DEMAND FOR SETTLEMENT - MOTOR VEHICLE COLLISION

STATE OF NEW MEXICO

[________________________________]
(Firm Name)

[________________________________]
(Street Address)

[________________________________], New Mexico [__________]
(City, State, ZIP)

Telephone: [________________________________]
Facsimile: [________________________________]
Email: [________________________________]

DATE: [__/__/____]

VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
AND VIA ELECTRONIC MAIL

[________________________________]
(Adjuster Name / Claims Professional)

[________________________________]
(Insurance Company Name)

[________________________________]
(Street Address)

[________________________________]
(City, State, ZIP)

Email: [________________________________]

RE: SETTLEMENT DEMAND - MOTOR VEHICLE COLLISION

Our Client: [________________________________] (Client Full Legal Name)
Client Date of Birth: [__/__/____]
Date of Loss: [__/__/____]
Your Insured: [________________________________] (At-Fault Driver Full Name)
Claim Number: [________________________________]
Policy Number: [________________________________]
Policy Limits: $[________________________________]

Dear [________________________________]:

This firm represents [________________________________] ("Client" or "Claimant") in connection with injuries and damages sustained in a motor vehicle collision that occurred on [__/__/____] in [________________________________], [________________________________] County, New Mexico. This letter constitutes a formal demand for settlement of all claims arising from this collision.

We have completed our investigation, obtained and reviewed all relevant medical records and billing statements, and are now prepared to present our client's claim for your good faith evaluation.

I. NEW MEXICO LEGAL FRAMEWORK

A. Statute of Limitations - NMSA § 37-1-8

Under New Mexico law, the statute of limitations for personal injury actions is three (3) years from the date of injury. NMSA § 37-1-8 provides that actions for "an injury to the person or reputation of any person" must be brought within three years. This deadline is strictly enforced by New Mexico courts.

Date of Loss: [__/__/____]
Statute of Limitations Expiration: [__/__/____]

Note: For wrongful death claims, a separate three-year statute of limitations applies under NMSA § 41-2-2.

B. Pure Comparative Negligence - Scott v. Rizzo

New Mexico follows pure comparative negligence as adopted by the New Mexico Supreme Court in Scott v. Rizzo, 96 N.M. 682, 634 P.2d 1234 (1981). Under this doctrine:

• A plaintiff may recover damages regardless of the plaintiff's percentage of fault
• The plaintiff's recovery is reduced in proportion to their percentage of fault
• Even a plaintiff found 99% at fault may recover 1% of their total damages
• There is no threshold at which the plaintiff's fault bars recovery
• The trier of fact allocates percentages of fault to all parties, including non-parties

New Mexico is one of a minority of states that follows the pure comparative negligence model, which is the most plaintiff-favorable approach to apportioning fault.

In the present case, your insured bears 100% liability for this collision. There is no basis for any comparative fault reduction.

C. Several Liability - NMSA § 41-3A-1

New Mexico has abolished joint and several liability in most tort cases. Under NMSA § 41-3A-1:

• "In any cause of action to which the doctrine of comparative fault applies, the doctrine imposing joint and several liability upon two or more wrongdoers whose conduct proximately caused an injury to any plaintiff is abolished."
• "The liability of any such defendants shall be several."
• Each defendant is liable "only for that portion of the total dollar amount awarded as damages to the plaintiff that is equal to the ratio of such defendant's fault to the total fault attributed to all persons, including plaintiffs, defendants and persons not party to the action."

Exceptions to several liability (joint and several liability preserved):
1. Persons who acted with the intention of inflicting injury or damage
2. Persons in a vicarious liability relationship
3. Persons strictly liable for the manufacture and sale of a defective product
4. Situations having "a sound basis in public policy"

D. No Damage Caps

New Mexico does not impose statutory caps on compensatory damages (economic or non-economic) in personal injury cases arising from motor vehicle collisions. Our client is entitled to full and fair compensation for all proven losses.

E. Punitive Damages

New Mexico allows punitive damages in cases involving conduct that is willful, wanton, fraudulent, or in reckless disregard of the plaintiff's rights or safety. See Paiz v. State Farm Fire & Cas. Co., 118 N.M. 203 (1994). New Mexico does not impose a statutory cap on punitive damages. The amount is determined by the trier of fact, subject to due process review.

[If applicable: Based on the conduct of your insured, including [________________________________], we reserve the right to pursue punitive damages in litigation.]

F. Collateral Source Rule

New Mexico follows the traditional collateral source rule, which provides that payments or benefits received by the plaintiff from a source wholly independent of and collateral to the tortfeasor shall not reduce the tortfeasor's liability. See Reese v. Neff, 131 N.M. 311 (Ct. App. 2001).

II. STATEMENT OF FACTS

A. Parties Involved

B. Accident Description

On [__/__/____], at approximately [________] [AM/PM], our client was operating a [________] (Year) [________________________________] (Make/Model) in a [northbound/southbound/eastbound/westbound] direction on [________________________________] (Street/Highway Name) near [________________________________] (Intersection/Landmark) in [________________________________], [________________________________] County, New Mexico.

[________________________________]
(Provide detailed narrative of the collision, including:)

• (Direction and speed of travel for both vehicles)
• (Traffic conditions, road conditions, weather conditions)
• (Specific negligent acts or omissions by the at-fault driver)
• (Point of impact on both vehicles)
• (Post-impact movement of vehicles)
• (Whether airbags deployed)
• (Position of occupants at time of impact)
• (Immediate aftermath: emergency services response, statements made at scene)

C. Police Report

The collision was investigated by [________________________________] (Law Enforcement Agency), and a report was filed under Report Number [________________________________]. The investigating officer [________________________________] (Officer Name/Badge Number) [noted/cited/documented]:

[________________________________]
(Summarize key findings from the police report, including citations issued, fault determinations, witness statements, and diagram descriptions)

D. Witness Information

E. Photographic and Video Evidence

[________________________________]
(Describe available photographic and video evidence including scene photos, vehicle damage photos, injury photos, surveillance footage, dashcam recordings, traffic camera footage)

III. LIABILITY ANALYSIS

A. Negligence of Your Insured

Under New Mexico law, a negligence claim requires proof of: (1) a duty of care; (2) a breach of that duty; (3) causation; and (4) damages. See Herrera v. Quality Pontiac, 134 N.M. 318 (2003).

Your insured breached the applicable duty of care by:

☐ Failing to maintain a proper lookout — NMSA § 66-8-114
☐ Following too closely — NMSA § 66-7-318
☐ Failing to yield the right-of-way — NMSA § 66-7-328
☐ Exceeding the posted speed limit or driving at an unreasonable speed — NMSA § 66-7-301
☐ Failing to obey a traffic control device — NMSA § 66-7-105
☐ Operating under the influence of alcohol or drugs — NMSA § 66-8-102
☐ Using a handheld wireless communication device while driving — NMSA § 66-7-374
☐ Failing to stop at a stop sign — NMSA § 66-7-345
☐ Improper lane change — NMSA § 66-7-317
☐ Making an improper or illegal turn — NMSA § 66-7-322
☐ Reckless driving — NMSA § 66-8-113
☐ Other: [________________________________]

B. Negligence Per Se

Your insured's violation of [________________________________] (specific New Mexico traffic statute) constitutes negligence per se under New Mexico law. The violation of a statute or ordinance designed to protect a class of persons to which the plaintiff belongs creates a presumption of negligence. See Rudolfo v. N.M. Dep't of Transp., 137 N.M. 113 (Ct. App. 2004).

C. Comparative Fault Assessment

Based upon the totality of the evidence, your insured bears [____]% fault for this collision. Under New Mexico's pure comparative fault doctrine, even if your insured attempts to argue any fault on the part of our client, our client would still be entitled to recover damages reduced by their fault percentage. No credible evidence supports any fault on the part of our client.

IV. INJURIES AND MEDICAL TREATMENT

A. Injuries Sustained

As a direct and proximate result of this collision, our client sustained the following injuries:

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

B. Medical Treatment Chronology

C. Current Medical Status

[________________________________]
(Describe client's current condition, ongoing symptoms, functional limitations, prognosis, and recommendations for future treatment)

D. Treating Physician's Opinions

[________________________________], [MD/DO], has opined that our client's injuries were caused by the motor vehicle collision of [__/__/____] and that [________________________________]
(Describe medical opinions regarding causation, permanency, disability rating, future treatment recommendations, and prognosis)

V. DAMAGES

A. Past Medical Expenses

B. Future Medical Expenses

Based on the opinions of [________________________________], [MD/DO], our client will require the following future medical treatment:

C. Lost Wages and Income

D. Future Lost Earning Capacity

[________________________________]
(Describe any diminished future earning capacity, including expert vocational or economic opinions)

E. Pain and Suffering (Non-Economic Damages)

New Mexico imposes no statutory caps on non-economic damages in personal injury cases. Our client has experienced and continues to experience significant pain and suffering:

☐ Physical pain from the collision and resulting injuries
☐ Ongoing chronic pain and discomfort
☐ Mental anguish and emotional distress
☐ Loss of enjoyment of life activities
☐ Inability to participate in recreational activities: [________________________________]
☐ Sleep disturbance and insomnia
☐ Anxiety, depression, and/or PTSD symptoms
☐ Scarring and/or disfigurement
☐ Loss of mobility and physical limitations
☐ Impact on family relationships and social activities
☐ Embarrassment and humiliation from physical limitations

Pain and Suffering Multiplier Analysis:

In evaluating non-economic damages, New Mexico courts and insurance professionals commonly utilize a multiplier applied to special damages. Given the severity and duration of our client's injuries, a multiplier of [____] to [____] is appropriate.

F. Property Damage

G. Loss of Consortium

[________________________________] (Spouse Name), the [husband/wife/domestic partner] of our client, has a separate and independent claim for loss of consortium under New Mexico law. New Mexico recognizes loss of consortium as a derivative claim allowing the spouse to recover for the deprivation of companionship, comfort, and society caused by the other spouse's injuries. See Romero v. Byers, 117 N.M. 422 (1994). As a result, [________________________________] has been deprived of:

☐ Companionship and society
☐ Affection and marital intimacy
☐ Assistance with household duties
☐ Participation in shared activities and recreation
☐ Emotional support and comfort

Loss of Consortium Damages: $[____________]

VI. TOTAL DAMAGES SUMMARY

VII. NEW MEXICO INSURANCE REQUIREMENTS AND COVERAGE ANALYSIS

A. Mandatory Financial Responsibility - NMSA § 66-5-201, § 66-5-215

New Mexico's Mandatory Financial Responsibility Act requires all vehicle owners and operators to maintain minimum automobile liability insurance:

B. Uninsured/Underinsured Motorist Coverage - NMSA § 66-5-301

New Mexico's Uninsured Motorist Act (NMSA § 66-5-301) requires that all automobile insurance policies issued in New Mexico include UM/UIM coverage:

• UM/UIM coverage must include minimum limits as set forth in NMSA § 66-5-215 ($25,000/$50,000 bodily injury; $10,000 property damage)
• The insured may purchase higher limits up to the limits of the liability provisions of the policy
• The named insured has the right to reject UM/UIM coverage, but:
• Rejection must be in writing on a form that complies with strict statutory requirements
• The rejection must be knowing and intelligent
• An improper or defective rejection is void, and coverage defaults to the full liability limits
• New Mexico courts strictly construe rejection requirements in favor of coverage

Critical Practice Point: Always obtain copies of any UM/UIM rejection forms. New Mexico courts have frequently invalidated rejections that did not comply with the precise statutory requirements. See Jordan v. Allstate Ins. Co., 116 N.M. 184 (1993).

C. No PIP / No-Fault Requirement

New Mexico is a traditional tort/fault state. There is no personal injury protection (PIP) or no-fault insurance requirement.

D. Coverage Applicable to This Claim

VIII. SETTLEMENT DEMAND

A. Demand Amount

Based upon the foregoing analysis of liability, injuries, damages, and applicable New Mexico law, we hereby demand the total sum of:

$[________________________________]

in full and final settlement of all claims arising from the collision of [__/__/____], including the claims of [________________________________] (Claimant) and [________________________________] (Loss of Consortium Claimant, if applicable).

B. Demand Deadline

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

If this demand is not accepted within the stated timeframe, it shall be deemed withdrawn, and we reserve the right to increase the demand amount or proceed directly to litigation.

C. Settlement Terms

Acceptance of this demand is contingent upon the following terms:

☐ Payment of the full demand amount within fifteen (15) days of acceptance
☐ Execution of a mutually agreeable release of all claims
☐ The release shall be consistent with NMSA § 41-3-4 (release provisions)
☐ No admission of liability by any party
☐ Settlement funds payable to "[________________________________] and [________________________________], Attorneys"
☐ Dismissal with prejudice of any pending litigation (if applicable)

IX. SETTLEMENT NEGOTIATION PROVISIONS

A. Good Faith Obligation

We expect [________________________________] (Insurance Company) to evaluate this claim in good faith and respond with a reasonable settlement offer within the stated timeframe. New Mexico recognizes the tort of bad faith in insurance claim handling, and we will not hesitate to pursue additional remedies if this claim is not handled fairly. See Sloan v. State Farm Mut. Auto. Ins. Co., 85 N.M. 542 (1973).

B. Unfair Claims Practices

New Mexico's Insurance Code, NMSA § 59A-16-20, prohibits unfair claims settlement practices including:

• Misrepresenting pertinent facts or insurance policy provisions
• Failing to acknowledge and act promptly upon communications
• Failing to adopt and implement reasonable standards for prompt investigation of claims
• Refusing to pay claims without conducting a reasonable investigation
• Failing to affirm or deny coverage within a reasonable time
• Compelling claimants to institute litigation by offering unreasonably low settlements

C. Counteroffer Process

Should you wish to make a counteroffer, we request:

☐ A written explanation of the basis for the counteroffer
☐ Specific identification of any damages categories disputed
☐ Documentation supporting your position on liability or damages
☐ Identification of applicable policy limits and coverage positions

X. RESERVATION OF RIGHTS AND LITIGATION WARNING

A. Reservation of Rights

This demand is presented without prejudice to any rights, claims, or remedies available under New Mexico law, including:

☐ Filing a civil action for negligence and all related tort claims
☐ Seeking punitive damages for willful, wanton, or reckless conduct
☐ Pursuing a bad faith claim against the insurance carrier
☐ Asserting claims under New Mexico's Unfair Claims Practices Act (NMSA § 59A-16-20)
☐ Asserting claims against additional parties as investigation warrants
☐ Seeking prejudgment interest under New Mexico law
☐ Recovering attorney's fees and costs where permitted
☐ Asserting wrongful death claims under NMSA § 41-2-1 if applicable

B. Litigation Consequences

Should we be required to file suit:

• We will seek the full measure of damages under New Mexico law, likely exceeding the current demand
• Extensive discovery will be conducted including depositions, interrogatories, and document requests
• Expert witnesses in accident reconstruction, medicine, economics, and vocational rehabilitation will be retained
• New Mexico's pure comparative fault system provides no threshold defense to the tortfeasor
• New Mexico's several liability framework under NMSA § 41-3A-1 requires careful allocation of fault
• All litigation costs and expenses will be sought
• New Mexico juries are known to render substantial verdicts, particularly in Bernalillo County

XI. MEDICAL AUTHORIZATION AND RECORDS

A. Enclosed Documentation

☐ Police/crash report
☐ Complete medical records from all treating providers
☐ Complete medical billing statements
☐ Photographs of the accident scene
☐ Photographs of vehicle damage
☐ Photographs of client's injuries
☐ Proof of lost wages (employer verification letter)
☐ Pay stubs/W-2s/tax returns documenting income
☐ Expert reports (medical, vocational, economic)
☐ Property damage documentation
☐ Rental car receipts
☐ Out-of-pocket expense receipts
☐ Witness statements
☐ [________________________________]

B. Medical Records Authorization

☐ A limited medical authorization is [enclosed / available upon request] for records related solely to injuries from this collision
☐ We do not authorize access to any pre-existing medical records unrelated to this claim
☐ Any request for additional medical information must be directed to this office

XII. DOCUMENTATION AND FILING CHECKLIST

Pre-Demand Preparation

☐ Complete investigation of accident facts and circumstances
☐ Obtain and review police/crash report
☐ Photograph accident scene, vehicle damage, and injuries
☐ Identify and interview all witnesses
☐ Obtain all medical records and billing statements
☐ Verify client has reached maximum medical improvement (MMI)
☐ Obtain treating physician narrative report on causation and prognosis
☐ Calculate all economic damages with documentation
☐ Evaluate non-economic damages
☐ Research applicable New Mexico law and comparable jury verdicts
☐ Determine all applicable insurance coverages and limits
☐ Verify UM/UIM rejection validity under NMSA § 66-5-301
☐ Calendar statute of limitations deadline: [__/__/____]

Demand Submission

☐ Send demand via certified mail, return receipt requested
☐ Send courtesy copy via email
☐ Calendar 30-day response deadline: [__/__/____]
☐ Maintain copy of demand and all enclosures in client file
☐ Log all communications with insurance adjuster

Post-Demand Follow-Up

☐ Confirm receipt of demand by insurance carrier
☐ Follow up if no response within 15 business days
☐ Document all settlement negotiations in writing
☐ Prepare complaint for filing if demand rejected
☐ File suit well before statute of limitations expiration
☐ Consider mediation or alternative dispute resolution
☐ Evaluate bad faith / unfair claims practices claim

XIII. NEW MEXICO-SPECIFIC PRACTICE NOTES

A. Key Legal Considerations

☐ Three-Year Statute of Limitations (NMSA § 37-1-8): New Mexico provides a three-year period for personal injury claims. This is a firm deadline; do not delay filing unnecessarily.

☐ Pure Comparative Negligence (Scott v. Rizzo): New Mexico's pure comparative negligence system allows recovery regardless of the plaintiff's fault percentage. This is extremely favorable to plaintiffs and provides no threshold defense to defendants.

☐ Several Liability (NMSA § 41-3A-1): New Mexico has abolished joint and several liability in most comparative fault cases. Each defendant is liable only for their proportionate share of fault. Exceptions apply for intentional torts, vicarious liability, strict product liability, and matters with a sound basis in public policy.

☐ No Damage Caps: New Mexico does not cap compensatory damages (economic or non-economic) in personal injury cases. Full compensation is available.

☐ Punitive Damages Available: Punitive damages may be awarded for willful, wanton, fraudulent, or reckless conduct. No statutory cap applies. The award is subject to constitutional due process review.

☐ Traditional Collateral Source Rule: New Mexico follows the traditional collateral source rule, which prevents reduction of damages by payments from collateral sources such as health insurance.

☐ Mandatory UM/UIM Coverage (NMSA § 66-5-301): UM/UIM coverage is mandatory on all New Mexico auto policies. Rejection must be in writing and knowing. Courts strictly construe rejection requirements, frequently invalidating defective rejections and defaulting coverage to full liability limits. This is a critical area of inquiry in every New Mexico auto accident case.

☐ No PIP/No-Fault: New Mexico is a traditional tort/fault state with no PIP requirement.

☐ Unfair Claims Practices (NMSA § 59A-16-20): New Mexico's unfair claims practices statute provides additional remedies against insurers who act in bad faith.

☐ Release Statute (NMSA § 41-3-4): Under NMSA § 41-3-4, a release of one tortfeasor does not release other tortfeasors unless the release so provides.

☐ Tribal Lands: If the collision occurred on tribal land (e.g., Navajo Nation, Pueblo lands), special jurisdictional issues may apply. Determine jurisdiction carefully.

☐ High Uninsured Driver Rate: New Mexico historically has one of the highest rates of uninsured drivers in the nation. UM/UIM coverage analysis is essential.

B. Venue Considerations

☐ New Mexico District Court has general jurisdiction over personal injury claims
☐ Venue is proper in the county where the accident occurred or where defendant resides
☐ Bernalillo County (Albuquerque) is generally considered a favorable plaintiff venue
☐ Consider federal diversity jurisdiction if applicable (amount exceeds $75,000 and diverse citizenship)

C. Expert Disclosure Requirements

☐ New Mexico Rule of Civil Procedure 1-026(B)(4) governs expert discovery
☐ Expert reports are required under the rules
☐ Prepare medical experts to testify on causation, permanency, and future treatment

XIV. CONCLUSION

The evidence overwhelmingly establishes that your insured was at fault for this collision and that our client has suffered significant injuries and damages as a direct result. Under New Mexico's pure comparative fault system, there is no threshold defense available. We believe this demand represents a fair and reasonable valuation of our client's claims.

We look forward to your prompt and good faith response. Please direct all correspondence to the undersigned.

Respectfully submitted,

[________________________________]
(Firm Name)

By: _________________________________
[________________________________]
(Attorney Name)
New Mexico Bar No. [________________________________]
Email: [________________________________]
Direct Phone: [________________________________]

ENCLOSURES:
☐ Police/Crash Report
☐ Medical Records and Bills
☐ Photographs
☐ Wage Verification
☐ Expert Reports
☐ Property Damage Documentation
☐ [________________________________]

cc: [________________________________] (Client)
cc: [________________________________] (File)

Sources and References

• New Mexico Statutes, NMSA § 37-1-8 (Statute of Limitations): https://nmonesource.com/nmos/nmsa/en/item/4373/index.do
• New Mexico Statutes, NMSA § 41-3A-1 (Several Liability): https://law.justia.com/codes/new-mexico/chapter-41/article-3a/section-41-3a-1/
• Scott v. Rizzo, 96 N.M. 682, 634 P.2d 1234 (1981) (Pure Comparative Negligence)
• New Mexico Statutes, NMSA § 66-5-215 (Minimum Insurance Requirements): https://nmonesource.com/nmos/nmsa/en/item/4395/index.do
• New Mexico Statutes, NMSA § 66-5-301 (Uninsured Motorist Coverage): https://law.justia.com/codes/new-mexico/chapter-66/article-5/part-4/section-66-5-301/
• New Mexico MVD - Insurance Requirements: https://www.mvd.newmexico.gov/vehicles/insurance/
• New Mexico Statutes, NMSA § 59A-16-20 (Unfair Claims Settlement Practices)
• New Mexico Statutes, NMSA § 41-3-4 (Release; Effect on Injured Person's Claim)