House Study Bill 276 



                                       HOUSE FILE       
                                       BY  (PROPOSED COMMITTEE ON
                                            JUDICIARY BILL BY
                                            CHAIRPERSON SWAIM)


    Passed House,  Date               Passed Senate, Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act relating to offers of settlement in a civil case after a
  2    lawsuit has been filed.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 2644HC 83
  5 rh/rj/8

PAG LIN



  1  1    Section 1.  Section 677.4, Code 2009, is amended to read as
  1  2 follows:
  1  3    677.4  OFFER TO CONFESS JUDGMENT AFTER ACTION BROUGHT.
  1  4    After an action for the recovery of money is brought, the
  1  5 defendant or the plaintiff may offer in court to confess
  1  6 judgment for part of the amount claimed, or part of the causes
  1  7 involved in the action.
  1  8    Sec. 2.  Section 677.5, Code 2009, is amended to read as
  1  9 follows:
  1 10    677.5  NONACCEPTANCE == COSTS.
  1 11    1.  If the plaintiff, being present, refuses to accept
  1 12 judgment for such sum in full of the plaintiff's demands in
  1 13 the action, or, having had three days' notice that the offer
  1 14 would be made, of its amount, and of the time of making it,
  1 15 fails to attend, and on the trial does not recover more than
  1 16 was offered to be confessed, the plaintiff shall pay the costs
  1 17 of the defendant incurred after the offer.
  1 18    2.  If the defendant, being present, refuses to accept
  1 19 judgment for such sum in full of the defendant's demands in
  1 20 the action, or, having had three days' notice that the offer
  1 21 would be made, of its amount, and of the time of making it,
  1 22 fails to attend, and on the trial does not recover more than
  1 23 was offered to be confessed, the defendant shall pay the costs
  1 24 of the plaintiff incurred after the offer.
  1 25    Sec. 3.  Section 677.6, Code 2009, is amended to read as
  1 26 follows:
  1 27    677.6  EFFECT OF NONACCEPTED OFFER.
  1 28    The offer shall not be treated as an admission of the cause
  1 29 of action or amount to which the plaintiff or the defendant
  1 30 was entitled nor be given in evidence upon the trial.
  1 31    Sec. 4.  Section 677.7, Code 2009, is amended to read as
  1 32 follows:
  1 33    677.7  OFFER TO CONFESS AFTER ACTION BROUGHT.
  1 34    1.  The defendant in an action for the recovery of money
  1 35 only may, at any time after service of notice and before the
  2  1 trial, serve upon the plaintiff or the plaintiff's attorney an
  2  2 offer in writing to allow judgment to be taken against the
  2  3 defendant for a specified sum with costs.
  2  4    2.  The plaintiff in an action for the recovery of money
  2  5 only may, at any time after service of notice and before the
  2  6 trial, serve upon the defendant or the defendant's attorney an
  2  7 offer in writing to allow judgment to be taken against the
  2  8 plaintiff for a specified sum with costs.
  2  9    Sec. 5.  Section 677.8, Code 2009, is amended to read as
  2 10 follows:
  2 11    677.8  ACCEPTANCE == JUDGMENT.
  2 12    1.  If the plaintiff accepts the offer, and gives notice
  2 13 thereof to the defendant or the defendant's attorney within
  2 14 five days after the offer is made, the offer, and an affidavit
  2 15 that the notice of acceptance was delivered in the time
  2 16 limited, may be filed by the plaintiff, or the defendant may
  2 17 file the acceptance with a copy of the offer, verified by
  2 18 affidavit; and in either case a minute of the offer and
  2 19 acceptance shall be entered upon the judge's calendar, and
  2 20 judgment shall be rendered by the court accordingly.
  2 21    2.  If the defendant accepts the offer, and gives notice
  2 22 thereof to the plaintiff or the plaintiff's attorney within
  2 23 five days after the offer is made, the offer, and an affidavit
  2 24 that the notice of acceptance was delivered in the time
  2 25 limited, may be filed by the defendant, or the plaintiff may
  2 26 file the acceptance with a copy of the offer, verified by
  2 27 affidavit; and in either case a minute of the offer and
  2 28 acceptance shall be entered upon the judge's calendar, and
  2 29 judgment shall be rendered by the court accordingly.
  2 30    Sec. 6.  Section 677.10, Code 2009, is amended to read as
  2 31 follows:
  2 32    677.10  COSTS.
  2 33    1.  If the plaintiff fails to obtain judgment for more than
  2 34 was offered by the defendant, the plaintiff cannot recover
  2 35 costs, but shall pay the defendant's costs from the time of
  3  1 the offer.
  3  2    2.  If the defendant fails to obtain judgment for more than
  3  3 was offered by the plaintiff, the defendant cannot recover
  3  4 costs, but shall pay the plaintiff's costs from the time of
  3  5 the offer.
  3  6    Sec. 7.  Section 677.11, Code 2009, is amended to read as
  3  7 follows:
  3  8    677.11  CONDITIONAL OFFER.
  3  9    1.  In an action for the recovery of money only, the
  3 10 defendant, having answered, may serve upon the plaintiff or
  3 11 the plaintiff's attorney an offer in writing that, if the
  3 12 defendant fails in the defendant's defense, the amount of
  3 13 recovery shall be assessed at a specified sum.
  3 14    2.  In an action for the recovery of money only, the
  3 15 plaintiff, having answered, may serve upon the defendant or
  3 16 the defendant's attorney an offer in writing that, if the
  3 17 plaintiff fails in the plaintiff's defense, the amount of
  3 18 recovery shall be assessed at a specified sum.
  3 19    Sec. 8.  Section 677.12, Code 2009, is amended to read as
  3 20 follows:
  3 21    677.12  ACCEPTANCE == EFFECT.
  3 22    1.  If the plaintiff accepts the offer, and gives notice
  3 23 thereof to the defendant or the defendant's attorney within
  3 24 five days after it was served, or within three days if served
  3 25 in term time, and the defendant fails in the defendant's
  3 26 defense, the judgment shall be for the amount so agreed upon.
  3 27    2.  If the defendant accepts the offer, and gives notice
  3 28 thereof to the plaintiff or the plaintiff's attorney within
  3 29 five days after it was served, or within three days if served
  3 30 in term time, and the plaintiff fails in the plaintiff's
  3 31 defense, the judgment shall be for the amount so agreed upon.
  3 32    Sec. 9.  Section 677.13, Code 2009, is amended to read as
  3 33 follows:
  3 34    677.13  NONACCEPTANCE == EFFECT.
  3 35    1.  If the plaintiff does not accept the offer, the
  4  1 plaintiff shall prove the amount to be recovered as if the
  4  2 offer had not been made, and the offer shall not be given in
  4  3 evidence or mentioned on the trial, and if the amount
  4  4 recovered by the plaintiff does not exceed the sum mentioned
  4  5 in the offer, the defendant shall recover the defendant's
  4  6 costs incurred in the defense.
  4  7    2.  If the defendant does not accept the offer, the
  4  8 defendant shall prove the amount to be recovered as if the
  4  9 offer had not been made, and the offer shall not be given in
  4 10 evidence or mentioned on the trial, and if the amount
  4 11 recovered by the defendant does not exceed the sum mentioned
  4 12 in the offer, the plaintiff shall recover the plaintiff's
  4 13 costs incurred in the defense.
  4 14                           EXPLANATION
  4 15    Current law provides that a defendant may offer in court to
  4 16 settle a lawsuit after the lawsuit is filed for part of the
  4 17 amount claimed, or part of the causes involved in the lawsuit,
  4 18 and contains provisions relating to the legal and financial
  4 19 consequences of acceptance or nonacceptance.
  4 20    This bill establishes reciprocal provisions for a plaintiff
  4 21 relating to an offer to confess judgment after a lawsuit has
  4 22 been filed.
  4 23 LSB 2644HC 83
  4 24 rh/rj/8