In federal court—under Rule 68 of the Federal Rules of Civil Procedure—and in many states, there is an offer of judgment or offer of settlement procedure in which a party defending against a claim (defendant) may make an offer of judgment, or either party may make an offer of settlement.

If the party that receives the offer rejects it and does not win a better result at trial, the party who rejected the offer may be required to pay the offering party’s attorney fees and costs incurred after the offer was made.

An offer of judgment is an offer to allow a judgment to be taken against the party offering the judgment. An offer of judgment admits to liability and damages for a specific amount. An offer of settlement is similar but is in the form of an agreement or contract for settlement rather than a judgment from the court for the offered amount.

Laws vary from state to state and a state’s offer of judgment or offer of settlement procedure is usually located in its rules of civil procedure of code of civil procedure (statutes).

In New Hampshire, the offer of judgment procedure is governed by Rule 68 of the New Hampshire Rules of Civil Procedure, which is similar to Rule 68 of the Federal Rules of Civil Procedure. Under this rule, a defendant can make a formal offer to settle the claim for a specified sum. If the plaintiff rejects the offer and fails to obtain a more favorable judgment at trial, the plaintiff may be required to pay the defendant's post-offer costs and attorney fees. This rule is designed to encourage settlement and avoid unnecessary litigation. It's important to note that the specifics of how these costs and fees are calculated, as well as any exceptions to the rule, can be complex and may require consultation with an attorney to fully understand the implications of making or responding to such an offer in New Hampshire.