Offers Under CCP § 998 Need To Be Thought Through!

In an action involving the purchase of a new motor home, an offer under Code of Civil Procedure § 998 was for plaintiffs to be paid $50,000 in exchange for a release and dismissal, and plaintiffs accepted. After the action was dismissed with prejudice, plaintiffs moved to recover their attorney fees and costs under Civil Code § 1794(d) [the Song-Beverly Consumer Warranty Act; § 1790 et seq.], and defendant opposed, arguing there was no formal judgment. The trial court rejected defendant’s argument, found plaintiffs to be prevailing parties and awarded plaintiffs their fees and costs in the amount of $125,362.08. The appellate court affirmed, stating that plaintiffs’ voluntary dismissal did not preclude them from being the prevailing parties under § 1794(d). Wohlgemuth v. Caterpillar, Inc.   (Cal. App. Fifth Dist.;  July 23, 2012) 207 Cal.App.4th 1252.