998 offers can be a valuable tool for reaching fair personal injury settlements outside of court
In any personal injury case, the most desirable outcome would be to receive a fair settlement offer from the defendant or their insurance company without the need to proceed to courtroom litigation. However, many different circumstances can inspire insurance reps to stubbornly refuse to offer the amount of compensation the victim requires. In such a scenario, using the California 998 Offer to Compromise has the potential to offer some significant benefits to the victim.
What is the California 998 Offer to Compromise?
The California 998 Offer to Compromise comes from the California Code of Civil Procedure. It specifies that, if one party rejects a settlement offer and then fails to obtain a more favorable result in litigation, that party must repay the other party for any reasonable expert witness fees incurred after the offer was made. In essence, the offer seeks to punish parties who frivolously take matters to court after having received a reasonable settlement offer.
When applied to a personal injury case, the California 998 Offer can:
- Put pressure on the defendant (or their insurer) to settle the case rather than going to court
- Create the potential for significant savings on legal fees with little risk to the plaintiff
When is the Best Time to Use the 998 Offer?
It is important to understand that 998 Offers are not the same as negotiations. Initially, a skilled personal injury attorney will likely enter the negotiation process asking for a high amount of compensation (even if the plaintiff would be content to accept a lower amount). Taking this position is often necessary to protect the victim against the way insurance companies tend to approach settlements and prevent the insurance adjuster from putting an unfair cap on the available compensation before negotiations really even get started.
The best time to make an official 998 Offer is actually once it has become clear that negotiations are not working. At this point, there is no risk of hurting the plaintiff’s position by revealing the lowest amount they would accept (so long as the attorney is certain they can win more than this amount in litigation). If the defense accepts the offer, then the case has been resolved without the delays, expenses, and hassles inherent in litigation, making the tradeoff of lower compensation worthwhile for the plaintiff. If the defense declines the offer and the plaintiff wins more compensation later on (as the personal injury attorney expected) then the plaintiff will reap the additional benefit of having their expert witness fees paid for by the defense.
Need Help with a Settlement Offer?
If you are confused about the amount of compensation you may be eligible for following an accident, the best course of action is to ask an expert like Fernando D. Vargas. He can help you understand the strength of your case and how this affects your position when considering settlement offers.
