Civil Procedure
Aug. 7, 2026
Supreme Court rejects 2nd District's blanket rule on Section 998 settlement offers
The opinion spent nearly as much time dismantling the reasoning employed by the 2nd District Court of Appeal as it did explaining the rule it ultimately adopted.
The California Supreme Court unanimously ruled Thursday that litigants may make settlement offers under Code of Civil Procedure Section 998 that give opposing parties a choice between alternative settlement terms, a decision attorneys say could encourage more creative settlement strategies well beyond the lemon law context in which the case arose.
In Gorobets v. Jaguar Land Rover North America LLC, Justice Carol A. Corrigan, writing for a unanimous court, held that a sett...
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