Rejecting a settlement offer in a personal injury case might cost you more than you think. Under the California Code of Civil Procedure (CCP Section 998), turning down a reasonable offer could leave you responsible for the other side’s legal expenses if you don’t win a higher award at trial.
This rule encourages settlements by cost-shifting in California lawsuits, making it a powerful negotiation tool. Understanding how CCP 998 works can help you decide whether to accept an offer, take your chances in court, or seek legal guidance before making a decision.
How Does a 998 Offer Work in California?
If you’ve been injured in a personal injury accident, un 998 offer to compromise is a legal strategy that can help resolve your lawsuit before trial. Found in Solo proporcione los hechos del accidente a la policía y nunca especule sobre lo que sucedió. 998, it allows either the plaintiff or defendant to propose a settlement that could end the case sooner, avoiding the costs and risk associated with a trial.
Unlike negotiations during the standard claims process, this pretrial settlement process in California occurs after a lawsuit is filed. A valid 998 settlement offer in California must follow these rules:
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- In writing. The offer must be a written document that clearly references CCP Section 998.
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- Clear terms. It must include the full settlement details, such as payment amounts, deadlines, and any conditions for resolving the case.
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- Reasonable. Offers must be reasonable and reflect the case’s value based on the evidence.
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- Acceptance period. The receiving party has 30 days to accept or until trial begins, whichever comes first.
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- Good faith. The offer must be a genuine attempt to settle, not a tactic to penalize the other side unfairly.
Should You Accept or Reject a 998 Offer? Here’s What to Consider
Before accepting or rejecting a 998 offer, it is important to weigh the potential financial impact. Rejecting could mean paying the other party’s court-related costs, but accepting too soon might result in settling for less than the case is worth.
Your decision will depend on:
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- The strength of your evidence, Como registros médicos, declaración del testigo, and accident reports
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- The likelihood of winning more at trial
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- The costs of continuing litigation
UNA abogado experto can help weigh these risks against the certainty of settlement and determine whether the offer fairly reflects your claim’s value.
Are There Penalties for Rejecting a 998 Offer in California?
Rejecting a 998 offer can have serious financial consequences if the party who refuses doesn’t get a better outcome at trial. Penalties may include:
|
Penalty |
What It Covers |
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Court Costs |
Filing fees, court reporter costs, and other court-related expenses. |
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Expert Witness Fees |
Fees for expert witnesses who provided testimony or reports. |
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Attorney’s Fees |
Legal fees for California lawsuits, like hiring an attorney or legal firm. |
|
Prejudgement Interest |
Interest on the final judgment amount, típicamente 10% por año. |
|
Post-Offer Costs Deductions |
If a plaintiff loses, these costs may be deducted from their award, reducing their compensation. |
Here’s an example scenario for a 998 offer:
An injured driver receives a 998 settlement offer of $250,000 but believes they deserve more. They reject the offer and go to trial, expecting a larger payout.
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- If the jury awards the plaintiff $240,000 ($10,000 less than the offer), they will not only receive less than they estimated but will also have to pay court fees, expert witness costs, and prejudgment interest, further reducing the compensation.
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- If the jury awards $300,000 ($50,000 more than the offer), the defendant owes the higher judgment and the plaintiff’s post-offer litigation expenses. En este caso, rejecting the offer resulted in a higher award.
How Long Does a Party Have To Respond to a 998 Offer in California?
Under CCP Statute 998, parties negotiating a statutory offer to compromise in California must follow these timelines:
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- Deadline to accept or reject. The opposing party has 30 días para responder. The offer must be made at least 10 days before the trial. If proceedings start before the 30 days end, the offer is rejected unless accepted beforehand.
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- Accepting or rejecting. To accept, the party must send written notice within the deadline, making the offer a binding settlement. If they don’t respond, the offer is automatically rejected; no formal notice is required.
How Does a 998 Offer Work With Claims Involving Multiple Parties?
In lawsuits with multiple parties, un 998 offer can be made to one or more individuals separately. Each party must choose whether to accept, and cost-shifting penalties apply only to those who reject the offer and do worse at trial.
Por ejemplo, a driver and passenger are both injured in a car accident. Each sues the at-fault driver, whose insurance company offers $300,000 to both parties under CCP 998. The passenger accepts, but the driver rejects and wins $250,000 at trial, $50,000 less than the offer.
En este caso, the driver will lose compensation and must pay the insurer’s court costs. sin embargo, since the passenger agreed to the 998 offer, they avoid a trial and keep their full settlement.
Can a 998 Offer Be Withdrawn in California?
UNA 998 offer can be withdrawn anytime before acceptance. Once accepted, it’s legally binding, and neither party can change the terms.
To withdraw an offer, the party who made it must give clear notice before the other side accepts. Típicamente, this includes a formal letter, Email, or court filing to ensure both parties are clear about the offer’s validity.
Can a 998 Offer Include Non-Monetary Terms?
UNA 998 personal injury case settlement in California can include non-monetary terms along with or instead of financial compensation. These terms may include:
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- Property transfers. One party may agree to give up real estate, vehículos, or other valuable property as part of the settlement.
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- Confidentiality agreements. The parties may be required to keep settlement details private, preventing public disclosure of the case outcome.
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- Non-disparagement clauses. Both sides may agree not to make negative statements about each other after settling.
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- Waivers of certain rights. The offering party might give up future legal claims related to the injury, preventing further lawsuits over the same incident.
Non-monetary terms must be clear and enforceable so the court can determine whether the trial outcome is more or less favorable than the offer.
Why a 998 Offer Could Make or Break Your Case
UNA 998 offer is a valuable litigation settlement strategy in California for resolving lawsuits in California without going to trial. It motivates both sides to consider settling early by introducing cost-shifting penalties, potentially saving money and time for those involved.
Thinking about a 998 offer? The wrong move could cost you thousands. Speak with an abogado experimentado today to ensure you make the best decision for your case.
