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Understanding the Role of Demand Letters and Settlements in Personal Injury Cases
Why would you want to pay the defendant? Aren’t you suing them? If you are the plaintiff, you don’t make a settlement offer.
Are you talking about a demand letter?
Your attorney bases the demand on various things involved in the case. The first is what type of case you are involved in. For instance, if you were in an auto accident, the demand will be based in part on the amount of insurance coverage, the extent of your injuries, liability and comparative negligence, the amount of your medical bills, if your injuries are permanent, lost wages, thresholds your state may have set for these types of suits, etc.
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The demand is typically much higher than what the case is actually worth unless you are in a situation where you can reasonably expect to get the full policy amount (low policy limits and serious injuries).
Your attorney bases the number in the demand letter on a combination of these facts, their personal experience with what similar cases are worth and any other factors that may be involved (laws in your state, etc).
You aren’t in charge of choosing a demand amount … your attorney is. Clients always feel their injuries are worth far more than they really are and most simply don’t understand the concept of policy limits. Many clients have read or heard about a case where large punitive damages were awarded because of special circumstances and they in turn feel that their case meets all the criteria involved when in fact it doesn’t even come close.
You have final say on acceptance of a settlement offer, but if an agreement can’t be reached your attorney has final say on whether or not the case goes to trial.
“Your attorney works for you” WRONG. Your attorney has been chosen and hired by you to represent your interests and advocate on your behalf in a matter that you have neither the education, qualification, experience, proper certification nor license to handle. An attorney has a set of professional responsibilities that must be adhered to and is not your little hired minion. They work on your behalf, and not for you.