Written by attorney Alison Swicker Gokal

Statutory Offer to Compromise - Stick or Carrot

What is a 998 demand? It is a statutory offer to compromise that serves both as a stick and a carrot to assist in settlement of a litigation before trial. Understanding the consequences of acceptance or rejection are critical to ensure your rights are protected.

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The amount chosen for the 998 must also be greatly analyzed because it needs to be enough to compensate the injured person/people from the harm they have endured, as well as low enough that it serves as an incentive to the insurance carrier to accept the amount or pay the consequences after trial. It truly is a Carrot and a Stick.

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