Florida’s Proposal for Settlement: A Strategic Fee-Shifting Tool Business Owners Should Understand

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Most business owners assume attorney’s fees only shift if a statute or contract allows it.

That’s not entirely true.

Florida has a powerful fee-shifting mechanism that can apply even when there is no contractual attorney’s fee clause or applicable statute.

It is governed by:

• Florida Statute 768.79

• Florida Rule of Civil Procedure 1.442

Together, they create what is commonly called a “Proposal for Settlement.”

What Is a Proposal for Settlement?

A proposal for settlement (PFS) is a formal, rule-compliant offer to resolve a case.

If the receiving party rejects the proposal and fails to achieve a certain threshold at trial, the rejecting party may be required to pay the offeror’s attorney’s fees from the date of the proposal forward.

This is not a casual settlement demand.

It is:

• Procedurally technical

• Strictly construed

• Strategically deployed

How It Works — Generally

The consequences depend on who sends it.

If the plaintiff sends the proposal:

• The plaintiff must obtain a judgment at least 25% greater than the offer.

• If they do, they may recover attorney’s fees incurred after the proposal date.

If the defendant sends the proposal:

• The plaintiff must obtain a judgment at least 25% less than the offer.

• If they fail to do so (or recover nothing), the defendant may recover attorney’s fees incurred after the proposal date.

In other words:

This rule creates significant financial consequences for misjudging your case.

Why Intelligent Business Owners Should Care

Because this rule turns litigation into a calibrated risk equation.

It can:

• Increase settlement pressure

• Create downside exposure for an unreasonable opponent

• Change negotiation dynamics after mediation

• Create leverage in cases without contractual fee provisions or applicable statutes

But it must be used carefully.

In Part 3, we will examine what happens when the plaintiff sends the proposal — and why timing and valuation are everything.

Next Steps

If your case does not contain a contractual fee provision or an applicable statute, that does not mean attorney’s fees are off the table.

A properly structured proposal for settlement under
Florida Statute 768.79
and Florida Rule of Civil Procedure 1.442
can significantly shift leverage.

If you are in litigation, now is the time to evaluate whether this tool should be part of your strategy. Schedule a confidential consultation to assess whether a proposal for settlement would increase pressure — or unnecessarily increase risk.