Lower Court’s Entry Of Judgment Based On 998 Offer With Additional Terms Was Erroneous.
CCP section 998 offers are governed by contractual principles; so, if you propose additional terms, that might be construed as a counteroffer which cannot be enforced. That is what happened in Gonzalez v. Bowens, Case No. D084264 (4th Dist., Div. 1 Oct. 24, 2024) (unpublished). Before trial, plaintiff made a 998 offer with an entry of judgment condition. The defense accepted the offer but with the caveat that a release and dismissal be signed by plaintiff, a proposal not responded to by plaintiff.
The lower court entered judgment based on the 998 offer, and the appellate court reversed. The defense’s acceptance with different terms was an unaccepted counteroffer so that the conclusion otherwise was erroneous. (Guzman v. Visalia Community Bank, 71 Cal.App.4th 1370, 1376 (1999).)