Auto Accident Demand Letter - Oregon

DEMAND FOR SETTLEMENT - MOTOR VEHICLE COLLISION

STATE OF OREGON

[________________________________]
(Firm Name)

[________________________________]
(Street Address)

[________________________________], Oregon [__________]
(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, Oregon. This letter constitutes a formal demand for settlement of all claims arising from this collision.

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

IMPORTANT NOTICE: Oregon imposes a two-year statute of limitations. Time-sensitive action is required.

I. OREGON LEGAL FRAMEWORK

A. Statute of Limitations - ORS 12.110

Under Oregon law, the statute of limitations for personal injury actions is two (2) years from the date of the accident. ORS 12.110(1) provides that an action for "assault, battery, false imprisonment, or for any injury to the person or rights of another, not arising on contract" must be commenced within two years. This is a strict and relatively short deadline requiring prompt attention.

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

Note: For wrongful death claims, a separate three-year statute of limitations applies under ORS 30.020(1). For claims against governmental entities, Oregon Tort Claims Act notice requirements under ORS 30.275 impose additional deadlines.

B. Modified Comparative Negligence (51% Bar) - ORS 31.600

Oregon follows modified comparative negligence as codified in ORS 31.600. The statute provides:

"Contributory negligence shall not bar recovery in an action by any person or the legal representative of the person to recover damages for death or injury to person or property if the fault attributable to the claimant was not greater than the combined fault of all persons specified in subsection (2) of this section, but any damages allowed shall be diminished in the proportion to the percentage of fault attributable to the claimant."

Key provisions:

• A claimant may recover only if the claimant's fault is not greater than the combined fault of the persons specified in ORS 31.600(2), including the listed parties, tort-liable third-party defendants, and settling persons, subject to its exclusions
• If the claimant's fault is 51% or more, the claimant is completely barred from recovery
• The trier of fact compares the claimant's fault with the fault of: (a) any party against whom recovery is sought; (b) third-party defendants liable in tort to the claimant; and (c) any person with whom the claimant has settled

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

C. Several Liability and Reallocation - ORS 31.610

Under ORS 31.610, each defendant's liability for damages is generally several and proportionate to the defendant's allocated percentage of fault. The statute also provides postjudgment procedures for reallocating some uncollectible shares, subject to protections for certain parties and statutory exceptions.

D. Non-Economic Damages - No Cap on Personal Injury Claims (ORS 31.710)

Oregon's former $500,000 statutory cap on non-economic damages under ORS 31.710 does not apply to our client's personal injury claim. The Oregon Supreme Court held the cap unconstitutional as applied to a surviving plaintiff's common-law personal injury claim in Busch v. McInnis Waste Systems, Inc., 366 Or. 628, 468 P.3d 419 (2020), which found that the fixed cap (set in 1987 with no adjustment for inflation or injury severity) violated the remedy clause of Article I, section 10 of the Oregon Constitution (applying the framework of Horton v. OHSU, 359 Or. 168 (2016)). The Legislature then amended ORS 31.710 (2021 c.478 § 1) so that, by its own terms, the $500,000 cap now applies only to claims for wrongful death — not to personal injury claims by living plaintiffs. Therefore, no cap on non-economic damages applies to our client's claim.

Note: The $500,000 non-economic damages cap in ORS 31.710(1) now applies by statute only to wrongful death claims (and does not apply to claims subject to the Oregon Tort Claims Act, ORS 30.260 to 30.300, or workers' compensation under ORS chapter 656).

E. Punitive Damages - ORS 31.730, ORS 31.735

Oregon allows punitive damages under strict standards:

Standard (ORS 31.730): Punitive damages are recoverable only upon proof by clear and convincing evidence that the party acted with "malice or has shown a reckless and outrageous indifference to a highly unreasonable risk of harm and has acted with a conscious indifference to the health, safety and welfare of others."

Distribution (ORS 31.735): Oregon's unique punitive damages distribution rule allocates:

• 30% to the plaintiff (and their attorney)
• 60% to the Criminal Injuries Compensation Account, Department of Justice Crime Victims' Assistance Section
• 10% to the Attorney General for deposit in the State Court Facilities and Security Account

No statutory cap on punitive damages exists in Oregon, though the court must review the award for constitutional reasonableness.

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

F. Collateral Source Rule

ORS 31.580 addresses collateral benefits after verdict. The court may reduce an award for specified benefits, but the statute excludes enumerated categories, including certain repayable benefits and insurance paid for by the injured person or the person's family. The parties present collateral-benefit information to the court after the verdict as the statute directs.

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, Oregon.

[________________________________]
(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)
• (Emergency services response and transport)

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, citations issued, fault determinations, and witness statements)

D. Witness Information

E. Photographic and Video Evidence

[________________________________]
(Describe available evidence including scene photos, vehicle damage photos, injury photos, surveillance and dashcam footage)

III. LIABILITY ANALYSIS

A. Negligence of Your Insured

Under Oregon law, a negligence claim requires: (1) a duty of care; (2) a breach of that duty; (3) a causal connection between the breach and the harm; and (4) damages. See Fazzolari v. Portland School Dist. No. 1J, 303 Or. 1 (1987).

Your insured breached the applicable duty of care by:

☐ Failing to maintain a proper lookout — ORS 811.370
☐ Following too closely — ORS 811.485
☐ Failing to yield the right-of-way — ORS 811.260 et seq.
☐ Exceeding the posted speed limit — ORS 811.100, 811.111
☐ Driving at an unsafe speed for conditions — ORS 811.100
☐ Failing to obey a traffic control device — ORS 811.260
☐ Driving under the influence of intoxicants — ORS 813.010
☐ Using a mobile electronic device while driving — ORS 811.507
☐ Failing to stop at a stop sign — ORS 811.260
☐ Improper lane change — ORS 811.375
☐ Careless driving — ORS 811.135
☐ Reckless driving — ORS 811.140
☐ Other: [________________________________]

B. Negligence Per Se

Your insured's violation of [________________________________] (specific Oregon traffic statute) constitutes negligence per se under Oregon law. In Oregon, the unexcused violation of a statute that is designed to protect the class of persons to which the plaintiff belongs from the type of harm suffered establishes a breach of duty as a matter of law. See McAlpine v. Multnomah County, 131 Or. App. 441 (1994).

C. Comparative Fault Assessment

Based upon the available evidence, Claimant contends that your insured bears [____]% fault and Claimant bears [____]%. ORS 31.600 compares claimant fault with the persons specified in subsection (2), not merely named defendants; current party, third-party, settlement, immunity, jurisdiction, and time-bar facts must be included in the allocation analysis.

IV. INJURIES AND MEDICAL TREATMENT

A. Injuries Sustained

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

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

B. PIP Benefits Received - ORS 742.520

Our client has received Personal Injury Protection (PIP) benefits under [their own / the at-fault driver's] auto insurance policy as required by ORS 742.520:

Note: PIP benefits are first-party, no-fault benefits required under ORS 742.520. Oregon requires a minimum of $15,000 in PIP medical coverage per person. PIP payments do not reduce the at-fault party's liability for damages.

C. Medical Treatment Chronology

D. Current Medical Status

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

E. Treating Physician's Opinions

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

V. DAMAGES

A. Past Medical Expenses

Less PIP Benefits Received: ($[____________])
Net Past Medical (after PIP offset): $[____________]

B. Future Medical Expenses

C. Lost Wages and Income

D. Future Lost Earning Capacity

[________________________________]
(Describe diminished future earning capacity with expert opinions)

E. Pain and Suffering (Non-Economic Damages)

Oregon imposes no cap on non-economic damages for personal injury claims by surviving plaintiffs. The former $500,000 cap (ORS 31.710) was held unconstitutional as applied to such claims in Busch v. McInnis Waste Systems, Inc., 366 Or. 628, 468 P.3d 419 (2020), and ORS 31.710 was later amended (2021 c.478) to apply only to wrongful death. Our client is entitled to full, uncapped non-economic damages.

Our client has experienced 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

Pain and Suffering Multiplier Analysis:

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 Oregon law. Oregon recognizes loss of consortium as a claim for the deprivation of marital companionship and services. As a result, [________________________________] has been deprived of:

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

Loss of Consortium Damages: $[____________]

VI. TOTAL DAMAGES SUMMARY

VII. OREGON INSURANCE REQUIREMENTS AND COVERAGE ANALYSIS

A. Mandatory Liability Insurance - ORS 806.070, 806.080

Oregon law requires the following minimum automobile liability insurance:

B. Personal Injury Protection (PIP) - ORS 742.520

Oregon is unique in requiring mandatory PIP coverage on all private passenger automobile liability policies. Under ORS 742.520:

Key PIP Features:

• PIP benefits are payable regardless of fault (no-fault first-party coverage)
• Medical expenses must be incurred within two years of the accident
• The insured may reject PIP coverage only if they have qualifying alternative health coverage
• PIP benefits are separate from and in addition to liability claims against the at-fault driver

C. Uninsured/Underinsured Motorist Coverage - ORS 742.504

Oregon requires UM/UIM coverage:

• UM/UIM coverage may be rejected in writing, but the rejection must comply with statutory requirements
• Stacking provisions may apply when multiple policies exist

D. Coverage Applicable to This Claim

VIII. SETTLEMENT DEMAND

A. Demand Amount

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

$[________________________________]

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

B. Demand Deadline

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

If not accepted within the stated timeframe, this demand is deemed withdrawn.

C. Settlement Terms

☐ Payment of the full demand amount within fifteen (15) days of acceptance
☐ Execution of a mutually agreeable release of all claims
☐ No admission of liability
☐ Settlement funds payable to "[________________________________] and [________________________________], Attorneys"
☐ Dismissal with prejudice of any pending litigation (if applicable)
☐ PIP subrogation/reimbursement to be resolved separately

IX. SETTLEMENT NEGOTIATION PROVISIONS

A. Good Faith and Oregon Insurance Code

We expect good faith evaluation of this claim consistent with Oregon's Unfair Claims Settlement Practices Act, ORS 746.230. This statute prohibits:

• Misrepresenting pertinent facts or policy provisions
• Failing to acknowledge and act reasonably promptly upon communications
• Refusing to pay claims without conducting a reasonable investigation
• Failing to affirm or deny coverage within a reasonable time
• Compelling claimants to litigate by offering substantially less than amounts ultimately recovered

B. Counteroffer Process

Should you wish to counteroffer, we request:

☐ Written explanation of the basis for the counteroffer
☐ Identification of disputed damages categories
☐ Supporting documentation
☐ Policy limits and coverage positions

X. RESERVATION OF RIGHTS AND LITIGATION WARNING

A. Reservation of Rights

This demand is presented without prejudice to all rights, claims, and remedies, including:

☐ Filing a civil action for negligence and related claims
☐ Seeking punitive damages under ORS 31.730 (70% to state under ORS 31.735)
☐ Pursuing unfair claims practices remedies under ORS 746.230
☐ Asserting claims against additional parties
☐ Seeking prejudgment interest under ORS 82.010
☐ Recovering attorney's fees and costs where permitted
☐ Pursuing claims under Oregon's PIP subrogation provisions

B. Litigation Consequences

Should we be required to file suit:

• We will seek full, uncapped non-economic damages as permitted by Busch v. McInnis Waste Systems, Inc. (2020)
• Oregon's two-year statute of limitations requires prompt action
• Extensive discovery will be conducted
• Expert witnesses will be retained
• Oregon punitive damages, while 70% goes to the state, remain a significant litigation risk
• Multnomah County (Portland) and other metro area venues are known for substantial jury verdicts
• PIP lien/subrogation issues will need resolution

XI. MEDICAL AUTHORIZATION AND RECORDS

A. Enclosed Documentation

☐ Police/crash report
☐ Complete medical records from all treating providers
☐ Complete medical billing statements
☐ PIP payment documentation from client's insurer
☐ Photographs of accident scene, vehicle damage, and injuries
☐ Proof of lost wages
☐ Pay stubs/W-2s/tax returns
☐ Expert reports
☐ Property damage documentation
☐ Rental car and out-of-pocket receipts
☐ Witness statements
☐ [________________________________]

B. Medical Records Authorization

☐ Limited medical authorization is [enclosed / available upon request]
☐ We do not authorize access to unrelated pre-existing records
☐ Direct all additional requests to this office

XII. DOCUMENTATION AND FILING CHECKLIST

Pre-Demand Preparation

☐ Complete investigation of accident facts
☐ Obtain and review police/crash report
☐ Photograph scene, vehicles, and injuries
☐ Identify and interview witnesses
☐ Obtain all medical records and billing statements
☐ Document PIP benefits received and remaining
☐ Verify client has reached MMI or stabilized
☐ Obtain treating physician narrative report
☐ Calculate all economic damages
☐ Evaluate non-economic damages (no cap under Horton)
☐ Research Oregon law and comparable verdicts
☐ Determine all insurance coverages and limits
☐ Verify PIP coverage and benefits status
☐ 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 complete file copies
☐ Log all adjuster communications

Post-Demand Follow-Up

☐ Confirm receipt of demand
☐ Follow up if no response within 15 business days
☐ Document all negotiations in writing
☐ Prepare complaint if demand rejected
☐ File suit well before two-year statute of limitations expiration
☐ Consider mediation or ADR
☐ Evaluate unfair claims practices claim

XIII. OREGON-SPECIFIC PRACTICE NOTES

A. Key Legal Considerations

☐ Two-Year Statute of Limitations (ORS 12.110): Oregon's personal injury statute of limitations is only two years. This is shorter than many states and requires prompt action. Calendar the deadline immediately.

☐ Modified Comparative Negligence - ORS 31.600: Claimant fault is compared with the persons specified in subsection (2), subject to its exclusions; equal fault does not bar recovery, while greater claimant fault does.

☐ No Non-Economic Damages Cap for Personal Injury (Busch v. McInnis Waste Systems, 2020; ORS 31.710 as amended 2021 c.478): Oregon's former $500,000 non-economic damages cap under ORS 31.710 was held unconstitutional as applied to surviving plaintiffs' personal injury claims in Busch, and the statute was then amended so the cap applies by its terms only to wrongful death. This means full, uncapped non-economic damages are available for PI claims. This significantly increases the value of many claims.

☐ Mandatory PIP Coverage (ORS 742.520): Oregon requires $15,000 minimum PIP medical coverage. PIP benefits are no-fault, first-party coverage. Document all PIP payments received and track remaining benefits. PIP payments do not reduce the at-fault party's liability.

☐ Punitive Damages - 70% to State (ORS 31.730, 31.735): Oregon's punitive damages are unique: only 30% goes to the plaintiff, with 60% to Crime Victims' Compensation and 10% to state court facilities. No statutory cap on punitives. Clear and convincing evidence of malice or reckless indifference required.

☐ Several Liability and Reallocation (ORS 31.610): Liability is generally several according to allocated fault, with statutory postjudgment reallocation procedures and exceptions.

☐ UM/UIM Coverage Required: Minimum $25,000/$50,000 UM/UIM. Rejection must be in writing and comply with statutory requirements. Verify validity of any rejection.

☐ Collateral Benefits (ORS 31.580): Evaluate the statute's post-verdict deduction procedure and enumerated exclusions for the particular benefits received.

☐ Oregon Tort Claims Act (ORS 30.260 et seq.): If the at-fault driver was a government employee, special notice requirements and damage limits may apply. Notice must typically be given within 180 days.

☐ Offer of Judgment (ORCP 54E): Consider implications of Oregon's offer of judgment rule in settlement strategy.

B. Venue Considerations

☐ Oregon Circuit Court has jurisdiction over personal injury claims
☐ Venue is proper in the county where the accident occurred or where defendant resides
☐ Multnomah County (Portland) is generally considered favorable for plaintiffs
☐ Consider federal diversity jurisdiction if parties are diverse and amount exceeds $75,000

C. Expert Disclosure Requirements

☐ Oregon Rule of Civil Procedure 36 governs expert discovery
☐ Expert reports are typically required
☐ Prepare experts to address causation, permanency, and future treatment needs

XIV. CONCLUSION

The evidence establishes that your insured was at fault for this collision and that our client has suffered significant injuries and damages. With Oregon's non-economic damages cap ruled unconstitutional, our client is entitled to full and uncapped compensation for all losses. We believe this demand represents a fair valuation under Oregon law.

We look forward to your prompt and good faith response within the stated deadline.

Respectfully submitted,

[________________________________]
(Firm Name)

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

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

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

Sources and References

• Oregon Legislature, ORS 31.600 (Comparative Negligence): https://oregon.public.law/statutes/ors_31.600
• Oregon Legislature, ORS 12.110 (Statute of Limitations): https://oregon.public.law/statutes/ors_12.110
• Oregon Legislature, ORS 31.710 (Non-Economic Damages Cap; now wrongful death only, as amended 2021 c.478 § 1): https://www.oregonlegislature.gov/bills_laws/ors/ors031.html
• Busch v. McInnis Waste Systems, Inc., 366 Or. 628, 468 P.3d 419 (2020) (ORS 31.710 cap unconstitutional as applied to common-law personal injury claim)
• Horton v. Oregon Health & Science University, 359 Or. 168, 376 P.3d 998 (2016) (remedy-clause framework)
• Oregon Legislature, ORS 31.730 (Punitive Damages Standards): https://oregon.public.law/statutes/ors_31.730
• Oregon Legislature, ORS 31.735 (Punitive Damages Distribution): https://oregon.public.law/statutes/ors_31.735
• Oregon Legislature, ORS 742.520 (PIP Benefits): https://oregon.public.law/statutes/ors_742.520
• Oregon Legislature, ORS 806.070 and 806.080 (Required Insurance): https://www.oregonlegislature.gov/bills_laws/ors/ors806.html
• Oregon Legislature, ORS 31.610 (Several Liability): https://oregon.public.law/statutes/ors_31.610
• Oregon Legislature, ORS 742.504 (UM/UIM Coverage): https://oregon.public.law/statutes/ors_742.504