My petition to replace NRCP 68 (a version with hyperlinks is here) is reprinted below with some links to informational sites and source materials.  I removed the table of contents from this post.

 

As of February 1, 2008, this petition has not been filed with the Nevada Supreme Court.    ...Craig

 

The views expressed herein are those of the author.  They do not reflect the views of the author’s employer, the Nevada Law Journal, the William S. Boyd School of Law, the State Bar of Nevada, Matthew Bender & Company, Inc., the LexisNexis Group, their agents, editors or directors, nor any other person or entity.

 

Every effort has been made to provide the most accurate information available on this subject.  It should not, however, be construed as legal advice.  If legal advice is required, please consult with a professional.  To locate a Nevada licensed attorney, you may call the State Bar of Nevada’s Lawyer Referral and Information Service at 1-800-789-5747. 

 

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IN THE SUPREME COURT OF THE STATE OF NEVADA

 

 

IN THE MATTER OF OFFERS OF JUDGMENT: THE REPEAL AND REPLACEMENT OF NEVADA RULE OF CIVIL PROCEDURE 68 AND NEVADA JUSTICE COURT RULE OF CIVIL PROCEDURE 68; THE AMENDMENT OF NEVADA RULE OF CIVIL PROCEDURE 5 AND NEVADA JUSTICE COURT RULE OF CIVIL PROCEDURE 5; AND THE AMENDMENT OF NRCP APPENDIX OF FORMS.

 

 

ADKT ______

 

         

Authored by:

Craig R. Roecks, Esq.

5241 Spring Mountain Road

Las Vegas, Nevada 89150

 

 

Submitted by:

Board of Governors

State Bar of Nevada

600 East Charleston Boulevard

Las Vegas, Nevada  89104

 

 

          COMES NOW, Petitioner Board of Governors of the State Bar of Nevada, and hereby submits this Petition regarding Offers of Judgment which concerns the repeal and replacement of Nevada Rule of Civil Procedure 68 and Nevada Justice Court Rule of Civil Procedure 68, the amendment of Nevada Rule of Civil Procedure 5 and Nevada Justice Court Rule of Civil Procedure 5, and the amendment of NRCP Appendix of Forms.

          This Petition is submitted under the authority granted to the Board of Governors of the State Bar of Nevada by this Court pursuant to S.C.R. Rule 86(9) and NRAD Section 3.2. The Petitioner expresses no opinion on how this Court may choose to process this Petition.

          Except where noted, this Petition is a replication of Craig R. Roecks, A Proposal to Clarify Rule 68 of the Nevada Rules of Civil Procedure Regarding Offers of Judgment, Nev. L.J. (Spring 2007).  Deviations from that article are as follows: 1) formatting corrections; 2) a more harmonious bill drafting style is employed*; 3) amendments to NRCP Rule 5 and JCRCP Rule 5 are added; 4) the subsection designated as Rule 68(j), filing requirements, is added; and 5) the repeal and replacement of JCRCP Rule 68 of is added.

 

I.  Introduction

 

         The Nevada rule was replaced in 1998.  It is substantially different from the federal rule.   – Drafter’s Note to Rule 68 from the 2004 Court’s amendments to the Nevada Rules of Civil Procedure.

 

         While Nevada Rule of Civil Procedure 68 and Nevada Revised Statutes § 17.115 have been replaced, substantially amended, and clarified over the years, they are incomplete when viewed in isolation.  The gaps left by the text of Rule 68 and NRS § 17.115 have been partially filled through three decades of court opinions.  This Petition argues that it is time to amend Rule 68 to codify this corpus of decisional law, make this law more accessible, and address a limited number of significant issues that have yet to be resolved by the Nevada Supreme Court in its published opinions.

    The Nevada Supreme Court’s 1998 adoption of a new Rule 68 introduced a tremendous degree of flexibility to parties that choose to serve offers of judgment.  This high degree of flexibility is unique to Nevada, and it has greatly complicated Nevada’s offer of judgment law.  In departing from prior law, the new Rule allows for the following:  unapportioned offers of judgment may be served to multiple parties under limited circumstances; any unrelated parties may serve an unapportioned offer to any party; a party may draft an offer for a lump sum or for an amount that includes any combination of costs, attorneys’ fees and interest; a party may draft an offer that apportions the offered amounts by claim; a party (or multiple parties) may serve an apportioned offer to multiple parties that includes a condition that it be accepted by all parties; and a party may proceed to trial but shield itself from offer of judgment penalties by “accepting” an apportioned offer of judgment that is conditioned by the acceptance of all parties where all parties do not accept.

    Collateral proceedings have resulted over the meaning of Rule 68 and, given the substantial differences between Nevada’s rule and that of every other jurisdiction in the United States, it is likely that increasingly complex collateral proceedings will continue to occur if this rule is not substantially clarified.  Fairness requires that parties to litigation be able to discern promptly how the offer of judgment law will operate when receiving an offer and, to a lesser extent, when crafting an offer.  However, under current law a practitioner for the offeree party must, within ten days, consult an extensive body of decisional law to form an opinion on the probabilities of how a court should or will respond to every possible trial outcome.  A clarified rule will expedite the practitioner’s analysis and will greatly promote the Rule’s goal of encouraging settlement.

    This Petition proposes to replace Rule 68 with a clarified version that appears in the following pages.  This proposal is presented as an amendment to aid the reader in discerning the differences between the proposed rule and the current rule.  This Petition also includes corresponding forms to be included in the NRCP Appendix of Forms and proposes a related amendment to Rule 5(d).

    Other commentators, courts, and lawmakers across the country have disputed the utility and policy of offers of judgment and have proposed a number of corresponding modifications to the rule, up to and including the total abolition of offers of judgment.  This Petition does not join that debate.  The law and policy in Nevada is generally settled and this Petition proposes rules that track current law and policy.  Where there is no discernable policy but where experiences in other states are instructive, this Petition proposes rules that track the experiences in those states.  Finally, new rules are included to encourage parties to serve offers when they also want to pursue a judicial determination of good faith settlement.  

 

II.  Proposed Amendments[1] and Replacement Rules

 

A.  NRCP RULE 5.  SERVICE AND FILING OF PLEADINGS AND OTHER PAPERS: Amendments shown

 

     (a)  Service: When Required.  Except as otherwise provided in these rules, every order required by its terms to be served, every pleading subsequent to the original complaint unless the court otherwise orders because of numerous defendants, every paper relating to discovery required to be served upon a party unless the court otherwise orders, every written motion other than one which may be heard ex parte, and every written notice, appearance, demand, offer of judgment, designation of record on appeal, and similar paper shall be served upon each of the parties. No service need be made on parties in default for failure to appear except that pleadings asserting new or additional claims for relief against them shall be served upon them in the manner provided for service of summons in Rule 4.

 

     (b)  Same: How Made.

            (1)  Whenever under these rules service is required or permitted to be made upon a party represented by an attorney, the service shall be made upon the attorney unless the court orders that service be made upon the party.

            (2)  Service under this rule is made by:

                  (A)  Delivering a copy to the attorney or the party by:

                               (i)  handing it to the attorney or to the party;

                               (ii)  leaving it at the attorney’s or party’s office with a clerk or other person in charge, or if there is no one in charge, leaving it in a conspicuous place in the office; or

                               (iii)  if the office is closed or the person to be served has no office, leaving it at the person’s dwelling house or usual place of abode with some person of suitable age and discretion residing there.

                  (B)  Mailing a copy to the attorney or the party at his or her last known address. Service by mail is complete on mailing; provided, however, a motion, answer or other document constituting the initial appearance of a party must also, if served by mail, be filed within the time allowed for service; and provided further, that after such initial appearance, service by mail be made only by mailing from a point within the State of Nevada.

                  (C)  If the attorney or the party has no known address, leaving a copy with the clerk of the court.

                  (D)  Delivering a copy by electronic means if the attorney or the party served has consented to service by electronic means. Service by electronic means is complete on transmission provided, however, a motion, answer or other document constituting the initial appearance of a party must also, if served by electronic means, be filed within the time allowed for service. The served attorney’s or party’s consent to service by electronic means shall be expressly stated and filed in writing with the clerk of the court and served on the other parties to the action. The written consent shall identify:

                               (i)  the persons upon whom service must be made;

                               (ii)  the appropriate address or location for such service, such as the electronic-mail address or facsimile number;

                               (iii)  the format to be used for attachments; and

                               (iv)  any other limits on the scope or duration of the consent.

An attorney’s or party’s consent shall remain effective until expressly revoked or until the representation of a party changes through entry, withdrawal, or substitution of counsel. An attorney or party who has consented to service by electronic means shall, within 10 days after any change of electronic-mail address or facsimile number, serve and file notice of the new electronic-mail address or facsimile number.

            (3)  Service by electronic means under Rule 5(b)(2)(D) is not effective if the party making service learns that the attempted service did not reach the person to be served.

            (4)  Proof of service may be made by certificate of an attorney or of the attorney’s employee, or by written admission, or by affidavit, or other proof satisfactory to the court. Failure to make proof of service shall not affect the validity of service.

 

     (c)  Same: Numerous Defendants.  In any action in which there are unusually large numbers of defendants, the court, upon motion or of its own initiative, may order that service of the pleadings of the defendants and replies thereto need not be made as between the defendants and that any cross-claim, counterclaim, or matter constituting an avoidance or affirmative defense contained therein shall be deemed to be denied or avoided by all other parties and that the filing of any such pleading and service thereof upon the plaintiff constitutes due notice of it to the parties. A copy of every such order shall be served upon the parties in such manner and form as the court directs.

 

     (d)  Filing.  All papers after the complaint required to be served upon a party shall be filed with the court either before service or within a reasonable time thereafter, except as otherwise provided in Rule 5(b), but, unless filing is ordered by the court on motion of a party or upon its own motion, offers of judgment, depositions upon oral examination and interrogatories, requests for production, requests for admission, and the answers and responses thereto, shall not be filed unless and until they are used in the proceedings. Originals of responses to requests for admissions or production and answers to interrogatories shall be served upon the party who made the request or propounded the interrogatories and that party shall make such originals available at the time of any pretrial hearing or at trial for use by any party.

 

     (e)  Filing With the Court Defined.  The filing of pleadings and other papers with the court as required by these rules shall be made by filing them with the clerk of the court, except that the judge may permit the papers to be filed with the judge, in which event the judge shall note thereon the filing date and forthwith transmit them to the office of the clerk. A court may by local rule permit papers to be filed, signed or verified by electronic means that are consistent with technical standards, if any, that the Judicial Conference of the United States establishes. A paper signed by electronic means in compliance with the local rule constitutes a written paper presented for the purpose of applying these rules. The clerk shall not refuse to accept for filing any paper presented for that purpose solely because it is not presented in proper form as required by these rules or any local rules or practices.

 

B.  JCRCP RULE 5.  SERVICE AND FILING OF PLEADINGS AND OTHER PAPERS:      Amendments shown

 

     (a)  Service: When Required.  Except as otherwise provided in these rules, every order required by its terms to be served, every pleading subsequent to the original complaint unless the court otherwise orders because of numerous defendants, every paper relating to discovery required to be served upon a party unless the court otherwise orders, every written motion other than one which may be heard ex parte, and every written notice, appearance, demand, offer of judgment, designation of record on appeal, and similar paper shall be served upon each of the parties. No service need be made on parties in default for failure to appear except that pleadings asserting new or additional claims for relief against them shall be served upon them in the manner provided for service of summons in Rule 4.

 

     (b)  Same: How Made.

            (1)  Whenever under these rules service is required or permitted to be made upon a party represented by an attorney, the service shall be made upon the attorney unless the court orders that service be made upon the party.

            (2)  Service under this rule is made by:

                  (A)  Delivering a copy to the attorney or the party by:

                               (i)  handing it to the attorney or to the party;

                               (ii)  leaving it at the attorney’s or party’s office with a clerk or other person in charge, or if there is no one in charge, leaving it in a conspicuous place in the office; or

                               (iii)  if the office is closed or the person to be served has no office, leaving it at the person’s dwelling house or usual place of abode with some person of suitable age and discretion residing there.

                  (B)  Mailing a copy to the attorney or the party at his or her last known address. Service by mail is complete on mailing; provided, however, a motion, answer or other document constituting the initial appearance of a party must also, if served by mail, be filed within the time allowed for service; and provided further, that after such initial appearance, service by mail be made only by mailing from a point within the State of Nevada.

                  (C)  If the attorney or the party has no known address, leaving a copy with the clerk of the court.

                  (D)  Delivering a copy by electronic means if the attorney or the party served has consented to service by electronic means. Service by electronic means is complete on transmission provided, however, a motion, answer or other document constituting the initial appearance of a party must also, if served by electronic means, be filed within the time allowed for service. The served attorney’s or party’s consent to service by electronic means shall be expressly stated and filed in writing with the clerk of the court and served on the other parties to the action. The written consent shall identify:

                               (i)  the persons upon whom service must be made;

                               (ii)  the appropriate address or location for such service, such as the electronic-mail address or facsimile number;

                               (iii)  the format to be used for attachments; and

                               (iv)  any other limits on the scope or duration of the consent.

An attorney’s or party’s consent shall remain effective until expressly revoked or until the representation of a party changes through entry, withdrawal, or substitution of counsel. An attorney or party who has consented to service by electronic means shall, within 10 days after any change of electronic-mail address or facsimile number, serve and file notice of the new electronic-mail address or facsimile number.

            (3)  Service by electronic means under Rule 5(b)(2)(D) is not effective if the party making service learns that the attempted service did not reach the person to be served.

            (4)  Proof of service may be made by certificate of an attorney or of the attorney’s employee, or by written admission, or by affidavit, or other proof satisfactory to the court. Failure to make proof of service shall not affect the validity of service.

 

     (c)  Same: Numerous Defendants.  In any action in which there are unusually large numbers of defendants, the court, upon motion or of its own initiative, may order that service of the pleadings of the defendants and replies thereto need not be made as between the defendants and that any cross-claim, counterclaim, or matter constituting an avoidance or affirmative defense contained therein shall be deemed to be denied or avoided by all other parties and that the filing of any such pleading and service thereof upon the plaintiff constitutes due notice of it to the parties. A copy of every such order shall be served upon the parties in such manner and form as the court directs.

 

     (d)  Filing.  All papers after the complaint required to be served upon a party shall be filed with the court either before service or within a reasonable time thereafter, except as otherwise provided in Rule 5(b), but, unless filing is ordered by the court on motion of a party or upon its own motion, offers of judgment, depositions upon oral examination and interrogatories, requests for production, requests for admission, and the answers and responses thereto, shall not be filed unless and until they are used in the proceedings. Originals of responses to requests for admissions or production and answers to interrogatories shall be served upon the party who made the request or propounded the interrogatories and that party shall make such originals available at the time of any pretrial hearing or at trial for use by any party.

 

     (e)  Filing With the Court Defined.  The filing of pleadings and other papers with the court as required by these rules shall be made by filing them with the clerk of the court, if there be one, except that the justice may permit the papers to be filed with him or her. In cases where there is no clerk, the papers shall be filed with the justice. A court may by local rule permit papers to be filed, signed or verified by electronic means that are consistent with technical standards, if any, that the Judicial Conference of the United States establishes. A paper signed by electronic means in compliance with the local rule constitutes a written paper presented for the purpose of applying these rules. The clerk or justice shall not refuse to accept for filing any paper presented for that purpose solely because it is not presented in proper form as required by these rules or any local rules or practices.

 

     (f)  Drop Box Filing

            (1) Authorization.  The court, or clerk of the court if there be one, may maintain one or more drop boxes in which papers and pleadings may be deposited for filing with the court. If such a system is maintained, the court or clerk must:

                  (A) Place the drop box at a location that is easily accessible by the public;

                  (B) Ensure that the drop box is locked or otherwise constructed to prevent theft or tampering of documents; and

                  (C) Provide, in a location immediately adjacent to the drop box, a machine or other device that is capable of stamping the date and time of receipt on documents that are being deposited in the drop box.

            (2) Papers Eligible for Filing.  All papers and pleadings, including, but not limited to, motions, oppositions, replies, affidavits, points and authorities, and courtesy copies, may be deposited in the drop box. However, filings which require the payment of filing fees must be made directly with the clerk’s office, or justice where there is no clerk, unless the fees accompanying the filing are paid by check.

            (3) Procedure.  Papers and pleadings may be deposited in the drop box during all hours the courthouse is open. Before such documents are deposited, the documents must be date and time stamped as described in subdivision (f)(1). Documents placed in the drop box shall be deemed filed as of the date and time stamped on the paper or pleading. However, if a document is placed in the drop box without being date and time stamped, that document will not be deemed filed until it is date and time stamped by the clerk’s office. In addition, if a document is placed in the drop box, and the clerk’s office determines that the attempted filing is defective based on the absence of filing fees or based on any other legitimate reason, that document will not be deemed filed until the defect has been cured.

 

     C.  NRCP RULE 68.  OFFERS OF JUDGMENT: Illustrative amendments shown

 

      (a)  [The] Contents of Offer and Timing.

            (1)  At any time [more than 10 days] before trial, any party may serve [an offer in writing] to any other party an offer to enter judgment to resolve all claims in the action between those parties accrued through the date of the offer.

            (2)  When the liability of one party to another has been determined by verdict, order or judgment, but the amount or extent of the liability remains to be determined by further proceedings, at any time before the commencement of the proceeding to determine the amount or extent of liability, any party may serve to any other party an offer to enter judgment to resolve all claims in the action between those parties accrued through the date of the offer.

            (3)  No party shall be subject to the sanctions of subsection (g) for the rejection of an offer that:

                  (A)  is made pursuant to subdivision (a)(1) and served less than 11 days before trial; or

                  (B)  is made pursuant to subdivision (a)(2) and served less than 11 days before the commencement of the proceeding.

            (4)  The offer shall allow judgment to be taken in accordance with its terms [and conditions.] and may include equitable remedies.  Unless otherwise specified, an offer is deemed to be for a lump-sum, meaning the terms of the offer are deemed to preclude separate post-acceptance awards of costs, attorneys’ fees and interest.

            (5)  The offer may specify that it is conditioned upon a determination of good faith settlement.

            (6)  The offer may specify a longer acceptance period than the period prescribed by subdivision (f)(1), but may not permit an acceptance after the commencement of a trial if the offer is made pursuant to subdivision (a)(1) and may not permit an acceptance after the commencement of the proceeding if the offer is made pursuant to subdivision (a)(2).

            (7)  The offer shall specify that it is based upon this rule or it shall specify the complete basis of the offer if it is based upon a combination of this rule and NRS 17.115.  An offer is not void because it is based upon this rule, NRS 17.115, or both.

            (8)  An offer that resolves less than all of the claims between all the offerees and all the offerors is void.

            (9)  An offer may not be withdrawn except by written stipulation or as provided in subdivision (f)(2).

            (10)  An offer that specifies material conditions that are in addition to those provided by this rule or that conflict with those provided by this rule is void.

 

      (b)  Apportioned Conditional Offers to Multiple Parties.  An apportioned offer [of judgment] jointly made to more than one party may be conditioned upon the acceptance by all parties to whom the offer is directed.

 

      (c)  [Joint] Unapportioned Offers Jointly Made By Multiple Parties.  [                                                                                

            (1)  Multiple Offerors. A joint offer may be] An offer jointly made by multiple offerors is not required to be apportioned between the offerors.

 

      (d)  Joint Unapportioned Offers to Multiple Parties.

            [(2)] (1)  Offers to Multiple [defendants] Defending Parties.  [An offer made to multiple defendants will invoke the penalties of this rule only if] An unapportioned offer jointly made to multiple parties against whom claims, counterclaims or cross-claims are asserted may be conditioned upon the acceptance by all parties to whom the offer is directed if one entity, person or group is authorized to accept or reject an offer of settlement for all the claims against all the offerees and:

                  (A)  there is a single common theory of liability against all the [offeree defendants, such as where] offerees;

                  (B)  the liability of some [is] offerees are entirely derivative of the common acts or liability of the others; or [where]

                  (C)  the liability of all [is] offerees are derivative of the common acts [by] or liability of another[, and (B) the same entity, person or group is authorized to decide whether to settle the claims against the offerees].

            [(3)] (2)  Offers to Multiple [Plaintiffs] Claimants.   [An offer made to multiple plaintiffs will invoke the penalties of this rule only if] An unapportioned offer jointly made to multiple claimants may be conditioned upon the acceptance by all parties to whom the offer is directed if one entity, person or group is authorized to accept or reject an offer of settlement for all the claims of all the offerees and:

                  (A)  [the damages claimed by all the offeree plaintiffs are solely derivative, such as that] there is a single common theory of liability claimed by all the offerees;

                  (B)  the damages claimed by some offerees are entirely derivative of an injury to the others; or [that]

                  (C)  the damages claimed by all offerees are derivative of an injury to another[, and (B) the same entity, person or group is authorized to decide whether to settle the claims of the offerees].

            (3)  Offers to Joint Tenants.  No combination of offerees that jointly claim or defend under the same common theory of liability concerning jointly owned property is a group as that term is used in this subsection.  When two or more offerees jointly claim or defend under the same common theory of liability concerning jointly owned property, the burden is on any offeree to establish that no one person has authority to accept or r