In California, settlement offers can carry consequences beyond the negotiating table. Under Code of Civil Procedure section 998, either side in a lawsuit can make a formal written offer to settle. If that offer is rejected and the other party fails to do better at trial, financial penalties may follow. These offers play a significant role in the decision to settle or proceed to trial in wrongful death cases.
How Statutory Settlement Offers Raise the Stakes
A 998 offer is a formal, written proposal made under specific procedural rules. The receiving party generally has thirty days, or until the start of trial if sooner, to accept. If the offer is not accepted within that time, it is considered withdrawn and cannot later be accepted.
When a family makes a 998 offer and the defendant rejects it, the stakes rise for the defense. If the jury later awards more than the offer, the defendant may be required to pay certain additional costs, including expert witness fees, and in personal injury cases, interest may be added to the judgment from the date of the offer.
The defense can also make 998 offers. If a family rejects a defense offer and then receives a smaller verdict at trial, the family may lose the right to recover certain costs incurred after the offer and may be ordered to pay some of the defendant’s costs, including expert fees.
Because of these consequences, 998 offers must be evaluated carefully. Accepting too little means giving up fair compensation, but rejecting a reasonable offer can reduce the final recovery. Each decision requires a realistic assessment of how a jury is likely to value the case.
Strategically timed 998 offers can also prompt serious negotiations. A well-calculated offer from the family signals confidence and places financial pressure on the defendant and its insurer to reevaluate the risk of trial.
Understanding how these offers work allows families to use them as a tool rather than be caught off guard by them, particularly as the case gets closer to trial and both sides begin to weigh their final positions.
Statutory settlement offers add an important layer of strategy to wrongful death litigation. They reward reasonable offers and penalize unreasonable refusals, which encourages both sides to evaluate the case honestly. A wrongful death lawyer in Newport Beach can explain how these offers apply to your case and help you respond in a way that protects your family’s recovery. Before responding to any formal offer, it is worth reviewing the evidence, expert opinions, and likely verdict range carefully, since the thirty-day window leaves limited time for reflection.