Auto Accident Demand Letter

DEMAND FOR SETTLEMENT - MOTOR VEHICLE COLLISION

STATE OF TEXAS

PRIVILEGED AND CONFIDENTIAL
SETTLEMENT COMMUNICATION - TEX. R. EVID. 408
STOWERS DEMAND - WITHIN POLICY LIMITS

[FIRM NAME]
[________________________________]
[________________________________]
[City], Texas [____]
Telephone: [________________________________]
Email: [________________________________]

DATE: [__/__/____]

VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
AND VIA ELECTRONIC MAIL

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

RE: STOWERS SETTLEMENT DEMAND - MOTOR VEHICLE COLLISION
Our Client: [________________________________] (hereinafter "Claimant")
Date of Loss: [__/__/____]
Location of Accident: [________________________________]
Your Insured: [________________________________] (hereinafter "Tortfeasor")
Policy Number: [________________________________]
Claim Number: [________________________________]
Date of Birth: [__/__/____]
Age at Time of Accident: [____]

Dear [________________________________]:

This firm represents [________________________________] (hereinafter "Claimant") in connection with personal injuries and damages sustained in a motor vehicle collision that occurred on [__/__/____] in [________________________________] County, Texas. This letter constitutes a formal demand for settlement of our client's claims arising from the negligence of your insured, [________________________________].

This demand is made pursuant to Texas law and constitutes a settlement communication. This is a Stowers demand. As set forth below, this offer is within your insured's policy limits, releases your insured fully, and is one that an ordinarily prudent insurer would accept considering the likelihood and degree of your insured's exposure to an excess judgment. Your rejection of this demand may expose your company to liability under G.A. Stowers Furniture Co. v. American Indemnity Co., 15 S.W.2d 544 (Tex. Comm'n App. 1929, holding approved).

I. TEXAS LEGAL FRAMEWORK

A. Proportionate Responsibility (51% Bar) - Tex. Civ. Prac. & Rem. Code § 33.001

Texas applies the proportionate responsibility (modified comparative) system. Under Tex. Civ. Prac. & Rem. Code § 33.001:

"In an action to which this chapter applies, a claimant may not recover damages if his percentage of responsibility is greater than 50 percent."

A claimant whose responsibility is 50% or less may recover, with damages reduced by the claimant's percentage of responsibility; a claimant who is more than 50% responsible is barred (the "51% bar"). The trier of fact determines each party's percentage of responsibility under Tex. Civ. Prac. & Rem. Code § 33.003.

In the present case, your insured bears 100% of the responsibility, and our client bears 0%.

B. Statute of Limitations - Tex. Civ. Prac. & Rem. Code § 16.003 (TWO YEARS)

Under Tex. Civ. Prac. & Rem. Code § 16.003, the statute of limitations for personal injury and property damage is two (2) years from the date of injury. The collision occurred on [__/__/____], and the limitations period expires on [__/__/____].

C. Minimum Liability Limits - Tex. Transp. Code § 601.072

Texas requires owners of registered motor vehicles to maintain liability insurance at the following statutory minimums ("30/60/25"):

D. Uninsured / Underinsured Motorist Coverage - Tex. Ins. Code § 1952.101 et seq.

Texas requires insurers to offer uninsured/underinsured motorist (UM/UIM) coverage unless rejected in writing (Tex. Ins. Code § 1952.101 et seq.). We reserve all UM/UIM rights under our client's applicable policies.

E. Collateral Source Rule and "Paid or Incurred" - Tex. Civ. Prac. & Rem. Code § 41.0105

Texas follows the collateral source rule, but under Tex. Civ. Prac. & Rem. Code § 41.0105, recovery of medical expenses is limited to amounts actually paid or incurred by or on behalf of the claimant. Both billed and paid amounts are itemized in the damages schedule below.

F. Exemplary (Punitive) Damages - Tex. Civ. Prac. & Rem. Code § 41.003

Exemplary damages are recoverable upon clear and convincing evidence of fraud, malice, or gross negligence (Tex. Civ. Prac. & Rem. Code § 41.003), subject to the statutory caps in § 41.008 (which do not apply to certain felony conduct). We reserve the right to pursue exemplary damages if evidence of aggravating conduct (e.g., DWI, gross negligence) emerges. Note: a Stowers demand should generally be limited to claims within the policy's coverage; punitive damages are typically excluded from coverage and are not part of this demand.

II. STATEMENT OF FACTS

A. Accident Description

On [__/__/____], at approximately [____] [a.m./p.m.], our client, [________________________________], was operating a [____ Year] [________________________________] [Make/Model], bearing Texas license plate number [________________________________], traveling [direction] on [________________________________] [Street/Highway/Interstate] in/near [________________________________], [________________________________] County, Texas.

At the time of the collision, our client was [________________________________] [describe activity].

Your insured, [________________________________], was operating a [____ Year] [________________________________] [Make/Model], bearing license plate number [________________________________]. Your insured [________________________________] [describe negligent conduct].

As a direct and proximate result of your insured's negligence, your insured's vehicle struck our client's vehicle [________________________________] [describe point of impact].

B. Weather and Road Conditions

Weather conditions were [________________________________]. Road conditions were [________________________________]. Visibility was [________________________________]. The posted speed limit was [____] miles per hour.

C. Police Report

The collision was investigated by [________________________________] [e.g., Texas Department of Public Safety; local police department]. The investigating officer, [________________________________], prepared a Texas Peace Officer's Crash Report (CR-3) assigned Case Number [________________________________]. The report [________________________________] [summarize findings].

D. Witnesses

E. Physical Evidence

☐ Photographs of the accident scene preserved
☐ Photographs of vehicle damage preserved
☐ Photographs of client's visible injuries preserved
☐ Dashcam or surveillance video footage [is/is not] available
☐ Event Data Recorder (EDR) data [has/has not] been preserved
☐ Cell phone records of the at-fault driver [have/have not] been requested
☐ Traffic camera footage [has/has not] been requested

III. LIABILITY ANALYSIS

A. Negligence of Your Insured

Under Texas law, the elements of negligence are: (1) a legal duty, (2) breach of that duty, and (3) damages proximately caused by the breach. See Nabors Drilling, U.S.A., Inc. v. Escoto, 288 S.W.3d 401 (Tex. 2009).

Your insured breached the duty of care by:

☐ Violating Tex. Transp. Code § [________________________________] [cite specific traffic statute]
☐ Operating a motor vehicle recklessly (Tex. Transp. Code § 545.401, reckless driving)
☐ Failing to maintain a proper lookout
☐ Failing to maintain a safe following distance (Tex. Transp. Code § 545.062)
☐ Failing to yield the right of way (Tex. Transp. Code §§ 545.151-.156)
☐ Operating a motor vehicle while using a wireless device (Tex. Transp. Code § 545.4251, texting ban)
☐ Operating a motor vehicle while intoxicated (Tex. Penal Code § 49.04)
☐ Exceeding the posted speed limit (Tex. Transp. Code § 545.351)
☐ Failing to obey a traffic control device (Tex. Transp. Code § 544.004)
☐ [________________________________] [other negligent conduct]

B. Negligence Per Se

To the extent your insured violated a traffic statute designed to protect the class of persons to which our client belongs, your insured is negligent per se.

C. Proximate Causation

Your insured's negligence was the direct and proximate cause of our client's injuries. But for the negligent conduct, this collision would not have occurred.

D. Allocation of Responsibility

Your insured bears 100% of the responsibility for this collision. Our client bears 0%. There is no good-faith basis to attribute more than 50% responsibility to our client (the § 33.001 bar), and proportionate responsibility provides no avenue to defeat this claim.

IV. INJURIES AND MEDICAL TREATMENT

A. Emergency Treatment

Following the collision, our client was [________________________________] [describe transport to medical facility] on [__/__/____]. Presenting complaints included:

• [________________________________]
• [________________________________]
• [________________________________]

Emergency diagnoses:

• [________________________________]
• [________________________________]

B. Medical Treatment Chronology

C. Treating Physicians and Specialists

D. Current Medical Status and Prognosis

As of this demand, our client [________________________________] [describe current condition and prognosis]. Dr. [________________________________] has opined that [________________________________].

E. Future Medical Treatment

V. DAMAGES

A. Economic Damages

1. Past Medical Expenses

Note: Under Tex. Civ. Prac. & Rem. Code § 41.0105, recoverable past medical expenses are limited to amounts actually paid or incurred.

2. Future Medical Expenses

3. Lost Wages and Income

Our client was employed by [________________________________] as a [________________________________] earning $[________] [per period]. As a direct result of injuries, our client was unable to work for [________________________________].

4. Loss of Earning Capacity

[If applicable] $[________]

5. Property Damage

6. Out-of-Pocket Expenses

B. Non-Economic Damages

1. Physical Pain and Mental Anguish

Our client has endured significant physical pain, mental anguish, and diminished quality of life. [________________________________] [Describe nature and severity of pain, impact on daily life, sleep, anxiety, depression, loss of enjoyment.]

Texas does not cap non-economic damages in ordinary auto negligence cases.

Pain and Suffering Valuation: Based on the severity, duration, and permanence of our client's injuries, we value physical pain and mental anguish at $[________].

2. Physical Impairment and Disfigurement

[If applicable] $[________]

3. Loss of Consortium

[If applicable] Our client's spouse, [________________________________], has suffered loss of consortium. Texas recognizes loss of consortium as a derivative claim.

Loss of Consortium Damages: $[________]

C. Summary of Damages

VI. STOWERS DEMAND FOR SETTLEMENT

Based upon the foregoing, and to afford your company the opportunity to protect your insured from an excess judgment, we demand settlement in the amount of:

$[________________________________]

(Your insured's applicable policy limits / a sum within policy limits)

This is a demand within your insured's policy limits and is conditioned upon a full release of your insured ([________________________________]) for all claims arising from this collision. The terms are clear, unconditional, and in writing.

This Stowers demand is open for [____] days (a reasonable time to evaluate), expiring on [__/__/____]. If you reject this within-limits demand, fail to respond, or attempt to condition acceptance on terms not stated here, and a judgment is later rendered against your insured in excess of the policy limits, we will pursue all available Stowers remedies against your company for the entire amount of the excess judgment.

This demand covers all claims within the scope of coverage, including:

☐ Personal injury claims
☐ Property damage claims (to the extent covered)
☐ Loss of consortium (if applicable)
☐ All past, present, and future damages within coverage

This demand does not include exemplary damages, which are typically excluded from coverage and are expressly reserved.

VII. SETTLEMENT NEGOTIATION PROVISIONS

A. Stowers Duty to Settle

Under G.A. Stowers Furniture Co. v. American Indemnity Co., 15 S.W.2d 544 (Tex. Comm'n App. 1929), and American Physicians Insurance Exchange v. Garcia, 876 S.W.2d 842 (Tex. 1994), an insurer has a duty to exercise ordinary care in responding to a within-limits settlement demand to protect its insured from an excess judgment. This demand is intended to invoke that duty. We expressly reserve all Stowers rights and any assignment of the insured's claims against your company.

B. Unfair Settlement Practices / Prompt Payment

We further reserve all rights under the Texas Insurance Code, including Chapter 541 (unfair and deceptive practices) and Chapter 542 (prompt payment of claims), to the extent applicable.

C. Policy Limits Disclosure

We request immediate written confirmation of:

☐ The liability coverage limits (per person / per accident)
☐ Any umbrella or excess policies
☐ Whether coverage is disputed
☐ UM/UIM coverage limits on all applicable policies

D. Reservation of Rights

This demand is without prejudice to all rights, including exemplary damages, Stowers, Chapter 541/542 remedies, and all other available remedies.

VIII. LITIGATION WARNING

Should settlement fail, we will file in the appropriate Texas District Court and pursue full compensatory damages, exemplary damages where supported, pre- and post-judgment interest, court costs, and all available relief. We will also pursue Stowers liability against your company for any judgment in excess of the policy limits.

IX. MEDICAL RECORDS AUTHORIZATION

Enclosed is a HIPAA-compliant authorization (45 C.F.R. § 164.508).

I, [________________________________], authorize the following providers to release records related to the collision on [__/__/____] to [________________________________] [Insurance Company]:

This authorization expires on [__/__/____] or upon final resolution, whichever occurs first.

Signature: _________________________________ Date: [__/__/____]
Printed Name: [________________________________]

X. ENCLOSED DOCUMENTATION

☐ Police/Accident Report (CR-3)
☐ Photographs of accident scene
☐ Photographs of vehicle damage
☐ Photographs of injuries
☐ Medical records and bills (itemized, billed and paid/incurred)
☐ Proof of lost wages
☐ Property damage estimates/invoices
☐ HIPAA-compliant medical authorization
☐ Witness statements
☐ [________________________________]

XI. DOCUMENTATION CHECKLIST - CLAIMANT FILE

☐ Accident/police report (CR-3) obtained
☐ All medical records collected
☐ All medical bills itemized (billed and paid/incurred per § 41.0105)
☐ Lost wage documentation obtained
☐ Property damage documented
☐ Witness statements preserved
☐ Injury photographs at multiple recovery stages
☐ Insurance policy information / limits confirmed (Stowers requires within-limits demand)
☐ Personal injury SOL deadline calendared ([__/__/____] - TWO YEARS)
☐ Treatment completed or at MMI
☐ Future medical projections obtained
☐ HIPAA authorization executed
☐ Stowers demand sent certified mail; deadline calendared
☐ Full release of insured included with demand
☐ Liens identified and addressed in demand terms
☐ Settlement authority confirmed with client
☐ UM/UIM coverage evaluated (Tex. Ins. Code § 1952.101 et seq.)

XII. TEXAS-SPECIFIC PRACTICE NOTES

☐ Proportionate Responsibility (51% Bar): Tex. Civ. Prac. & Rem. Code § 33.001 - barred if claimant's responsibility exceeds 50%
☐ Two-Year SOL: Tex. Civ. Prac. & Rem. Code § 16.003 (personal injury and property damage)
☐ STOWERS Demand: G.A. Stowers Furniture Co. v. Am. Indem. Co., 15 S.W.2d 544 (Tex. 1929); Am. Physicians Ins. Exch. v. Garcia, 876 S.W.2d 842 (Tex. 1994) - within-limits, unconditional, full-release demand triggers insurer's duty to settle; specify the SPECIFIC policy
☐ Stowers Specificity: Golden Bear Ins. Co. v. 34th S&S, 2024 WL 3321508 (S.D. Tex. 2024) - vague "all policy limits" demands can fail; demand a sum certain on an identified policy
☐ Multiple Claimants: Tex. Farmers Ins. Co. v. Soriano, 881 S.W.2d 312 (Tex. 1994) - insurer may settle one claim to the detriment of others
☐ Liens: Trinity Universal Ins. Co. v. Bleeker, 966 S.W.2d 489 (Tex. 1998) - resolve or agree to resolve liens to make a valid Stowers demand
☐ Minimum Limits 30/60/25: Tex. Transp. Code § 601.072
☐ UM/UIM: Tex. Ins. Code § 1952.101 et seq. (offered unless rejected in writing)
☐ Paid or Incurred: Tex. Civ. Prac. & Rem. Code § 41.0105 - medical damages limited to amounts paid/incurred
☐ Exemplary Damages: Tex. Civ. Prac. & Rem. Code §§ 41.003, 41.008 - clear and convincing evidence; caps (except certain felonies); typically outside coverage
☐ Chapter 542A: First-party property (forces of nature) / certain UM/UIM first-party actions only; 61-day pre-suit notice; does NOT govern this third-party Stowers demand
☐ Forum: District Court; venue generally where the collision occurred or defendant resides

Respectfully submitted,

[FIRM NAME]

By: _________________________________
[________________________________]
[Attorney Name]
Texas Bar No. [________________________________]
[________________________________]
[Street Address]
[City, Texas ZIP]
Telephone: [________________________________]
Email: [________________________________]

cc: [________________________________] [Client Name]
Enclosures: As noted above

SOURCES AND REFERENCES

• Tex. Civ. Prac. & Rem. Code § 33.001 (Proportionate Responsibility): https://statutes.capitol.texas.gov/GetStatute.aspx?Code=CP&Value=33.001
• Tex. Civ. Prac. & Rem. Code § 16.003 (Two-Year SOL): https://statutes.capitol.texas.gov/GetStatute.aspx?Code=CP&Value=16.003
• Tex. Civ. Prac. & Rem. Code § 41.0105 (Paid or Incurred): https://statutes.capitol.texas.gov/GetStatute.aspx?Code=CP&Value=41.0105
• Tex. Transp. Code § 601.072 (Minimum Liability Limits): https://statutes.capitol.texas.gov/GetStatute.aspx?Code=TN&Value=601.072
• Tex. Ins. Code Ch. 542A (Notice Required): https://statutes.capitol.texas.gov/GetStatute.aspx?Code=IN&Value=542A.003
• G.A. Stowers Furniture Co. v. American Indemnity Co., 15 S.W.2d 544 (Tex. Comm'n App. 1929)
• American Physicians Ins. Exch. v. Garcia, 876 S.W.2d 842 (Tex. 1994)
• Trinity Universal Ins. Co. v. Bleeker, 966 S.W.2d 489 (Tex. 1998)