Auto Accident Demand Letter - Illinois

DEMAND FOR SETTLEMENT — MOTOR VEHICLE COLLISION

STATE OF ILLINOIS

[________________________________]
Attorneys at Law
[________________________________]
[________________________________], Illinois [____]
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, Illinois. This letter constitutes a formal demand for settlement of all claims arising from this incident.

I. ILLINOIS-SPECIFIC LEGAL FRAMEWORK

A. Statute of Limitations

Under 735 ILCS 5/13-202, the statute of limitations for personal injury actions is two (2) years from the date of injury. Property damage claims are subject to a five-year statute of limitations under 735 ILCS 5/13-205.

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

B. Modified Comparative Negligence (51% Bar)

Illinois follows modified comparative negligence under 735 ILCS 5/2-1116. A plaintiff may recover damages only if the plaintiff's fault is not more than 50% of the proximate cause of the injury. If the plaintiff is more than 50% at fault, recovery is completely barred. Where recovery is permitted, damages are reduced by the plaintiff's percentage of fault.

Our client bears no fault whatsoever for this collision.

C. No Damage Caps on Compensatory Damages

Illinois does not impose statutory caps on compensatory damages in personal injury cases. Prior legislative attempts to cap damages were struck down as unconstitutional by the Illinois Supreme Court in Best v. Taylor Machine Works, 179 Ill. 2d 367, 689 N.E.2d 1057 (1997) and Lebron v. Gottlieb Memorial Hospital, 237 Ill. 2d 217, 930 N.E.2d 895 (2010).

D. Joint and Several Liability

Under 735 ILCS 5/2-1117, a defendant who is found to be less than 25% at fault is liable only for their proportionate share of non-economic damages. Defendants 25% or more at fault remain jointly and severally liable for all damages.

E. Seat Belt Evidence

Under 625 ILCS 5/12-603.1, failure to wear a seat belt is not admissible as evidence of negligence or contributory negligence and cannot be used to reduce damages.

F. Minimum Insurance Requirements

Illinois requires minimum liability coverage of $25,000 per person / $50,000 per accident for bodily injury and $20,000 for property damage under 625 ILCS 5/7-601.

II. PRESERVATION OF EVIDENCE DEMAND

You are hereby placed on notice to preserve all evidence related to this claim, including but not limited to:

☐ 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
☐ Employment and driving 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, Illinois. At that time, your insured, [________________________________], was operating a [____] [________________________________] (VIN: [________________________________]).

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

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

IV. LIABILITY ANALYSIS

A. Defendant's Negligence

Your insured breached the duty of care owed to our client by:

☐ Failing to maintain a proper lookout — 625 ILCS 5/11-709
☐ Following too closely — 625 ILCS 5/11-710
☐ Failing to yield the right of way — 625 ILCS 5/11-901 et seq.
☐ Speeding or exceeding a safe speed for conditions — 625 ILCS 5/11-601
☐ Running a red light or stop sign — 625 ILCS 5/11-306
☐ Improper lane change — 625 ILCS 5/11-709
☐ Distracted driving / use of electronic communication device — 625 ILCS 5/12-610.2
☐ Driving under the influence — 625 ILCS 5/11-501
☐ Other: [________________________________]

B. Comparative Fault Analysis

Under 735 ILCS 5/2-1116, our client bears zero percent (0%) fault. The evidence conclusively establishes sole responsibility on the part of your insured.

C. Negligence Per Se

Violation of the Illinois Vehicle Code constitutes prima facie evidence of negligence. Kalata v. Anheuser-Busch Companies, Inc., 144 Ill. 2d 425, 581 N.E.2d 656 (1991). Your insured's violation of 625 ILCS 5/[________________________________] is evidence of negligence.

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]

☐ Employer verification letter enclosed
☐ Tax returns / pay stubs enclosed

VIII. PROPERTY DAMAGE

IX. PAIN AND SUFFERING / NON-ECONOMIC DAMAGES

Our client has endured significant pain and suffering, including but not limited to:

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

Illinois does not cap non-economic damages in personal injury cases. The measure of damages for pain and suffering is determined by the trier of fact.

Non-Economic Damages Claimed: $[________]

X. LOSS OF CONSORTIUM

[If applicable:]

Claimant's spouse, [________________________________], has suffered a loss of consortium. Loss of consortium is recognized in Illinois and encompasses loss of society, companionship, and sexual relations. Dini v. Naiditch, 20 Ill. 2d 570, 170 N.E.2d 881 (1960).

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

215 ILCS 5/154.6 — Unfair Claims Settlement Practices

Under 215 ILCS 5/154.6, an insurer that engages in unfair or deceptive practices in the handling of claims is subject to regulatory penalties and potential liability. These include failure to promptly investigate claims, offering substantially less than amounts ultimately recovered, and failure to affirm or deny coverage within a reasonable time.

215 ILCS 5/155 — Attorney Fees and Penalties

Under 215 ILCS 5/155, when an insurer's delay in settling a claim is found to be vexatious and unreasonable, the court may award the claimant reasonable attorney fees, costs, and an additional penalty of up to $60,000 or 60% of the amount recovered (whichever is greater). This statute applies to first-party claims and has been broadly interpreted by Illinois courts.

Your company is on notice that vexatious and unreasonable conduct may result in statutory penalties and attorney fees under 215 ILCS 5/155.

XIV. 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/repair invoices
☐ Witness statements (if available)
☐ [________________________________]

XV. RESPONSE REQUESTED

Please confirm receipt and provide a substantive response within thirty (30) days. Failure to respond will be considered a rejection of this demand.

Respectfully submitted,

[________________________________]
Attorneys for [________________________________]

By: _________________________________
[________________________________]
Illinois ARDC No. [________________________________]
[________________________________]
[________________________________], Illinois [____]
Telephone: [________________________________]
Email: [________________________________]

ILLINOIS PRACTICE NOTES AND CHECKLIST

☐ 51% Bar Rule: Plaintiff barred if more than 50% at fault (735 ILCS 5/2-1116)
☐ No Damage Caps: Caps ruled unconstitutional — Best v. Taylor Machine Works (1997); Lebron v. Gottlieb (2010)
☐ Seat Belt Evidence: Not admissible on liability or to reduce damages (625 ILCS 5/12-603.1)
☐ Joint and Several: Defendants <25% at fault liable only for proportionate share of non-economic damages (735 ILCS 5/2-1117)
☐ Section 155 Penalties: Vexatious delay by insurer — attorney fees + up to $60,000 or 60% penalty (215 ILCS 5/155)
☐ Punitive Damages: Available for willful and wanton conduct; no statutory cap
☐ Government Claims: Court of Claims Act (705 ILCS 505) — strict notice requirements for state entities; Local Governmental and Governmental Employees Tort Immunity Act (745 ILCS 10)
☐ Minimum Insurance: $25,000/$50,000/$20,000 (625 ILCS 5/7-601)
☐ Dram Shop: 235 ILCS 5/6-21 — if alcohol-related

SOURCES AND REFERENCES

• 735 ILCS 5/13-202 (Statute of limitations)
• 735 ILCS 5/2-1116 (Comparative negligence)
• 215 ILCS 5/154.6 (Unfair claims practices)
• 215 ILCS 5/155 (Penalties for vexatious delay)
• 625 ILCS 5 (Illinois Vehicle Code)
• Illinois General Assembly: https://www.ilga.gov