Auto Accident Demand Letter - Massachusetts

DEMAND FOR SETTLEMENT - MOTOR VEHICLE COLLISION

COMMONWEALTH OF MASSACHUSETTS

[LAW FIRM NAME]
[Street Address]
[City], Massachusetts [ZIP]
Tel: [________________________________]
Fax: [________________________________]
Email: [________________________________]
Board of Bar Overseers No. (BBO No.) [________________________________]

DATE: [__/__/____]

VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
AND VIA EMAIL TO: [________________________________]

[Adjuster Name]
[Title]
[Insurance Company Name]
[Street Address]
[City, State ZIP]

RE: SETTLEMENT DEMAND - MOTOR VEHICLE COLLISION
Our Client: [________________________________]
Date of Loss: [__/__/____]
Your Insured: [________________________________]
Claim Number: [________________________________]
Policy Number: [________________________________]
Police Report No.: [________________________________]
Demand Amount: $[________________________________]

Dear [Adjuster Name]:

This firm represents [Client Name] ("our Client") in connection with injuries sustained in a motor vehicle collision occurring on [__/__/____] in [City/Town], [County] County, Massachusetts, caused by the negligence of your insured, [Insured Name]. This letter constitutes a formal demand for settlement of all claims arising from this collision.

Our Client seeks the economic and property losses described below. ☐ Our Client also seeks pain-and-suffering damages because the threshold in M.G.L. c. 231, § 6D is met as explained below. Please note that Massachusetts imposes 12% per annum prejudgment interest from the date of filing under M.G.L. c. 231, § 6B, which increases the cost of delayed resolution.

I. MASSACHUSETTS LEGAL FRAMEWORK

A. No-Fault PIP System - M.G.L. c. 90, §§ 34A and 34M

Massachusetts is a no-fault state. M.G.L. c. 90, § 34A defines PIP with a limit of at least $8,000 per person, regardless of fault. Section 34M governs benefit payments and coordination. Check the policy's actual limit and the claimant's eligibility:

PIP Coordination with Health Insurance (M.G.L. c. 90, § 34A): PIP pays no more than $2,000 of medical expenses to the extent those expenses have been or will be paid by health coverage. Eligible expenses that health coverage does not pay may still be payable from the remaining shared PIP limit, alongside covered wage loss and replacement services. Check the actual policy limit, payments, and unpaid medical bills.

Our Client's PIP Status: [________________________________]

B. Tort Threshold - M.G.L. c. 231, § 6D

To pursue a tort claim against the at-fault driver for pain and suffering and other non-economic damages, the plaintiff must satisfy at least one threshold under M.G.L. c. 231, § 6D:

Monetary Threshold:

☐ Reasonable and necessary medical expenses exceed $2,000

Serious Injury Threshold (regardless of medical expense amount):

☐ Death

☐ Loss of a body member

☐ Permanent and serious disfigurement

☐ Loss of sight or hearing

☐ Fracture

If seeking pain-and-suffering damages, the § 6D threshold is met because: [________________________________]

[________________________________]

C. Statute of Limitations - M.G.L. c. 260, §§ 4 and 2A

For a motor-vehicle bodily-injury tort claim whose judgment must be secured under Chapter 90, M.G.L. c. 260, § 4 requires suit within three (3) years after accrual. Section 2A supplies the general three-year tort period for other claims unless a different provision applies. Calendar each claim from its applicable accrual date.

D. Modified Comparative Negligence - M.G.L. c. 231, § 85

Massachusetts follows a modified comparative negligence standard under M.G.L. c. 231, § 85:

• 51% Bar Rule: Contributory negligence shall not bar recovery if such negligence was not greater than the total amount of negligence attributable to the person(s) against whom recovery is sought.
• Proportional Reduction: Damages are diminished in proportion to the amount of negligence attributable to the plaintiff.
• Burden of Proof: The person asserting negligence that would reduce or bar recovery must allege and prove it; § 85 presumes the plaintiff exercised due care.

Our Client bears no comparative fault for this collision. [Alternatively: Our Client's negligence, if any, is minimal and does not approach the 51% bar.]

E. Prejudgment Interest - M.G.L. c. 231, § 6B

Massachusetts provides one of the highest prejudgment interest rates in the nation:

• Rate: 12% per annum (simple interest, no compounding)
• Accrual: From the date of commencement of the action (date the complaint is filed)
• Application: Added by the clerk of court to the full amount of damages awarded, including both economic and non-economic damages
• Constitutionality: The Massachusetts Supreme Judicial Court has affirmed that the 12% rate is constitutional and does not violate due process

This 12% rate creates a strong incentive for prompt settlement. Delay in resolving this claim will substantially increase the total recovery at trial.

F. Public Employer Limit

For an ordinary claim against a private driver, this demand identifies no general statutory cap on compensatory damages. If the at-fault vehicle belongs to a public employer and the claim falls under M.G.L. c. 258, § 2, recovery against the public employer is generally limited to $100,000. Serious bodily injury claims against the MBTA are excepted from that cap. A claim under c. 258 also requires written presentment to the public employer within two years under § 4. Confirm the defendant, employment scope, and any exception before using this demand.

G. Loss of Consortium - Diaz v. Eli Lilly & Co., 364 Mass. 153 (1973); M.G.L. c. 231, § 85X

[If applicable:] ☐ Our Client's [spouse] has a separate claim for loss of consortium arising from the injuries sustained in this collision. A spouse's loss-of-consortium claim in Massachusetts is a common-law claim recognized in Diaz v. Eli Lilly & Co., 364 Mass. 153 (1973); a claim for loss of consortium of a seriously injured minor or dependent adult child is provided by statute under M.G.L. c. 231, § 85X.

II. STATEMENT OF FACTS

A. The Collision

On [__/__/____], at approximately [____] [a.m./p.m.], our Client was [driving/riding as a passenger in] a [Year/Make/Model] [direction of travel] on [Street/Highway] in [City/Town], [County] County, Massachusetts. At [intersection/location], your insured, operating a [Year/Make/Model], [describe negligent conduct].

[________________________________]

[________________________________]

[________________________________]

B. Police Report

The [City/Town] Police Department/Massachusetts State Police responded to the scene and prepared Report No. [________________________________]. The investigating officer [determined your insured was at fault / cited your insured for: [________________________________] / noted the following: [________________________________]].

C. Your Insured's Negligence

Your insured was negligent in one or more of the following respects:

☐ Failed to use reasonable care in the operation of a motor vehicle

☐ Failed to maintain a proper lookout

☐ Failed to yield the right of way (M.G.L. c. 89, § 8)

☐ Followed too closely (M.G.L. c. 89, § 10)

☐ Disregarded a traffic control signal (M.G.L. c. 89, § 9)

☐ Exceeded the speed limit or drove at an unreasonable speed (M.G.L. c. 90, § 17)

☐ Made an improper lane change

☐ Operated a motor vehicle while under the influence (M.G.L. c. 90, § 24)

☐ Operated a vehicle while using a mobile electronic device (M.G.L. c. 90, § 13B)

☐ Failed to maintain vehicle in safe operating condition

☐ Violated the right-of-way at a rotary (M.G.L. c. 89, § 8)

☐ Other: [________________________________]

D. Witness Information

III. INJURIES AND MEDICAL TREATMENT

A. Emergency and Initial Treatment

[Describe emergency response, ambulance transport, emergency room treatment, and initial diagnosis.]

[________________________________]

[________________________________]

B. Diagnosis

Our Client sustained the following injuries as a direct and proximate result of the collision:

☐ [________________________________]

☐ [________________________________]

☐ [________________________________]

☐ [________________________________]

☐ [________________________________]

C. Course of Treatment

D. Future Medical Treatment

Based on medical opinion from [treating physician], our Client will require the following future care:

E. Prognosis and Permanency

[________________________________]

[________________________________]

IV. TORT THRESHOLD ANALYSIS - M.G.L. c. 231, § 6D

☐ Our Client meets the M.G.L. c. 231, § 6D threshold for pain-and-suffering damages on the following facts:

☐ Pain-and-suffering damages are not requested in this demand; the threshold details below do not apply.

Monetary Threshold ($2,000)

☐ Total exceeds $2,000 monetary threshold

Serious Injury Threshold (Alternative Basis)

☐ Fracture: [________________________________]

☐ Permanent and serious disfigurement: [________________________________]

☐ Loss of body member: [________________________________]

☐ Loss of sight or hearing: [________________________________]

V. DAMAGES

A. Economic Damages

Past Medical Expenses:

Future Medical Expenses:

Lost Wages and Income:

Future Lost Earning Capacity:

Other Economic Damages:

Total Economic Damages: $[________________________________]

B. Non-Economic Damages

Our Client claims the following, subject to any applicable claim-specific limit, including M.G.L. c. 258, § 2 if the defendant is a public employer:

C. Prejudgment Interest Estimate (M.G.L. c. 231, § 6B)

Note: This calculation illustrates the exposure if this matter proceeds to trial. The 12% rate substantially increases the total recovery over time and should be considered in evaluating this settlement demand.

D. Total Damages Summary

VI. SETTLEMENT DEMAND

Based upon the foregoing facts, law, and damages, we hereby demand payment of:

$[________________________________]

in full and final settlement of all claims arising from the collision of [__/__/____].

This demand shall remain open for thirty (30) days from receipt, expiring on [__/__/____].

This demand represents a substantial discount from the total trial exposure, which includes 12% prejudgment interest accruing from the date of filing. Prompt resolution will avoid the significant additional cost of prejudgment interest and litigation expenses.

This demand is made without prejudice to our Client's right to seek additional recoverable damages, prejudgment interest, and costs should litigation become necessary. We reserve the right to amend this demand based upon additional medical treatment, discovery of additional evidence, or changes in our Client's condition.

Payment should be made by check payable to "[Law Firm Name] IOLTA Account" and forwarded to the undersigned at the address listed above, together with appropriate release documentation for review.

VII. DOCUMENTATION ENCLOSED

The following documentation is enclosed or available upon request:

☐ Police/crash report
☐ Photographs of vehicle damage
☐ Photographs of injuries
☐ Medical records and bills (itemized)
☐ PIP benefits documentation/explanation of benefits
☐ Health insurance explanation of benefits
☐ Employment/wage verification
☐ Property damage estimate/repair invoice
☐ Expert reports (if obtained)
☐ Witness statements
☐ Other: [________________________________]

Respectfully submitted,

[LAW FIRM NAME]

By: _______________________________
[Attorney Name]
BBO No. [________________________________]
[Email]
[Telephone]

cc: [Client Name]

MASSACHUSETTS AUTO ACCIDENT PRACTICE NOTES

No-Fault and Tort Threshold

☐ $2,000 Monetary Threshold (M.G.L. c. 231, § 6D): The $2,000 threshold applies to "reasonable and necessary" medical expenses. Insurers frequently challenge whether expenses are reasonable and necessary. Ensure thorough documentation.

☐ Fracture Exception: A fracture of any kind satisfies the serious injury threshold regardless of medical expense amounts. Obtain clear diagnostic imaging confirming the fracture.

☐ PIP Coordination (M.G.L. c. 90, § 34A): Health coverage limits PIP payment to $2,000 only for medical expenses the health coverage pays or will pay. Unpaid eligible medical expenses, wage loss, and replacement services may draw on the remaining shared PIP limit. Check the actual coverage and payments.

☐ PIP Payment Timeline: After physician notice of disability, the insurer must begin medical payments within 10 days or give written reasons for nonpayment. Other PIP benefits accrue upon reasonable proof of loss (c. 90, § 34M).

Liability and Fault

☐ 51% Bar Rule (M.G.L. c. 231, § 85): Plaintiff's negligence must not be greater than the total negligence of all defendants. This is a critical threshold - if plaintiff's fault exceeds 50%, recovery is completely barred.

☐ Statutory Violation as Evidence: A proved violation of an applicable safety rule may be evidence of negligence when the rule was designed to prevent the incident; the violation alone does not establish negligence. Identify the specific rule and supporting facts.

☐ Hands-Free Law (M.G.L. c. 90, § 13B): Massachusetts prohibits the use of handheld mobile electronic devices while operating a motor vehicle. A proved violation may be some evidence of negligence if the rule was designed to prevent the incident; it does not establish negligence by itself.

Damages and Interest

☐ 12% Prejudgment Interest (M.G.L. c. 231, § 6B): This is one of the highest prejudgment interest rates in the nation. Interest runs at 12% simple interest from the date of filing the complaint. Use this as significant leverage in settlement negotiations. The SJC has confirmed the 12% rate is constitutional.

☐ Public Employer Claims: If the defendant is a public employer, check c. 258, § 2’s $100,000 limit, its MBTA serious bodily injury exception, and § 4’s two-year written-presentment requirement.

☐ Offer of Judgment (Mass. R. Civ. P. 68 / M.G.L. c. 231, § 6B): Be aware of the interaction between the offer of judgment rule and prejudgment interest. An offer of judgment that is rejected may affect the interest calculation if the eventual judgment is not more favorable to the plaintiff.

☐ Medical Bills - Full vs. Paid Amount: Under c. 233, § 79G, qualifying itemized bills may prove reasonable charges. The actual insurance payment is generally inadmissible; the defendant may offer evidence of the range the provider accepts for the service. See the Massachusetts Guide to Evidence § 411 and Law v. Griffith.

Procedural Considerations

☐ Compulsory Insurance (M.G.L. c. 90, § 34A): Massachusetts requires all registered motor vehicles to carry liability insurance. For policies written or renewed on or after July 1, 2025, the minimum bodily injury limits increased to $25,000 per person / $50,000 per accident (up from $20,000/$40,000), minimum property damage to $30,000 (up from $5,000), and uninsured-motorist limits to $25,000/$50,000 — Ch. 275 of the Acts of 2024 (H.5111). Older policies may still carry the prior $20,000/$40,000 limits. Verify the at-fault driver's policy limits and effective date early.

☐ Uninsured/underinsured motorist coverage (M.G.L. c. 175, § 113L): Uninsured motorist coverage is required; underinsured motorist protection under § 113L(2) is elective, and the policyholder must be notified of the option to purchase it. Review the client's declarations and endorsements to identify the coverage actually in force.

☐ Statute of Limitations (3 years): Calendar the deadline immediately upon intake. M.G.L. c. 260, § 4 governs the covered motor-vehicle bodily-injury claim; check accrual and any different period for each other claim.

☐ Superior Court vs. District Court: Claims over $50,000 are typically filed in Superior Court. Claims under $50,000 may be filed in District Court or BMC.

☐ Demand Letter - Chapter 93A: While M.G.L. c. 93A (consumer protection) generally does not apply to personal injury claims arising from auto accidents, if there is an unfair insurance settlement practice claim under M.G.L. c. 176D, a Chapter 93A demand letter may be appropriate as a separate action.

Sources and References

• M.G.L. c. 231, § 85 (Comparative Negligence): https://malegislature.gov/Laws/GeneralLaws/PartIII/TitleII/Chapter231/Section85
• M.G.L. c. 231, § 6B (Prejudgment Interest): https://malegislature.gov/Laws/GeneralLaws/PartIII/TitleII/Chapter231/Section6b
• M.G.L. c. 231, § 6D (Tort Threshold): https://malegislature.gov/Laws/GeneralLaws/PartIII/TitleII/Chapter231/Section6D
• M.G.L. c. 90, § 34A (PIP definition and minimum): https://www.mass.gov/info-details/mass-general-laws-c90-ss-34a; § 34M (benefit payments): https://www.mass.gov/info-details/mass-general-laws-c90-ss-34m
• M.G.L. c. 260, § 4 (covered motor-vehicle bodily-injury claims): https://malegislature.gov/Laws/GeneralLaws/PartIII/TitleV/Chapter260/Section4
• M.G.L. c. 260, § 2A (general tort period): https://malegislature.gov/Laws/GeneralLaws/PartIII/TitleV/Chapter260/Section2A
• M.G.L. c. 231, § 85X (Loss of Consortium of Dependent Child): https://malegislature.gov/Laws/GeneralLaws/PartIII/TitleII/Chapter231/Section85X
• New Minimum Motor Vehicle Coverage Limits (eff. 7/1/2025, Ch. 275 of the Acts of 2024): Mass. Div. of Insurance Filing Guidance Notice 2025-A, https://www.mass.gov/doc/2025-a-new-motor-vehicle-mandatory-coverage-limits/download
• Mass.gov, Basics of Auto Insurance (compulsory coverage limits): https://www.mass.gov/info-details/basics-of-auto-insurance
• Boston Bar Association - Massachusetts Interest Statutes: https://bostonbar.org/journal/the-interesting-implications-of-the-massachusetts-interest-statutes/