What is an Offer to Compromise?
An offer to compromise is a procedural device that exists in many jurisdictions to encourage settlement. It is usually a written offer to allow judgment to be taken against a party in a specified amount with costs then accrued. If the offer is accepted judgment is entered in that amount and the case is deemed settled as to that party and/or claim. If the claimant does not accept the offer and fails to obtain a more favorable judgment, he or she is barred from recovering costs and must pay costs from that point forward as to the claim(s) that would have been resolved by the compromise.