Opinion ID: 2449831
Heading Depth: 4
Heading Rank: 2

Heading: Whether an offset is warranted in these circumstances depends on whether the $5,900 was rightfully Miller's.

Text: Miller argues that even if post-offer extrinsic evidence is not taken into account, the offer of judgment requires an offset in these circumstances. We agree that the accepted offer of judgment would warrant an offset if the $5,900 was, indeed, Miller's money; however, because that remains a disputed issue of material fact, we remand to the superior court for an evidentiary hearing. In his Rule 68 offer of judgment, Miller offered to pay $18,000 plus add-ons in complete satisfaction of Plaintiff's claims. As Miller argues on appeal, this implies that Miller intended the $18,000 to settle all of Handle's claims against him, including the claim arising out of the steel defect. The superior court held that these circumstances did not warrant an offset because Miller failed to include an express offset term. But the superior court failed to acknowledge the terms that every offer of judgment implies. When a party makes a Rule 68 offer, he implicitly expresses his willingness to give up a specific amount of his own money in exchange for certainty that this is the only amount he will lose going forth with respect to the claims at issue. This exchange is the essence of settlement. When Miller offered $18,000 in complete satisfaction of Plaintiff's claims, he reasonably expected that Handle's acceptance would guarantee that this was the only amount of Miller's money Handle would receive for this set of damages after the offer was made. [30] If the $5,900 was Miller's money, then it was unreasonable as a matter of law for Handle to expect that it could both accept the offer of judgment and retain the $5,900 it accepted from VP on Miller's behalf. Miller did not need to include express language to that effect; if the $5,900 was indeed Miller's, this conclusion follows from the offer's implied terms, and an offset would be warranted. However, if the $5,900 was not rightfully Miller's, then Handle's acceptance of both the offer of judgment and the $5,900 would not be inconsistent with the implied terms described above, and the agreement would not entail an offset.