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Risks of Rejecting Without Prejudice Offers

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Questions and Answers

What is a potential consequence for the plaintiff who refuses a without prejudice offer?

The plaintiff must accept the offer if it is moderate.
The plaintiff is guaranteed to win the trial regardless of the outcome.
The plaintiff may recover all legal costs incurred post-offer.
The plaintiff risks forfeiting the right to recover certain costs. (correct)

What happens if the court issues a judgment in favor of the plaintiff, but the awarded amount is less than the defendant's offer?

The court automatically awards double the tender amount.
The plaintiff receives full compensation for the trial costs.
The plaintiff is penalized for not accepting the earlier offer. (correct)
The defendant is liable to pay additional costs.

What rule governs the rejection of a defendant's without prejudice offer in this context?

Rule 32
Rule 36
Rule 34 (correct)
Rule 30

If the plaintiff proceeds to trial after rejecting a without prejudice offer, what can the court do regarding legal costs?

<p>The court has the discretion to deny recovery of legal costs post-offer. (C)</p> Signup and view all the answers

What is the primary purpose of a 'without prejudice' offer in legal proceedings?

<p>To facilitate settlement discussions without admitting liability. (C)</p> Signup and view all the answers

Flashcards

Cost Recovery Risk

A plaintiff who rejects a without prejudice offer risks losing the right to recover legal costs incurred after the offer was made.

What is a Without Prejudice Offer?

A without prejudice offer is a formal offer by the defendant to settle a case before trial. This offer is made to prevent the case from proceeding further.

Penalties for Rejecting a Without Prejudice Offer

If a plaintiff rejects a without prejudice offer and the case proceeds to trial, the court may decide to penalize the plaintiff for not accepting the offer, even if the plaintiff wins the case.

Winning Less Than the Offer

If a plaintiff wins the case but the amount awarded is less than the defendant's without prejudice offer, the court might penalize the plaintiff for not accepting the offer.

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Losing Legal Costs After Rejecting Offer

If the court decides to penalize a plaintiff for rejecting a without prejudice offer, the court may refuse to award the plaintiff any of the legal costs incurred after the offer was made.

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Study Notes

Risks of Rejecting a Without Prejudice Offer

Rejecting a without prejudice offer from a defendant could result in the plaintiff losing some or all of their costs.
If the plaintiff declines the offer and the case goes to trial, and the court rules in the plaintiff's favor but for less than the previously offered amount, the plaintiff might face penalties.
These penalties often include the court refusing to award the plaintiff any legal costs incurred after the offer was made.
The defendant's "without prejudice" offer/tender can be critical in rule 34 proceedings.

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