Blog Post

May 1, 2017

SDNY Pancakes Parties’ Attempt to Bypass Cheeks: Requires Approval of Rule 68 Settlement

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Under Rule 68, a party defending a claim can make an “offer of judgment” to the other party. If the other party accepts the offer, the clerk must enter judgment pursuant to the offer’s terms. However, if the offered party rejects the offer and obtains a less favorable judgment at trial, that party must then pay the costs incurred by the offering party after the offer was made. Courts have explained that the purpose of Rule 68 is to prompt parties to evaluate the risks and costs of litigation and to balance those risks against the likelihood of success.

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