(a) Making an Offer; Judgment on an Accepted Offer. More than 14 days before the trial begins, a party defending against a claim may serve on an opposing party an offer to allow judgment on specified terms, with the costs then accrued. If, within 14 days after being served, the opposing party serves written notice accepting the offer, either party may then file the offer and notice of acceptance, plus proof of service. The clerk must then enter judgment.
Rule 68.Offer of Judgment
Enacted effective October 1, 2011 · Last verified June 26, 2026
In one sentenceRule 68 lets a defending party make a formal offer to allow judgment on specified terms; if the offer is rejected and the offeree's final judgment is no better than the offer, the offeree must pay the costs incurred after the offer.
Full Text of Rule 68
(b) Unaccepted Offer. An unaccepted offer is considered withdrawn, but it does not preclude a later offer. Evidence of an unaccepted offer is not admissible except in a proceeding to determine costs.
(c) Offer after Liability is Determined. When one party’s liability to another has been determined but the extent of liability remains to be determined by further proceedings, the party held liable may make an offer of judgment. It must be served within a reasonable time -- but at least 14 days -- before a hearing to determine the extent of liability.
(d) Paying Costs after an Unaccepted Offer. If the judgment that the offeree finally obtains is not more favorable than the unaccepted offer, the offeree must pay the costs incurred after the offer was made.
Plain-English Summary
Rule 68 is a settlement-pressure device. More than 14 days before trial, a party defending against a claim may serve an offer to allow judgment on specified terms with accrued costs. If the other side accepts within 14 days, the clerk enters judgment on those terms. An unaccepted offer is treated as withdrawn and is inadmissible except in a proceeding to determine costs.
The teeth are in the cost-shifting: if the judgment the offeree finally obtains is not more favorable than the unaccepted offer, the offeree must pay the costs incurred after the offer was made. That gives plaintiffs a real incentive to weigh a reasonable offer seriously.
Frequently Asked Questions
What is an offer of judgment?
A formal settlement offer a defending party makes, allowing judgment on stated terms. If accepted within 14 days, the clerk enters judgment on those terms.
What happens if I reject an offer of judgment and then do worse at trial?
If the judgment you finally obtain is not more favorable than the unaccepted offer, you must pay the costs incurred after the offer was made.
Source & verification. Reproduced verbatim from the Montana Code Annotated as
published by the State Law Library of Montana and the Montana Legislature. This rule has not been amended since its adoption.
Adopted by the Supreme Court of Montana (AF 07-0157). Last verified June 26, 2026. ·
Official text
Also known as: offer of judgmentcost shifting