Settlement, 998 Offer, Shifts Costs If Case Later Settles For Less Than Rejected Offer, 1, 3
CCP 998 applies when the parties settle after a 998 offer is rejected or the time for accepting it expires, if the case later settles for an amount less than the amount of the unaccepted 998 offer–at least when the eventual settlement fully resolves all claims in the case and provides for eventual dismissal of the action after any award of attorney fees and costs is entered by the trial court. However, the parties may provide for a different allocation of fees and costs in the settlement agreement itself.