What is the test for an offeror to settle a claim for damages in a personal injury action?

California, United States of America


The following excerpt is from Newton v. Superior Court of Riverside Cnty., E051405 (Cal. App. 2012):

The settlement offer must be made in good faith, and may not be merely a token, i.e., an offer so disproportionate to the amount the plaintiff has demanded in damages that it is unreasonable to believe that it will accepted. (Santantonio v. Westinghouse Broadcasting Co. (1994) 25 Cal.App.4th 102, 116.) Where the offeror did obtain a judgment more favorable than its offer, the judgment constitutes prima facie evidence showing that the offer was reasonable. The burden is on the offeree to prove otherwise. (Id. at p. 117.)

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