Opinion ID: 582560
Heading Depth: 2
Heading Rank: 1

Heading: The Meaning of the Offer of Judgment.

Text: 28 Offers of judgment pursuant to Fed.R.Civ.P. 68 are construed according to ordinary contract principles. See Whitaker v. Associated Credit Servs., Inc., 946 F.2d 1222, 1226 (6th Cir.1991); Erdman v. Cochise County, Ariz., 926 F.2d 877, 880 (9th Cir.1991); Radecki v. Amoco Oil Co., 858 F.2d 397, 400 (8th Cir.1988); Johnson v. University College of the Univ. of Ala., 706 F.2d 1205, 1209 (11th Cir.), cert. denied, 464 U.S. 994, 104 S.Ct. 489, 78 L.Ed.2d 684 (1983); Boorstein v. City of New York, 107 F.R.D. 31, 33-34 (S.D.N.Y.1985); cf. SEC v. Levine, 881 F.2d 1165, 1178-79 (2d Cir.1989) (consent judgment should be construed as contract) (collecting cases). Accordingly, several contract principles are relevant here. 29 [I]f a writing, or the term in question, appears to be plain and unambiguous on its face, its meaning must be determined from the four corners of the instrument without resort to extrinsic evidence of any nature. John D. Calamari & Joseph M. Perillo, Contracts 166-67 (3d ed. 1987); see also Hunt Ltd. v. Lifschultz Fast Freight, Inc., 889 F.2d 1274, 1277-78 (2d Cir.1989) (collecting cases). On the other hand, [i]f the term in question does not have a plain meaning it follows that the term is ambiguous. Calamari & Perillo at 167. Contract language is ambiguous if it is reasonably susceptible of more than one interpretation, and a court makes this determination by reference to the contract alone. Burger King Corp. v. Horn & Hardart Co., 893 F.2d 525, 527 (2d Cir.1990) (citing Curry Rd. Ltd. v. K mart Corp., 893 F.2d 509, 511 (2d Cir.1990); Chimart Assocs. v. Paul, 66 N.Y.2d 570, 572-73, 489 N.E.2d 231, 233, 498 N.Y.S.2d 344, 346 (1986); Breed v. Insurance Co. of N. Am., 46 N.Y.2d 351, 355, 385 N.E.2d 1280, 1282, 413 N.Y.S.2d 352, 355 (1978)). Conversely, contractual language is unambiguous if it has 'a definite and precise meaning, unattended by danger of misconception in the purport of the [contract] itself, and concerning which there is no reasonable basis for a difference of opinion.'  Hunt, 889 F.2d at 1277 (quoting Breed, 46 N.Y.2d at 355, 385 N.E.2d at 1282, 413 N.Y.S.2d at 355). 30 Further, [a] court should interpret a contract in a way that ascribes meaning, if possible, to all of its terms. United States Naval Inst. v. Charter Communications, Inc., 875 F.2d 1044, 1049 (2d Cir.1989) (citing Spaulding v. Benenati, 57 N.Y.2d 418, 425, 442 N.E.2d 1244, 1247, 456 N.Y.S.2d 733, 736 (1982); Corhill Corp. v. S.D. Plants, Inc., 9 N.Y.2d 595, 599, 176 N.E.2d 37, 38, 217 N.Y.S.2d 1, 3 (1961); Rentways, Inc. v. O'Neill Milk & Cream Co., 308 N.Y. 342, 347, 126 N.E.2d 271, 273 (1955); Restatement (Second) of Contracts § 203(a) (1981)). Finally, interpretation of a contract generally is a question of law, subject to de novo review. See United States v. Liranzo, 944 F.2d 73, 77 (2d Cir.1991); Werbungs Und Commerz Union Austalt v. Collectors' Guild, Ltd., 930 F.2d 1021, 1026 (2d Cir.1991); Nicholas Lab. Ltd. v. Almay, Inc., 900 F.2d 19, 21 (2d Cir.1990) (per curiam); Network Publishing Corp. v. Shapiro, 895 F.2d 97, 99 (2d Cir.1990) (citing Eddy v. Prudence Bonds Corp., 165 F.2d 157, 163 (2d Cir.1947), cert. denied, 333 U.S. 845, 68 S.Ct. 664, 92 L.Ed. 1128 (1948)). With these principles in mind, we turn to the contentions of the parties. 31 The Goodmans argue that language in their offer of judgment referring to the Order only invoked the Order to the extent that it defined the scope of the injunction, and not as a basis for assessing attorney fees. Specifically, they insist that the phrase in accordance with the Court's Memorandum Opinion and Order simply means that the permanent injunction is defined and bounded by the preliminary injunction granted in the Order. Further, they maintain that the question of attorney fees is expressly reserved by the language attorneys fees, if any included earlier in the offer of judgment. 32 To the contrary, Goodheart urges that the language of the offer of judgment incorporates the entire Order into the judgment, thus forming a proper basis for awarding attorney fees. Specifically, Goodman argues that defendants' offer constituted an acceptance of the District Court's opinion as binding for all purposes in the litigation.... 33 We agree with the Goodmans. The offer of judgment clearly provides for a monetary judgment against the Goodmans in the amount of [$1,000.00] exclusive of costs and attorneys fees, if any, awarded by the Court, and then makes separate provision for a permanent injunction in accordance with the [Order]. The judgment entered as a result of the offer of judgment is similarly structured. We conclude that the words if any were expressly intended to reserve the attorney fee issue, while the reference to the Order should fairly be read to define the contours of the permanent injunction, which would simply continue as a permanent decree the preliminary injunction for which the Order provided. 34 This ruling obviously does not preclude a finding of bad faith and award of attorney fees pursuant to § 1117(a) upon remand. Indeed, upon the record as developed to date in this litigation, it would be an abuse of discretion for the district court to fail to consider an award of attorney fees. See Springs Mills, 724 F.2d at 357. We hold only that it was error to regard the Goodmans' offer of judgment as precluding them from subsequently contesting an award of attorney fees pursuant to § 1117. 35