Proposals for Settlement & Offers of Judgment

Florida’s Little-Known Loser Pays Law
(Except by Experienced Personal Injury Attorneys)

In Florida, the legislature enacted a statute many years ago under the guise of ending “frivolous” litigation. It is called the “Proposal for Settlement” (PFS) statute, Fla. Stat. § 768.79 .It is also known as the Offer of Judgment (OJ) or Demand for Judgment statute.

It can be argued that the law was designed to protect, or at least give an unfair advantage, to insurance companies and large corporations sued by consumers who have been victimized by the negligence of others. 

In sum, the PFS statute allows either party – but really is only powerful when used usually a defendant since insurance companies and large corporations (which have unlimited resources) against an injury victim -- in a lawsuit to make a formal, written offer to settle the case before trial. 

If the offer is not accepted within 30 days from the date it is sent, then if the injury victim loses at trial, or fails to secure a net verdict and judgment of more than 75% of that offer, then the statute makes the victim pay the at-fault defendant’s attorneys' fees and costs accruing from the date the PFS was sent. Hence, the loser pays. 

Under the PFS, you do not even have to be the loser at trial. Instead, the injury victim could win a favorable verdict at trial, but because of reductions – known as set offs – for any health insurance or wage payments or other applicable benefits, which are subtracted from the gross verdict, the net verdict may not be more than 75% of the PFS offer. The successful consumer in this instance still could be liable for the at-fault defendant’s attorneys fees and costs from the date the PFS was mailed. 

In practice, I have seen the PFS used as a hammer to coerce innocent consumers to settle their case for less than the case’s value. Why? Because the consumer now is exposed a very real and substantial risk: an adverse judgment against him/her which can ruin credit, prevent the purchase or sale of real estate, etc. 

While the consumer or injury victim can serve his/her own PFS to the defendant, the PFS statute says that you must then surpass – or “beat” your own PFS by more than 125%. For example, if you served a PFS for $100,000 to the negligent defendant, then you have to secure a net verdict and judgment (e.g. after any reductions or offsets), of at least $125,001. 

Additionally, while the defendant may have to pay your attorneys fees and costs from the date the PFS was sent, the fact is the insurance company or large corporation defending the case will do so and the individual defendant faces no real additional exposure.

Experienced Personal Injury Lawyers

Were you involved in an auto accident, car crash, slip and fall, truck accident, or serious motorcycle accident?

Did this car accident cause your own or loved one’s serious injuries? If you have suffered severe, permanent, injuries and wage loss as the result of an auto accident, truck crash, or motorcycle accident, then please contact and experienced accident lawyer in our personal injury law firm.

We willpromptly investigate and evaluate your claim. If your injuries are indeed serious and permanent, and you need compensation to make up for your physical and mental pain and suffering, loss of enjoyment of life, medical bills (past and future), wage loss (past and future), rehabilitation costs, then we will work hard, promptly, and ethically, to help you recover your damages.

The last thing an injury victim needs to worry about is hospital bills, doctor bills, lost work and living expenses. The costs of life, mortgage, rent, electric and other bills do not stop even though parts of your life did. Let us review your situation.