Settlement demands can vary dramatically from one law firm to the next and even from one case to another. The information that goes into a settlement demand and the focus of the settlement demand also varies. The following is a set of critical concepts and helpful guidelines that apply to our frequently encountered demands.
Know Your Audience
When drafting a settlement demand in a personal injury case, first consider your audience. If you are writing a demand letter to an insurance adjuster, it’s important to remember they typically understand standard legal issues and can read and interpret definitive medical diagnoses. They see similar liability and damage issues daily. Hyperbole and argument will likely detract from the merits of your claim.
Liability
A settlement demand should open with a description of why the other party is at fault. The statement could be as simple as stating you were rear-ended in a rear-end collision case. I just wanted to inform you that citing relevant legal authority or providing extensive diagrams will not add value to your case.
Suppose there are unique liability issues such as local ordinance violations, course, scope of employment issues, comparative fault concerns, or disputed liability issues. In that case, spending more time with details, witness statements, diagrams, and citations to relevant legal authorities is essential.
Personal Injuries
A personal injury settlement demand package should include all relevant medical records for the injury. Claims adjusters are very savvy at reading medical records. The conveniently omitted pages, passages, or other items rarely go unnoticed. Claims adjusters only favor those who intentionally remember items from the records.
In addition to medical records, it’s important to include pictures of the damage to your vehicle, especially if the damage is significant. Visualizing the property damage and the potential repair cost is essential and helps determine the severity of the impact. If the damage to the car was so minimal it’s barely visible in an image, many people will question the severity of your physical injuries. In contrast, if the vehicle suffered significant body damage, particularly to its frame, people will assume you also suffered injury.
In addition to medical records and vehicle images, a reasonable demand package will often include evidence that the injured person cannot enjoy the same standard of life while injured. The critical word is “evidence.” If you state you can’t go hiking because of your injury, it will be given very little weight because most people do not walk regularly. In contrast, if you submit social media posts of you hiking regularly, evidence that you were head of your local hiking club or had a planned trip, the claim will carry far greater weight. The same would apply if you are a runner, jogger, swimmer, or daily walker. Actual evidence that you missed out on activities that are a consistent part of your life is beneficial.
Medical Billing
In addition to providing your medical charts, images, and similar records, you will also want to include your medical bills. You should be able to give evidence of what is billed and consult with your attorney about whether you should produce what was paid. In some jurisdictions, including California, legal authorities limit your ability to be compensated for what was delivered. If you live in one of those jurisdictions, you must seek legal guidance on paying medical bills.
Wage Loss
If you lost wages, you will want to substantiate the lost wages. The amount needed will depend on how your income is earned and your claim amount. If you make at or near a living or minimum wage and are only off work for a day or two, simply stating your pay rate and time off is usually sufficient.
If your time off was more significant, could you try to get a letter from your human resources department stating the number of days/hours you missed and your pay rate? Other ways of wage loss can include using the dates your doctor had you off work and providing a copy of a paycheck just before your injury showing your pay rate.
If your pay is commission or incentive-based, or you are a business owner, proving your loss of income may be a significant challenge. In this case, it’s essential to consult with an attorney.
The “Demand”: Amount Wanted to Settle Your Case
People often need to prepare settlement demands and remember to include how much they want. The adjusters will recognize this weakness and offer you a low-ball offer.
It would be best if you placed a high demand to give you the option to negotiate, yet realistically sufficient to entice a reasonable response. You will likely get a low response if you make an absurd demand. Many small-impact, soft treatment cases can easily be handled without an attorney. However, if you suffered severe injuries, demanding too little is the most common way to hurt your case. If you believe your case is worth more than 3-4 months’ pay, you should seek professional assistance to help. Putting that much money at risk without the correct guidance is a recipe for failure.
I’d like to point out that you must understand the composition and value of your personal injury settlement demand.
To speak directly to a Personal Injury Attorney with significant experience writing settlement demands, you can contact Eason & Tambornini, A Law Corporation, today.
