Civil Litigation
Apr. 5, 2021
An offer you can’t accept
Section 998 pitfalls to avoid
Michael R. Diliberto
Mediator and Arbitrator
Diliberto ADR
Business, employment, entertainment, real estate
Code of Civil Procedure Section 998 was enacted to encourage settlement of lawsuits before trial. The statute provides a cost shifting financial disincentive to a party who fails to achieve a better result at trial than that party could have achieved by accepting his or her opponent's settlement offer. The offer must be in writing and (i) shall include a statement of the offer; (ii) containing the terms and conditions of the judgment or award; and (iii) a provision th...
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