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What is a Demand Letter in a Lawsuit?

If you have been involved in an accident and you are pursuing a personal injury claim, then your attorney will pen a demand letter to the other party. A demand letter is an effort to settle a case out of court.

In the demand letter, your attorney will clearly state the history of what happened, why the other party is liable, the damages that you suffered, and the monetary lump sum you are willing to accept in settlement to end the lawsuit.

The Purpose of a Demand Letter in a Lawsuit

A demand letter is a document that is used to settle a personal injury case. Usually, a demand letter is sent before a lawsuit is filed. When a demand letter is well-prepared, it establishes a tone for negotiations regarding a settlement. An effectively written and well executed demand letter can help you avoid a courtroom and a lawsuit. It can save you time and money by helping you get the issue resolved without a lengthy court battle.

The Effectiveness of Demand Letters in Lawsuits

Demand letters are actually very effective. When properly written, they let the other party know that you mean business and what you want to resolve the pending lawsuit. Often, the other party will respond because they understand how costly going to court is. Usually, the other party will then talk with their insurance company in hopes of getting the matter resolved.

What is a Demand Letter in a Lawsuit?

Your demand letter should be concise, clear, and not threatening or damaging. Instead, it should clearly explain your expectations and why you deserve to be compensated. You can include copies of medical bills and proof of other expenses when applicable.

A Good Faith Effort

A demand letter will be considered a good faith effort to avoid court. It shows that you are willing to work with the other party and compromise. When you put a monetary amount in a demand letter, you should always make it more than what you are willing to accept as a settlement.

For example, if you are willing to take $10,000 as a settlement, you should ask for $15,000 to $20,000 in the demand letter. This way there is leeway, or room to negotiate. It means you aren’t necessarily excited about going to court to resolve the matter.

Consult With a Personal Injury Lawyer

While you could write your own demand letter, you are much likely to have success if you enlist the help of a personal injury attorney. A lawyer will help you get your demand letter properly formatted and will have a better idea regarding the value of your claim. Your odds of reaching a fair settlement increase significantly when you leave the process up to your personal injury lawyer.

Remember, a statute of limitations applies to personal injury claims, so don’t wait until it is too late to recover damages. Complete the Free Case Evaluation Form on this page today so you can get in contact with an accident injury lawyer who can help you get your claim on track.

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