Two Successive Offers To Compromise Pursuant To Code of Civil Procedure Section 998.

The California Supreme Court considered whether a later Offer To Compromise made under Code of Civil Procedure section 998, extinguishes a previous Offer To Compromise for purposes of that section’s cost-shifting provisions.  The court concluded “that where, as here, a plaintiff makes two successive statutory Offers To Compromise, and the defendant fails to obtain a judgment more favorable than either offer, allowing recovery of expert fees incurred from the date of the first Offer To Compromise is consistent with section 998’s language and best promotes the statutory purpose to encourage settlements.”  Martinez v. Brownco Construction Company  (Cal. Sup. Ct.; June 10, 2013) 56 Cal.4th 1014, [301 P.3d 1167].