The offer of judgment rule is designed to promote the early settlement of disputes. It does so by discouraging the rejection of reasonable settlement offers, by shifting litigation costs and attorney fees to parties who refuse reasonable offers to settle.

New Jersey’s version of the offer of judgment Rule 4:58-1 et seq is loosely modeled on the federal offer of judgment rule (F.R.C.P. 68), but differs in several key aspects, most notably that only defendants can make offers of judgment under the federal rule, and the federal rule does not account for percentages of recovery in determining allowance entitlement status.

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