Defense Section 998 Offers Found Not To Be Uncertain.
Ron Welty, former drummer of the band The Offspring, sued the band and other affiliated defendants on a contractual interpretation over royalties, with there being a contractual fees clause at issue. He asked for $2.9 million in damages, but he recovered nothing. The defendants then moved for substantial attorney’s fees, which were granted.
His appeal in Welty v. Offspring, Inc., Case No. B328648 (2d Dist., Div. 2 Oct. 9, 2024) (unpublished) was unsuccessful.
After 2 ½ years of intensive litigation, some defendants were awarded a total of $856,818 in contractual fees and another group $20,013 in costs. The appellate court affirmed, finding the awards were no abuse of discretion.
On the fee awards, block billing and billing in quarterly hour increments—although not ideal—did not prevent the lower court from making an appropriate award. The two defense section 998 offers were not invalid: all were targeted at Mr. Welty, so no apportionment needed to be made as generally may need to be made where multiple plaintiffs are involved, and no authority suggested that a 998 offer was infirm where it asked all parties to bear their own fees and costs.