When the Defendant Sends a Proposal for Settlement: Defensive Leverage That Changes the Case
When a defendant sends a proposal for settlement, the pressure shifts.
Under Florida Statute 768.79, if the plaintiff rejects a defendant’s proposal and fails to obtain a judgment at least 25% less than the proposal, the defendant may recover attorney’s fees incurred after the proposal date.
If the plaintiff recovers nothing or does not recover at least 75% of the amount offered, fee exposure can be significant.
Why This Is Powerful
If you are defending a business lawsuit where an attorney fee provision does not exist, a properly timed proposal can:
Create real downside risk for the plaintiff
Pressure contingency-fee counsel
Force realistic valuation
Increase post-mediation leverage
For example:
Defendant sends proposal: $200,000
Jury verdict: $145,000
Because $145,000 is not at least 75% of $200,000 ($150,000), the plaintiff may face fee exposure.
Now the plaintiff’s decision to reject $200,000 becomes incredibly expensive.
Strategic Defense Use
For business owners defending litigation, proposals are often used to:
Protect against runaway jury expectations
Shift risk to an aggressive plaintiff
Cap exposure indirectly
Strengthen settlement posture after mediation
But like any strategic instrument, improper timing can weaken its effect.
Which brings us to the final, and most important, part of this series that we will share next week.
Key Takeaways
If your business is being sued, a well-timed proposal for settlement can shift pressure back onto the plaintiff.
It can:
Create fee exposure
Change contingency counsel’s risk analysis
Force realistic settlement evaluation
Protect against overvaluation
But it must be calibrated correctly.
If you are defending a business lawsuit and want to evaluate whether a proposal strategy can reduce your exposure or increase leverage, schedule a confidential consultation.
Because defense strategy is not passive.
It is controlled risk deployment.