CCP 998 "offer to compromise" legal explanation by Attorney Steve®

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9 years ago

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HOW TO USE CALIFORNIA CCP 998 OFFER TO COMPROMISE TO HELP SETTLE YOUR LAWSUIT.

Steve Vondran, the business and real estate lawyer, discusses the powerful CCP 998 "offer to compromise" and how a Plaintiff or Defendant can use this legal strategy in a litigation setting. Once made in writing, the offer is open for 30 days. It does NOT get filed with the Court. If the other party accepts in writing - an unequivocal acceptance is required ("mirror image") then the case is settled. If one party does not "beat the 998 offer" made by the other party, there is a "cost-shifting" mechanism whereby the party who did not beat the 998 offer can be ordered to pay the other side's costs and fees including expert witness fees.

All Plaintiffs and Defendants in California should note, that this is different from being awarded your "attorney fees" which are generally only permitted if authorized by statute or by contract.

Note also that the CCP 998 offer applies in both litigation and arbitration cases, so if you are a litigant in a state or federal court case, or private arbitration with JAMS, or AAA arbitration, you might want to consider making an offer to try to convince the other party to settle the case.

If the 998 offer is not accepted within 30 days, it is considered "rejected" or "revoked". 998 offers can be used in conjunction with a confidential settlement offer so you have two different types of settlement offers you can make.

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