant Y files an offer of compromise for $10,000, the approximate amount Defendant Y reasonably believes it will cost to try the case. Plaintiff X does not accept Defendant Y's offer. The case goes to trial and results in a defense verdict. As a result, Plaintiff X must pay Defendant Y's costs of trial.
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The examples illustrate the importance of discussing with counsel both the receipt of an Offer of Compromise and the filing of an Offer of Compromise prior to trial.
Content Provided By: Susan O'Donnell.