Many procedural systems allow a party to serve a formal offer of judgment. Refuse it, then fail to obtain a more favourable result, and the refusing party bears costs incurred after the offer.
Mechanics vary. Some rules permit only defendants to serve; others are mutual. Some shift only costs; others shift attorney fees, which changes the pressure entirely. Some make the offer irrevocable for a fixed period. Read the specific rule, because the differences are decisive.
Drafting precision is essential. An offer must be clear as to whether it includes costs and fees accrued to date, whether it covers all claims and all parties, and what happens to counterclaims. Ambiguity is construed against the offeror, and imprecise offers routinely fail to trigger the consequences intended.
Comparison at the end. Whether the claimant did better is measured against the judgment as defined by the rule — which may or may not include interest and pre-offer costs. That arithmetic should be modelled before serving.
Inadmissibility. An unaccepted offer is generally inadmissible except in proceedings to determine costs.
Strategic value. Beyond the cost risk, a serious early offer forces the other side’s counsel to give the client a written evaluation. That conversation often moves a case more than the number itself.