Want to Open Up the Policy Limits on a Policy? Try Making a Section 998 Offer Above Policy Limits and You Just May Be Able to Do It


A good faith 998 offer must have had a “reasonable prospect of acceptance” in light of the information available to the parties at the time of the offer. Reasonableness depends on a two-prong determination. First, an offer is reasonable if it represents a reasonable prediction of what the defendant would have to pay the plaintiff following a trial, discounted by money received by the plaintiff before trial, and premised on the information known to the defendant at the time. Secondly, the offeree must have reason to know the offer is a reasonable.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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