When the Plaintiff Sends a Proposal for Settlement: Precision Matters

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If you are the plaintiff, meaning you filed the lawsuit, a proposal for settlement can be a powerful offensive tool.

But it can also backfire if miscalculated.

The 25% Threshold

Under Florida Statute 768.79, if a plaintiff serves a proposal and later obtains a judgment at least 25% greater than the proposal amount, the plaintiff may recover attorney’s fees incurred after the proposal was served.

Example:

• Plaintiff sends proposal: $400,000

• Jury verdict: $510,000

Because $510,000 is more than 125% of $400,000, fee entitlement may be triggered.

However:

• If the verdict is $450,000, fees are not triggered.

• Similarly, if the verdict is $399,000, the proposal provided no leverage.

Strategic Considerations for Plaintiffs

For high-level business owners, the real question is not:

Can we send one?

The question is:

Should we send one?  If so, when?

Key considerations include:

• Strength of liability evidence

• Damages certainty

• Anticipated defenses

• Judicial tendencies

• Defendant’s risk tolerance

Sending a proposal too aggressively can:

• Signal desperation

• Lock you into an inaccurate valuation

• Undermine mediation flexibility

Sending it too conservatively can:

• Leave leverage on the table

• Fail to trigger fee entitlement

This Is a Mathematical Risk Tool — Not a Bluff

The proposal for settlement is not emotional. It is statistical.

It rewards disciplined valuation.

It punishes overconfidence.

In Part 4, we’ll look at the opposite scenario when the defendant sends the proposal, and why that can dramatically increase pressure on a plaintiff.

Considering a Proposal for Settlement?

If you are the plaintiff in a business dispute, sending a proposal for settlement is not about “sending a message.”

It is about precision.

Before serving one, you should have:

• A defensible damages model

• Clear liability assessment

• An understanding of how a jury may value the case

• A realistic risk-adjusted outcome projection

If you are prosecuting a claim and want to discuss whether a proposal for settlement strengthens your position, or exposes you unnecessarily, schedule a confidential strategy session.

Because this is not a bluffing tool.

It is a mathematical instrument.