This Rule Prevents Gamesmanship And Mischief, According To The Court Of Appeal.
Meehan v. Aguirre, Case No. B343396 (2d Dist., Div. 3 Sept. 15, 2026) (published) dealt with a situation where a personal injury plaintiff made three CCP section 998 offers for $1 million to defendants, all not accepted. A fourth offer was made for $2 million, nearly four years into the litigation, again not accepted. After an extensive bench trial, plaintiff recovered $1,062,500 after a comparative negligence reduction; when enhanced by allowable costs, the judgment was close to $1.46 million, such that defendants obtained the more favorable judgment. The trial judge denied the recovery of expert witness fees and prejudgment interest because it found that the last offer was the governing one. It also taxed CCP section 1033.5 routine costs at trial for certain court reporter, video technician expenses, and unused Day in the Life video. Plaintiff appealed.
The Court of Appeal affirmed. It found that the last offer rule should govern, holding “that where a plaintiff makes multiple valid and unrevoked section 998 offers, and their award is less favorable than their final offer, it is the last offer that controls for purposes of determining any entitlement to section 998 benefits.” With respect to the section 1033.5, the lower court did not abuse its discretion in finding that the other routine costs were not properly substantiated to show that they were reasonably required for the litigation.