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Alternative Dispute Resolution

Jun. 9, 2010

The Complications of Settlement

Gary Watt and L. Maple Lay of The McNamara Law Firm provide some basics to keep in mind when dealing with Code of Civil Procedure Section 998 offers to compromise.

By Gary A. Watt and L. Maple Lay

Code of Civil Procedure Section 998 offers to compromise sound simple. A party makes an offer to settle. If the other party refuses and then fails to obtain a more favorable result at trial, costs and fees can be shifted. Simple right? Not so fast. As the case law abundantly demonstrates, 998 offers present myriad challenges from validity to assessment for cost/fee shifting. It helps to keep some basics in mind.

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