• Alan J. Keossayan, Esq.

What is a 998 Offer to Compromise?

Updated: Sep 6



A 998 Offer to Compromise ("998 Offer") allows a party to a lawsuit to shift costs to the other party. This offer is based on California Code of Civil Procedure § 998. A 998 Offer is generally good for only 30 days, unless otherwise agreed upon by the parties.


You make a 998 Offer by using the required statutory language under the code, CCP § 998, and related case law.


Here’s how it works from the Plaintiff's side:

  • Plaintiff sends Defendant a $50,000 998 Offer on September 1.

  • Defendant doesn’t accept the offer by October 1 (30 days later). Therefore, the 998 Offer is now closed.

  • Plaintiff prepares for trial and spends $15,000 in costs preparing for trial.

  • Plaintiff goes to trial and wins. The jury awards Plaintiff $55,000.

  • Plaintiff has essentially “beat” the original 998 Offer for $50,000. Therefore, Plaintiff should be able to recover some of the $15,000 in costs he/she incurred preparing for trial.

If, however, Defendant accepted the $50,000 998 Offer on or before October 1, then the case would have settled and would be over.


As always, a 998 Offer can become complicated if, for example, there a multiple parties, extensions, issues of whether the 998 Offer was made in "good faith", etc.


In the end, what's important to know is that a 998 Offer is a type of settlement offer but one with teeth because a 998 Offer allows a party to shift costs to the other party.


If you have any questions or concerns, please do not hesitate to contact us.

24 views

Contact Us

DISCLAIMER: THIS SITE PROVIDES GENERAL INFORMATION, NOT LEGAL ADVICE. DO NOT ACT ON INFORMATION RECEIVED FROM THIS WEBSITE WITHOUT SPEAKING TO A LAWYER FIRST. READING THE INFORMATION ON THIS SITE AND/OR CONTACTING AJK LAW OFFICE DOES NOT CREATE AN ATTORNEY-CLIENT RELATIONSHIP. DO NOT SEND CONFIDENTIAL INFORMATION WHEN YOU CONTACT US. ANY INFORMATION SUBMITTED THROUGH THIS SITE WILL NOT BE CONFIDENTIAL. ALSO, AJK LAW OFFICE DOES NOT GUARANTEE, PREDICT, OR WARRANT THE OUTCOME OF ANY SPECIFIC MATTER. ALAN J. KEOSSAYAN OF AJK LAW OFFICE IS RESPONSIBLE FOR THIS COMMUNICATION. HE IS LICENSED TO PRACTICE LAW IN CALIFORNIA. THE SITE MAY BE CONSIDERED ATTORNEY ADVERTISING.

15233 Ventura Blvd., Suite 500

Sherman Oaks, CA 91403

(818) 338-2400

Copyright © 2020 Keossayan - All Rights Reserved. AJK Law Office Privacy Policy.