Section 998: 998 Offer Calling For Dismissal Of Action With Prejudice, Not Entry of Judgment, Is Valid

This Means The Lower Court Needed To Honor the $350,000 Accepted Offer And Enter Judgment Thereon.

               In Chiu v. Wu, Case No. H050642 (6^th Dist. Mar. 6, 2024) (unpublished), Plaintiffs accepted defendant’s $350,000 CCP § 998 offer calling for dismissal of action with prejudice, not entry of a judgment.  After some procedural gaffes (including the lower court vacating an erroneous $3.5 million clerk’s judgment which was not challenged), the lower court denied defendant’s motion to set aside the 998 offer but did find the 998 offer was invalid because it called for a dismissal of the action with prejudice.  The appellate court reversed and remanded with instructions to enter a judgment of $350,000.  A dismissal of an action with prejudice is a alternative final disposition equivalent to a judgment.  With respect to the defense arguments on the 998 offer, respondent did not file a cross-appeal, so those arguments could not be entertained.