Rule 4:58-1. Time and Manner of Making and Accepting Offer
(a) Except in a matrimonial action or an action adjudicated in the Special Civil Part, any party may, at any time more than 20 days before the actual trial date, serve on any adverse party, without prejudice, and file with the court, an offer to take a monetary judgment in the offeror's favor, or as the case may be, to allow judgment to be taken against the offeror, for a sum stated therein (including costs). The offer shall not be effective unless, at the time the offer is extended, the relief sought by the parties in the case is exclusively monetary in nature. Any offer made under this rule shall not be withdrawn except as provided herein.(b)If at any time on or prior to the 10th day before the actual trial date the offer is accepted, the offeree shall serve on the offeror and file a notice of acceptance with the court. The making of a further offer shall constitute a withdrawal of all previous offers made by that party. An offer shall not, however, be deemed withdrawn upon the making of a counter-offer by an adverse party but shall remain open until accepted or withdrawn as is herein provided. If the offer is not accepted on or prior to the 10th day before the actual trial date or within 90 days of its service, whichever period first expires, it shall be deemed withdrawn and evidence thereof shall not be admissible except in a proceeding after the trial to fix costs, interest, and attorney's fee. The fact that an offer is not accepted does not preclude a further offer within the time herein prescribed in the same or another amount or as specified therein.(c) Except as otherwise provided under this Rule, prior to the service or filing of a notice of acceptance, an offeror may withdraw an offer by serving on the offeree and filing a notice of withdrawal with the court. An offer voluntarily withdrawn by the offeror shall not be subject to this Rule.Rule 4:58-2. Consequences of Non-Acceptance of Claimant's Offer
(a) In cases other than actions against an automobile insurance carrier for uninsured motorist/underinsured motorist benefits, if the offer of a claimant is not accepted and the claimant obtains a money judgment, in an amount that is 120% of the offer or more, excluding allowable prejudgment interest and counsel fees, the claimant shall be allowed, in addition to costs of suit: (1) all reasonable litigation expenses incurred following non-acceptance; (2) prejudgment interest of eight percent on the amount of any money recovery from the date of the offer or the date of completion of discovery, whichever is later, but only to the extent that such prejudgment interest exceeds the interest prescribed by R. 4:42-11(b), which also shall be allowable; and (3) a reasonable attorney's fee for such subsequent services as are compelled by the non-acceptance.(b) In cases involving actions against automobile carriers for uninsured/underinsured motorist benefits, if the offer of a claimant is not accepted and the claimant obtains a monetary award by jury or non-jury verdict, (adjusted to reflect comparative negligence, if any) in an amount that is 120% of the offer or more, excluding allowable prejudgment interest and counsel fees, the claimant shall be allowed, in addition to costs of suit: (1) all reasonable litigation expenses incurred following non-acceptance; (2) prejudgment interest of eight percent on the amount of any money recovery from the date of the offer or the date of completion of discovery, whichever is later, but only to the extent that such prejudgment interest exceeds the interest prescribed by R. 4:42-11(b), which also shall be allowable; and (3) a reasonable attorney's fee for such subsequent services as are compelled by the non-acceptance.(c) No allowances shall be granted pursuant to paragraphs (a) or (b) if they would impose undue hardship or otherwise result in unfairness to the offeree. If undue hardship can be eliminated by reducing the allowance to a lower sum, the court shall reduce the amount of the allowance accordingly. The burden is on the offeree to establish the offeree's claim of undue hardship or lack of fairness.Rule 4:58-3. Consequences of Non-Acceptance of Offer of Party Not a Claimant
(a) If the offer of a party other than the claimant is not accepted, and the claimant obtains a judgment, or in the case of a claim for uninsured/underinsured motorist benefits, a verdict that is favorable to the offeror as defined by this rule, the offeror shall be allowed, in addition to costs of suit, the allowances as prescribed by R. 4:58-2.(b) A favorable determination qualifying for allowances under this rule is a money judgment or in the case of a claim for uninsured/underinsured motorist benefits, a verdict in an amount, excluding allowable prejudgment interest and counsel fees, that is 80% of the offer or less.(c) No allowances shall be granted if (1) the claimant's claim is dismissed, (2) a no-cause verdict is returned, (3) only nominal damages are awarded, (4) a fee allowance would conflict with the policies underlying a fee-shifting statute or rule of court, or (5) an allowance would impose undue hardship or otherwise result in unfairness to the offeree. If, however, undue hardship can be eliminated by reducing the allowance to a lower sum, the court shall reduce the amount of the allowance accordingly. The burden is on the offeree to establish the offeree's claim of undue hardship or lack of fairness.Rule 4:58-4. Multiple Claims; Multiple Parties
(a)Per Quod and Derivative Plaintiffs. If a party joins as plaintiff for the purpose of asserting a per quod claim or if one or more plaintiffs seek a claim that is derivative of the claim of another plaintiff, the claimants may make a single unallocated offer. Otherwise, multiple claimants may file and serve any offer individually.(b)Multiple Defendants. Where there are multiple defendants, offers shall be made as follows: (1) Global Offer. Claimant may make a global offer to multiple defendants. If claimant obtains a money judgment in an amount that is 120% of the global offer or more, excluding allowable prejudgment interest and counsel fees, the claimant shall be allowed, in addition to costs of suit, those allowances as prescribed in R. 4:58-2(a). In such case, the assessment of costs and fees shall be applied as follows: (A) No Response. When there is a rejection of, or no response to, plaintiffs global offer, each defendant will be jointly and severally responsible for the entire allocation set forth pursuant to R. 4:58.(B) Global Counteroffer. When there is a global counteroffer from defendants and plaintiff obtains a favorable determination qualifying for allowances under this rule, each defendant will be responsible for the portion of expenses and fees equal to the percentage for which such defendant was individually adjudicated responsible. Subject to R. 4:58-3(c), in the event the defendants obtain a global favorable determination, plaintiff will be responsible for the expenses and fees payable pro rata to each defendant in accordance with that defendant's proportionate share of the offer.(C) Counteroffer to Claimant's Global Offer by One Defendant. When a single defendant makes a counteroffer to a global offer, it shall be treated as a counteroffer limited to that defendant's share. i. If that defendant's final adjudicated share is less than 120% of their individual counteroffer, that defendant shall not be assessed any allowances under the rule and the remaining non-responsive defendants will remain jointly and severally responsible for the total allowances under the rule.ii. If that defendant's final adjudication is greater than 120% of their counteroffer, that defendant should be responsible for the allowances equal to their percentage of adjudicated responsibility and the non-responsive defendants shall be jointly and severally liable for the balance of the allowances to which claimant is entitled under this rule.(D) Counteroffers by Multiple but not All Defendants. When multiple defendants individually make a counteroffer representing only their individual share of responsibility, each defendant shall indicate that. i. If any responsive individual defendant's final adjudicated share is less than 120% of their individual counteroffer, that defendant shall not be assessed any allowances under the rule and the remaining non-responsive defendants will remain jointly and severally responsible for the total allowances under the rule.ii. If any responsive individual defendant's final adjudication is greater than 120% of their counteroffer, that defendant shall be responsible for the allowances equal to their percentage of adjudicated responsibility and the non-responsive defendants shall be joint and severally liable for the balance of the allowances to which claimant is entitled under this rule.(E) All Defendants Respond Individually. When all defendants counteroffer individually to a global offer, the individual responses should be combined and treated as a global counteroffer. Each defendant who counteroffered an amount where 120% of that amount is determined to be more than their adjudicated responsibility of the monetary judgment will not be responsible for any allowances. Any defendant who did not obtain a favorable determination will be assessed 100% of allowances. The allowances will be assessed based on that defendant's adjudicated percentage share of responsibility of the allowances and the combination of the remaining defendants must equal 100% of the allowances. However, if each defendant has individually offered an amount where 120% of that amount is determined to be more than that defendant's adjudicated responsibility of the monetary judgment, but 120% of all of the defendants' combined counteroffer amount is less than the claimant's global offer, then each defendant will be responsible for the portion of expenses and fees equal to the percentage that the defendant was adjudicated responsible.
(2) Defendants Against Whom No Joint and Several Judgment Is Sought. If there are multiple defendants and there are defendants against whom no joint and several judgment is sought, claimant may file and serve individual offers on those defendants against whom no joint and several judgment is sought as prescribed by this rule. Similarly, those defendants against whom no joint and several judgment is sought may file and serve individual offers as prescribed by R. 4:58-1. If such offeror is successhil as prescribed by R. 4:58-2 or -3, such claimant or defendant shall be entitled to the allowances as prescribed by R. 4:58-2 or -3 as the case may be and subject to the provisions of this rule.(3) Individual Offer. If there are multiple defendants, individual offers of judgment may be filed and served as prescribed by R. 4:58-1. If such offeror is successful as prescribed by R. 4:58-2 or -3, such claimant or defendant shall be entitled to the allowances as prescribed by R. 4:58-2 or -3, as the case may be.Rule 4:58-5. Application for Fee; Limitations
If an action is required to be retried, a party who made a rejected offer of judgment in the original trial may, within 10 days after the fixing of the first date for the retrial, serve the actual notice on the offeree that the offer then made is renewed and, if the offeror prevails, the renewed offer will be effective as of the date of the original offer. If the offeror elects not to so renew the original offer, a new offer may be made under this rule, which will be effective as of the date of the new offer.
Rule 4:58-6. Application for Fee; Limitations
Applications for allowances pursuant to R. 4:58 shall be made in accordance with the provisions of R. 4:42-9(b) within 20 days after entry of final judgment. A party who is awarded counsel fees, costs, or interest as a prevailing party pursuant to a fee-shifting statute, rule of court, contractual provision, or decisional law shall not be allowed to recover duplicative fees, costs, or interest under this rule.
Rule 4:58-7. Acceptance of Offer Not Deemed a Judgment: Payment of Accepted-Offer.
(a) Except as provided in paragraph (b), acceptance and payment of an offer under R. 4:58 will not be deemed a judgment against the offeree and will not require the filing of a Warrant of Satisfaction.(b) Absent leave of court, or the agreement of the offeror and offeree, full payment of the accepted offer shall be made within 30 days after the date of service of notice of acceptance. Within 7 days after full payment, the offeror and the offeree shall file a Stipulation of Dismissal with Prejudice as to all claims that are the subject of the accepted offer. If full payment is not made within 30 days, then the party entitled to receive payment may (1) withdraw its offer or acceptance, or (2) apply for relief consistent with R. 1:6-2(a) for entry of final judgment. The court shall award reasonable expenses, including reasonable fees and costs for the application for final judgment, unless the court finds that the failure to make payment was substantially justified or that other circumstances make an award of expenses unjust.Last amended effective 9/1/2016.Note: Source-R.A. 4:73. Amended July 7,1971 to be effective 9/13/1971; amended July 13, 1994 to be effective 9/1/1994; amended June 28, 1996 to be effective 9/1/1996; amended July 10,1998 to be effective 9/1/1998; text allocated to paragraphs (a) and (b), and paragraphs (a) and (b) amended July 27, 2006 to be effective 9/1/2006; paragraph (a) amended and new paragraph (c) adopted August 5, 2022 to be effective 9/1/2022.Note: Amended July 7, 1971 to be effective 9/13/1971; amended July 14, 1972 to be effective 9/5/1972; amended July 17, 1975 to be effective 9/8/1975; amended July 13, 1994 to be effective 9/1/1994; amended July 5, 2000 to be effective 9/5/2000; amended July 28, 2004 to be effective 9/1/2004; text amended and designated as paragraph (a), new paragraph (b) adopted July 27, 2006 to be effective 9/1/2006; paragraph (a) amended July 23, 2010 to be effective 9/1/2010; paragraph (a) amended, new paragraph (b) added, and previous paragraph (b) redesignated as paragraph (c) August 1, 2016 to be effective 9/1/2016; paragraph (c) amended August 5, 2022 to be effective 9/1/2022.Note: Source - R.R. 4:73; amended July 13, 1994 to be effective 9/1/1994; amended July 5, 2000 to be effective 9/5/2000; amended July 28, 2004 to be effective 9/1/2004; text allocated into paragraphs (a), (b), (c), and paragraphs (a), (b), (c) amended July 27, 2006 to be effective 9/1/2006; paragraphs (a) and (b) amended August 1, 2016 to be effective 9/1/2016; paragraphs (a), (b), (c) amended August 5, 2022 to be effective 9/1/2022.Note: Adopted July 5, 2000 to be effective 9/5/2000; caption amended, former text redesignated as paragraph (b) and amended, and new paragraphs (a) and (c) adopted July 28, 2004 to be effective 9/1/2004; paragraph (a) caption and text amended, and paragraph (b) amended August 5, 2022 to be effective 9/1/2022.Note: New Rule 4:58-7 adopted August 5, 2022 to be effective 9/1/2022.