What is a 998 Offer? A Guide to California's Legal Settlement Tool

Definition & Meaning

A Section 998 offer is a written proposal made by one party in a civil lawsuit to another party, allowing for a judgment to be entered based on the terms specified in the offer. This offer must be served at least ten days before the trial begins. If the offer is accepted, it is filed with the court, and a judgment is entered accordingly. If the offer is not accepted and the rejecting party does not achieve a better result at trial, they may face cost-shifting penalties.

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Legal Use & context

Section 998 offers are commonly used in civil litigation to encourage parties to settle disputes before reaching trial. They are particularly relevant in personal injury, contract disputes, and other civil matters. This mechanism allows parties to propose settlement terms formally and can significantly impact the costs incurred during litigation. Users can manage this process using legal templates from US Legal Forms, which are drafted by qualified attorneys.

Key legal elements

Real-world examples

Here are a couple of examples of abatement:

(hypothetical example) A plaintiff in a personal injury case serves a Section 998 offer to the defendant for $50,000. The defendant does not accept the offer. If the plaintiff wins at trial but only receives $40,000, the defendant may be responsible for the plaintiff's legal costs incurred after the offer was made.

Relevant laws & statutes

Section 998 of the California Code of Civil Procedure governs the use of such offers in California. This statute outlines the procedures and implications of making and responding to these offers.

State-by-state differences

State	Key Differences
California	Allows for cost-shifting if the trial result is worse than the offer.
Florida	Similar provisions exist, but the specifics of cost-shifting may differ.
Texas	Does not have a direct equivalent to Section 998, but offers similar settlement incentives.

This is not a complete list. State laws vary and users should consult local rules for specific guidance.

Comparison with related terms

Term	Definition	Key Differences
Settlement Offer	A proposal to resolve a dispute without going to trial.	Section 998 offers have specific legal consequences related to costs.
Demand Letter	A formal request for payment or action.	Demand letters do not have the same trial-related implications as Section 998 offers.

Common misunderstandings

What to do if this term applies to you

If you are involved in a civil lawsuit and considering making or responding to a Section 998 offer, it may be beneficial to consult with a legal professional. They can help you understand the implications and assist in drafting the offer. Additionally, you can explore US Legal Forms for templates to facilitate this process.

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Quick facts

Typical Fees: Varies by attorney.
Jurisdiction: Primarily in California, but similar concepts exist in other states.
Possible Penalties: Cost-shifting if the trial result is worse than the offer.