Plaintiffs Obtained Zero Damages, So $14,242.56 Offers To Each Unsuccessful Plaintiff Allowed For 998 Costs Shifting.
In Chang v. Fire Ins. Exchange, Case No. B334217 (2d Dist., Div. 7 Dec. 19, 2024) (unpublished), two plaintiffs lost insurance and related tort claims against insurance carrier, after the plaintiffs rebuffed separate $14,242.56 offers under CCP § 998. Plaintiffs lost after demurrers and terminating discovery sanctions were sustained/granted as to their claims. Defendant carrier was awarded $7,500 in expert witness fees and other routine costs, with the total costs award being $14,849.75. The appellate court affirmed the 998 cost shifting awards. The defense did something nice in their 998 offers, attaching a forensic examiner’s analysis of repair costs supporting the 998 offers—specificity was there! Beyond that, plaintiffs did not argue the 998 offers were invalid such that the burden shifted to plaintiffs to show the offers were made in bad faith. They were not (with plaintiffs not satisfying the burden shifting otherwise), because a zero damages award is prima facie evidence that the defense offers were reasonable in nature.