Joyce

In this case we hold that prejudgment interest is recoverable in personal injury cases in which judgments are entered on judicial arbitration awards if, after failing to accept plaintiff’s statutory offer of settlement, defendant did not obtain a more favorable judgment.

Stacey and Michael Joyce sued Sherwin S. Black, D.D.S., for dental malpractice. On October 2, 1986, they made a $24,999 settlement offer under Code of Civil Procedure section 998. Black did not accept the offer. The case went to judicial arbitration. (Code Civ. Proc., § 1141.10 et seq.) On July 28, 1988, the arbitrator awarded damages in the sum of $35,920 plus an unspecified amount of statutory costs. After neither party requested a trial de novo within the time limit prescribed by Code of Civil Procedure section 1141.20, the award was entered as a judgment. (Cal. Rules of Court, rule 1615(c).)

Following entry of judgment, the Joyces filed a cost memorandum. The memorandum included prejudgment interest in the sum of $6,885.86 pursuant to Code of Civil Procedure section 998 and Civil Code section 3291. Civil Code section 3291 provides that if the defendant in a personal injury action fails to accept a…