Rule 68 Does Not Apply if Offeree Totally Loses Cases

[David A. Szwak]

Delta Air Lines, Inc. v. August
450 U.S. 346, 101 S.Ct. 1146
U.S.Ill.,1981.
March 09, 1981



The United States District Court for the Northern District of Illinois denied a defense motion for costs incurred in defending equal employment opportunity action, and defendant appealed. The Court of Appeals affirmed, 600 F.2d 699. On certiorari, the Supreme Court, Justice Stevens, held that the rule under which if plaintiff rejects defendant's formal settlement offer and if the judgment finally obtained by the offeree is not more favorable than the offer the plaintiff must pay costs incurred after making of the offer does not apply where judgment is entered against the plaintiff offeree and in favor of defendant offeror.
Affirmed.
Justice Powell filed a concurring opinion.
Justice Rehnquist dissented and filed opinion in which Chief Justice Berger and Justice Stewart joined.

Justice STEVENS delivered the opinion of the Court.
Pursuant to Rule 68 of the Federal Rules of Civil Procedure, if a plaintiff rejects a defendant's formal settlement offer, and if “the judgment finally obtained by the offeree is *348 not more favorable than the offer,â€