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H.J.R. 3

             1     

OFFER OF JUDGMENT IN SETTLEMENT OF

             2     
CASES RESOLUTION

             3     
2003 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Sponsor: John Dougall

             6      LaVar Christensen
             7      Greg J. CurtisJames A. Ferrin
Mike ThompsonStephen H. Urquhart              8      This joint resolution modifies the Utah Rules of Civil Procedure by providing for
             9      attorneys' fees with costs that can be assessed in a civil action. It allows costs and
             10      attorneys' fees to be assessed if a final award is not more favorable than the offer of
             11      judgment. This act provides an effective date.
             12      This resolution proposes to amend the Utah Rules of Civil Procedure as follows:
             13      AMENDS:
             14           Rule 68, Utah Rules of Civil Procedure
             15      Be it resolved by the Legislature of the state of Utah, two-thirds of all members elected to each
             16      of the two houses voting in favor thereof:
             17          As provided in Utah Constitution Article VIII, Section 4, the Legislature may amend
             18      rules of procedure and evidence adopted by the Utah Supreme Court upon a two-thirds vote of
             19      all members of both houses of the Legislature:
             20          Section 1. Rule 68 , Utah Rules of Civil Procedure is amended to read:
             21           Rule 68. Offer of Judgment.
             22          (a) Tender of money before suit. When in an action for the recovery of money only, the
             23      defendant alleges in his answer that before the commencement of the action he tendered to the
             24      plaintiff the full amount to which the plaintiff was entitled, and thereupon deposits in court for
             25      the plaintiff the amount so tendered, and the allegation is found to be true, the plaintiff cannot
             26      recover costs, but must pay costs to the defendant.
             27          (b) Offer before trial. At any time more than 10 days before the trial begins, a party



             28      defending against a claim may serve upon the adverse party an offer to allow judgment to be
             29      taken against him for the money or property or to the effect specified in his offer, with costs
             30      and attorneys' fees then accrued. If within 10 days after the service of the offer the adverse
             31      party serves written notice that the offer is accepted, either party may then file the offer and
             32      notice of acceptance together with proof of service thereof and thereupon judgment shall be
             33      entered. An offer not accepted shall be deemed withdrawn and evidence [thereof] of the offer
             34      and withdrawal is not admissible except in a proceeding to determine costs and attorneys' fees.
             35      [If the judgment finally obtained by the offeree is not more favorable than the offer, the offeree
             36      must pay the costs incurred after the making of the offer.] The fact that an offer is made but not
             37      accepted does not preclude a subsequent offer. If the adjusted award finally obtained by the
             38      offeree is not more favorable than the offer:
             39          (i) the offeree must pay those costs and attorneys' fees of the offeror incurred after the
             40      making of the offer;
             41          (ii) the offeror must pay those costs and, if allowed by statute or contract, attorneys'
             42      fees of the offeree incurred before the making of the offer; and
             43          (iii) the offeror may not be liable to the offeree for costs and attorneys' fees incurred
             44      after the making of the offer.
             45          After a comparison of the offer and the adjusted award, in appropriate cases, the court
             46      shall order an amount which either the offeror or the offeree must ultimately pay separate and
             47      apart from the amount owed under the verdict. A total judgment shall be entered taking into
             48      account both the verdict and the applicable costs and attorneys' fees.
             49          (c) Adjusted award. Any costs and attorneys' fees awarded against the offeree shall be
             50      based upon a comparison of the offer under this rule and the adjusted award. The adjusted
             51      award is defined as the verdict in addition to the offeree's costs and attorneys' fees incurred
             52      before service of the offer of judgment. Provided, in contingent fee cases where attorneys' fees
             53      are awardable, the court shall pro rate the offeree's attorneys' fees to determine the amount
             54      incurred before the offer of judgment in reaching the adjusted award.
             55          Section 2. Effective date.
             56          As provided in Utah Constitution Article VIII, Section 4, this act takes effect upon
             57      approval by a constitutional two-thirds vote of all members elected to each house.





Legislative Review Note
    as of 12-5-02 5:42 PM


A limited legal review of this legislation raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel


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