[{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/www.injury-attorneys.com\/blog\/ccp-%c2%a7-998-offer\/#BlogPosting","mainEntityOfPage":"https:\/\/www.injury-attorneys.com\/blog\/ccp-%c2%a7-998-offer\/","headline":"What is a CCP \u00a7 998 Offer?","name":"What is a CCP \u00a7 998 Offer?","description":"CCP \u00a7 998 takes its name from the code section from which the offer derives: the California Code of Civil Procedure (\u201cCCP\u201d) \u00a7 998. A CCP \u00a7 998 offer is a type of settlement offer that encourages the settlement of disputes prior to arbitration or a trial. The offer provides incentives to the party receiving […]","datePublished":"2015-01-29","dateModified":"2022-08-19","author":{"@type":"Person","@id":"https:\/\/www.injury-attorneys.com\/blog\/author\/injury-attorneys\/#Person","name":"Demas Law Group, P.C.","url":"https:\/\/www.injury-attorneys.com\/blog\/author\/injury-attorneys\/","identifier":7,"image":{"@type":"ImageObject","@id":"https:\/\/secure.gravatar.com\/avatar\/2d2d1dc668da653fd25c47bc01fca53aff1d3e1f6971487d8eb8e56cf2bae38c?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/2d2d1dc668da653fd25c47bc01fca53aff1d3e1f6971487d8eb8e56cf2bae38c?s=96&d=mm&r=g","height":96,"width":96}},"publisher":{"@type":"Organization","name":"Demas Law Group, P.C.","logo":{"@type":"ImageObject","@id":"https:\/\/www.injury-attorneys.com\/wp-content\/uploads\/2022\/08\/demas-logo.png","url":"https:\/\/www.injury-attorneys.com\/wp-content\/uploads\/2022\/08\/demas-logo.png","width":158,"height":141}},"image":{"@type":"ImageObject","@id":"https:\/\/www.injury-attorneys.com\/wp-content\/uploads\/2022\/08\/default-featured-img2-1.jpg","url":"https:\/\/www.injury-attorneys.com\/wp-content\/uploads\/2022\/08\/default-featured-img2-1.jpg","height":627,"width":1200},"url":"https:\/\/www.injury-attorneys.com\/blog\/ccp-%c2%a7-998-offer\/","about":["Personal Injury"],"wordCount":626,"articleBody":"CCP \u00a7 998 takes its name from the code section from which the offer derives: the California Code of Civil Procedure (\u201cCCP\u201d) \u00a7 998. A CCP \u00a7 998 offer is a type of settlement offer that encourages the settlement of disputes prior to arbitration or a trial. The offer provides incentives to the party receiving it, encouraging them to accept it.Incentives or PenaltiesThe main incentive offered by CCP \u00a7 998 is the idea that a penalty will be incurred if the party that refuses the offer fails to get a better verdict at trial. This can be a strong motivator to either party for settlement. Penalties include:Mandatory Penalties \u2013 The plaintiff will lose the right to recover court costs after the CCP \u00a7 998 offer has been made and must pay the defendant\u2019s post-offer costs.Discretionary Penalties \u2013 The court or arbitrator can order the plaintiff to pay reasonable expert witness fees that the defendant incurred in connection with the trial or arbitration post-offer.Often a CCP \u00a7 998 offer is made to plaintiff. However, these offers can also be made to the defendant. If a defendant does not accept a CCP \u00a7 998 offer and the plaintiff obtains a favorable judgment, the defendant will be required to pay reasonable post-offer expert witness fees incurred by Plaintiff and is still required to pay the plaintiff\u2019s costs and possibly their attorneys\u2019 fees.The purpose of a CCP \u00a7 998 offer is not to cause further financial hardship to one party. Rather, it is designed to force settlement by breaking settlement impasses. Many times, the initial offer is either too high or too low, causing an impasse. An unrealistic offer is likely to be beaten at trial or arbitration, but refusing a reasonable offer leads to the risk of incurring further penalties and costs. The risk of penalties can cause both sides to be more willing to negotiate and accept reasonable offers.Evaluating a CCP \u00a7 998 OfferWhen choosing whether or not to accept a CCP \u00a7 998 offer, it is important to consider whether the final judgment or award is likely to be \u201cmore favorable\u201d than the offer. If so, the offer should be rejected and the case should be taken to trial or arbitration. When determining if the final judgment or award will be \u201cmore favorable\u201d or not, you must consider both the damages estimate and the pre-offer costs. Costs include a range of items, including attorney\u2019s fees, which must be carefully reviewed. A list of costs to consider is available under CCP \u00a7 1033.5.When making an offer, it must be realistic. Evaluate the other party\u2019s chances at trial or arbitration. If it seems likely that the offer is reasonable, consider the amount and see if it matches your expectations. Also factor in reasonable costs and attorney\u2019s fees. If the offer is well-formed but still rejected, there is a good chance that the award obtained may be less favorable than the CCP \u00a7 998 offer. This will benefit the defendant in the end and can cost you money.Should I Consider a CCP \u00a7 998 Offer?CCP \u00a7 998 offers are a great tool for resolving a case before it goes to trial. However, for it to work, the offer amount must be well-researched and realistic. If you wish to avoid trial or arbitration in your personal injury case, consider discussing a CCP \u00a7 998 offer with your attorney. If the defendant makes a CCP \u00a7 998 offer, your attorney should evaluate it fully, factoring in a number of important elements. Evaluating a CCP \u00a7 998 offer is not something you should do without the help of an experienced personal injury attorney. CCP \u00a7 998 offers are complicated. Without the proper training and experience, you could make a costly mistake. When facing a personal injury case, be sure to turn to an experienced personal injury attorney to ensure you are fairly represented and compensated."},{"@context":"https:\/\/schema.org\/","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"Blog","item":"https:\/\/www.injury-attorneys.com\/blog\/#breadcrumbitem"},{"@type":"ListItem","position":2,"name":"What is a CCP \u00a7 998 Offer?","item":"https:\/\/www.injury-attorneys.com\/blog\/ccp-%c2%a7-998-offer\/#breadcrumbitem"}]}]