A proposal for settlement is a formal written offer to end a Florida civil lawsuit. If the other side rejects it and the final judgment is far enough off, the side that rejected it may have to pay the other side’s attorney’s fees. This guide explains the proposal for settlement Florida business lawsuit rules in plain terms, using contract, shareholder and construction examples. It is general information, not legal advice, and every case turns on its own facts.
A Proposal for Settlement Is a Written Offer Under Section 768.79
A proposal for settlement is a written offer made under Fla. Stat. § 768.79. It is more than a settlement conversation. The statute covers civil actions for damages filed in Florida courts.
Either side can use it. A defendant makes an offer of judgment. A plaintiff makes a demand for judgment. The same basic idea applies to both: put a number on the table and see whether it is accepted.
The fee rules attach only when an offer meets the statute’s requirements. A phone call or a casual email does not carry those rules. An offer that is not accepted also does not block a later offer. A rejected offer does not end settlement talks.
If the other side has sent you a written settlement offer in a business dispute, you don't have to weigh its fee risk alone. Our team can talk it through with you. Talk it through with our team — we can walk you through how a situation like yours is usually handled and what your options are.
What an Offer Must Contain and How Long the Other Side Has
Under the proposal for settlement Florida business lawsuit rules, an offer must be in writing.
The other side has 30 days to respond. An offer is accepted by filing a written acceptance with the court within 30 days after service. Once both the offer and the acceptance are filed, the court can enforce the settlement.
The party that made the offer can withdraw it. The withdrawal must be in writing and served before a written acceptance is filed. Once withdrawn, the offer is void.
Keep proof of how and when the offer was served on each party. State one clear total amount, as the statute requires. Name the statute in the offer itself.
How the 25 Percent Threshold Shifts Attorney’s Fees
The fee shift happens when the judgment lands at least 25 percent away from the offer, in the right direction. The direction depends on who made the offer.
For a defendant’s offer that the plaintiff does not accept within 30 days, if the judgment is one of no liability or the plaintiff’s judgment is at least 25 percent less than the offer, the defendant may recover reasonable costs and attorney’s fees from the date of filing of the offer. The court sets those fees off against the award. If the fees exceed the judgment, the court can enter judgment for the defendant for the difference.
For a plaintiff’s demand, the test flips. If the defendant does not accept the plaintiff’s demand within 30 days and the judgment is at least 25 percent greater than the demand, the plaintiff may recover reasonable costs and attorney’s fees from the date of the demand.
Here is a hypothetical. A subcontractor sues a general contractor for $150,000 in unpaid work. The contractor offers $100,000 to settle. The court enters judgment for the subcontractor at $70,000. That is 30 percent below the offer, past the 25 percent line of $75,000. The contractor may seek its reasonable fees from the date of the offer.
Fee amounts follow guidelines set by the Florida Supreme Court, and investigative expenses can count.
Rejecting an Offer Creates Fee Risk Only If the Test Is Met
For a proposal for settlement Florida business lawsuit, rejecting an offer does not, by itself, make anyone pay the other side’s fees.
The party seeking fees must file a motion within 30 days after the judgment or dismissal. The court then decides the amount. It looks at several factors, including the number and nature of offers made. It can also find that an offer was not made in good faith and disallow fees.
Shareholder and partnership disputes often involve several parties and claims. A written offer should say clearly which claims and parties it covers. Who is named also matters. Under Wurtzebach v. Flooring Depot FTL, Inc., a corporate veil is pierced only on proof of improper conduct, such as using the company to mislead creditors or defraud them. In a general partnership, partners are responsible for partnership debts, according to the Florida Division of Corporations.
Contract claims also need clear damages math. For how lost profits affect that math, see breach of contract lost profits.
A Proposal Differs From a Regular Settlement Letter
A regular settlement letter does not carry the statute’s fee rules. Only an offer that meets Section 768.79 does.
Evidence rules also differ. Under Fla. Stat. § 90.408, an offer to compromise a disputed claim is inadmissible to prove liability or the claim’s value. Fla. Stat. § 768.79(1) provides that a rejected proposal is not admissible later, except to pursue its fee penalties.
Proposals sit alongside mediation and direct negotiation. They do not replace those steps. Many parties talk first and serve a formal proposal once the numbers are clearer.
Construction Lien and Contract Disputes Often Reach a Written Offer
Contractor, subcontractor and lien disputes often reach a point where one side puts a written number on the table. Lien claims involve money owed for work and materials. The amount in dispute often drives the offer. A written offer in these cases should state one total amount and cite Section 768.79.
Some parties also look at bonding off a construction lien as part of settlement planning. See bonding off a construction lien for that process. For lien foreclosure claims, see construction lien foreclosure.
Contract disputes can involve a claim and a counterclaim. Each side should read the offer the same way. Describe the claims it resolves in plain words.
Not sure what your next step is?
Talk it through with our team — we can walk you through how a situation like yours is usually handled and what your options are.
Who Handles These Matters at Ayala Law PA
Ayala Law PA focuses on business litigation in Florida courts and arbitration. The practice covers commercial litigation, contract disputes, shareholder disputes, construction litigation, real estate litigation and international trade litigation.
Eduardo A. Maura is the lawyer responsible for this page. Our team includes assistants and office staff who support the firm’s matters.
The firm’s office is at 1646 W Snow Ave in Tampa. The firm serves businesses in Tampa, Hillsborough County, Brandon, Riverview, Plant City, Temple Terrace and the Tampa Bay area. For the full range of services, see business litigation.
Talk Through a Proposal Deadline With Our Team
Our team can review a written offer with you before the 30-day response window closes.
Common Questions
Is a proposal for settlement the same as a settlement letter?
No. A statutory proposal must meet Section 768.79’s rules to carry fee consequences.
How long does the other side have to respond?
The statute gives 30 days after service to file a written acceptance.
Can an offer be withdrawn?
Yes, in writing, if the withdrawal is served before a written acceptance is filed.
Does rejecting an offer mean I owe fees?
Not automatically. Florida’s offer of judgment statute, Fla. Stat. § 768.79, sets out how a final judgment is compared with a settlement offer when a court decides whether attorney’s fees apply.
Can a court deny fees?
Yes. If a party is entitled to costs and fees pursuant to this section, the court may, in its discretion, determine that an offer was not made in good faith and disallow those costs and attorney’s fees.
If you are weighing a written offer in a business dispute, call (305) 570-2208 or use the contact page. Bring the offer letter, the complaint and the trial calendar. Fee terms for a case evaluation are explained when you contact the office.
