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Appeals court hears dispute over Rule 68 offer acceptance and whether $150,000 judgment included prejudgment interest
Summary
Ernst v. Baker centers on whether an accepted Rule 68 offer of judgment that specified a total $150,000 but was silent on interest includes prejudgment interest, and whether a severed insurer/homeowner's claim was effectively included. Appellants cite contract ambiguity; appellees argue the judgment necessarily includes statutorily mandated interest. The court reserved decision.
Jeremy Kaye (for the plaintiffs/appellants) told the panel that an accepted offer of judgment produced an unusual procedural question because court software and entry practices lacked a workflow for judgments resulting from an accepted offer.
Kaye said the offer repeatedly set a "total judgment" of $150,000 but was silent about prejudgment interest; counsel argued that silence created ambiguity under contract…
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