Proposals for Settlement/Offers of Judgment

Proposals for Settlement (PFS) and Offers of Judgment (OJ) are important tools used to resolve disputes between parties in a lawsuit.  

What Is a PFD or OJ?

In simple terms, a PFS is an offer one party makes to the other to settle the case for a certain amount of money. This agreement typically includes attorneys’ fees and legal costs.

The purpose of these agreements is to incentivize parties to settle disputes quickly and efficiently. If a party receives a PFS but rejects it and the outcome of the case is less favorable to the rejecting party than the initial offer, that party may be liable for the resulting legal costs.

To make a settlement proposal, the offering party must serve it on the opposing party according to certain court rules. 

What Needs to Be Included?

The offer must be made in writing and include specific terms of the proposed settlement. This can include:

• Payment amount
• Release of liability
• Confidentiality
• Dismissal of the lawsuit
• Attorneys’ fees and legal costs 

The other party has a certain amount of time to accept or reject the offer. If they accept, the case is resolved; if they reject, the case continues. In these instances, the parties may proceed to the trial phase.

These agreements are powerful tools for resolving disputes because they press the opposing party to settle the case or face possible consequences. They also encourage parties to make reasonable settlement offers, allowing them to avoid the time and costs of a trial. 

It’s important to note that settlements can be risky. Therefore, parties should carefully consider all factors before making or rejecting an offer.

Get Expert Assistance with Legal Matters

If you need help with a legal decision, contact Shrader, Mendez & O’Connell, Attorneys at Law, by calling (813) 360-1529. Our friendly staff will be happy to schedule a consultation for you.