Accepting vs. Rejecting an Offer of Judgment
New Mexico's Rule 1-068 lets a party make a formal offer to settle, and attaches a consequence to refusing it: a party who rejects the offer and then fails to do better bears costs incurred after it was made.
What an offer of judgment is
It is a formal written offer served under the rule rather than a figure floated in negotiation. If it is not accepted within the time the rule allows, it lapses — and if the party who turned it down does not end up with a more favorable judgment, that party can be responsible for the costs the other side incurred from that point on.
Weighing accept vs. reject
Accepting ends the case and stops the cost clock. Rejecting makes sense only where the case is realistically likely to exceed the offer — and 'realistically' has to account for how fault will be divided, since New Mexico's pure comparative rule reduces a verdict by the plaintiff's share before it is compared with the offer.
The bottom line
An offer of judgment converts an optimistic valuation into a financial risk. Before responding to one, get a grounded view of what the case is worth and what the cost exposure would be if the estimate is wrong.
Frequently asked questions
What is an offer of judgment in New Mexico?
A formal settlement offer served under Rule 1-068. Rejecting it and then failing to obtain a more favorable judgment can leave you responsible for the other side's costs from the date of the offer.
How long do I have to accept?
The rule sets a limited window, after which the offer lapses. Because the deadline is short and the consequences are real, this is a decision to make with your attorney immediately rather than at the end of the period.
Does my share of fault affect whether I beat the offer?
It can. New Mexico reduces a verdict by the plaintiff's percentage of fault, and it is the resulting judgment that gets compared with the offer — so a fault dispute is part of the calculation.
Related
This is general information about New Mexico injury claims, not legal advice. Every situation is different.
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