Accepting vs. Rejecting a Rule 68 Offer of Judgment
Arizona lets either side make a formal settlement offer under Rule 68 of the Rules of Civil Procedure. What makes it consequential is what happens if it is turned down: the party who rejected it and then failed to do better can be ordered to pay for that misjudgment.
What a Rule 68 offer is
It is a formal, written offer to settle on stated terms, served under the rule rather than made in ordinary negotiation. Arizona attaches teeth to it. A party who rejects an offer and then does not obtain a more favorable judgment can be ordered to pay the offering side's expert-witness fees and double their taxable costs, calculated from the date the offer was served.
Weighing accept vs. reject
Accepting a fair offer ends the case with certainty and stops the cost clock. Rejecting one can be right — but only where the case is genuinely likely to beat it, because the shortfall is paid for twice over. The rule also cuts in the plaintiff's favor: where a plaintiff serves an offer and then obtains a judgment more favorable than it, that can support prejudgment interest running from the offer date.
The bottom line
A Rule 68 offer is one of the few moments in an Arizona case where being wrong about value has a direct price tag. Neither accepting nor rejecting should happen without a realistic valuation and an honest look at the cost exposure.
Frequently asked questions
What is a Rule 68 offer of judgment in Arizona?
A formal settlement offer served under Arizona's Rule 68. Unlike an ordinary offer, it carries cost consequences for a party who rejects it and then does not achieve a more favorable result.
What happens if I reject one and do worse at trial?
You can be ordered to pay the other side's expert-witness fees and double their taxable costs from the date of the offer. Expert fees alone can be substantial in a contested injury case.
Can I make a Rule 68 offer myself?
Yes — either party may serve one, and doing so can put pressure on the defense. Where a plaintiff beats their own offer, it can also support prejudgment interest from the offer date.
Related
This is general information about Arizona injury claims, not legal advice. Every situation is different.
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