§ 998.Offer Served Prior to Resolution of Dispute By Arbitration
Title 14. Of Miscellaneous Provisions · Chapter 3. Offers by a Party to Compromise · Last amended 2025 · Last verified July 28, 2026
Full Text of § 998
Plain-English Summary
Section 998 is the engine behind the statutory offer to compromise, one of the most consequential settlement tools in California civil practice. Either side may serve a written offer at any point up to ten days before trial or arbitration begins. The offer has to spell out the terms of the judgment or award and include a way for the other side to accept it in writing. If the offeree accepts, the offer is filed and judgment or an award follows automatically — no further negotiation needed. If nobody accepts within thirty days, or before trial starts, whichever comes first, the offer disappears and can't be mentioned at trial.
The real force of § 998 shows up after trial, when the court compares the judgment to the unaccepted offer. A plaintiff who turns down a defendant's offer and then wins less than the offer amount loses the right to recover costs incurred after the offer, has to pay the defendant's costs from that point forward, and may also be ordered to cover the defendant's reasonable expert witness fees. A defendant who turns down a plaintiff's offer and then does worse than the offer at trial can be ordered to pay the plaintiff's postoffer expert witness costs on top of ordinary costs. These consequences apply whether the party is styled as a plaintiff, cross-complainant, defendant, or cross-defendant.
A few carve-outs matter. The statute doesn't apply to an offer a plaintiff makes in an eminent domain action, or to enforcement actions brought by the Attorney General or other public prosecutors. Expert witness cost awards are capped by reference to Government Code § 68092.5, and police officers count as expert witnesses for these purposes. Section 999.1's time-limited demands operate on a different track entirely, tied to insurance policy limits rather than trial costs.
Frequently Asked Questions
How long before trial can a § 998 offer be served?
It must be served not less than ten days before trial or arbitration commences. A trial or arbitration is deemed to commence at the opening statement, or, if there's none, when the first witness is sworn or the first evidence is introduced.
What happens if the offer isn't accepted?
If it isn't accepted before trial or arbitration begins, or within thirty days of being made, whichever happens first, it is deemed withdrawn and can't be introduced as evidence at trial.
What penalty does a plaintiff face for rejecting a defendant's offer and doing worse at trial?
The plaintiff loses the right to recover costs incurred after the offer, must pay the defendant's costs from the time of the offer, and may be ordered to pay the defendant's reasonable postoffer expert witness fees.
Can a defendant who rejects a plaintiff's offer be ordered to pay expert fees too?
Yes. If the defendant fails to obtain a more favorable judgment than the plaintiff's offer, the court or arbitrator may order the defendant to pay the plaintiff's reasonable postoffer expert witness costs, in addition to the plaintiff's ordinary costs.
Does § 998 apply to eminent domain cases or government enforcement actions?
No, not to an offer made by a plaintiff in an eminent domain action, and not to enforcement actions brought in the name of the People by the Attorney General or another public prosecutor.
Amendment History
Amended by Stats 2024 ch 444 (SB 577),s 2, eff. 1/1/2025. Amended by Stats 2015 ch 345 (AB 1141),s 2, eff. 1/1/2016. Amended by Stats 2005 ch 706 (AB 1742),s 13, eff. 1/1/2006 Amended by Stats 2001 ch 153 (AB 732), s 1, eff. 1/1/2002. Previously Amended September 7, 1999 (Bill Number: SB 1161) (Chapter 353).