Understanding how settlement offers work before trial can change the outcome of a California personal injury case. At Dhanjan Car Accident and Injury Lawyers of Fresno, we often hear clients ask: what is 998, and how can it affect recovery after an accident? A 998 offer represents a formal, strategic settlement proposal designed to motivate both sides to resolve a claim without trial. Failing to handle this type of offer correctly can lead to significant financial consequences for injury victims. Contact a Fresno personal injury lawyer for a legal consultation.

What is a 998 and How Does it Work in California?

A “998” in California personal injury law refers to an Offer to Compromise under California Code of Civil Procedure Section 998. It creates a structured method for one party to propose a settlement before trial, encouraging resolution while imposing cost risks on anyone who refuses a reasonable offer. According to California Code of Civil Procedure § 998, any party may submit a written offer at least ten days before trial or arbitration. The offer must include specific terms, conditions, and a clear space for acceptance. Once accepted, the case can end through judgment or award entry consistent with the written proposal.

Purpose and Function:
Section 998 encourages early settlement through cost penalties. If a plaintiff rejects a defendant’s 998 offer but wins less at trial, the plaintiff may lose the right to recover court costs and could pay the defendant’s post-offer costs. Conversely, if a defendant rejects a plaintiff’s 998 offer but the plaintiff wins more, the defendant may owe the plaintiff’s post-offer costs and, sometimes, attorney fees.

Practical Use in Personal Injury Cases:
Before trial, both parties assess the case value, including medical bills, lost wages, pain and suffering, and liability. A 998 offer can be used by a defendant to limit exposure or by a plaintiff to push for fair compensation. To be valid, the offer must be a written “998 Offer,” clearly identified, and served with sufficient time for the receiving party to consider and accept within thirty days or ten days before trial, whichever is sooner.

This process balances negotiation leverage and litigation risk. Section 998 settlements also count as formal “settlements,” meaning they resolve disputes through voluntary agreement, as explained by Cornell Law School’s Legal Information Institute. Once accepted, the matter concludes, and related litigation typically ends.

Are There Any Consequences of Not Accepting?

Rejecting a 998 offer can trigger significant financial consequences. California law enforces Section 998 to motivate parties to settle by shifting costs after an unreasonable rejection. If a plaintiff turns down a defendant’s 998 offer and then recovers less at trial, the court can deny post-offer costs and order payment of the defendant’s expenses, such as filing or deposition fees. When a plaintiff issues a 998 offer that a defendant rejects but later obtains a higher judgment, the defendant may owe the plaintiff’s post-offer costs and, in some cases, attorney fees.

Section 998’s purpose remains clear: to encourage fair settlements and discourage unnecessary trials. Declining a reasonable offer can turn a partial win into a financial loss, making careful evaluation of every 998 proposal vital in a California personal injury case.

How a Personal Injury Lawyer Can Help You

Navigating 998 offers requires precise timing, correct service, and careful language. A personal injury lawyer analyzes the strengths and weaknesses of each claim, determines whether accepting or rejecting an offer supports the client’s best interest, and ensures the written terms comply with statutory requirements. Counsel also calculates potential cost exposure if the case proceeds to trial.

At Dhanjan Car Accident and Injury Lawyers of Fresno, we handle Section 998 settlement negotiations. We assess fair offers based on liability, comparable Fresno County verdicts, and medical needs. We also prepare clients for the strategic and financial implications of Section 998 decisions.

This level of preparation protects injured individuals from unexpected cost-shifting and supports informed decision-making. By anticipating how courts assess offers and outcomes, clients maintain stronger control over their recovery path.

Contact a Fresno Personal Injury Lawyer for Legal Support

Managing a 998 offer can feel complex, especially when a personal injury claim already involves extensive medical records, insurance communications, and negotiation pressures. Working with Dhanjan Car Accident and Injury Lawyers of Fresno ensures every offer receives professional review and strategic handling under California law.

Our firm offers a free consultation to help accident victims understand how Section 998 might impact their potential settlement or trial outcome. Call us at (559) 342-2000 today to discuss your case with a Fresno personal injury lawyer and protect your right to full and fair compensation.