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Offer of Judgment Rule

Posted on Tuesday, May 8, 2018

Although the Michigan Supreme Court rarely addresses the offer of judgment rule, MCR 2.405 (I could only find one previous case--Freeman v Consumers Power Co., 437 Mich 514, 473 NW2d 63 (1991)), the Court issued an opinion this week regarding the interplay of offers of judgment in equity actions in Knue v Smith. In this quiet title action, a party made an offer of judgment of $3,000 in exchange for a quitclaim deed. The Court held, in a highly divided decision, that the offer was not an offer to stipulate to "the entry of a judgment in a sum certain" as required by MCR 2.405. The decision has important implications for attorneys in real property disputes, which typically involve equity issues.

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