What is the procedure for formally rejecting a settlement offer and proceeding toward trial in California?

To formally reject a settlement offer and proceed toward trial, you must clearly communicate the rejection to the opposing party and continue to meet all court-ordered litigation deadlines. Here is the general procedure: Step 1: Formally Communicate Your Rejection You or your attorney must inform the opposing party that you are rejecting their offer. For clarity and to create a record, this should be done in writing via email or formal letter. If the offer was made under California Code of Civil Procedure Section 998, it is automatically deemed rejected if you do not accept it in writing within 30 days. Step 2: Continue with the Discovery Process After rejecting the offer, your case continues. You must actively participate in discovery as governed by the Civil Discovery Act. This involves exchanging information and evidence with the other party through depositions (sworn testimony), interrogatories (written questions), and requests for production of documents. Step 3: Attend the Mandatory Settlement Conference (MSC) Before trial, the court will require both parties to attend an MSC pursuant to California Rules of Court 3.1380. This is a formal meeting, often with a neutral judge, intended as a final, good-faith attempt to resolve the case. You must personally attend with your attorney. Step 4: Complete Final Trial Preparations If the MSC fails, you will prepare for trial. This involves preparing and filing critical documents with the court, usually 15 to 30 days before your trial date. These include your final witness list, exhibit list, proposed jury instructions, and any motions to exclude evidence (motions in limine). Important Details and Nuances Pay close attention to any offer made under CCP Section 998. If you reject a 998 offer and then fail to obtain a "more favorable judgment" at trial, you can be forced to pay the other party's significant legal costs, including expensive expert witness fees, that were incurred after the offer was made. Warnings and Limitations Proceeding to trial is expensive, time-consuming, and its outcome is never guaranteed. Rejecting a settlement, especially a CCP 998 offer, carries substantial financial risk. You could potentially win your case but still end up owing the other side money if your award is less than their offer. This is general information and does not constitute legal advice. For complex situations, you should consult with a qualified California attorney to fully understand the risks and potential rewards of your specific case.