What should I do if I receive a California section 998 settlement offer?

Send the complete offer to your lawyer promptly, including the document showing when and how it was served. A section 998 offer is a formal settlement procedure with potential court-cost consequences, so it needs a different review from an ordinary negotiating offer. You are not required to accept it, but you should understand its terms and response deadline. The statute generally treats an unaccepted offer as withdrawn after 30 days or when trial or arbitration starts, whichever comes first; your lawyer should calculate the deadline for the actual service and circumstances.

Rejecting a valid defence offer and failing to obtain a more favourable result can affect your recovery of costs and expose you to the defendant’s costs, potentially including expert-witness expenses. These issues can arise even when a case later settles. Ask your lawyer to explain the offer’s validity, the claims it resolves and the financial consequences of accepting or declining it. The firm’s settlement and lawsuit guide provides background, but a section 998 document needs its own timely assessment.