How a proposal for settlement works
A proposal for settlement, also called an offer of judgment, is a formal written settlement offer served under Fla. Stat. 768.79 and Florida Rule of Civil Procedure 1.442. The other side has 30 days to accept. If it rejects the offer and the case ends badly enough for it, the rejecting party can be ordered to pay the offering party's attorney fees and costs incurred from the date the offer was made. The trigger is a 25 percent differential:
- If a defendant (the insurer) makes the offer and the plaintiff's judgment is at least 25 percent less than the offer, or the plaintiff recovers nothing, the defendant recovers fees.
- If a plaintiff (the policyholder) makes the offer and the judgment is at least 25 percent more than the offer, the plaintiff recovers fees.
Why it matters more after 2023
With the one-way attorney fee repealed by HB 837 (2023), the proposal for settlement is now one of the few fee-shifting mechanisms left in a Florida property suit. It cuts both ways. It can let a policyholder recover fees, but it also lets a carrier recover fees against a policyholder who rejects a reasonable offer and then underperforms it at trial. That two-way risk changes settlement strategy on every disputed claim.
What to watch for
A proposal for settlement must be strictly specific about the amount, any conditions, and the claims it resolves, or a court can strike it. Carriers use them to pressure policyholders into accepting low offers by dangling fee exposure. A realistic, well-documented estimate of the loss is the best defense, because it tells you whether an offer is one you can safely reject.