Van De Poel, Levy & Allen, LLP Cases & Rulings

CCP §998 MUST BE IN WRITING AND INCLUDE A PROVISION FOR ACCEPTANCE IN WRITING TO BE DEEMED VALID

Date: 08.17.2011 Summarized by: Marilou R. Bustonera, Esq May 27, 2011 California Court of Appeal, Fourth Appellate District
 
 
Case:

Antonio Puerta v. Anna Berta Torres - 11 C.D.O.S. 6397 – Fourth Appellate District

 
 
Why This Case Is Important:

Although a CCP §998 offer is in writing, if there is no provision for acceptance, the §998 is invalid.

 
 
Synopsis:

Defendant sought recovery of expert costs pursuant to CCP §998 after receiving a defense verdict.  However, because Defendant’s §998 did not include a provision for acceptance, the offer was deemed invalid by the Court and Defendant’s claim for expert costs denied.

 
Detailed Discussion:

Plaintiff Antonio Puerta and Defendant Anna Berta Torres were involved in a car accident in Westminister, CA.  After prevailing at trial, Defendant filed a memorandum of costs.  Among other costs, Defendant sought $5,350.00 in expert witness fees pursuant to CCP §998 along with other costs pursuant to statue.  In opposition, Plaintiff filed a motion to tax costs, arguing that Defendant had not demonstrated she was entitled to recover expert costs because Defendant had failed to show that she had served a valid CCP §998.  In reply, Defendant submitted a declaration and copy of her CCP §998 offer, which sets forth an offer to dismiss in exchange for a waiver of costs and includes an expiration date 30-days after the offer was served.  Plaintiff filed an objection, arguing that Defendant’s offer had not complied with the language of the statute requiring that the offer include a provision for acceptance.

The Court ruled by minute order that Defendant had met the condition of providing evidence of a CCP §998 offer and denied Plaintiff’s motion to tax costs.  

Plaintiff appealed.
 
Analysis:

CCP §998 states “The written offer shall include a statement of the offer, containing the terms and conditions of the judgment or award, and a provision that allows the accepting party to indicate acceptance of the offer by signing a statement that the offer is accepted.”  (Common Cause v. Board of Supervisors (1989) 49 Cal.3d 432, 443 [It is well-settled principle of statutory construction that the word... ‘shall’ is ordinarily construed as mandatory…”]  The statute was amended to require that acceptance of §998 offers, as well as the offers themselves, be in writing, and that the manner of acceptance must be indicated in the offer.

It is undisputed from the record that Defendant’s §998 did not include a provision regarding acceptance.  Plaintiff argues that the §998 was invalid for failing to include a provision regarding acceptance as set forth in the statute.  Accordingly, the Court erred by awarding Defendant $5,350.00 in expert witness fees.  The offer at issue contained nothing regarding acceptance, only the terms of the offer itself and the expiration date.  Thus, the offer was invalid (regardless if Plaintiff intended to accept the offer or not).
 
Holding:

The portion of the judgment requiring Plaintiff to pay Defendant’s expert witness fees is reversed.

 

 

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Additional Links
When evaluating a CCP §998 offer to compromise attorney's fees are defined as an item of cost under CCP §1033.
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