EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).

1-1 Section 1. NRS 17.115 is hereby amended to read as follows:

1-2 17.115 1. At any time more than 10 days before trial, [either

1-17 dismissal of the claim instead of entry of the judgment; and

2-1 (2) The party pays the amount of the offer within a reasonable time

2-2 after the offer is accepted.

2-3 (b) Regardless of whether a judgment or dismissal is entered pursuant

2-4 to paragraph (a), the court shall award costs in accordance with
2-5 NRS 18.110 to each party who is entitled to be paid under the terms of

2-6 the offer, unless the terms of the offer preclude a separate award of
2-7 costs.

2-8 Any judgment entered pursuant to this section shall be deemed a

2-9 compromise settlement.

2-10 3. If the offer of judgment is not accepted [before trial or] pursuant to

2-11 subsection 2 within 10 days after [it is made, whichever occurs first, it] the

2-12 date of service, the offer shall be deemed rejected by the party to whom it

2-13 was made and withdrawn [, and cannot be given in evidence upon the trial

2-14 4. If the party to whom the] by the party who made it. The rejection of

2-15 an offer does not preclude any party from making another offer pursuant

2-16 to this section. Evidence of a rejected offer is not admissible in any

2-17 proceeding other than a proceeding to determine costs and fees.

2-18 4. Except as otherwise provided in this section, if a party who rejects

2-19 an offer of judgment [is made] fails to obtain a more favorable judgment [,

2-20 he cannot recover:

2-21 (a) Interest] , the court:

2-22 (a) May not award to the party any costs or attorney’s fees;

2-23 (b) May not award to the party any interest on the judgment for the

2-24 period [between the time] from the date of service of the [summons and

2-25 complaint and the time] offer to the date of entry of the judgment; [or

2-26 (b) Costs or attorney’s fees,

2-27 and the court shall order him]

2-28 (c) Shall order the party to pay [to the party who made the offer that

2-29 party’s] the taxable costs incurred [from the date of filing the complaint,

2-30 and may order also a] by the party who made the offer; and

2-31 (d) May order the party to pay to the party who made the offer any or

2-32 all of the following:

2-33 (1) A reasonable sum to cover any costs [of the services of expert

2-34 witnesses who are not regular employees of any party actually incurred

2-35 and] incurred by the party who made the offer for each expert witness

2-36 whose services were reasonably necessary [in the preparation] to prepare

2-37 for and conduct the trial of the case . [for trial by the prevailing party,]

2-38 (2) Any applicable interest on the judgment for the period from the

2-39 [time] date of service of the offer to the [time] date of entry of the

2-40 judgment . [and reasonable]

2-41 (3) Reasonable attorney’s fees incurred by the party [making] who

2-42 made the offer for the period from the [time] date of service of the offer [.

3-1 5. Any taxable costs, attorney’s fees and interest which is not derived

3-2 from an interest-bearing obligation which may have been awarded must not

3-3 be considered to be part of the judgment when determining whether the

3-4 judgment was more favorable than the rejected offer.

3-5 6.] to the date of entry of the judgment. If the attorney of the party [for

3-6 whom the offer of judgment is] who made the offer is collecting a

3-7 contingent fee , [for his services,] the amount of any attorney’s fees

3-8 awarded to the party [for whom the offer is made] pursuant to this

3-9 subparagraph must be deducted from that contingent fee.

3-10 [7. Any judgment entered pursuant to this section shall be deemed a

3-11 compromise settlement.]

3-12 5. To determine whether a party who rejected an offer of judgment

3-13 failed to obtain a more favorable judgment:

3-14 (a) If the offer provided that the court would award costs, the court

3-15 must compare the principal amount of the judgment with the amount of

3-16 the offer, without inclusion of costs.

3-17 (b) If the offer precluded a separate award of costs, the court must

3-18 compare the principal amount of the judgment with the sum of:

3-19 (1) The amount of the offer; and

3-20 (2) The amount of taxable costs that the party to whom the offer

3-21 was made incurred before the date of service of the offer.

3-22 6. Multiple parties may make a joint offer of judgment pursuant to

3-23 this section.

3-24 7. A party may make to two or more other parties pursuant to this

3-25 section an apportioned offer of judgment that is conditioned upon

3-26 acceptance by all the parties to whom the apportioned offer is made.

3-27 Each party to whom such an offer is made may serve upon the party who

3-28 made the offer a separate written notice of acceptance of the offer. If any

3-29 party rejects the apportioned offer:

3-30 (a) The action must proceed as to all parties to whom the apportioned

3-31 offer was made, whether or not the other parties accepted or rejected the

3-32 offer; and

3-33 (b) The sanctions set forth in subsection 4:

3-34 (1) Apply to each party who rejected the apportioned offer.

3-35 (2) Do not apply to any party who accepted the apportioned offer.

3-36 8. If the liability of one party to another party has been determined

3-37 by verdict, order or judgment, but the amount or extent of the liability of

3-38 the party remains to be determined by further proceedings, the party

3-39 found liable may, not later than 10 days before commencement of the

3-40 proceedings to determine the amount or extent of his liability, serve upon

3-41 the party to whom he is liable a written offer of judgment. An offer of

3-42 judgment made pursuant to this subsection shall be deemed to have the

3-43 same effect as an offer of judgment made before trial.

4-1 9. The sanctions set forth in subsection 4 do not apply to:

4-2 (a) An offer of judgment made to multiple defendants unless the same

4-3 person is authorized to decide whether to settle the claims against all the

4-4 defendants to whom the offer is made and:

4-5 (1) There is a single common theory of liability against all the

4-6 defendants to whom the offer is made;

4-7 (2) The liability of one or more of the defendants to whom the offer

4-8 is made is entirely derivative of the liability of the remaining defendants

4-9 to whom the offer is made; or

4-10 (3) The liability of all the defendants to whom the offer is made is

4-11 entirely derivative of a common act or omission by another person.

4-12 (b) An offer of judgment made to multiple plaintiffs unless the same

4-13 person is authorized to decide whether to settle the claims of all the

4-14 plaintiffs to whom the offer is made and:

4-15 (1) There is a single common theory of liability claimed by all the

4-16 plaintiffs to whom the offer is made;

4-17 (2) The damages claimed by one or more of the plaintiffs to whom

4-18 the offer is made are entirely derivative of an injury to the remaining

4-19 plaintiffs to whom the offer is made; or

4-20 (3) The damages claimed by all the plaintiffs to whom the offer is

4-21 made are entirely derivative of an injury to another person.

4-22 Sec. 2. The amendatory provisions of this act do not apply to an offer

4-23 of judgment that was made in a civil action before the effective date of this

4-24 act.

4-25 Sec. 3. This act becomes effective upon passage and approval.