Originally published April 14, 2025. Revised May 7, 2026 to reflect the Georgia Tort Reform Act of 2025 (Senate Bill 68), signed April 21, 2025, which amended several statutes that interact directly with the offer of settlement framework.
The demand letter is on the table. The deadline is running. Every day that passes without resolution adds cost to both sides. What most injured people do not realize is that Georgia has a statute specifically designed to incentivize meaningful settlement negotiations during litigation, and it carries real financial consequences for the side that refuses a reasonable offer.
O.C.G.A. § 9-11-68 is Georgia’s Offer of Settlement statute. It allows either party in a tort case to make a formal settlement offer after suit is filed. If the other side rejects the offer and does worse at trial, the rejecting party may be ordered to pay the offeror’s attorney fees and litigation costs incurred from the date of rejection through judgment. This is not a suggestion. It is a statutory fee-shifting mechanism that can materially change the economics of every personal injury case in which it applies. If you have a pending injury claim and want to understand how this rule affects your negotiation, call Adams, Jordan & Herrington, P.C. at 478-312-4503 for a free consultation.
What the Tort Reform Act of 2025 Changed
On April 21, 2025, Governor Kemp signed Senate Bill 68 into law. The Act did not amend § 9-11-68 directly, but it created and modified statutes that change how the offer of settlement framework operates in practice. The key changes for negotiation strategy:
- New O.C.G.A. § 9-15-16 prohibits duplicative recovery of attorney fees, court costs, or litigation expenses unless a statute specifically authorizes duplication. This addresses Junior v. Graham, 313 Ga. 420 (2022), which had allowed plaintiffs to recover fees under both § 13-6-11 (bad faith) and § 9-11-68. The same statute also makes a contingency fee agreement inadmissible as proof of the reasonableness of fees.
- New O.C.G.A. § 51-12-1.1 (phantom damages) limits recovery for medical expenses to amounts actually paid or reasonably necessary to satisfy the bills, and permits juries to hear both billed and paid amounts. This applies only to causes of action arising on or after April 21, 2025.
- Amended O.C.G.A. § 9-10-184 restricts how attorneys may argue noneconomic damages to the jury.
- Amended O.C.G.A. § 9-11-12 changes answer timing and creates an amended discovery-stay framework when a motion to dismiss is filed, subject to statutory timing and termination rules. If a defendant files an answer before the court rules on the motion, the stay may terminate.
- New O.C.G.A. § 51-12-15 permits bifurcation of liability and damages phases in many tort cases, subject to statutory exceptions including cases where the amount in controversy is less than $150,000 or claims involving alleged sexual offenses.
Most procedural provisions of SB 68 became effective April 21, 2025 and apply to causes of action pending on that date unless application would be unconstitutional. The phantom damages and negligent security provisions apply only to causes of action arising on or after April 21, 2025. The seatbelt evidence provision, as clarified by SB 69, applies to actions commenced on or after April 21, 2025. The combined effect is that demand strategy, medical damages valuation, and post-rejection fee exposure all need to be evaluated under the new framework. An attorney handling your case should walk you through which provisions apply to your specific facts.
How § 9-11-68 Works
The statute applies to tort claims. Either party may serve a written offer more than 30 days after service of the summons and complaint, but no later than 30 days before trial (20 days for a counteroffer). The offer must comply with eight specific requirements set out in § 9-11-68(a):
- The offer must be in writing and must state on its face that it is being made under this Code section.
- It must identify the parties making and receiving the proposal.
- It must identify generally the claim or claims it attempts to resolve.
- It must state any relevant conditions with particularity.
- It must state the total amount of the proposal.
- It must state with particularity the amount proposed to settle any punitive damages claim.
- It must state whether the proposal includes attorney fees or other expenses.
- It must include a certificate of service and be served by certified mail or statutory overnight delivery. In Arnold v. Liggins, 368 Ga. App. 544 (2023), the Georgia Court of Appeals held that an offer served only by email does not satisfy this requirement and reversed an attorney fee award entered under the statute.
The offer must remain open for 30 days. If the offeror withdraws it earlier, fee recovery is lost. A counteroffer is treated as a rejection but may itself qualify as a new offer if it complies with the same requirements.
If the case proceeds to trial, the result determines whether fees and costs shift:
- For a defendant who made the offer: if the final judgment is one of no liability, or if the final judgment obtained by the plaintiff is less than 75 percent of the rejected offer, the defendant may recover post-rejection fees and costs from the plaintiff.
- For a plaintiff who made the offer: if the final judgment exceeds 125 percent of the rejected offer, the plaintiff may recover post-rejection fees and costs from the defendant.
| Who rejected | Threshold triggered | Who may pay |
|---|---|---|
| Plaintiff rejected defendant’s offer | Final judgment is no liability or plaintiff’s final judgment is less than 75% of offer | Plaintiff pays defendant’s post-rejection fees and costs |
| Defendant rejected plaintiff’s offer | Final judgment greater than 125% of offer | Defendant pays plaintiff’s post-rejection fees and costs |
The threshold gap is intentional: the plaintiff must clear 75 percent of the rejected defense offer to avoid penalties, while the defendant must hold the final judgment under 125 percent of the rejected plaintiff offer. The structure creates symmetric pressure to make and accept reasonable offers.
The statute does not apply to cases resolved before trial. It applies only when the case proceeds to final judgment. Two further requirements often determine whether a fee award survives:
- Good faith. Even if the numerical threshold is met, the trial court may find under § 9-11-68(d)(2) that the offer was not made in good faith, and disallow the fee award. In Great West Casualty Co. v. Bloomfield, 313 Ga. App. 180 (2011), a $25,000 offer in a wrongful death case was held not to have been made in good faith despite a defense verdict, because the offer did not reflect a realistic assessment of the case. A defense verdict alone does not establish good faith.
- Tort claim only. The statute is limited to tort claims. In Eichenblatt v. Piedmont/Maple, LLC (Ga. Ct. App. 2021), an offer that ambiguously covered both contract and tort claims was held invalid, and an $837,444 fee award was reversed.
After SB 68, fee recovery under § 9-11-68 must also account for § 9-15-16: a plaintiff who recovers attorney fees, court costs, or expenses under one statute cannot also collect those same fees, costs, or expenses under § 9-11-68 unless a statute specifically authorizes duplication. A contingency fee agreement is no longer admissible as evidence of reasonable fees. Plaintiffs must support a fee request with evidence of hours, rates, or another indication of the value of services rendered, consistent with Georgia Department of Corrections v. Couch, 295 Ga. 469 (2014).
The existence of § 9-11-68 influences pre-litigation negotiation because both sides know what rejection costs at trial. The mechanics matter only after suit is filed.
The Demand Letter: Anatomy of a Serious Offer
Before § 9-11-68 comes into play, most personal injury negotiations begin with a demand letter. A well-constructed demand letter is not a wish list. It is a documented argument for a specific dollar amount, supported by evidence that makes the amount difficult to dispute.
A demand letter for a Macon personal injury claim typically includes:
- A factual summary of the incident (date, location, parties, police report reference)
- A description of the injuries and medical treatment with supporting records
- An itemized summary of economic damages (medical expenses, lost wages, out-of-pocket costs)
- A narrative of non-economic damages (pain, functional limitations, emotional impact)
- Applicable legal theories, including negligence, statutory violations, and a comparative fault analysis under O.C.G.A. § 51-12-33 (Georgia’s modified comparative negligence rule, which bars recovery if the plaintiff is 50 percent or more at fault)
- A specific settlement demand with a response deadline
The demand amount is not arbitrary. It reflects the attorney’s evaluation of the claim based on documented damages, regional verdict data, comparative fault exposure, and policy limits. Demanding too high signals a lack of credibility. Demanding too low leaves money on the table. The demand letter sets the framework for every conversation that follows, and an unrealistic demand undermines the leverage that § 9-11-68 is designed to create later.
Time-Limited Demands: Creating Urgency Without Bluffing
A time-limited demand is a settlement offer with a specific expiration date, typically 30 days. If the insurer does not accept within the deadline, the offer expires and the claimant proceeds toward litigation. Time-limited demands are distinct from § 9-11-68 offers, which are post-suit, trial-stage tools, but they serve a related function: they force a decision.
The Georgia Supreme Court addressed time-limited demands in Southern General Insurance Co. v. Holt, 262 Ga. 267, 416 S.E.2d 274 (1992). The court held that when an insurer receives a valid time-limited demand within policy limits and fails to accept it within the specified period, the insurer may face liability for the excess verdict above policy limits if the case goes to trial and the verdict exceeds the policy. This creates a powerful incentive for insurers to take time-limited demands seriously.
For the demand to carry weight, it must be reasonable (within or at policy limits), supported by documentation (medical records, bills, lost wage proof), and allow the insurer a realistic period to evaluate and respond. A demand that expires in 48 hours with incomplete documentation is unlikely to create the same exposure as a 30-day demand accompanied by a complete demand package.
Mediation in Bibb County
When direct negotiation stalls, mediation offers a structured path to resolution. Two layers of authority govern confidentiality:
- For court-annexed or court-referred mediations, the Georgia Supreme Court’s Alternative Dispute Resolution Rules, Rule VII, provide that statements made during mediation are confidential, may not be disclosed by the neutral or program staff, and may not be used as evidence in any subsequent proceeding.
- For private mediations, the Georgia Uniform Mediation Act (O.C.G.A. §§ 9-17-1 through 9-17-14), effective July 1, 2021, establishes an evidentiary privilege that protects mediation communications from later legal proceedings.
- Across both contexts, O.C.G.A. § 24-4-408 makes evidence of conduct or statements in compromise negotiations or mediation generally inadmissible, with limited exceptions for proving bias, negating delay, or showing obstruction.
In Bibb County, parties may agree to mediation voluntarily or the court may order it. The mediator does not decide the case. The mediator facilitates negotiation, identifies common ground, and tests each side’s positions.
Mediator selection matters. Mediators experienced in the Macon Judicial Circuit understand local verdict ranges, jury tendencies, and the practical dynamics of personal injury litigation in Bibb County. A mediator who understands the gap between what a Bibb County jury might award and what a Fulton County jury might award can help both sides calibrate expectations.
Mediation often produces resolution before trial, particularly when both sides arrive with realistic positions. Cases that do not settle at mediation often proceed with clearer positions, which can make subsequent § 9-11-68 offers more precise and more consequential.
Lien Resolution: The Step Between Settlement and Payment
A settlement agreement does not end the claim. Before the injured person receives payment, outstanding liens and subrogation claims must be addressed. This step is frequently underestimated and can delay payment by weeks or months.
Hospital and medical provider liens are governed by O.C.G.A. §§ 44-14-470 through 44-14-477. Hospitals, nursing homes, physician practices, chiropractic practices, and traumatic burn care providers may assert a lien against the proceeds of a personal injury claim, but only if specific conditions are met:
- The lien is subordinate to any attorney’s lien on the same cause of action (§ 44-14-470(b)).
- The lien must be perfected through written notice to the patient and to liable parties at least 15 days before filing the statement, and the statement itself must be filed within strict deadlines (75 days from hospital discharge, or 90 days from when the patient first sought treatment from a physician practice or chiropractic practice).
- Since amendments effective in 2023, the medical provider must first submit the claim to the patient’s health insurer if the patient has health insurance, and the claim must have been rejected, before the lien is enforceable (§ 44-14-471(c)). For insured patients, this requirement materially changes what providers can collect.
- The lien is for reasonable charges, not necessarily the full chargemaster amount; the reasonableness of the lien can be contested, as the Georgia Supreme Court addressed in Bowden v. The Medical Center, Inc.
Health insurance subrogation and reimbursement claims depend on the source of coverage:
- ERISA-governed self-funded plans carry the strictest reimbursement rights, often without offset for attorney fees or made-whole considerations.
- Medicare conditional payments must be reimbursed; coordination is required before settlement is finalized.
- Medicaid has separate lien and subrogation rights under O.C.G.A. §§ 49-4-148 and 49-4-149, which mirror the hospital lien procedure.
- Workers’ compensation liens under O.C.G.A. § 34-9-11.1 attach when the same injury is the subject of both a workers’ compensation claim and a third-party tort recovery.
- TRICARE and VA benefits operate under federal statutes that may preempt state lien procedures.
Our guide to who pays medical bills after a car accident explains how these coverage sources interact during treatment.
The net amount the injured person takes home depends on how effectively these claims are negotiated. A $150,000 settlement with $45,000 in unresolved liens and $50,000 in attorney fees nets $55,000. That number should be understood before the settlement is accepted, not after. Our guide to what to ask a lawyer before signing a fee agreement explains how fee calculations and expense deductions affect the final number.
For a detailed breakdown of how Georgia courts evaluate damages, see our guide on how Georgia courts calculate damages.
Lien resolution timing matters. Some liens can be negotiated during treatment. Most are finalized only after the settlement amount is known.
Structured Settlements: When a Lump Sum Is Not the Best Answer
Most personal injury settlements pay a single lump sum. In some cases, a structured settlement (periodic payments over time) better serves the injured person’s interests.
Structured settlements are most common in cases involving minors, catastrophic injuries requiring lifelong care, and situations where the injured person benefits from guaranteed income rather than a lump sum subject to investment risk. For a minor’s settlement, O.C.G.A. § 29-3-3 sets threshold-based requirements: a gross settlement of $25,000 or less may be handled by a natural guardian without court approval, while a gross settlement above $25,000 must be submitted to the probate court (if no suit has been filed) or to the court in which the action is pending. If the net settlement also exceeds $25,000, a conservator must be appointed to manage the funds.
Periodic payments under a properly structured settlement annuity for a personal physical injury or physical sickness claim are generally excluded from gross income under Internal Revenue Code § 104(a)(2), and that exclusion applies to the full payment stream. Punitive damages and damages for emotional distress unrelated to physical injury are not within the exclusion. Tax treatment depends on the specific facts of the claim, and we encourage clients to confirm the analysis with a qualified tax advisor before finalizing any settlement structure.
The decision between lump sum and structured settlement depends on the injured person’s financial situation, life expectancy, care needs, and personal preferences. An attorney experienced with both formats can model the comparison.
Frequently Asked Questions
What is an Offer of Settlement under Georgia law?
It is a post-suit, trial-stage fee-shifting tool. Under O.C.G.A. § 9-11-68, either party may make a formal written offer between 30 days after service of the complaint and 30 days before trial, served by certified mail or statutory overnight delivery. If the other side rejects the offer and does worse at trial (no liability or below 75 percent of a defense offer; above 125 percent of a plaintiff offer), the rejecting party may owe the offeror’s post-rejection attorney fees and costs. The trial court may still disallow fees if it finds the offer was not made in good faith. After SB 68 (April 2025), fee proof requires evidence of hours and rates; the contingency fee agreement is no longer admissible to prove reasonableness, and the same fees cannot be recovered twice under different statutes.
What is a time-limited demand?
A pre-litigation settlement offer with a specific expiration date. Under Southern General Insurance Co. v. Holt, 262 Ga. 267 (1992), an insurer that fails to accept a reasonable time-limited demand within policy limits may face excess verdict liability if the case goes to trial and the verdict exceeds the policy.
How long does a personal injury settlement take in Georgia?
The timeline depends on the severity of injuries, the complexity of liability, and the insurer’s willingness to negotiate. Simple claims with clear liability may resolve in three to six months. Complex cases involving disputed liability, serious injuries, or multiple parties can take one to three years. Litigation adds time. Under SB 68, amended motion-to-dismiss practice can stay discovery while the motion is pending, subject to statutory timing rules, limited-discovery exceptions, and the court’s authority to modify or terminate the stay.
What happens at mediation?
Both sides sit down with a neutral mediator who tests each position and looks for common ground. Mediation communications are protected by the ADR Rules (court-connected mediations), the Georgia Uniform Mediation Act (private mediations), and § 24-4-408 (general inadmissibility). Either side can walk away. If agreement is reached, it becomes binding. The value of mediation is that it forces both sides to confront the strengths and weaknesses of their case in a confidential setting.
Do I have to pay back medical liens from my settlement?
If a hospital or physician lien has been validly perfected under § 44-14-471, it claims a portion of your settlement, subject to the priority of any attorney’s lien and the reasonableness of the charges. Since 2023, the provider must have first submitted the bill to your health insurer and had the claim rejected before enforcing a lien. Health insurance subrogation rights depend on the plan type and applicable law. Medicare conditional payments must be reimbursed. Lien negotiation can reduce the amounts owed.
Should I accept a structured settlement?
It depends on your circumstances. Structured settlements offer favorable tax treatment for personal physical injury claims and provide guaranteed income, but they reduce flexibility. Lump sums provide immediate access but carry investment and spending risk. An attorney can model both options using the specific numbers of your case and coordinate with a tax advisor where appropriate.
What happens if I reject a settlement offer and win less at trial?
If the defendant made a formal offer under § 9-11-68 and you rejected it, and the final judgment is either zero (defense verdict) or less than 75 percent of that offer, you can be required to pay the defendant’s attorney fees and litigation costs incurred from the date of the rejection through entry of judgment, unless the court finds the offer was not made in good faith. This is why evaluating a formal offer carefully before rejection matters. An attorney can assess whether the offer falls within a range that makes trial risk acceptable.
How does the 2025 Tort Reform Act affect my case?
It depends on when your cause of action arose, when the action was commenced, and how the case is postured. Procedural changes (anchoring restrictions, bifurcation, discovery stays, voluntary dismissal limits, attorney fee rules under § 9-15-16) generally apply to pending and future cases, subject to constitutional limits. The phantom damages rule (§ 51-12-1.1) and revised negligent security framework apply only to causes of action arising on or after April 21, 2025. The seatbelt evidence rule has its own applicability rule under SB 69 and should be evaluated separately. An attorney should evaluate which provisions apply to your specific facts.
If you have a settlement offer on the table or a response deadline approaching, call 478-312-4503 before responding.
Settlement Is Not the End of the Process
Resolving a personal injury claim involves more than agreeing on a number. The Offer of Settlement rule, demand letter strategy, mediation process, lien resolution, and the post-2025 tort reform framework each affect the final outcome. An attorney who understands these mechanics works to create the conditions under which the other side has a reason to offer fair value.
Adams, Jordan & Herrington has recovered millions of dollars for clients across Middle Georgia, including cases requiring complex settlement negotiations, multi-party mediations, and contested lien resolutions. Virgil Adams, Jimmy Jordan, Caroline W. Herrington, and Ashley Pitts represent injured individuals and families across Macon, Warner Robins, Milledgeville, Albany, and the surrounding counties.
Call 478-312-4503 for a free, confidential consultation. Attorney fees are contingent on recovery. Case expenses are advanced by the firm, and the treatment of those expenses is explained in the written fee agreement before representation begins. Past results do not guarantee similar outcomes.
As a Macon personal injury law firm with experience in complex settlement negotiations, Adams, Jordan & Herrington works to build the leverage that moves cases toward fair resolution.
This article is for informational purposes only and does not constitute legal advice. Every situation is unique. Past results do not guarantee similar outcomes. Statutes and case law cited reflect Georgia law as of May 2026. If you believe you have a potential claim, consult a licensed Georgia attorney about the specific facts of your case.