A 998 offer refers to a formal, written settlement proposal to settle cases before trial. This offer also attaches significant financial consequences if the offer is rejected, and the rejecting party fails to achieve a better outcome in court. A 998 offer is upheld by the Code of Civil Procedure 998 and is viewed by California Law as a statutory offer to compromise civil cases between parties.
When Can a 998 Offer Be Made?
A 998 Offer is used in civil cases such as personal injury, employment disputes, contract actions, and public enforcement cases. In a civil case, any party can make a 998 offer as long as the following conditions are met:
- It must be at least 10 days before trial or arbitration starts
- The offer must specify terms/conditions for judgement award such as the dollar amount and penalty for dismissing the offer
- A provision that allows the party to accept the offer with a signature. Typical in the form of a CIV-090
Once an offer is made, the other party has 30 days (or until trial starts) to accept the offer in writing. The other party’s acceptance must be unequivocal and signed by them and their attorney. Once that is complete, then the case is permanently resolved without trial.
Why Would One Party Look to Settle?
There is an additional incentive for the defense to want to settle your case because of how unpredictable a jury can be. A trial could potentially conclude with the defense paying hundreds of thousands of dollars more than if they settled, plus they will also be on the hook for attorneys’ fees, expert witnesses, and trial costs. Even if they could successfully win their case against you, they will most likely still end up spending more in attorney’s fees and court costs than if they had settled your claim. However, there are other reasons why the liable party may look to settle. They include:
- Risk management: settlements mitigate risk by ending the lawsuit for both parties
- Cost savings: legal proceedings are expensive and can cost extensive amounts of money, time, and resources
- Control over outcome: a settlement allows the party to control the outcome, rather than awaiting an unpredictable trial verdict
- Confidentiality: settlements can also be an agreement to keep information private, while trials are public
- Preservation of relationships: trials can be damaging to long-term business relationships as they tend to become adversarial, whereas settlements allow both parties to walk away without dispute
- Immediate resolution: trials require lots of time and preparation, whereas settlements can end claims immediately
Despite the benefits of reaching a fair settlement, if the defense is not even close to covering your damages with their offer, then an attorney will be needed to file a lawsuit and represent you in a trial.
Contact a Personal Injury Lawyer in California
If you or a loved one has been involved in a personal injury accident in California, Maison Law is here to get you the compensation you need. Our team of Personal Injury Attorneys are experienced negotiators and will aggressively pursue fair compensation for your damages. If you’re being “low-balled” by the insurance companies and feel you deserve a better settlement, contact Maison Law today for a free consultation and case evaluation. There are no hidden fees, and you will not be charged a cent until we’ve won your case.
