This act does not limit the ability of a party to make an offer for a claim to which this act does not apply or to make an offer that does not comply with the procedures of this act. Such noncompliance will prevent a party from recovering their litigation costs under this act.

Settlement offers made under this act must in writing, state that they are made under this act, state the terms by which the claims may be settled, state a deadline for acceptance not sooner than 60 days after the date of the offer, and be served on all parties to whom the offer is made. Parties seeking to invoke this act must file a declaration before any offer is made. Such a declaration must be made at least 45 days before the case is set for conventional trial on the merits. Offers under this act must be made at least 60 days before the date the case is set for conventional trial, unless it is in response to a prior offer. An offer cannot be made to a party until 60 days after their appearance in the case.

Settlement offers under this act may be withdrawn. An offer that is not withdrawn or accepted is deemed rejected. Parties may make offers after having rejected or withdrawn a prior offer. Offer may be made subject to reasonable conditions. Offers with unreasonable conditions cannot be the basis for an award under this act. A condition not objected to by the other party by the acceptance deadline will be presumed reasonable. Acceptance of an offer may only be made in writing and must be delivered by the deadline.

A court may, upon motion and for good cause, extend the deadlines for filing a deceleration or making an offer or hold an evidentiary hearing to determine the reasonableness of awarded costs.

If the offering party is the defendant and the judgment is less than 50% of the rejected offer, they will recover their litigation costs. If the offering party is the claimant and the judgement is more than 150% of the rejected offer, they will recover their litigation costs.

Litigation costs awarded under this act will be limited to those costs incurred by the offering party after the date the other party rejected the offer. Litigation costs awarded may not exceed the sum of the noneconomic damages, exemplary damages, and 50% of the economic damages and then subtracting from that sum any statutory or contractual liens associated with the incidents giving rise to the claim.

If a party is awarded costs and fees under a different law, that party will be unable to recover litigation costs in addition to the costs and fees awarded under the other law. A party awarded costs and fees under another act cannot include costs and fees incurred after the date of rejecting an offer when calculating a judgment amount under this act.

If litigation costs are awarded to a defendant, the costs will be awarded as an offset against a claimant's recovery from that defendant.

This act allows trial courts to award costs and reasonable attorney's fees to the party prevailing for or against a motion to dismiss for failure to state a claim. Each year the Supreme Court must submit a report to the General Assembly regarding the number of cases dismissed for failure to state a claim and the dollar amount of costs and attorney's fees awarded the prevailing party.

Evidence relating to a settlement offer is only admissible for the purpose of enforcing a settlement or obtaining litigation costs. The provisions of this act are not to be made known to juries.

MIKE HAMMANN