What is a Demand in Legal Terms?
If you are writing a demand letter, you are asking the other party’s insurance company to compensate you for your losses. From the legal standpoint, demand means to “state a need, entitlement or requirement.” It also means the amount that as a plaintiff you are requesting while negotiating a lawsuit. It is the amount of damages that you are asking for to settle your complaint and to keep the matter from advancing to court.
When to Write a Demand Letter
When you write a demand letter, you are alleging that the other party is responsible for the damages and that you have a legal right to recover compensation from that party’s insurance company. When you send a demand letter, you are using authority to make a request. You are demanding a lump sum payment that you are owed either from an agreement or contract or because of an accident that the other party was liable for.
Are Demand Letters Effective?
The answer is yes. Demand letters are often effective. When an agreement or settlement can be reached with you without the case advancing to court, and without legal added fees, it benefits both parties. Also, sometimes the settlement amount is less than what a judge or jury would order, so the insurance company thinks it is wise to get the settlement made and proceed on without further issues.
Demand letters have a high success rate and can protect your interests. When you send a demand letter, you are showing the other party that you really mean business. If a settlement is not reached, it also shows the court that you tried to resolve the matter and that you did so in good faith. Be careful in what you say in your demand letter as it can be used against you in court. You should never be threatening or insulting and never ask for an unreasonable amount of money. You should word the letter with care and caution.
How Can A Demand Letter Help?
A demand letter can help you in more than one way. While it might cost you to have an attorney draft a demand letter, odds are it will be successful, and you won’t have to go to court. That will save you time and money. There could be a situation where you go to court and get an award and then not collect off but still owe legal fees. When you use a demand letter, you can avoid such situations. While you can write your own demand letter, a letter penned by your personal injury attorney will be more likely to get a response and get the attention you want and need.
Consult With A Personal Injury Attorney
If you have been in an accident and suffered damages, you should consult with a personal injury attorney. Your lawyer will then go over your accident, determine what damages you suffered and the value of your claim. The attorney’s first step in resolving your claim will be writing a demand letter and sending it to the other party.