Demand letters are an essential part of the legal process. When you have a dispute or issue you need to resolve, your lawyer can send a demand letter on your behalf. This letter outlines the basis of your claim, how much compensation you seek, and other relevant information. But once your lawyer sends the demand letter, what happens next? Depending on the situation, a variety of possible outcomes could follow a demand letter from your lawyer. This blog post will discuss what happens after your lawyer sends a demand letter and how it could lead to a successful result.
What Is a Demand Letter?
A demand letter is a formal notice from your lawyer that outlines the facts of your claim, the evidence that supports it, and the damages you seek. It serves as an attempt to resolve a dispute without going to court. Instead, it is a way for you and your lawyer to present your case to the other party to reach a settlement before initiating litigation.
In a demand letter, you will detail the facts of your case, such as the time and place of the accident, the parties involved, and any witnesses who may have seen what happened. You will also provide a legal analysis of why you believe the other party is at fault and why they should be responsible for compensating you. The money you seek should be clearly stated and supported with evidence, such as medical bills, photos of injuries and property damage, witness statements, and other records.
Usually, you send a demand letter to the other party via certified mail or to their lawyer if counsel represents them. Once they receive it, they typically respond with either an acceptance of the demand, a denial, or a counteroffer. If the parties cannot come to an agreement, then the dispute may move to court.
What Happens After the Demand Letter?
Once your personal injury attorney sends a demand letter to the insurance company, settlement negotiations can begin. After receiving a demand letter, the insurance carrier may accept the amount of money you requested to settle the claim. However, insurance carriers are not inclined to pay out claims and will often try to find a way to deny the claim or offer significantly lower compensation than what the demand letter asked for.
If the at-fault party’s insurance company doesn’t agree to the demands outlined in your demand letter, then your attorney may proceed with filing a lawsuit against them. However, if the other party accepts your offer, they will provide you with a settlement agreement. This document will outline the exact terms of the settlement. You and your lawyer should review it carefully before signing.
How Long After Sending a Demand Letter Can I Expect a Settlement?
When your lawyer sends a demand letter to an insurance company, the insurer typically responds within 30 to 45 days. However, some insurance companies may take longer. After sending a demand letter, there are three possible outcomes: the insurer can accept the offer, counteroffer or enter into settlement negotiations, or deny the claim. The amount of time it takes for an insurer to respond and enter into negotiations will depend on several factors, including how quickly you follow up with the insurer, the size of the company, and the size of the claim.
It is important to note that settlement negotiations can last anywhere from weeks to months, depending on your case’s complexity and the willingness of both parties to negotiate. If the negotiations become particularly complicated or contentious, reaching a final settlement agreement could take even longer. To get a better idea of how long it might take to settle your case, speak with a Chicago personal injury lawyer who has experience handling cases like yours.
Speak With a Chicago Personal Injury Lawyer
At , we understand that taking legal action after an accident can be intimidating. Our experienced team of attorneys has handled countless injury cases over the years, and we know what it takes to get results. We will listen to your story and evaluate your case to determine the best course of action. Our Chicago personal injury attorneys have the knowledge, resources, and expertise to fight for you and the compensation you deserve. Contact the experienced team at Karlin, Fleisher & Falkenberg, LLC today by calling 312-346-8620 to discuss your potential claim and learn how we can help you through a free legal consultation.
Related Reading:
- Why Some Personal Injury Cases Go To Trial
- How Much To Ask For In A Personal Injury Settlement
- How To Know Your Deposition Went Well
FAQs
The onus shifts to the insurance company after your lawyer sends a demand letter. The clock starts ticking, and within 30 to 45 days, they are expected to respond. The insurance company's first move is critical. As one of the insurance carriers, they can choose to accept the claim, deny it, or make a counteroffer.
What is the next step after sending a letter of demand? ›
Usually, you send a demand letter to the other party via certified mail or to their lawyer if counsel represents them. Once they receive it, they typically respond with either an acceptance of the demand, a denial, or a counteroffer. If the parties cannot come to an agreement, then the dispute may move to court.
How successful are demand letters? ›
Demand letters are effective as notice of intent to take legal action. This is especially important if your claim is based on a federal act or state statute that requires you to give the person or business you are suing notice before filing a lawsuit against them.
How long after a demand letter can I expect settlement progressive? ›
Progressive Demand Letter Response Time. It can take anywhere from several weeks to several months for Progressive to respond to demand letters.
What are the legal effects of a demand letter? ›
A demand letter outlines the perceived breaches, demands corrective action, and signals an intent to resolve the matter amicably before seeking legal remedies through a small claims court case, filing a lien, or pursuing arbitration or civil litigation.
Can a demand letter backfire? ›
Before you draft your own demand letter and fire it off thinking your actions will result in getting paid, getting the services you contracted for, demanding the satisfaction that you were expecting, consider that writing your own demand letter can backfire badly!
How do lawyers respond to demand letters? ›
What Should Be in Your Demand Letter Response?
- An acknowledgement of your receipt of their letter.
- Your analysis of the relevant facts. Be sure to be succinct, not verbose.
- Your basic reasoning as to why you are in the right (if you think you are.) ...
- Your counteroffer and a reasonable 'respond by' date.
Demand letters show the owner that you're serious about getting paid. Sending a demand letter prior to litigation is a sign of good faith in the eyes of the law. In court, the language in your demand letter can support your case.
What not to say in a demand letter? ›
Using abusive or threatening language will not work in your favor — not only will it make the defendant less likely to want to settle your claim, it could even cause damage to your actual case. Beyond that, you should never include dishonest or misleading details in your demand letter.
What are the disadvantages of a letter of demand? ›
If you do go to court, the letter of demand is evidence that you tried to recover the money owed to you. However, sending a letter of demand can have its disadvantages. Depending on the situation, the other party may feel threatened and respond negatively, or they may not respond at all.
A settlement demand letter is a formal request for compensation sent to the party responsible for an injury or their insurance company. Demand letters are used in all types of personal injury claims, including car accidents, motorcycle accidents, truck accidents, and wrongful death actions.
How long does it take to negotiate a settlement? ›
When it comes to determining how long a settlement negotiation will take, the answer can vary. The average settlement negotiation takes one to three months once all relevant variables are presented. However, some settlements can take much longer to resolve.
How long before an insurance company offers a settlement? ›
In many situations, insurance companies will respond to offers and counteroffers quickly, usually making a decision within a few days to a few weeks. However, this can go on much longer. There are some situations where it can take weeks to months before you can agree to the settlement amount offered.
Is a demand letter a threat? ›
Demand letters usually state the harm the client has suffered, the relief they request and may threaten the sender's intent to accelerate the dispute via a lawsuit if the recipient does not respond accordingly.
What happens if someone doesn't answer a demand letter? ›
The fact that you ignored the demand letter will be used against you in court. The demand letter will likely end up as an exhibit to the court and jury in any subsequent litigation, and your response to the demand will be judged accordingly.
What are the benefits of sending a demand letter? ›
Why should you send a demand letter?
- A formally worded demand letter will often convince the other party to pay, as they, too, want to avoid a lawsuit.
- Sending a demand letter costs much less than filing a lawsuit.
- The time spent sending a demand letter is much less than the time spent filing and carrying out a lawsuit.
In an ideal scenario, the recipient of the letter responds to your demands, and you are able to resolve the dispute quickly and easily. However, this is not always the case, and sometimes demand letters go unanswered.
What is the final letter of demand? ›
A final demand letter (before legal action) is a crucial step in the debt recovery process. It's your definitive attempt at resolution before considering legal action. While the Internet is flooded with templates and how-tos, the real power of a final demand letter lies in its strategic execution.
Should you take a demand letter seriously? ›
If you've received a demand letter, immediately contact an attorney for help. Never ignore a demand letter, but don't write a response on your own either. Only an attorney can offer the legal advice and services necessary to help you defend against a demand letter.
How long does a demand letter take to write? ›
A lawyer typically takes anywhere from a few days to a few weeks to draft a demand letter. However, this timeline can be influenced by factors pertaining to your case, as well as the workload of your attorney and their firm.
Demand letters are an essential part of the legal process. When you have a dispute or issue you need to resolve, your lawyer can send a demand letter on your behalf. This letter outlines the basis of your claim, how much compensation you seek, and other relevant information. But once your lawyer sends the demand letter, what happens next? Depending on the situation, a variety of possible outcomes could follow a demand letter from your lawyer. This blog post will discuss what happens after your lawyer sends a demand letter and how it could lead to a successful result.
