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A statutory offer to compromise, codified as the California Code of Civil Procedure (CCP) Section 998 offer, allows for either the plaintiff or the defendant to offer the other party financial incentive to accept a pretrial settlement.
If the offer is accepted, the accepted offer is filed with the court and judgment entered accordingly. If the offer is not accepted, and the person rejecting the offer does not obtain a trial result better than the offer, certain cost-shifting mechanisms kick in.
The offer must be made in writing, and must be accepted in writing and signed by counsel for the party accepting the offer or by the accepting party if not represented by counsel. (Code Civ. Proc., § 998, subd.
A section 998 offer expires after thirty days or upon the commencement of trial or arbitration, whichever comes first. (Ibid.) A section 998 offer may be served on the opposing party at any time ten or more days before a trial or arbitration begins. (Code Civ.
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