Personal Injury Topics / Offer to Compromise

Should a case require the filing of a lawsuit during my representation of an injured victim, I routinely send to the opposing attorney an Offer to Compromise the claim.  what this basically means is that I make an offer to settle the case at a certain amount.  This offer is in accordance with Code of Civil Procedure, Section 998 (also known as a CCP 998). The opposing side has to either accept or reject the offer within 30 days.  Should they do nothing, then the offer is deemed rejected after 30 days.  The failure of the opposing side to accept the offer could pay great dividends to my client should we receive a more favorable judgment.  A CCP 998 offer basically states that should the injured party receive a judgment greater than the amount demanded within the CCP 998, the injured party receives the following: 1) interest at the rate of 10% on the total judgment from the date the offer was made and 2) all costs incurred including those amounts paid to experts.  For example, let’s assume I send out a CCP 998 Offer to Compromise for the amount of $100,000 in January, 2010.  Let’s also assume that the defendant fails to accept that offer within 30 days and the offer therefore expires in February, 2010.  Let’s further assume that costs are incurred in the amount of $20,000.00, including expert fees to, litigate the case.  Let’s then assume that the case is tried in February, 2011 and the jury gives my client the amount of $150,000.00.  In essence, my client would receive $170,000.00 ($150,000.00 plus costs of $20,000.00) plus interests at 10% on the total judgment, or an additional $17,000.00. Hence, my client would receive a judgment in the amount of $187,000.00.  I routinely send a CCP 998 on every case that is litigated as there is no down side. If my client receives a judgment less than $100,000.00 there is no penalty.  There would only be a penalty (reduction of the judgment in an amount paid by the defense for their costs incurred) should the other party present a CCP 998 Offer to Compromise and my client receives less than this amount at trial.

I represent all individuals in the State of California for injuries they receive as a result of the negligence of another.  If I could be of service to you, a friend, or a family member, all of my contact information can be found by clicking here.