Gutierrez

In 1981, plaintiff brought an action against defendant seeking damages for personal injuries. On February 25, 1982, plaintiff served defendant with an offer to compromise for $900,000 pursuant to Code of Civil Procedure section 998. Defendant refused.

Approximately one year later, in March 1983, a jury trial resulted in a verdict in favor of plaintiff for $1.7 million, $800,000 more than the proposed settlement offer.

On the motion of plaintiff, the trial court granted her request for prejudgment interest computed at 10 percent per annum from February 25, 1982 (the date of the offer to compromise), pursuant to the provisions of Civil Code section 3291. Defendant moved for a new trial, and also argued that since Civil Code section 3291 was not enacted until April 1982, and not effective until January 1, 1983, plaintiff was not entitled to an award of prejudgment interest where the offer to compromise was made and rejected prior to the effective date of the section. Following hearing and argument, the trial court issued its order denying the motion, and stated inter alia: “The Court is of the view that the [L]egislature was aware of and did intend [Civil Code section]…