The Proposal works like this: You serve your opponent with an offer to settle the case for a specific amount. Then you wait 30 days. If your opponent doesn’t accept the offer within 30 days, it is deemed rejected. No harm, no fuss. But here’s the rub – if you are the plaintiff, and you later go to trial and recover an amount that is more than 25% more than your offer (i.e., 125% of your offer), or if you are a defendant and the plaintiff recovers less than 25% less than your offer (i.e., 75% of your offer), then your opponent is on the hook for your fees and costs from the date of service of the Proposal.
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