A California personal injury demand letter must clearly state the basis for the claim, specify the amount requested, and include a deadline for response. It may also state the intent to pursue legal action if the matter is not resolved. The specific requirements will vary based on the case details. It is also important to draft a proper settlement demand within the “insured’s policy limits”. When such a demand is made, and should the carrier fail to tender (accept the demand), the policy may be “open,” which may result in the carrier being responsible for any amount above the policy.
Our experienced San Bernardino personal injury lawyers at LA Century Law explain the California demand letter requirements.
What Is a Demand Letter in a Personal Injury Case?
A demand letter in a personal injury case is a pre-litigation document sent by the plaintiff to a potential defendant (or their insurance company). It makes a demand for compensation and summarizes the basis for the case with evidence and support. It asks the defense (or the insurance company) for a settlement as an alternative to formal legal proceedings.
What is the purpose of a demand letter in a personal injury case?
The purpose of a demand letter in a personal injury case is to facilitate the settlement of a legal claim. A personal injury demand letter communicates that:
- There is a legal matter, and you have the right to compensation.
- Settlement should be for a specific value or the “policy limits.”
- You’re serious about pursuing legal action if you don’t receive an acceptable settlement.
- You’re open to accepting a settlement rather than litigating that matter, which results in protracted costs and expenses for both sides.
Does a demand letter for personal injury get filed in court?
No. A personal injury demand letter is a pre-litigation demand; although demands can also be made in litigation (or when a lawsuit is filed), this post covers pre-litigation demands only. It is direct communication between the plaintiff and a potential defendant (or their insurance carrier)before a legal matter has started. By legal matter “started,” we mean a lawsuit has been filed in Superior Court. The demand letter does not formally start the legal claim, but it puts the other side on notice of your claim and damages.
Key Elements To Include in Your Demand Letter
Identifying information
Personal injury victims often send demand letters to insurance companies. Insurance companies have many cases, so be sure to clearly state your name, contact information, and case number.
Case information
State the date, time, and location of the accident. Identify the insured party and others involved.
Claim Number
Each demand will include the specific claim number, which helps identify to the insurance company the specific matter. To obtain this number, you will need to contact the insurance carrier to assign their case-specific claim number.
Summarize the facts
Briefly summarize the facts of the claim. For example, you might say, “Your insured rear-ended the vehicle I was driving. They failed to leave sufficient following distance and failed to brake adequately, striking my vehicle from behind. The collision resulted in my physical injury.”
Injuries and medical care
Summarize your injuries and medical care. It is important to provide any medical records or bills that support your position and outline your injuries. When you first reported the accident, you may have stated only that you had injuries. For your demand letter, more details are required. State what your injuries are and the care received. Medical information explains how severe your injuries are and why you are making the compensation claim. It should also include any future costs of care that are needed.
Other losses and expenses
Detail other losses that you have, including lost wages, property damage, and incidental needs. Briefly explain how you incurred these costs. If you have evidence such as a pay stub, it is good to include it in your demand package.
How has the accident impacted you
A significant part of any personal injury settlement is pain and suffering compensation. California recognizes these “life damages”. In your demand letter, explain how you have been impacted by your injury. You may talk about physical pain and immobility. Maybe you have had difficulty sleeping. Explain changes to personal relationships and ways that you have relied on others.
Amount sought in compensation
Summarize the amount you’re seeking in compensation. Make a list of categories and then state a total. Include an amount for non-economic damages.
By way of example:
$10,000 – past medical bills
$1,000 – loss of earnings
$5,000 – future medical costs
$10,0000 – pain and suffering
Demand for settlement
State that you intend to pursue legal action if you do not receive an acceptable settlement.
State a deadline
Give the defense a deadline to respond. California has passed a new law that requires you to provide the carrier with at least 30 days. You will want to indicate in your demand that the demand will remain open for 30 days and that, should it not be accepted by that time, it will constitute a rejection.
How To Clearly State the Facts and Liability
You may have already claimed the insurance company, but your demand letter may also be the first communication with a personal injury defendant. Summarize the facts accordingly. Use a chronological narrative. Identify the actions of the defendant. Explain how their actions create liability.
Detailing Your Injuries, Medical Costs, and Lost Wages
It may be appropriate to provide documents with your California demand letter. Medical bills and treatment records can support your case. You may support a lost wage claim with pay statements and work attendance records.
Calculating and Justifying the Compensation Amount
Pain and suffering are awarded relative to the severity of injuries and how they impact the victim. Calculating the compensation amount involves totaling economic damages and justifying the non-economic damages award.
Tone, Timing, and Delivery Tips for Effective Demand Letters
It’s often best to send a demand letter once you’ve had time to investigate and build the case.
You may need some time to determine the basis for liability—reviewing photographs, contacting witnesses, inspecting vehicles, and conducting tests. You may need time to build a record of medical care.
You don’t want to wait too long to send a demand letter, as there are time deadlines for filing personal injury claims. Over time, memories can fade, and evidence can be lost. An attorney can help you with timing your demand letter effectively.
Common Mistakes To Avoid in Demand Letters
- Stopping your case preparation. Don’t assume that the defense is going to respond with a fair settlement offer. Continue to prepare your case for litigation.
- Being too emotional. In your demand letter, you want to convey how the injury has impacted you, including pain and life changes. Keep your statements factual.
- Too long or too short. A demand letter needs to include enough, but not too much, information.
- Not proofreading. Typos and grammar mistakes can distract from your arguments. Proofread your demand letter before sending it.
- Missing categories of compensation. Non-economic compensation for personal injury can be significant. Missing types of losses you can claim can mean undervaluing your case.
- Demanding the wrong amount. A demand letter is strategic. You don’t want to ask for too much such that the defense is not willing to discuss it. But you don’t want to ask for less than the defense may be willing to pay. An experienced Century City personal injury lawyer can help you determine what amount to state in your demand letter.
Contact an Experienced Century City Personal Injury Lawyer
If you have been hurt in a personal injury accident, a Century City lawyer at LA Century Law can help you with the demand letter requirements.
Contact us today to talk to a lawyer about your case.