Calif. Justices Create Arbitration Compromise Conundrum

Law360 (August 6, 2019, 3:31 PM EDT) -- The California Supreme Court’s recent decision in Heimlich v. Shivji[1] provides litigants in arbitration valuable guidance on when and how to notify arbitrators of existing offers to compromise made pursuant to California Civil Procedure Code Section 998.

As most know, Section 998 is a cost-shifting statute intended “to encourage the settlement of litigation without trial, by punishing the party who fails to accept a reasonable settlement offer from its opponent.”[2]  More specifically, Section 998 imposes mandatory and discretionary penalties on a party that declines to accept a settlement offer made under Section 998 and then fails to obtain a more favorable judgment...

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