Current Florida law provides a variety of procedures that relate to settlement negotiations and that have serious economic consequences. You must understand these procedures and their potential consequences if you are to reasonably evaluate settlement offers and structure appropriate demands.

RULE 1.442, FLORIDA RULES OF CIVIL PROCEDURE (Proposals for Settlement):

• Applicability-applies to all civil actions for money damages.
  
  
• Procedure-The action (lawsuit) is filed on day 1. After ninety (90) days, a proposal may be sent to the other party to settle the case. This proposal cannot be sent closer than forty-five (45) days before the date of the trial. The proposal is a formal document that is called a Proposal for Settlement (these proposals are also referred to as Offers of Judgment ). The proposal must agree to settle the case for specific terms that must be stated in the offer. The offer or proposal is considered rejected if not accepted in writing within thirty (30) days after service.
  
  
• Consequences-If the proposal is not accepted and the case is tried to a Final Judgment and that final judgment is not at least 75% of the proposal, the party who did not accept the proposal will be responsible for paying the other party's attorney fees and costs.

SECTION § 768.79, FLORIDA STATUTES (Offer of Judgment and Demand for Judgment)

• Applicability-applies to claims for personal injury and property damage both tort and contract which actions arose on or after July 1, 1986.
  
  
• Procedure-The defendant may serve an Offer of Judgment and the plaintiff may serve a Demand for Judgment . The offer or demand may be accepted within thirty (30) days of service.
  
  
• Consequences-If the final judgment is not at least 75% of the amount of a requested offer, or at least 25% greater than a rejected demand, then the party making the offer or demand is entitled to recover all costs and attorneys fees incurred from the date of filing the offer or demand. For example, if you receive an offer to settle your claim for $10,000.00 that you reject; you must recover no less than 75% of $10,000.00 (for a total of at least $7,500.00), or you will be required to pay the defendant's costs and fees. The amount you would owe to the defendants under such circumstances could be more than the amount of the judgment they owe to you. If we make a settlement demand under this statute on your behalf for $10,000.00 that the defense rejects, and we later obtain a judgment at least 25% higher than the demand (for a total of at least $12,500.00), then we are entitled to recover costs and attorneys fees in addition to the judgment amount.

SECTION § 45.061, FLORIDA STATUTES (Offers of Settlement):

• Applicability-applies to almost all civil actions that accrued between July 12, 1987, and October 1, 1990.
  
  
• Procedure-The defendant may serve an Offer of Judgment and the plaintiff may serve a Demand for Judgment . The offer or demand may be accepted within thirty (30) days of service.
  
  
• Consequences-generally the same as for offers and demands made pursuant to Section § 768.79, Florida Statutes.

If you do not completely understand the way in which these procedures may affect your particular case, please contact our office for a more detailed explanation.