Litigation & Arbitration
Oct. 27, 2022
The status of plaintiffs’ post-offer costs when a 998 offer is rejected
If the purpose of 998 offers is to facilitate settlement by disincentivizing plaintiffs to proceed to trial in the face of reasonable offers to compromise, there seems to be little incentive to settle if a Plaintiff has virtually nothing to lose.
Laura Reathaford
Partner
Lathrop GPM LLP
Phone: (310) 789-4648
Under Code of Civil Procedure Section 1032, a prevailing party in a lawsuit is entitled to recover his or her litigation costs (including attorneys' fees). This provision also acts in conjunction with California Code of Civil Procedure Section 998, the statutory offer to compromise. Section 998 allows for either the plaintiff or the defendant to offer the other to accept a pretrial settlement by providing a cost shifting disincentive to a party who fails to achieve a...
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