Auto Accident Demand Letter - Arkansas

DEMAND FOR SETTLEMENT — MOTOR VEHICLE COLLISION

STATE OF ARKANSAS

[________________________________]
Attorneys at Law
[________________________________]
[________________________________], Arkansas [____]
Telephone: [________________________________]
Facsimile: [________________________________]
Email: [________________________________]

DATE: [__/__/____]

VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
AND VIA ELECTRONIC MAIL

[________________________________]
[________________________________]
[________________________________]
[________________________________], [____] [____]

RE: SETTLEMENT DEMAND — MOTOR VEHICLE COLLISION
Our Client: [________________________________]
Date of Loss: [__/__/____]
Your Insured: [________________________________]
Policy Number: [________________________________]
Claim Number: [________________________________]

Dear [________________________________]:

This firm represents [________________________________] ("Claimant") in connection with the motor vehicle collision that occurred on [__/__/____] in [________________________________] County, Arkansas. This letter constitutes a formal demand for settlement of all claims arising from this incident.

I. ARKANSAS-SPECIFIC LEGAL FRAMEWORK

A. Statute of Limitations

Under Ark. Code Ann. § 16-56-105, the statute of limitations for personal injury actions is three (3) years from the date of injury.

The limitations period in this matter expires on [__/__/____].

B. Modified Comparative Fault (50% Bar)

Arkansas follows modified comparative fault under Ark. Code Ann. § 16-64-122. A plaintiff may recover if the plaintiff's fault is less than 50% of the total fault. A plaintiff who is 50% or more at fault is completely barred from recovery. Damages are reduced by the plaintiff's percentage of fault.

Our client bears no fault whatsoever for this collision.

C. Constitutional Protection Against Damage Caps

Arkansas Constitution Article 5, Section 32 provides: "The General Assembly shall not limit the amount to be recovered for injuries resulting in death or for injuries to persons or property."

This constitutional provision prohibits the legislature from capping compensatory damages in personal injury cases. Arkansas is one of the strongest states in the nation for full compensation of injury victims.

D. No-Fault Status

Arkansas is a traditional tort/fault-based state. There is no no-fault insurance requirement.

E. Minimum Insurance Requirements

Arkansas requires minimum liability coverage of $25,000 per person / $50,000 per accident for bodily injury and $25,000 for property damage under Ark. Code Ann. § 27-22-104.

II. PRESERVATION OF EVIDENCE DEMAND

☐ Complete claims file, including all adjuster notes and evaluations
☐ All photographs, videos, and surveillance footage
☐ All recorded or written statements
☐ Vehicle inspection reports, repair estimates, and salvage records
☐ Event Data Recorder (EDR) / "black box" data
☐ Cell phone records of the insured driver
☐ All insurance policy documents

III. STATEMENT OF FACTS

On [__/__/____], at approximately [____] [a.m./p.m.], our client was [________________________________] on [________________________________] in [________________________________] County, Arkansas. At that time, your insured, [________________________________], was operating a [____] [________________________________] (VIN: [________________________________]).

[________________________________]
[Describe the collision in detail]
[________________________________]

The [________________________________] [Arkansas State Police / County Sheriff / Municipal Police] responded to the scene and prepared Crash Report No. [________________________________]. The report [________________________________] [describe findings, citations, fault].

IV. LIABILITY ANALYSIS

A. Defendant's Negligence

Your insured breached the duty of care by:

☐ Failing to maintain a proper lookout — Ark. Code Ann. § 27-51-104
☐ Following too closely — Ark. Code Ann. § 27-51-305
☐ Failing to yield the right of way — Ark. Code Ann. § 27-51-401 et seq.
☐ Speeding or exceeding safe speed — Ark. Code Ann. § 27-51-201
☐ Running a red light or stop sign — Ark. Code Ann. § 27-52-104
☐ Improper lane change — Ark. Code Ann. § 27-51-302
☐ Distracted driving / texting — Ark. Code Ann. § 27-51-1504
☐ Driving under the influence — Ark. Code Ann. § 5-65-103
☐ Other: [________________________________]

B. Comparative Fault Analysis

Under Ark. Code Ann. § 16-64-122, our client bears zero percent (0%) fault for this collision.

C. Negligence Per Se

Violation of an Arkansas traffic statute constitutes negligence per se. M.B.L. v. Country Mut. Ins. Co., 2010 Ark. App. 97, 374 S.W.3d 13. Your insured's violation of Ark. Code Ann. § [________________________________] establishes negligence as a matter of law.

V. MEDICAL TREATMENT SUMMARY

A. Emergency / Immediate Treatment

B. Ongoing Treatment

C. Diagnosis Summary

☐ [________________________________]
☐ [________________________________]
☐ [________________________________]

D. Prognosis

[________________________________]

VI. ITEMIZED MEDICAL EXPENSES

Estimated Future Medical Expenses

VII. LOST WAGES AND EARNING CAPACITY

Employer: [________________________________]
Position: [________________________________]
Rate of Pay: $[________] per [hour/week/month/year]

VIII. PROPERTY DAMAGE

IX. PAIN AND SUFFERING / NON-ECONOMIC DAMAGES

☐ Physical pain and suffering (past and ongoing)
☐ Mental anguish and emotional distress
☐ Loss of enjoyment of life
☐ Inconvenience and disruption of daily activities
☐ Scarring and/or disfigurement
☐ Fear and anxiety
☐ Sleep disruption

Arkansas constitutionally prohibits damage caps. Full non-economic damages are recoverable.

Non-Economic Damages Claimed: $[________]

X. LOSS OF CONSORTIUM

[If applicable:]

Claimant's spouse, [________________________________], has suffered a loss of consortium.

Loss of Consortium Claimed: $[________]

XI. TOTAL DAMAGES SUMMARY

XII. SETTLEMENT DEMAND

Based upon the foregoing, we hereby demand the sum of:

$[________________________________]

This demand is open for thirty (30) days from the date of this letter, expiring on [__/__/____].

XIII. BAD FAITH WARNING

Ark. Code Ann. § 23-66-206 — Unfair Claims Settlement Practices

Under Ark. Code Ann. § 23-66-206, an insurer that engages in unfair claims settlement practices is subject to regulatory penalties. Unfair practices include misrepresenting policy provisions, failing to promptly investigate claims, and not attempting in good faith to effectuate fair settlements when liability is reasonably clear.

Common-Law Bad Faith

Arkansas recognizes a common-law tort of bad faith by an insurer. To establish bad faith, the plaintiff must show: (1) damages sustained; (2) the insurer acted in bad faith to avoid liability; and (3) the bad faith proximately caused damages. Bad faith must include affirmative misconduct that is dishonest, malicious, or oppressive. Aetna Cas. & Sur. Co. v. Broadway Arms Corp., 281 Ark. 128, 664 S.W.2d 463 (1984).

Your company is on notice that failure to respond in good faith may result in bad faith liability.

XIV. PUNITIVE DAMAGES NOTICE

Under Arkansas law, punitive damages may be awarded upon clear and convincing evidence that the defendant acted with malice or in willful or wanton disregard of the rights and safety of others. There is no statutory cap on punitive damages in Arkansas (constitutional protection under Art. 5, § 32).

XV. ENCLOSED DOCUMENTS

☐ Medical records and bills from all treating providers
☐ Police/crash report
☐ Photographs of vehicle damage and injuries
☐ Employer verification of lost wages
☐ Property damage estimates
☐ Witness statements (if available)
☐ [________________________________]

XVI. RESPONSE REQUESTED

Please confirm receipt and provide a substantive response within thirty (30) days.

Respectfully submitted,

[________________________________]
Attorneys for [________________________________]

By: _________________________________
[________________________________]
Arkansas Bar No. [________________________________]
[________________________________]
[________________________________], Arkansas [____]
Telephone: [________________________________]
Email: [________________________________]

ARKANSAS PRACTICE NOTES AND CHECKLIST

☐ 50% Bar Rule: Plaintiff barred if 50% or more at fault (Ark. Code Ann. § 16-64-122)
☐ No Damage Caps: Constitutional protection — Art. 5, § 32 prohibits legislative caps
☐ Punitive Damages: "Clear and convincing" standard; no statutory cap
☐ Direct Action: Not permitted against insurers in Arkansas
☐ Collateral Source: Arkansas follows the traditional collateral source rule; benefits from collateral sources generally do not reduce recovery
☐ Joint and Several Liability: Modified under Ark. Code Ann. § 16-55-201 et seq.
☐ Government Claims: Arkansas Claims Commission; immunity provisions under Ark. Code Ann. § 19-10-201 et seq.
☐ UM/UIM: Must be offered; rejection must be in writing
☐ Minimum Insurance: $25,000/$50,000/$25,000 (Ark. Code Ann. § 27-22-104)

SOURCES AND REFERENCES

• Ark. Code Ann. § 16-56-105 (Statute of limitations)
• Ark. Code Ann. § 16-64-122 (Comparative fault)
• Arkansas Constitution Art. 5, § 32 (No damage caps)
• Ark. Code Ann. § 23-66-206 (Unfair claims practices)
• Ark. Code Ann. Title 27 (Transportation)
• Arkansas Legislature: https://www.arkleg.state.ar.us