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First Substitute H.J.R. 3

Representative John Dougall proposes the following substitute bill:


             1     
RESOLUTION ON OFFERS FOR

             2     
SETTLEMENT OF CASES

             3     
2003 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Sponsor: John Dougall

             6      LaVar Christensen
Greg J. Curtis
Stephen H. Urquhart


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


             26          (b) Offer before trial. At any time more than 10 days before the trial begins, a party
             27      defending against a claim may serve upon the adverse party an offer to allow judgment to be
             28      taken against him for the money or property or to the effect specified in his offer, [with costs
             29      then accrued] which offer of judgment shall be considered to include all claims recoverable,
             30      including any costs or reasonable attorneys' fees awardable up to the date of the offer, unless
             31      otherwise specified. If within 10 days after the service of the offer the adverse party serves
             32      written notice that the offer is accepted, either party may then file the offer and notice of
             33      acceptance together with proof of service [thereof] and [thereupon] judgment shall be entered
             34      accordingly. An offer not accepted shall be [deemed] considered withdrawn and evidence
             35      [thereof] of the offer and withdrawal is not admissible except in a proceeding to determine
             36      costs . If the [judgment] adjusted award finally obtained by the offeree is not more favorable
             37      than the offer, the offeree [must] shall pay the costs incurred after the making of the offer, and
             38      in cases where reasonable attorneys' fees may be awarded by statute or contract to the offeree,
             39      the offeror may not be liable for reasonable attorneys' fees incurred by the offeree after the
             40      making of the offer. The fact that an offer is made but not accepted does not preclude a
             41      subsequent offer.
             42          (c) Adjusted award. The adjusted award is defined as the verdict with the addition of
             43      the offeree's costs incurred before service of the offer of judgment and, in cases where
             44      reasonable attorneys' fees may be awarded by statute or contract, reasonable attorneys' fees
             45      incurred before service of the offer of judgment. In contingent fee cases where reasonable
             46      attorneys' fees are awardable, the court shall pro rate the offeree's reasonable attorneys' fees on
             47      a daily basis to determine the amount incurred before the offer of judgment in reaching the
             48      adjusted award.
             49          Section 2. Effective date.
             50          As provided in Utah Constitution Article VIII, Section 4, this act takes effect upon
             51      approval by a constitutional two-thirds vote of all members elected to each house.


*HJR003S1*

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