Does a qualifying settlement offer that requires a voluntary dismissal with prejudice meet the requirements of section 998 of the California Code of Civil Procedure?

California, United States of America


The following excerpt is from Hanna v. Mercedes-Benz USA, LLC, 248 Cal.Rptr.3d 654, 36 Cal.App.5th 493 (Cal. App. 2019):

8 This court in Goodstein v. Bank of San Pedro , supra , 27 Cal.App.4th at page 906, 32 Cal.Rptr.2d 740, held, although section 998, subdivision (b), states a qualifying settlement offer must "allow judgment to be taken," an offer that requires a voluntary dismissal with prejudice meets the requirements of that provision. "The word judgment in Code of Civil Procedure section 998 indicates that the statute contemplates that an offer to compromise which is accepted will result in the final disposition of the underlying lawsuit; the statute does not indicate any intent to limit the terms of the compromise settlement or the type of final disposition."

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