California Supreme Court Broadens Cost-Shifting Law to Pre-Trial Settlements

In an impactful decision, the California Supreme Court has interpreted Code of Civil Procedure 998 in a manner that extends the law’s cost-shifting provisions to cover pre-trial settlements as well as trial outcomes. In the case of Madrigal v. Hyundai Motor America, the court unanimously ruled that plaintiffs who decline defense settlement offers and later settle for a lesser amount are not exempt from the law’s implications. This legal precedent emphasizes that plaintiffs forfeiting more than initially offered risk losing post-offer litigation costs. For more details on this ruling, you can access the information here.