Bill Text: OH HB225 | 2013-2014 | 130th General Assembly | Introduced

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Bill Title: To create a procedure for settling civil actions between parties other than natural persons and providing for an award of reasonable attorney's fees and litigation expenses by motion or by a separate action in certain situations in which a judgment is entered against a party that rejects an offer of settlement.

Spectrum: Partisan Bill (Republican 6-0)

Status: (Introduced - Dead) 2013-06-26 - To Judiciary [HB225 Detail]

Download: Ohio-2013-HB225-Introduced.html

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As Introduced

130th General Assembly Regular Session 2013-2014

H. B. No. 225

Representative Butler 

Cosponsors: Representatives Adams, J., Becker, Retherford, Scherer, Wachtmann 

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A BILL

To enact section 2307.31 of the Revised Code to

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create a procedure for settling civil actions

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between parties other than natural persons and

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providing for an award of reasonable attorney's

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fees and litigation expenses by motion or by a

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separate action in certain situations in which a

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judgment is entered against a party that rejects

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an offer of settlement.

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BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1. That section 2307.31 of the Revised Code be	9
enacted to read as follows:	10

Sec. 2307.31. (A) As used in this section, "entity" means any	11
of the following:	12

(1) A for-profit or nonprofit organization incorporated under	13
Title XVII of the Revised Code or any other law of this state, any	14
other state, or the United States;	15

(2) A business trust, real estate investment trust, limited	16
liability company, limited partnership, or limited partnership	17
association organized under Title XVII of the Revised Code or any	18
other law of this state, any other state, or the United States;	19

(3) A bank, savings bank, or savings and loan association	20
chartered under the laws of the United States.	21

(B) At any time more than thirty days after the service of a	22
summons and complaint on a party but not less than thirty days	23
before trial, or not less than twenty days before trial in the	24
case of a counteroffer, any party that is an entity may serve on	25
any opposing party that is an entity a written offer to settle a	26
civil action for the amount of money specified in the offer and to	27
enter into an agreement dismissing the claim or to allow judgment	28
to be entered accordingly. The offer shall do all of the	29
following:	30

(1) State that the offer is being made pursuant to section	31
2307.31 of the Revised Code;	32

(2) Identify the party or parties making the offer and the	33
party or parties to whom the offer is being made;	34

(3) Generally identify the claim or claims the offer is	35
attempting to resolve;	36

(4) State with particularity any conditions upon which the	37
offer is being made;	38

(5) State the total amount of the offer;

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(6) State with particularity the amount proposed to settle a	40
claim for punitive damages, if any;	41

(7) State whether the offer includes attorney's fees or other	42
expenses and whether attorney's fees or other expenses are part of	43
the legal claim;	44

(8) Be accompanied by proof of service.

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(C)(1) If a plaintiff rejects an offer of settlement made by	46
a defendant pursuant to this section and if the final judgment is	47
one of no liability or for an amount that is less than	48
seventy-five per cent of the offer, the defendant may recover	49
reasonable attorney's fees and expenses of litigation incurred by	50
the defendant or on the defendant's behalf from the date of the	51
rejection of the offer through the entry of judgment.	52

(2) If a defendant rejects an offer of settlement made by the	53
plaintiff pursuant to this section and the plaintiff recovers a	54
final judgment in an amount greater than one hundred and	55
twenty-five per cent of the offer, the plaintiff may recover	56
reasonable attorney's fees and expenses of litigation incurred by	57
the plaintiff or on the plaintiff's behalf from the date of the	58
rejection of the offer through the entry of judgment.	59

(D) An offer made under this section shall remain open for	60
thirty days unless, before the expiration of the thirty-day	61
period, the offeror withdraws the offer by a writing served on the	62
offeree prior to acceptance by the offeree or the offeree rejects	63
the offer. If the offeror withdraws the offer before the	64
expiration of the thirty-day period, the offeror may not recover	65
attorney's fees and expenses under division (C) of this section. A	66
counteroffer constitutes a rejection, but it may serve as an offer	67
if it is specifically denominated as an offer under this section.	68

(E) Acceptance or rejection of an offer by the offeree must	69
be in writing and served upon the offeror. An offer that is	70
neither withdrawn nor accepted within thirty days after being	71
served shall be deemed rejected.	72

(F) Service of an offer or of an acceptance, rejection, or	73
withdrawal of an offer shall be made in the manner prescribed in	74
Civil Rule 5, except that the offer, acceptance, rejection, or	75
withdrawal shall not be filed with the court.	76

(G) The rejection of an offer does not preclude the offeror	77
from making one or more subsequent offers. A party's right to	78
recover attorney's fees and expenses under division (C) of this	79
section is determined in accordance with the last offer made by	80
that party under this section.	81

(H) Evidence of an offer is not admissible except in	82
proceedings to enforce a settlement or to determine reasonable	83
attorney's fees and costs under this section.	84

(I)(1) After affirmance of the judgment on appeal or, if no	85
appeal is taken, after the expiration of the time within which a	86
notice of appeal must be filed, a party may apply to the court for	87
an order requiring payment of attorney's fees and expenses under	88
division (C) of this section. Subject to division (I)(2) of this	89
section, upon receipt of proof that the judgment is one to which	90
division (C) of this section applies and proof of the attorney's	91
fees and expenses incurred, the court shall order the payment of	92
reasonable attorney's fees and expenses.	93

(2) The court may deny an application made under division	94
(I)(1) of this section if the court determines that the offer was	95
not made in good faith. The court shall deny an application made	96
under division (I)(1) of this section if it determines, on a	97
motion made under section 2323.51 of the Revised Code, that the	98
party making the application asserted a frivolous claim or	99
defense. If the court denies the application, it shall set forth	100
the basis for the denial in the order denying the application.	101

(J)(1) If a party makes an offer of settlement in accordance	102
with this section and the offeree rejects the offer, the offeror	103
has a cause of action against the offeree for attorney's fees and	104
expenses as determined under division (C) of this section. The	105
cause of action accrues upon affirmance of the judgment on appeal	106
or, if no appeal is taken, upon the expiration of the time within	107
which a notice of appeal must be filed. An action under division	108
(J)(1) of this section shall be brought within one year after the	109
cause of action accrues.	110

(2) It is an affirmative defense to an action brought under	111
division (J)(1) of this section that the offeror did not make the	112
offer in good faith or that the offeror asserted a frivolous claim	113
or defense in the action in which the offer was made.	114

(3) A court may award reasonable attorney's fees and expenses	115
of litigation to the prevailing party in an action brought under	116
division (J)(1) of this section.	117

(4) Divisions (B) to (I) of this section do not apply to an	118
action brought under division (J)(1) of this section.	119

(K) A party may not seek relief under both division (I) and	120
division (J) of this section.	121