Bodell Construction Co. v. Trustees of the California State University

Defendant Trustees of the California State University (the State) appeals from the judgment on special jury verdict entered in favor of plaintiff Bodell Construction Company (Bodell). The State also appeals from a postjudgment order awarding to Bodell prejudgment interest under Civil Code section 3287, subdivision (a), and determining that Bodell is entitled to recover its costs of suit from the State under the “cost-shifting” penalty provisions of subdivision (c) of Code of Civil Procedure section 998 as amended in 1994, on the ground it obtained a judgment more favorable than the State’s section 998 offer to compromise.

In a civil action, if a plaintiff rejects a defendant’s section 998 offer to compromise and later prevails after trial but fails to obtain a judgment more favorable than the defendant’s offer, he or she may recover preoffer costs but the mandatory penalty provisions of subdivision (c) of section 998 prohibit the plaintiff from recovering postoffer costs and require that he or she pay the defendant’s postoffer costs. (§ 998, subd. (c); Stiles v. Estate of Ryan (1985) 173 Cal.App.3d 1057, 1064-1065 [ 219 Cal.Rptr. 647 ].) Under the discretionary penalty…