Summary Judgment Denial Earlier Did Not Mean Offer Was Unreasonable.
In Najah v. Scottsdale Ins. Co., Case Nos. B241097/B245960 (2d Dist., Div. 4 Sept. 30, 2014) (published), defendant insurance company won in a credit bid/pre-foreclosure insurance proceeds dispute after making a rejected $30,000 CCP § 998 offer to the plaintiff side. Ultimately, the defense won even though its earlier summary judgment motion was denied. The trial judge awarded the defense prevailing party shifting costs of $86,022.84 (part of which consisted of expert witness expenses of $41,317.55).
The cost award was affirmed, with the appellate court finding the lower court did not abuse its discretion in rejecting plaintiff’s argument that the 998 offer was not made in good faith. The defense always disputed liability such that its offer was reasonable in nature. The fact that a summary judgment is earlier denied, if the defense ultimately prevails, does not negate the validity of a 998 offer depending on the circumstances. (Regency Advertising, Inc. v. City of Los Angeles, 39 Cal.4th 507, 531 (2006).)