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Jan. 14, 2025

Section 998: The high-stakes settlement strategy you need to know

California Code of Civil Procedure Section 998 shifts costs when a settlement offer is rejected. This article answers 20 key questions on recoverable costs, settlement dynamics, and evolving legal interpretations.

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California Code of Civil Procedure Section 998 is a settlement tool parties use to shift costs upon the resolution of a case. If a party rejects a Section 998 offer and then fails to obtain a more favorable judgment, they could be held responsible for the offering party's post-offer costs and fees. While Section 998 has served as an influential tool for pre-trial settlements for years, it also has proven enigmatic...

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