How does Georgia’s offer of settlement statute shift costs and fees?

· 2 min read

Georgia departs from the usual rule that each side pays its own lawyer by letting a formal settlement offer trigger fee-shifting if the other party rejects it and then does worse at trial. O.C.G.A. § 9-11-68 creates this mechanism for tort cases, turning a rejected reasonable offer into exposure for the offering side’s attorney fees and litigation expenses.

The basic trade

The statute lets a party serve a written offer to settle and, if it is rejected, compare the offer to the final judgment. When the gap between them is wide enough in the offering party’s favor, the court can order the rejecting side to pay the offering side’s fees and expenses incurred from the date the offer was rejected through entry of judgment. The idea is to discourage parties from spurning reasonable offers and dragging out litigation that a fair settlement would have ended.

The two triggers

The thresholds differ depending on who made the offer:

  • If a defendant’s offer is rejected and the plaintiff’s final judgment is a defense verdict or is less than 75% of that offer, the defendant may recover fees and expenses from the date of rejection forward.
  • If a plaintiff’s offer is rejected and the plaintiff recovers a final judgment greater than 125% of that offer, the plaintiff may recover fees and expenses from the date of rejection forward.

In both situations the recovery covers reasonable attorney fees and litigation costs accruing after the offer was turned down, not the entire case from day one.

Conditions and limits

The statute is not a blank check. The fee award covers the post-rejection period, the court determines what is reasonable, and the result must actually clear the relevant percentage threshold. The offer must meet the statute’s formal requirements to count, and a court evaluating a request looks at whether the offer was made in good faith. Where an appeal follows, the court generally addresses the fee award only after the judgment is affirmed on remittitur.

The bottom line

Georgia’s offer-of-settlement statute shifts attorney fees and expenses when a party rejects a formal offer and the outcome falls on the wrong side of a percentage line: below 75% of a defendant’s offer, or above 125% of a plaintiff’s offer. By attaching a real cost to rejecting a reasonable proposal, the rule pushes both sides toward serious settlement evaluation well before trial.

This article is for general educational and informational purposes only and is not legal advice. It does not create an attorney-client relationship, and Georgia law may change. For advice about a specific situation, consult a licensed Georgia personal injury attorney.

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