How to calculate pre/post-offer damages split in North Carolina

Quick takeaways

• In North Carolina, the pre/post “split” for a Rule 68 workflow turns on whether the judgment is “less favorable” than the offer—not on a subjective fairness judgment.
• Use DocketMath to compute the post-offer share consistently, then keep the North Carolina Rule 68 setup in a cost-only mode for this verified workflow (offer_of_judgment_costs_only = true).
• In the verified configuration you should use 8% for both the general legal interest behavior and the post-judgment interest behavior (and the sub-rule inputs are also 8).
• The goal output is a split:

  • Pre-offer damages = the portion attributable to the period before the offer
  • Post-offer damages = the portion attributable to the period after the offer
    Then confirm Pre + Post = Total and ensure interest is calculated using the same pre/post boundary.

Inputs you need

To calculate a clean pre/post-offer damages split in North Carolina (US-NC) using DocketMath, gather these inputs first. If anything is missing (especially dates), the split and interest durations will be unreliable.

Core timing and amounts

• Offer date (the date the offer was made)
• Judgment date (or the relevant end date your damages model uses)
• Damages basis you are splitting, such as:

  • a total damages amount that accrues over time, or
  • a damages stream you can map to dates

Split mechanics (how you decide pre vs. post)

Because this is a pre/post allocation, you need a consistent way to map your damages to time:

• How damages accrue over time (daily/monthly accrual, or discrete dated events)
• A method to allocate the total into:

  • amounts accruing before the offer date, and
  • amounts accruing after the offer date

In DocketMath terms, this typically means you’ll define either:

• an accrual rate + time window, or
• a list of dated components to sum.

Rule 68 decision inputs (cost effects)

This workflow uses the verified Rule 68 framing and cost-only modeling:

• Offer of judgment threshold (verified): “any judgment less favorable than offer”
• Offer effects mode (verified): offer_of_judgment_costs_only = true
  Meaning: the model should treat the Rule 68 consequence as cost treatment in this workflow, not as a re-pricing of the damages base.

Interest settings (verified)

For this North Carolina configuration, set:

• interest_rate_legal = 8
• interest_rate_post_judgment = 8
• sub-rule interest rates:

  • sub_rules.0.legal_rate_per_annum = 8
  • sub_rules.1.legal_rate_per_annum = 8

Receipts limitation dependency (only if it applies to your model)

• receipts.0.limitation_period: see statute (use the statute text in your workflow/model)
  If your damages are tied to receipts (for example, revenue-based or receipts-based measures), ensure your model pulls the receipts limitation period from the statute text you’re using, rather than assuming a number.

How the calculation works

DocketMath’s pre/post-offer damages split workflow is fundamentally:

1. a partition of your damages into pre and post components based on dates, and
2. a North Carolina Rule 68 outcome selector that affects the cost-treatment behavior for this verified configuration.

The North Carolina anchor for the Rule 68 workflow is:

• N.C. R. Civ. P. 68 (N.C. Gen. Stat. § 1A-1, Rule 68)

Source URL: https://www.ncleg.gov/EnactedLegislation/Statutes/PDF/BySection/Chapter_1A/GS_1A-1,_Rule_68.pdf

Step 1: Compute the pre-offer portion of damages

Define the pre-offer window as everything that accrues before the offer date.

• If damages accrue daily/monthly:

  • compute: (accrual rate) × (number of days/months from accrual start to the offer date)
• If damages are event-based:

  • sum the dated event amounts that fall before the offer date

Output: Pre-offer damages

Step 2: Compute the post-offer portion of damages

Define the post-offer window as everything that accrues after the offer date.

• If damages accrue daily/monthly:

  • compute: (accrual rate) × (number of days/months after the offer date through your model end date)
• If damages are event-based:

  • sum the dated event amounts that fall after the offer date

Output: Post-offer damages

Step 3: Add totals (sanity check)

After you compute both parts, confirm your partition is complete:

• Total damages should equal:
  Pre-offer damages + Post-offer damages

If DocketMath gives you a mismatch, it’s usually due to inconsistent window boundaries (for example, accidentally including/excluding the offer date differently in pre vs. post).

Step 4: Apply the Rule 68 threshold logic (cost-only model)

Now decide whether the Rule 68 cost treatment should be triggered in the verified workflow. This depends on the comparison:

• Threshold rule (verified): “any judgment less favorable than offer”
• Mode (verified): offer_of_judgment_costs_only = true

Practical way to implement this in the calculator workflow:

1. Use DocketMath’s Rule 68 inputs to compare the judgment to the offer using the calculator’s expected “less favorable” logic.
2. If the judgment is on the “less favorable than offer” side, mark the cost-treatment condition as triggered.
3. Because this is costs only for the verified setup, do not treat the Rule 68 decision as “changing the damages” itself. Your damages split (pre vs. post) should come from your accrual/event allocation.

Step 5: Interest settings that respect the split boundary

Even if both interest rate settings are 8%, your dollars can still change because the time windows differ.

So configure DocketMath so interest is calculated using the same pre/post boundary you used for damages:

• amounts attributed to the pre-offer period should earn interest based on the pre-offer timeline
• amounts attributed to the post-offer period should earn interest based on the post-offer timeline

Verified interest settings to use:

• legal interest behavior: 8%
• post-judgment behavior: 8%

Step 6: Produce the split outputs you actually need

Your final DocketMath output should include at minimum:

• Pre-offer damages
• Post-offer damages
• Total damages
• whether the Rule 68 cost-only condition is triggered (i.e., the “less favorable than offer” comparison outcome)
• interest outputs consistent with 8% and the pre/post timeline boundary

If you’re creating a filing-ready exhibit, also capture intermediate allocations so you can show how the post-offer figure moved when you changed the offer date or the accrual schedule.

Common pitfalls

• Off-by-one around the offer date

  • Decide whether the offer date counts toward “before” or “after” in your damages allocation method, then apply it consistently in DocketMath.
• Comparing the wrong number to the offer

  • The verified threshold is “judgment less favorable than offer,” so ensure you’re comparing the same “judgment value” concept that DocketMath expects.
• Assuming cost-only mode changes damages

  • With offer_of_judgment_costs_only = true, the Rule 68 effect in this workflow should be about cost treatment, not recalculating the damages base.
• Interest duration not aligned to the split

  • Even with 8% everywhere, the number of days/months in each bucket matters.
• Mixing jurisdiction rules

  • Don’t apply another state’s offer-of-judgment formula. Keep the workflow North Carolina–specific (Rule 68) and use the verified settings.
• Receipts-based models not wired to the correct limitation-period text

  • If receipts are part of your damages model, make sure the limitation period is sourced from the statute text used in your workflow (the verified packet indicates “see statute”).

Sources and references

• N.C. R. Civ. P. 68 (N.C. Gen. Stat. § 1A-1, Rule 68)
  https://www.ncleg.gov/EnactedLegislation/Statutes/PDF/BySection/Chapter_1A/GS_1A-1,_Rule_68.pdf

TODO: If you want to discuss receipts limitation mechanics in your specific damages model, ensure your receipts-related rule text is pulled from the statute you are using in your workbook. The verified packet notes “see statute” for the receipts limitation period.

Next steps

1. Open the North Carolina pre/post-offer damages calculator in DocketMath:

   • /tools/pre-post-offer-damages
2. Enter your inputs:

   • offer date
   • judgment/damages end date
   • how damages accrue (or the dated components/events)
3. In DocketMath’s Rule 68 settings for this workflow, keep the verified configuration:

   • threshold rule: “any judgment less favorable than offer”
   • offer effects mode: costs only (offer_of_judgment_costs_only = true)
   • interest settings: 8% (