Offers in Compromise

Part 2, Title 14, Chapter 3 deals with offers by a party to compromise in civil actions in this state. Section 998 provides that the costs under must be withheld or augmented as provided in this section.

At least 10 days prior to commencement of trial or arbitration of a dispute to be resolved by arbitration, any party may serve an offer in writing upon any other party to the action to allow judgment to be taken or an award to be entered in accordance with the terms and conditions stated at that time.

The written offer is required to include a statement of the offer, containing the terms and conditions of the judgment or award, and a provision that allows the accepting party to indicate acceptance of the offer by signing a statement that the offer is accepted.

Any acceptance of the offer, whether made on the document containing the offer or on a separate document of acceptance, must be in writing and be signed by counsel for the accepting party or, if not represented by counsel, by the accepting party.