(November 2020) - In Storm v. The
Standard Fire Ins. Co., 52 Cal.App.5th 636 (July 28, 2020),
the California Second District Court of Appeal reversed the trial
court's order denying insured, Helen Storm's
(“Storm”), request for costs as the prevailing party
based on an offer of judgment made under California Code of Civil
Procedure section 998 (section 998) during the arbitration of
Storm's UIM claim under an automobile policy issued by
Standard Fire Insurance Company (“Standard”). Storm
served a section 998 offer of judgment in the amount of $195,000
during the arbitration of her UIM claim. Standard allowed the offer
to expire. Subsequently, Storm was awarded $219,976.08 in the UIM
arbitration. Storm filed a motion to confirm the arbitration award
and requested costs incurred in connection with the arbitration as
well as costs related to confirming the arbitration based on
section 998 as the prevailing party in the arbitration. Storm did
not request an award of costs