Possibility of interest in addition to the jury award still is an important litigation tool.
An “Offer of Judgment” is a litigation tool used when the at fault party’s insurance company is unwilling to offer reasonable compensation to settle your case. It is a statement filed with the Clerk of the Court saying you are willing to settle the case for a specified sum of money. The jury hearing your case is never told about the Offer of Judgment. If, after a trial, the jury awards you more than the amount stated in your Offer of Judgment, you also are entitled to interest on the full amount awarded by the jury. This can be a significant additional amount of money. For many years, the interest rate had been 12%. In 2005, the Connecticut legislature lowered the interest rate to 8% for actions accruing after October 1, 2005. Although this is a significant reduction in the interest rate, an Offer of Judgment (renamed as an Offer of Compromise) remains an important litigation tool.