In a recent California injury case, an appellate court ordered the losing parties to pay additional costs because they rejected a settlement offer before trial. In that case, two individuals died in a fire that occurred in a home they were renting. One was a three-year-old child, and the other was a 49-year-old mother. After the fire, the victims’ families sued the owners of the home.
Before trial, the plaintiffs made an offer to settle both claims for $1.5 million, but the defendants rejected the offer. The case went to trial, and the plaintiffs won, with the jury awarding the plaintiffs $2.2 million in the mother’s claim and $357,000 in the child’s claim. After the trial, the court ordered the defendants to pay additional costs because the defendants rejected the settlement offer.
Costs Under Section 998
Generally, the party that wins in a civil case can recover certain costs. In addition, in California, section 998 of the Code of Civil Procedure punishes a party that refuses a reasonable settlement offer by allowing the offering party to recover certain costs. Section 998 allows the prevailing party to recover additional costs and fees that are not generally available, such as expert witness fees.