LRB-4446/1
PJH:nwn:md
2009 - 2010 LEGISLATURE
April 2, 2010 - Introduced by Representatives Zipperer, Vukmir, Nygren, Vos and
Kleefisch, cosponsored by Senators Olsen and A. Lasee. Referred to
Committee on Judiciary and Ethics.
AB918,1,2 1An Act to repeal 807.01 (2) and 814.04 (7); and to amend 807.01 (1), 807.01 (3)
2and 814.04 (intro.) of the statutes; relating to: offers of settlement.
Analysis by the Legislative Reference Bureau
Under current law, parties in a civil action that reject offers of settlement may
be awarded costs under certain circumstances. Under current law, costs include
attorneys fees of either $100, $300, or $500, depending on the amount awarded to the
plaintiff.
If a plaintiff rejects an offer from a defendant that would allow the plaintiff to
take judgment against the defendant and receive an award of a certain amount but,
upon going to trial, the plaintiff fails to recover a more favorable judgment than the
plaintiff would have received pursuant to the offer, the defendant is awarded costs.
If a plaintiff rejects an offer from a defendant that would allow the plaintiff to
receive an award of a certain amount if the plaintiff proves the defendant liable but,
upon going to trial, the plaintiff proves the defendant liable but is awarded less than
or equal to the amount offered, neither party is awarded costs.
If a defendant rejects an offer from a plaintiff that would award the plaintiff a
certain amount and the plaintiff, at trial, is awarded more than that amount, the
plaintiff is awarded double costs.
Under this bill, if a defendant rejects an offer of settlement from the plaintiff
and the plaintiff goes on to obtain a money judgment that is at least 120 percent of
the amount offered, the plaintiff is awarded costs, including reasonable attorneys
fees that the plaintiff incurred as a result of the defendant's rejection of the offer.
Under the bill, if a plaintiff rejects an offer from the defendant and goes on to obtain

a money judgment that is 80 percent or less of the amount offered, the defendant is
awarded costs, including reasonable attorneys fees that the defendant incurred as
a result of the plaintiff's rejection of the offer.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB918, s. 1 1Section 1. 807.01 (1) of the statutes is amended to read:
AB918,2,142 807.01 (1) After issue is joined but at least 20 days before the trial, the
3defendant may serve upon the plaintiff a written offer to allow judgment to be taken
4against the defendant for the sum, or property, or to the effect therein specified, with
5costs. If the plaintiff accepts the offer and serves notice thereof in writing, before trial
6and within 10 days after receipt of the offer, the plaintiff may file the offer, with proof
7of service of the notice of acceptance, and the clerk must thereupon enter judgment
8accordingly. If notice of acceptance is not given, the offer cannot be given as evidence
9nor mentioned on the trial. If the offer of judgment is not accepted and the plaintiff
10fails to recover a more favorable judgment recovers an amount that is 80 percent of
11the offer or less
, the plaintiff shall not recover costs but defendant shall recover costs
12to be computed on the demand of the complaint. Under this subsection, costs include
13reasonable attorneys fees that the defendant incurred as a result of the plaintiff's
14rejection of the offer
.
AB918, s. 2 15Section 2. 807.01 (2) of the statutes is repealed.
AB918, s. 3 16Section 3. 807.01 (3) of the statutes is amended to read:
AB918,3,817 807.01 (3) After issue is joined but at least 20 days before trial, the plaintiff may
18serve upon the defendant a written offer of settlement for the sum, or property, or to
19the effect therein specified, with costs. If the defendant accepts the offer and serves
20notice thereof in writing, before trial and within 10 days after receipt of the offer, the

1defendant may file the offer, with proof of service of the notice of acceptance, with the
2clerk of court. If notice of acceptance is not given, the offer cannot be given as
3evidence nor mentioned on the trial. If the offer of settlement is not accepted and the
4plaintiff recovers a more favorable judgment, the plaintiff shall recover double the
5amount of the taxable costs
an amount that is 120 percent of the offer or more, the
6defendant shall not recover costs but the plaintiff shall recover costs. Under this
7subsection, costs include reasonable attorneys fees that the plaintiff incurred as a
8result of the defendant's rejection of the offer
.
AB918, s. 4 9Section 4. 814.04 (intro.) of the statutes, as affected by 2009 Wisconsin Act 20,
10is amended to read:
AB918,3,15 11814.04 Items of costs. (intro.) Except as provided in ss. 93.20, 100.195 (5m)
12(b), 100.30 (5m), 106.50 (6) (i) and (6m) (a), 111.397 (2) (a), 115.80 (9), 281.36 (2) (b)
131., 767.553 (4) (d), 769.313, 802.05, 807.01, 814.245, 895.035 (4), 895.443 (3), 895.444
14(2), 895.445 (3), 895.446 (3), 895.506, 943.212 (2) (b), 943.245 (2) (d), 943.51 (2) (b),
15and 995.10 (3), when allowed costs shall be as follows:
AB918, s. 5 16Section 5. 814.04 (7) of the statutes is repealed.
AB918,3,1717 (End)
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