Weakness Of Case And Strength Of Defenses Must Be Considered Before Rejecting Offers.
In Del Norte Senior Center, Inc. v. Stelling, Case No. A145016 (1st Dist., Div. 4 Jan. 25, 2019) (unpublished), defendant was awarded $30,410.91 in expert witness fees after she defensed plaintiff in a contentious accounting dispute. She had earlier offered to pay plaintiff $163,636.53 through a CCP § 998 offer after attending a settlement conference, an offer rejected by plaintiff. On appeal, plaintiff argued that the 998 offer was made in bad faith, but this did not resonate at all with the reviewing panel. Although plaintiff wanted $525,000, it failed to evaluate the weakness of its case and strength of defendant’s defense (given that there was an investigative report absolving her of fault). She made a good faith offer, reinforced by the fact it came after a settlement conference where there was some input on exposure. There was nothing wrong with defendant putting the same money on the table through a 998 offer, given that is what section 998 is designed to do—get parties to settle!