Settlement offers made pursuant to Code of Civil Procedure § 998 can turn victory into defeat, defeat into victory. Section 998 is designed to "encourage both the making and the acceptance of reasonable settlement offers" prior to trial. Scott Co. of Cal. v. Blount, Inc., 20 Cal.4th 1103, 1114 (1999) (Scott).) Section 998's cost-shifting provisions create both a financial incentive to make reasonable settlement offers and a corresponding disincentive agains...
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