An offer of compromise is a settlement offer made by one of the parties involved in a court case.
If the compromise agreement is rejected, the party who refused the settlement has to pay for all the expenses in the court case if he or she loses the trial. An insurance settlement offer is normally proposed, aiming to avoid an exhaustive trial. The receiving party will be burdened with the decision of either accepting a reasonable settlement or risk additional expenses if the decision does not favor them.
Making an Offer of Compromise
In case of a court trial, either the defendant or the plaintiff can tender a written offer of compromise. The compromise offers something valuable to resolve the case without having to go through a trial. It may come in the form of a monetary offering, compensation for expenses incurred, or any other items valuable to both parties. If the offer is refused or not accepted by the set deadline, the party receiving the offer risks getting a lower compensation at the end of the trial. He or she may even lose the case altogether. If the case is lost or a lower compensation is awarded by the court, the party that refused the compromise will pay for the court expenses of both parties. Even if the party who refused the offer wins the case, he or she still has to pay the court expenses of the other party.
Court Expense Recovery
The laws of the state, conditions associated with the offer, and the discretion of the court determine the recovery of court expenses. Among the expenses associated with the trial are expenses mandated by federal and state laws along with expert witness costs post-offer. The court determines the amount awarded to the party that provided the pre-offer costs and interest associated with these costs. According to St. Louis car accident attorneys, damages awarded to the plaintiffs in personal injury cases do not follow a set standard. The amount is determined by a reasonable jury before the expenses and risks associated with the lawsuit are added to it.
Getting Legal Assistance in Evaluating an Offer of Compromise
It is essential to weigh the advantages and disadvantages of the lawsuit when an offer of compromise is tendered. The plaintiff can also discuss the issue with an experienced St. Louis car accident lawyer. The plaintiff should keep in mind that an out-of-court settlement will save both time and money. The plaintiff and the lawyer should decide whether the settlement offer is reasonable or not. After taking all risks and possible expenses into consideration, a reasonable compromise should be accepted to avoid additional losses in the future.
If you have been involved in a car accident, and have decided to go to court to seek damages then chances are that the other party will make an offer of compromise to settle the case. Before deciding whether to accept the compromise, it would be necessary to take into account the advantages and disadvantages of accepting an out-of-court settlement. Consult with The Hoffmann Law Firm, L.L.C. at (314) 361-4242 for legal guidance.
