Gonzalez v. Lew

228 Cal. Rptr. 3d 775, 20 Cal. App. 5th 155
CourtCalifornia Court of Appeal, 5th District
DecidedFebruary 1, 2018
DocketB271312
StatusPublished
Cited by10 cases

This text of 228 Cal. Rptr. 3d 775 (Gonzalez v. Lew) is published on Counsel Stack Legal Research, covering California Court of Appeal, 5th District primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gonzalez v. Lew, 228 Cal. Rptr. 3d 775, 20 Cal. App. 5th 155 (Cal. Ct. App. 2018).

Opinion

LAVIN, J.

*158INTRODUCTION

*776Code of Civil Procedure section 9981 is a cost-shifting statute designed to encourage parties to settle their lawsuits prior to trial by punishing a party that refuses a reasonable settlement offer. In order to trigger section 998, a settlement offer must be clear, in that it must allow the party receiving the offer to evaluate whether the party making the offer is likely to obtain a more favorable verdict at trial.

In this wrongful death case, two people (Virginia Gonzalez and Maverick Crowder) died after a fire engulfed the rented home in which they were living. Both sets of the decedents' heirs (plaintiffs) sued the owners of the rented home, Wayne and Maria Lew, and plaintiffs subsequently made a joint offer to settle both claims for $1.5 million. The Lews rejected the offer and plaintiffs prevailed at trial; the jury awarded Virginia's heirs more than $2.2 million and Maverick's heirs just over $357,000. The Lews appeal the court's order awarding costs to plaintiffs under section 998, arguing the joint offer to settle both wrongful death claims was invalid because it did not allow them to evaluate each claim independently. Under the unique circumstances of this case, we conclude the joint offer was valid and affirm the court's order.

FACTS AND PROCEDURAL BACKGROUND

Two people died in a residential home fire: Virginia Gonzalez (age 49) and Maverick Crowder (age 3). Virgina and her husband, Juan,2 rented the home from the Lews. The precise cause of the fire was never determined.

*159At the time of the fire, Virginia lived in the home with Juan and the couple's minor daughter Jasmine. Virginia and Juan had three other children: Yvette, Richard, and Priscilla. Maverick (Juan's son, born to Kathleen Crowder) also lived in the home with the Gonzalez family. Apparently, "[a]lthough Maverick ... was treated as a member of [the] Gonzalez family by Juan and Virginia and their children, the children learned after the fire what Virginia and Juan had decided (in the best interest of the family) not to tell them previously: that Maverick ... was in fact the child of Juan Gonzalez and Kathleen Crowder."

Virginia's heirs (Juan and the four children) and Maverick's heirs (Juan and Kathleen Crowder) sued the Lews3 alleging the wrongful death of their respective decedents. The plaintiffs later served the Lews with a written offer to settle both wrongful death claims in the amount of $1.5 million. The Lews did not accept the offer but later made their own offer, addressed to all plaintiffs jointly, to settle both wrongful death claims in the amount of $1 million. Plaintiffs did not accept the offer.

The matter proceeded to trial before a jury. With respect to Virgina, the jury's verdict awarded $2,254,300 to Juan, Priscilla, *777Richard, Yvette, and Jasmine. The jury also awarded Juan and Kathleen Crowder $357,100 for the death of Maverick. The jury attributed 15 percent of the fault to Juan, leaving the Lews responsible for the remaining 85 percent. In subsequent proceedings, the court allocated the damages among the decedents' heirs. The court also reduced Juan's economic damages by 15 percent under Proposition 51.

Following trial, plaintiffs jointly submitted a memorandum of costs seeking, among other things, expert witness fees ($76,931.50) and interest on the judgment beginning the date the settlement offer expired ($347,595.14), both as a consequence of the Lews' failure to accept their section 998 settlement offer. The Lews filed a motion to tax plaintiffs' costs, arguing the settlement offer was not a valid offer under section 998 because the offer concerned two independent wrongful death claims.

As to that issue, the court denied the Lews' motion.4 After examining the text of section 998, the court concluded the statute "does not require the separation of claims or plaintiffs. Neither does it invalidate joint offers." Citing the overall goal of section 998-encouraging settlement-the court further stated that "joint offers should be encouraged rather than discouraged.... Where the parties are in fact attempting to settle on a joint basis, *160their efforts should not be impeded by judge made rules requiring the separation of parties or claims." The court then found plaintiffs' settlement offer was valid under section 998. The Lews timely appeal.

DISCUSSION

The Lews assert the court erred in awarding plaintiffs expert witness fees and post-settlement-offer interest on the judgment. According to the Lews, plaintiffs' global settlement offer was invalid under section 998 because it offered to settle both wrongful death actions and did not allocate the settlement between the two sets of decedents' heirs. On the facts of this case, we conclude the court did not err.

1. Standard of Review

The application of section 998 to undisputed facts is a legal issue we review de novo. (See Martinez v. Brownco Construction Co. (2013) 56 Cal.4th 1014, 1018, 157 Cal.Rptr.3d 558, 301 P.3d 1167 ( Martinez ).)

2. The overriding purpose of section 998 is to encourage pretrial settlement of litigation.

Generally, a prevailing party in a civil case "is entitled as a matter of right to recover costs." (§ 1032, subd. (b).) Recoverable costs do not typically include the fees of expert witnesses not ordered by the court. (§§ 1032, 1033.5, subd. (b)(1).) But expert witness fees are recoverable in some circumstances, as when a more favorable judgment for the plaintiff follows a defendant's rejection of a valid pretrial section 998 settlement offer. (See Martinez, supra , 56 Cal.4th at pp. 1019 & 1022, fn. 4, 157 Cal.Rptr.3d 558, 301 P.3d 1167 ; Kahn v. The Dewey Group (2015) 240 Cal.App.4th 227, 237, 192 Cal.Rptr.3d 679 ( Kahn ).) Section 998 establishes a procedure for shifting costs upon a party's refusal to settle by "expand[ing] the number and type of recoverable costs and fees over and above those permitted by section 1032(b)." ( Murillo v.

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Cite This Page — Counsel Stack

Bluebook (online)
228 Cal. Rptr. 3d 775, 20 Cal. App. 5th 155, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gonzalez-v-lew-calctapp5d-2018.