Auto Accident Demand Letter - Pennsylvania

DEMAND FOR SETTLEMENT — MOTOR VEHICLE COLLISION

COMMONWEALTH OF PENNSYLVANIA

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

I. PENNSYLVANIA-SPECIFIC LEGAL FRAMEWORK

A. Statute of Limitations

Under 42 Pa.C.S. § 5524, the statute of limitations for personal injury actions is two (2) years from the date of injury.

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

B. Modified Comparative Negligence (51% Bar)

Pennsylvania follows modified comparative negligence under 42 Pa.C.S. § 7102. A plaintiff is barred from recovery if the plaintiff's negligence is greater than the combined negligence of all defendants. Where recovery is permitted, damages are reduced by the plaintiff's percentage of fault.

Our client bears no fault whatsoever for this collision.

C. Limited Tort vs. Full Tort Election

Pennsylvania operates a choice no-fault system under 75 Pa.C.S. § 1705. Motorists choose between:

Full Tort: The insured retains the full right to sue for all damages, including non-economic damages (pain and suffering), regardless of the nature or severity of injury.

Limited Tort: The insured may recover only economic damages (medical bills, lost wages) UNLESS the injury constitutes a "serious injury" as defined in 75 Pa.C.S. § 1702:

☐ Death
☐ Serious impairment of body function
☐ Permanent serious disfigurement

D. Our Client's Tort Election

Our client elected: ☐ Full Tort ☐ Limited Tort

[If Full Tort — skip to Section III]
[If Limited Tort — complete Section II below]

E. Exceptions to Limited Tort

Even if the claimant elected limited tort, the following exceptions under 75 Pa.C.S. § 1705(d) permit full recovery:

☐ The person at fault is convicted of or accepts ARD for DUI in connection with the accident
☐ The person at fault is operating a motor vehicle registered in another state
☐ The person at fault is an uninsured motorist as defined by law
☐ The person at fault intentionally caused the injury
☐ The injury is to a person who is a pedestrian, bicyclist, or occupant of a vehicle not required to maintain insurance (e.g., motorcycle)

F. No Damage Caps

The Pennsylvania Constitution, Article III, § 18 prohibits the General Assembly from limiting the amount of damages recoverable for injuries to persons or property. There are no statutory caps on compensatory damages in auto accident cases.

G. First Party Benefits

Under 75 Pa.C.S. § 1711, all motor vehicle insurance policies must provide first party (medical) benefits of at least $5,000. Higher limits are available and commonly purchased.

H. Minimum Insurance Requirements

Pennsylvania requires minimum liability coverage of $15,000 per person / $30,000 per accident for bodily injury and $5,000 for property damage under 75 Pa.C.S. § 1786.

II. LIMITED TORT THRESHOLD ANALYSIS (If Applicable)

This section applies only if the claimant elected Limited Tort.

A. Serious Injury Analysis

Our client's injuries satisfy the "serious injury" exception to limited tort under 75 Pa.C.S. § 1702:

Primary category: [________________________________]

☐ Serious Impairment of Body Function: Our client has sustained a serious impairment of body function. Under Washington v. Baxter, 553 Pa. 434, 719 A.2d 733 (1998), and its progeny, this is assessed on a case-by-case basis considering the extent of the impairment, the length of time the impairment lasts, and the treatment required. The test is whether the injury impacts the claimant's ability to perform daily activities.

☐ Permanent Serious Disfigurement: Our client has sustained permanent serious disfigurement to [________________________________].

B. Medical Evidence Supporting Threshold

[________________________________]
[Detailed narrative explaining how the medical evidence supports a finding of serious injury]

C. Exception to Limited Tort (If Applicable)

☐ The at-fault driver was convicted of or accepted ARD for DUI
☐ The at-fault vehicle was registered in another state
☐ Other exception under 75 Pa.C.S. § 1705(d): [________________________________]

III. 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, including tort election

IV. STATEMENT OF FACTS

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

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

The [________________________________] [Pennsylvania State Police / Municipal Police] responded to the scene and prepared Crash Report No. [________________________________].

V. LIABILITY ANALYSIS

A. Defendant's Negligence

Your insured breached the duty of care by:

☐ Failing to maintain a proper lookout — 75 Pa.C.S. § 3361
☐ Following too closely — 75 Pa.C.S. § 3310
☐ Failing to yield the right of way — 75 Pa.C.S. § 3321 et seq.
☐ Speeding or exceeding safe speed — 75 Pa.C.S. § 3362
☐ Running a red light or stop sign — 75 Pa.C.S. § 3112
☐ Improper lane change — 75 Pa.C.S. § 3309
☐ Distracted driving / texting — 75 Pa.C.S. § 3316
☐ Driving under the influence — 75 Pa.C.S. § 3802
☐ Other: [________________________________]

B. Negligence Per Se

Violation of the Pennsylvania Vehicle Code constitutes negligence per se. Mahan v. Am-Gard, Inc., 841 A.2d 1052 (Pa. Super. 2003).

VI. MEDICAL TREATMENT SUMMARY

A. Emergency / Immediate Treatment

B. Ongoing Treatment

C. Diagnosis Summary

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

D. Prognosis

[________________________________]

VII. ITEMIZED MEDICAL EXPENSES

Estimated Future Medical Expenses

VIII. LOST WAGES AND EARNING CAPACITY

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

IX. PROPERTY DAMAGE

X. 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
☐ Embarrassment and humiliation

Non-Economic Damages Claimed: $[________]

XI. LOSS OF CONSORTIUM

[If applicable:]

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

Loss of Consortium Claimed: $[________]

XII. TOTAL DAMAGES SUMMARY

XIII. 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 [__/__/____].

XIV. BAD FAITH WARNING

40 Pa.C.S. § 1171.5 — Unfair Claims Settlement Practices

Under 40 Pa.C.S. § 1171.5, an insurer that engages in unfair claims settlement practices is subject to regulatory penalties.

Bad Faith Statute — 42 Pa.C.S. § 8371

Pennsylvania's bad faith statute, 42 Pa.C.S. § 8371, provides a statutory cause of action against an insurer for bad faith conduct. If an insurer acts in bad faith toward the insured, the court may award:

☐ Interest on the amount of the claim from the date the claim was made
☐ Punitive damages
☐ Court costs and attorney fees
☐ Other appropriate relief

This is one of the most powerful bad faith statutes in the nation, as it permits punitive damages and attorney fees as a matter of statute.

Your company is on notice that failure to respond to this demand in good faith may result in statutory bad faith claims, punitive damages, and attorney fees under 42 Pa.C.S. § 8371.

XV. HOUSEHOLD EXCLUSION

Under 75 Pa.C.S. § 1738, Pennsylvania limits recovery by household members in certain circumstances. We have analyzed the household exclusion provisions and [________________________________] [confirm they do not apply / describe how they may apply].

XVI. ENCLOSED DOCUMENTS

☐ Medical records and bills from all treating providers
☐ First party benefit payment records
☐ Police/crash report
☐ Photographs of vehicle damage and injuries
☐ Employer verification of lost wages
☐ Insurance declarations page showing tort election
☐ [________________________________]

XVII. RESPONSE REQUESTED

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

Respectfully submitted,

[________________________________]
Attorneys for [________________________________]

By: _________________________________
[________________________________]
Pennsylvania ID No. [________________________________]
[________________________________]
[________________________________], Pennsylvania [____]
Telephone: [________________________________]
Email: [________________________________]

PENNSYLVANIA PRACTICE NOTES AND CHECKLIST

☐ Limited/Full Tort: Verify client's election — this is the critical threshold issue; check declarations page
☐ Serious Injury Exception: If limited tort, must prove death, serious impairment of body function, or permanent serious disfigurement (75 Pa.C.S. § 1702)
☐ DUI/Out-of-State Exception: Limited tort not a bar if defendant convicted of DUI/ARD or drives out-of-state vehicle (75 Pa.C.S. § 1705(d))
☐ 51% Bar Rule: Plaintiff barred if fault greater than combined defendant fault (42 Pa.C.S. § 7102)
☐ No Damage Caps: Constitutional protection — Art. III, § 18
☐ Bad Faith Statute: 42 Pa.C.S. § 8371 — punitive damages and attorney fees available
☐ First Party Benefits: Minimum $5,000 medical; coordinate with third-party claim (75 Pa.C.S. § 1711)
☐ Household Exclusion: 75 Pa.C.S. § 1738 — verify applicability
☐ Stacking: UM/UIM stacking issues — verify policy provisions and waivers
☐ Government Claims: Political Subdivision Tort Claims Act (42 Pa.C.S. § 8541 et seq.) — strict notice and immunity
☐ Minimum Insurance: $15,000/$30,000/$5,000 (75 Pa.C.S. § 1786)

SOURCES AND REFERENCES

• 42 Pa.C.S. § 5524 (Statute of limitations)
• 42 Pa.C.S. § 7102 (Comparative negligence)
• 75 Pa.C.S. § 1705 (Tort election)
• 75 Pa.C.S. § 1702 (Serious injury definition)
• 42 Pa.C.S. § 8371 (Bad faith statute)
• 75 Pa.C.S. (Pennsylvania Vehicle Code)
• Pennsylvania General Assembly: https://www.legis.state.pa.us