Responding To A Demand Letter After An Auto Accident
When you're involved in an auto accident, the other party may send a letter demanding payment for injuries and property damage if the person feels you are at fault for the incident. Usually, this type of letter is handled by the insurance company. If you don't have auto insurance, however, then the individual will send the demand letter directly to you. Here's how you should handle this request.
Carefully Evaluate the Claims
Demand letters typically include a detailed account of events and include information about potential witnesses and any evidence the plaintiff may have that supports his or her side of the story. It's important to pay close attention to this section of the letter because you need to determine just how strong of a case the person has against you.
For instance, if the person's account of the accident is fraught with inaccuracies or outright lies, this may indicate the individual has a weak case and may be trying to intimidate you into settling quickly. On the other hand, if the person has video evidence of the accident and/or solid witnesses that implicates you as the liable party, then you may have a difficult time winning a lawsuit that may be filed against you.
Compare the person's account with your recollection of events and determine if you can successfully dispute the individual's version of events or, at the very least, whether or not the person could prove the allegations against you.
Calculate the Cost of Trial
Even though it may appear you would prevail in court, it may not be worth the cost of going to trial to get a decision in your favor. For instance, if it would cost about $1,000 in attorney and court fees to defend the lawsuit but the plaintiff is only asking for $600, then it may make better financial sense to settle the case. However, if the person is asking for $50,000 and it'll cost you $10,000 to defend a lawsuit, then you may want to consider taking your chances in court.
In either event, you need to weigh your potential costs against the amount the person is requesting. In addition to legal fees, you should also consider the hidden costs associated with defending a lawsuit, such as lost wages from taking time off work to attend court proceedings, potential damage to your personal or professional reputation if you're found guilty, and the impact on your relationships with others involved in the case (e.g. friends who were injured). Looking at the total picture can help you determine how best to proceed.
Talk with a professional, like Reed Law, for more information about responding to a demand letter or needing assistance with litigating a case.