AB 918

Under current law, parties in a civil action that reject offers of settlement may

be awarded costs under certain circumstances. Under current law, costs include

attorneys fees of either $100, $300, or $500, depending on the amount awarded to the

plaintiff.

If a plaintiff rejects an offer from a defendant that would allow the plaintiff to

take judgment against the defendant and receive an award of a certain amount but,

upon going to trial, the plaintiff fails to recover a more favorable judgment than the

plaintiff would have received pursuant to the offer, the defendant is awarded costs.

If a plaintiff rejects an offer from a defendant that would allow the plaintiff to

receive an award of a certain amount if the plaintiff proves the defendant liable but,

upon going to trial, the plaintiff proves the defendant liable but is awarded less than

or equal to the amount offered, neither party is awarded costs.

If a defendant rejects an offer from a plaintiff that would award the plaintiff a

certain amount and the plaintiff, at trial, is awarded more than that amount, the

plaintiff is awarded double costs.

Under this bill, if a defendant rejects an offer of settlement from the plaintiff

and the plaintiff goes on to obtain a money judgment that is at least 120 percent of

the amount offered, the plaintiff is awarded costs, including reasonable attorneys

fees that the plaintiff incurred as a result of the defendant's rejection of the offer.

Under the bill, if a plaintiff rejects an offer from the defendant and goes on to obtain

a money judgment that is 80 percent or less of the amount offered, the defendant is

awarded costs, including reasonable attorneys fees that the defendant incurred as

a result of the plaintiff's rejection of the offer.