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CCP section 998 - "Attorney Fees and Offers to Compromise Civil Cases"
CALIFORNIA CODE OF CIVIL PROCEDURE

OFFERS BY A PARTY TO COMPROMISE

C.C.P. Section 998

(a) The costs allowed under Sections 1031 and 1032 shall be withheld or augmented as provided in this section.

(b) Not less than 10 days prior to commencement of trial or arbitration (as provided in Section 1281 or 1295) of a dispute to be resolved by arbitration, any party may serve an offer in writing upon any other party to the action to allow judgment to be taken or an award to be entered in accordance with the terms and conditions stated at that time. The written offer shall include a statement of the offer, containing the terms and conditions of the judgment or award, and a provision that allows the accepting party to indicate acceptance of the offer by signing a statement that the offer is accepted. Any acceptance of the offer, whether made on the document containing the offer or on a separate document of acceptance, shall be in writing and shall be signed by counsel for the accepting party or, if not represented by counsel, by the accepting party.

(1) If the offer is accepted, the offer with proof of acceptance shall be filed and the clerk or the judge shall enter judgment accordingly. In the case of an arbitration, the offer with proof of acceptance shall be filed with the arbitrator or arbitrators who shall promptly render an award accordingly.

(2) If the offer is not accepted prior to trial or arbitration or within 30 days after it is made, whichever occurs first, it shall be deemed withdrawn, and cannot be given in evidence upon the trial or arbitration.

(3) For purposes of this subdivision, a trial or arbitration shall be deemed to be actually commenced at the beginning of the opening statement of the plaintiff or counsel, and if there is no opening statement, then at the time of the administering of the oath or affirmation to the first witness, or the introduction of any evidence.

(c) (1) If an offer made by a defendant is not accepted and the plaintiff fails to obtain a more favorable judgment or award, the plaintiff shall not recover his or her postoffer costs and shall pay the defendant's costs from the time of the offer. In addition, in any action or proceeding other than an eminent domain action, the court or arbitrator, in its discretion, may require the plaintiff to pay a reasonable sum to cover costs of the services of expert witnesses, who are not regular employees of any party, actually incurred and reasonably necessary in either, or both, preparation for trial or arbitration, or during trial or arbitration, of the case by the defendant.

(2) (A) In determining whether the plaintiff obtains a more favorable judgment, the court or arbitrator shall exclude the postoffer costs.

(B) It is the intent of the Legislature in enacting subparagraph (A) to supersede the holding in Encinitas Plaza Real v. Knight, 209 Cal.App.3d 996, that attorney's fees awarded to the prevailing party were not costs for purposes of this section but were part of the judgment.

(d) If an offer made by a plaintiff is not accepted and the defendant fails to obtain a more favorable judgment or award in any action or proceeding other than an eminent domain action, the court or arbitrator, in its discretion, may require the defendant to pay a reasonable sum to cover postoffer costs of the services of expert witnesses, who are not regular employees of any party, actually incurred and reasonably necessary in either, or both, preparation for trial or arbitration, or during trial or arbitration, of the case by the plaintiff, in addition to plaintiff's costs.

(e) If an offer made by a defendant is not accepted and the plaintiff fails to obtain a more favorable judgment or award, the costs under this section, from the time of the offer, shall be deducted from any damages awarded in favor of the plaintiff. If the costs awarded under this section exceed the amount of the damages awarded to the plaintiff the net amount shall be awarded to the defendant and judgment or award shall be entered accordingly.

(f) Police officers shall be deemed to be expert witnesses for the purposes of this section. For purposes of this section, "plaintiff" includes a cross-complainant and "defendant" includes a cross-defendant. Any judgment or award entered pursuant to this section shall be deemed to be a compromise settlement.

(g) This chapter does not apply to either of the following:

(1) An offer that is made by a plaintiff in an eminent domain action.

(2) Any enforcement action brought in the name of the people of the State of California by the Attorney General, a district attorney, or a city attorney, acting as a public prosecutor.

(h) The costs for services of expert witnesses for trial under subdivisions (c) and (d) shall not exceed those specified in Section 68092.5 of the Government Code.

(i) This section shall not apply to labor arbitrations filed pursuant to memoranda of understanding under the Ralph C. Dills Act (Chapter 10.3 (commencing with Section 3512) of Division 4 of Title 1 of the Government Code).


Testimonials & Endorsements

  • “Not only is Mr. Peterson’s knowledge of the law beyond measure, he’s able to articulate it so it’s understandable.”
    If you are going through a divorce, The Law Offices of Arnold, Peterson & Criste is in my opinion the best option available. Mr. Peterson and his assistant Jordyn are top notch. Not only is Mr. Peterson’s knowledge of the law beyond measure, he’s able to articulate it so it’s understandable. He was able to navigate my emotions and help my uphill battle to receive proper visitation as a father. Jordyn never hesitated to reach out within the same business day if documents were needed or for any question I had about the process. Thanks to the team, we resolved the divorce healthfully. I couldn’t be more grateful.
    - Josh Arguijo
  • “I needed the best analysis and advice possible. I found Attorney Thurman Arnold III in Palm Springs.”
    I am a Veteran and Retired Deputy Sheriff. My divorce involved complicated property distribution and spousal support issues. I spent considerable time looking for the best Counsel I could find before I negotiated with my ex-wife and her Attorney. In fact, my case was in another county, but that didn't matter. I needed the best analysis and advice possible. I found Attorney Thurman Arnold III in Palm Springs. Attorney Arnold is a BAR Certified Family Law Specialist. In my humble opinion the best! His review of my case and how "Moore Marsden" property division applied was invaluable. His guidance saved me $30,000 dollars. Thank you, Thurman!
    - Jeff Jones
  • “Mike is adept at managing expectations and being very fair and measured.”
    Needed to modify a settlement and hired Mike Peterson. Mike is very, very knowledgeable and experienced. When you are going through a divorce or child custody issues, it is the most terrifying and stressful experience. Mike is adept at managing expectations and being very fair and measured. I wish I had hired him initially to get it all done straight the first time around. He is very responsive and communicative and understands the client well. Good luck going through this process - have a good guide like Mike without a doubt.
    - Donika McKelvie
  • “I would highly recommend him and the firm”
    Micheal Peterson is very knowledgeable of law and can help you make the best decisions for your family. He does is job with integrity. He helps with giving discounts when he can . I would highly recommend him and the firm . Very good staff .
    - Vincent Hall
  • “Very professional, honest, and handled everything without a hiccup.”
    Arnold, Peterson & Criste are a class act. Very professional, honest, and handled everything without a hiccup. When a year had passed, he and Jordyn contacted me to let me know I still had retainer on the books! I had forgot and they sent me the money anyway! For this I am very grateful and cannot recommend them enough. You won’t go wrong with Thurman Arnold. He is definitely the guy to have on your side.
    - Matt Feenstra
  • “Simply the Best of the Best!!!”
    I Highly Recommend Michael C. Peterson at the Law Office of Thurman W. Arnold!!! I hired Michael for my custody case and he is very knowledgeable and took the time to educate me on the process so we can put together a winning strategy. He fought for me and my children in court and successfully won our case. There are no words to describe how grateful and appreciative I am for Michaels service!!! If you are sitting on the fence on which Attorney to hire, do yourself a favor and hire Michael. I would not recommend anyone else!!! Simply the Best of the Best!!!
    - John and Lukes Tube
  • “Mike amazes me by his knowledge of my case, made me feel like I was his only client.”

    I reached out to this law firm 2 years ago when my life was falling apart. My case was assigned to attorney Michael Peterson. I didn't know much about him except few reviews on google but I'm glad I hit the jackpot. Mike amazes me by his knowledge of my case, made me feel like I was his only client. He's very responsive, respectful and and goes above and…

    - Damaris M.
  • “He and Michael Peterson are truly masters of their craft.”
    When my clients have family law issues, I routinely refer them to Thurman Arnold. He and Michael Peterson are truly masters of their craft. Family law can be an unwieldy beast, but they handle it with precision and finesse.
    - Edward Cross

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