What is the test for good faith in making a pretrial offer of settlement under California Code of Civil Procedure section 998?
California, United States of America
The following excerpt is from Gradle v. Doppelmayr Usa, Inc., 116 Cal.App.4th 276, 9 Cal.Rptr.3d 889 (Cal. App. 2004):
In Wear v. Calderon (1981) 121 Cal.App.3d 818, at page 821, 175 Cal.Rptr. 566, to accomplish the legislative purpose of encouraging settlements, the court read into Code Of Civil Procedure section 998 a requirement of good faith. "In other words, the pretrial offer of settlement required under section 998 must be realistically reasonable under the circumstances of the particular case." (Ibid.)
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