Delta Air Lines, Inc. v. August

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 *348not more favorable than the offer/' the plaintiff “must pay the costs incurred after the making of the offer.” 1 The narrow question presented by this case is whether the words “judgment finally obtained by the offeree” as used in that Rule should be construed to encompass a judgment against the offeree as well as a judgment in favor of the offeree.

Respondent Rosemary August (plaintiff) filed a complaint against…