Accepting vs. Rejecting a Section 998 Offer
In California, a special kind of settlement offer — a Code of Civil Procedure Section 998 offer — can shift who pays certain costs depending on what happens next. Whether to accept or reject one is a decision with real consequences.
What a 998 offer is
A 998 offer is a formal settlement offer made under California law. What makes it different is the cost-shifting consequence: if you reject it and then do worse at trial than the offer, you can be responsible for certain of the other side's costs — and sometimes lose some of your own.
Weighing accept vs. reject
Accepting a fair 998 offer ends the case with certainty. Rejecting one is sometimes the right call — but only if the case is likely to beat the offer, because the downside of falling short can be significant. It is a calculated risk, not a gut decision.
The bottom line
A 998 offer should never be accepted or rejected casually. The cost-shifting rules make it one of the more strategic decisions in a California case, and it is worth analyzing carefully with someone who understands the exposure.
Frequently asked questions
What is a 998 offer in California?
It is a formal settlement offer under Code of Civil Procedure Section 998 that carries cost-shifting consequences. Rejecting one and then doing worse at trial can leave you responsible for certain costs.
What happens if I reject a 998 offer and lose?
If you reject a valid 998 offer and then recover less than it at trial, you can be responsible for certain of the other side's costs and may lose some of your own. That downside is why the decision needs careful analysis.
This is general information about California injury claims, not legal advice. Every situation is different.
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