Statutory Offer Of Settlement Definition and Legal Meaning
On this page, you'll find the legal definition and meaning of Statutory Offer Of Settlement, written in plain English, along with examples of how it is used.
What is Statutory Offer Of Settlement?
(n) Statutory offer of settlement is the written offer made by the defendant to the plaintiff offering a compensation by way of money or otherwise settling, an amount as consideration for satisfaction of his claim and withdrawing the suit. Such offers which need to be filed with the court, will close all claim of the plaintiff is accepted by him
History and Meaning of Statutory Offer Of Settlement
A statutory offer of settlement is a written offer made by the defendant to the plaintiff to settle a dispute. The offer includes a compensation amount, either in cash or in kind, to satisfy the plaintiff's claim and withdraw the lawsuit. These offers are meant to encourage settlement and avoid a trial. If the plaintiff accepts the offer, the claim is considered settled, and the case is closed.
The statutory offer of settlement is a relatively new concept in legal practice. The first state to adopt such a statute was California in 1987. It was later adopted by other states and is now included in the rules of civil procedure in many jurisdictions. The main purpose of the statute is to reduce the burden on the court system, as well as to provide defendants with some protection against the uncertainty of trial outcomes.
Examples of Statutory Offer Of Settlement
A driver is involved in a car accident and is sued by the other driver for damages. The defendant makes a statutory offer of settlement of $10,000 to the plaintiff, who accepts the offer, and the case is closed.
A contractor is sued by a client for breach of contract. The defendant makes a statutory offer of settlement by offering to finish the project, which the plaintiff accepts, and the case is closed.
A landlord is sued by a tenant for refusing to make repairs. The defendant makes a statutory offer of settlement by agreeing to fix the property and pay the tenant $500 in damages, which the plaintiff accepts, and the case is closed.
Legal Terms Similar to Statutory Offer Of Settlement
Settlement Agreement - a written agreement between parties to a lawsuit, resolving the dispute and avoiding a trial.
Negotiation - the process of discussing and trying to reach an agreement between parties to a dispute.
Mediation - a process of resolving disputes with the help of a neutral third party who facilitates a settlement between the parties.
Arbitration - a process of resolving disputes outside of court, with a third-party or panel making a binding decision.
Litigation - a legal dispute process that takes place in court, with each party represented by an attorney.