Madrigal v. Hyundai- CCP 998 does not require trial

The California Supreme Court has clarified how the cost-shifting provisions of California Code of Civil Procedure Section 998 (“Section 998”) may apply when a case settles before trial. In a recent decision, Madrigal v. Hyundai Motor America, the Court held that a plaintiff who rejects a valid Section 998 offer and later settles for less than the offer amount may still face the statute’s cost-shifting consequences—even without a trial verdict. This decision is a cautionary tale for affected consumers and strengthens Section 998 as a strategic tool for auto manufacturers  looking to limit exposure to attorneys’ fees and costs.

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