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