Opinion ID: 31945
Heading Depth: 2
Heading Rank: 1

Heading: MMCA's Offer of Judgment Included Attorney's Fees

Text: 13 Appellant contends that the district court clearly erred by finding that MMCA's offer of judgment included attorney's fees. We disagree. The offer states: 14 Defendant, Mitsubishi Motor Credit of America, Inc. (MMCA), offers to waive its counterclaim (in the amount of $5,669.04, along with judicial interest by contract and all allowable attorney fees, as well as all costs of expenses) associated with this action against plaintiff, Joseph Basha. In addition, Defendants MMCA, Royal Imports, Inc. d/b/a Royal Mitsubishi and MIC Property & Casualty Insurance Company offer to pay plaintiff $2,000.00. 15 (Emphasis added). 16 Courts apply general contract principles to interpret Rule 68 offers of judgment. See, e.g., Mallory v. Eyrich, 922 F.2d 1273, 1279 (6th Cir.1991); Radecki v. Amoco Oil Co., 858 F.2d 397, 400 (8th Cir.1988). Although the MMCA offer does not expressly address attorney's fees, we agree with the district court that the circumstances surrounding the offer, if not the text itself, strongly support the view that the parties intended to settle all claims, including those for attorney's fees. 17 For example, counsel for MMCA sent a letter to Basha's lawyer one week before the offer was accepted stating that the defendants agreed to pay an additional $2,000 in exchange for a full settlement of this matter with prejudice against these entities and a defense and indemnification as to any remaining parties to this lawsuit. Moreover, several days after Basha accepted the offer, MMCA's counsel notified Basha by letter that the offer of judgment would conclude this case as to our clients. 4 18 These two letters, and Basha's active role in preparing the offer, show that MMCA's offer was a reflection of the parties' efforts to secure a settlement and dismissal of the entire claim. 5 Thus, the court did not commit clear error when it found that MMCA's offer of judgment included attorney's fees. 19