Quick answer: A demand letter is a letter, usually written by the injured person's attorney, that outlines the dispute, states the harm suffered and the relief requested, and begins settlement negotiations before any lawsuit. In some situations the law requires a written claim or notice before you can sue, such as claims against the federal government and certain health care claims.
On this page:
- What a demand letter is
- Who writes and sends it
- What it should include
- When the law requires a written claim first
- What happens after it is sent
- Before you send one
- Next steps
What a demand letter is
The Legal Information Institute describes a demand letter as a letter, usually written by an attorney on a client's behalf, that outlines the dispute between the two sides and demands that the recipient take or stop a certain action. In a personal injury claim, the action demanded is payment. The purpose is to begin a negotiation that may resolve the dispute without filing a claim in court. The letter is written to shape how the recipient sees the risks and rewards of the dispute, and it creates a paper trail. It is step 3 of the process described in how a personal injury claim works.
Who writes and sends it
Demand letters are usually written by the injured person's attorney. They are addressed to the party you say is responsible, or to that party's insurer. Whether you need a lawyer for this stage depends on how serious the injury is; see whether you need a lawyer for a minor injury claim.
What it should include
The Institute says demand letters usually state the harm the client has suffered and the relief requested. For a personal injury claim, that translates into a short list of building blocks:
- The incident and responsibility. What happened and why the recipient is legally responsible, whether through negligence, strict liability or an intentional act.
- Your injuries and treatment. What was diagnosed and what care you have had and may still need.
- Your losses, by category. The Institute lists medical expenses, lost wages, pain and suffering, mental and emotional distress, household assistance and travel expenses among the items personal injury damages may include. Our guide to the damages you can recover explains each one.
- The amount you are asking for. A specific figure, with the reasoning behind it. The Settlement Value Calculator gives a starting estimate by state.
- The records that back it up. Bills, medical records and proof of lost income, so the recipient can verify the numbers.
When the law requires a written claim first
Usually a demand letter is a choice, but sometimes a written claim is a legal step. The Institute notes that certain state statutes may require prospective plaintiffs to send a demand letter before they can claim a viable cause of action under the statute. Two examples show how specific the rules can be:
- Claims against the federal government. An action for personal injury caused by a federal employee may not be started unless the claimant has first presented the claim to the appropriate federal agency and it has been denied in writing, or six months have passed without a decision. A claim counts as presented when the agency receives a written notification of the incident together with a claim for money damages in a sum certain, and it must be presented in writing within two years after it accrues (28 U.S.C. 2401(b)).
- Health care claims in Texas. A person asserting a health care liability claim must give written notice by certified mail at least 60 days before filing suit (Tex. Civ. Prac. & Rem. Code 74.051).
Because deadlines and notice rules differ by state and by type of defendant, check yours with the Statute of Limitations Calculator and ask an attorney before relying on a letter alone.
What happens after it is sent
The recipient may accept, reject, or answer with a counteroffer, and negotiation follows. Do not assume the first response is final; see how to think about the first settlement offer. If talks stall, mediation can help, and if there is still no agreement the injured person can sue; a claim and a lawsuit are different stages with different consequences.
Before you send one
Remember that the letter is a record. According to the Institute, demand letters create a paper trail that can be useful as evidence if the good faith or reasonableness of a party's conduct is later questioned, so keep the facts accurate and the tone factual. Confirm your filing deadline first, and have an attorney review the letter if the injury is serious.
Next steps
Gather your bills, records and proof of lost income, and estimate the value of the claim. The personal injury calculators cover every state, and our methodology page explains how each figure is verified. For advice on your own case, talk to a licensed attorney in your state.