Insurance companies and defense lawyers may use this as pressure: take this amount now, or risk getting less later and paying added costs if the court outcome is not better. Behind that tactic, an offer of judgment is a formal written settlement proposal that can shift who pays certain court costs if the other side refuses it and then does worse at trial.

Unlike ordinary settlement talks, this kind of offer has procedural consequences. In many courts, the offer is filed or served under specific rules, gives the other side a limited time to accept, and can lead to entry of a judgment without a full trial if accepted. If rejected, and the final result is no better than the offer, the rejecting party may lose the chance to recover some costs or may have to pay costs that built up after the offer. That changes the risk calculation in a personal injury case.

In New York, offer-of-judgment rules appear in the Civil Practice Law and Rules, including CPLR 3220 and CPLR 3221. The exact effect depends on who made the offer, the type of claim, and whether the damages were for a fixed amount or still disputed.

For an injury claim, this can affect whether it makes sense to settle before more medical records, wage proof, or expert reports come in. That matters when treatment is still ongoing after serious care at a trauma center like Bellevue, because accepting too early can leave money on the table.