What is Settlement Demand?
A written demand from the plaintiff to the defendant or their insurance company requesting a specific amount of compensation to resolve a personal injury claim.
Understanding Settlement Demand
The settlement demand is typically the first formal step in negotiations after the plaintiff has completed medical treatment or reached maximum medical improvement. It outlines the facts of the case, the injuries sustained, medical expenses, lost wages, and a dollar amount the plaintiff is willing to accept to avoid litigation.
Examples
- 1Attorney sends demand letter to insurer after client finishes physical therapy
- 2Demand requesting $150,000 for soft tissue injuries and lost income
- 3Formal demand sent before filing a lawsuit to encourage pre-suit resolution
Related Terms
Demand Letter
A formal letter sent to an insurance company or opposing party outlining the facts of the case, injuries sustained, and the amount of compensation being sought.
Demand Package
A comprehensive package of evidence, documentation, and legal arguments assembled by the plaintiff's attorney to support their settlement demand.
Settlement
An agreement between parties to resolve a legal dispute without going to trial. Settlements typically involve the defendant paying the plaintiff an agreed-upon sum in exchange for dropping the lawsuit.
Policy Limits
The maximum amount an insurance company will pay for a covered claim under an insurance policy.
Release of Claims
A legal document signed by the plaintiff that releases the defendant from any further liability related to the incident in exchange for a settlement payment.
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