Auto Accident Demand Letter - Vermont

DEMAND FOR SETTLEMENT — MOTOR VEHICLE COLLISION

STATE OF VERMONT

FOR SETTLEMENT PURPOSES ONLY — ADMISSIBILITY GOVERNED BY V.R.E. 408

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

DATE: [__/__/____]

VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
AND VIA ELECTRONIC MAIL

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

RE: 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, Vermont. This letter constitutes a formal demand for settlement of our client's claims arising from the negligence of your insured, [________________________________].

V.R.E. 408 limits use of compromise offers and negotiation statements to prove liability for or the amount of a disputed claim. It does not itself make this letter confidential or privileged and permits other-purpose use. Vermont's Unfair Insurance Trade Practices Act, 8 V.S.A. § 4724, prohibits insurers from failing to attempt in good faith to effectuate prompt, fair, and equitable settlement of claims in which liability has become reasonably clear.

I. VERMONT LEGAL FRAMEWORK

A. Modified Comparative Negligence — 51% Bar (12 V.S.A. § 1036)

Vermont is a tort / at-fault state and applies a modified comparative negligence rule. 12 V.S.A. § 1036(a) provides verbatim:

"Contributory negligence shall not bar recovery in an action by any plaintiff, or the plaintiff's legal representative, to recover damages for negligence resulting in death, personal injury, or property damage, if the negligence was not greater than the causal total negligence of the defendant or defendants, but the damage shall be diminished by general verdict in proportion to the amount of negligence attributed to the plaintiff. Where recovery is allowed against more than one defendant, each defendant shall be liable for that proportion of the total dollar amount awarded as damages in the ratio of the amount of the defendant's causal negligence to the amount of causal negligence attributed to all defendants against whom recovery is allowed."

Under this "51% bar" rule, a claimant recovers so long as the claimant's negligence is not greater than the combined causal negligence of the defendants — that is, the claimant's fault must be 50% or less. If the claimant is 51% or more at fault, recovery is barred. Where the claimant's fault is 50% or less, damages are reduced in proportion to the claimant's percentage of fault.

In the present case, your insured bears 100% of the fault for this collision. Our client bears 0% comparative fault.

B. Statute of Limitations

Personal Injury — Three Years (12 V.S.A. § 512(4))

The statute of limitations for an action for injury to the person is three (3) years after accrual under 12 V.S.A. § 512(4), which deems the cause to accrue on discovery of the injury. Do not calculate the deadline from the collision date unless counsel determines that the statutory discovery date is the same date. Record the injury-discovery facts, any claim-specific exception or tolling issue, and counsel's calculated deadline: [__/__/____].

Damage to Personal Property — Three Years (12 V.S.A. § 512(5))

Vermont's three-year period under 12 V.S.A. § 512(5) applies to damage to personal property, including a collision-damaged vehicle. Classify any distinct real-property, contract, or other economic claim separately rather than assuming § 511 controls all property loss.

C. Mandatory Liability Insurance — 25/50/10 (23 V.S.A. § 800)

Vermont requires every motor vehicle operated on its highways to be covered by liability insurance meeting the following minimums under 23 V.S.A. § 800:

D. Uninsured/Underinsured Motorist Coverage (23 V.S.A. § 941)

Vermont law requires UM/UIM coverage in motor vehicle liability policies at limits no less than the statutory minimums. We reserve all rights to pursue UM/UIM benefits to the extent your insured's limits are insufficient to fully compensate our client.

E. No Cap on Compensatory Damages

Vermont imposes no statutory cap on compensatory damages (economic or non-economic) in motor vehicle personal injury cases.

II. STATEMENT OF FACTS

A. Accident Description

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

Your insured, [________________________________], was operating a [____ Year] [________________________________] [Make/Model], bearing license plate [________________________________]. 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 [________________________________] [agency, e.g., Vermont State Police, Burlington Police Department]. The investigating officer, [________________________________], prepared a report assigned Case Number [________________________________]. The report [________________________________] [summarize findings, citations issued].

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
☐ Traffic camera footage [has/has not] been requested

III. LIABILITY ANALYSIS

A. Negligence of Your Insured

Under Vermont law, the elements of negligence are (1) a duty of care, (2) breach of that duty, (3) causation, and (4) damages. Your insured breached the duty of care by:

☐ Violating 23 V.S.A. § [________________________________] [cite specific traffic statute]
☐ Failing to keep a proper lookout
☐ Following too closely (23 V.S.A. § 1039)
☐ Failing to yield the right of way (23 V.S.A. § 1048 et seq.)
☐ Operating a vehicle while using a portable electronic device (23 V.S.A. § 1095b)
☐ Driving under the influence (23 V.S.A. § 1201)
☐ Exceeding the posted speed limit (23 V.S.A. § 1081 et seq.)
☐ Negligent / careless and negligent operation (23 V.S.A. § 1091)
☐ [________________________________] [other negligent conduct]

B. 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.

C. Allocation of Fault

Your insured bears 100% of the fault. Our client bears 0% comparative fault and is therefore well within the 51% bar of 12 V.S.A. § 1036.

IV. INJURIES AND MEDICAL TREATMENT

A. Emergency Treatment

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

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

B. Medical Treatment Chronology

C. Current Medical Status and Prognosis

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

D. Future Medical Treatment

V. DAMAGES

A. Past Medical Expenses

B. Future Medical Expenses

C. Lost Wages and Income

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

D. Loss of Earning Capacity

[If applicable] $[________]

E. Property Damage

F. Out-of-Pocket Expenses

G. General Damages (Pain and Suffering)

Our client has endured significant physical pain, emotional distress, and diminished quality of life. [________________________________] [Describe nature and severity of pain, impact on daily life, sleep, anxiety, loss of enjoyment]. There is no cap on non-economic damages in Vermont.

General Damages Valuation: $[________]

H. Loss of Consortium

[If applicable] Our client's spouse, [________________________________], asserts a claim for loss of consortium. Loss of Consortium Damages: $[________]

I. Summary of Damages

VI. DEMAND FOR SETTLEMENT

Based upon the foregoing, we demand settlement in the total amount of:

$[________________________________]

This demand is open for thirty (30) days, expiring on [__/__/____]. If we do not receive a meaningful response or acceptable offer by that date, we will file a civil complaint in the appropriate Vermont Superior Court without further notice.

This demand covers all claims including:

☐ Personal injury claims
☐ Property damage claims
☐ Loss of consortium (if applicable)
☐ All past, present, and future damages

VII. POLICY-LIMITS DISCLOSURE AND GOOD FAITH

We request immediate written confirmation of:

☐ The bodily-injury liability coverage limits
☐ Any umbrella or excess policies
☐ Whether coverage is disputed
☐ UM/UIM coverage limits on all applicable policies

Under Vermont's Unfair Insurance Trade Practices Act, 8 V.S.A. § 4724(9), it is an unfair claim settlement practice for an insurer to fail to attempt in good faith to effectuate prompt, fair, and equitable settlement of claims in which liability has become reasonably clear, or to compel insureds to litigate by offering substantially less than amounts ultimately recovered. An insurer that unreasonably refuses to settle within policy limits where liability is clear may expose its insured to an excess judgment and itself to extracontractual liability.

VIII. 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: [________________________________]

IX. ENCLOSED DOCUMENTATION

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

X. VERMONT-SPECIFIC PRACTICE NOTES

☐ At-Fault / Tort State: Vermont is a traditional tort state; PIP is not mandatory
☐ Modified Comparative Negligence (51% Bar): 12 V.S.A. § 1036 — recovery allowed if claimant's fault is not greater than the defendants' combined fault (50% or less); damages reduced proportionally
☐ Three-Year PI SOL: 12 V.S.A. § 512(4) — calendar [__/__/____]
☐ Three-Year Personal-Property SOL: 12 V.S.A. § 512(5) — calendar [__/__/____]
☐ Minimum Limits 25/50/10: 23 V.S.A. § 800
☐ UM/UIM: 23 V.S.A. § 941
☐ No Damages Cap: No statutory cap on compensatory damages
☐ Unfair Claim Settlement Practices: 8 V.S.A. § 4724(9) — good-faith prompt, fair, equitable settlement duty
☐ Settlement Communication: Vt. R. Evid. 408

Respectfully submitted,

[FIRM NAME]

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

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

SOURCES AND REFERENCES

• 12 V.S.A. § 1036 (Comparative Negligence): https://legislature.vermont.gov/statutes/section/12/027/01036
• 12 V.S.A. § 512 (Three-Year PI SOL): https://legislature.vermont.gov/statutes/section/12/023/00512
• 23 V.S.A. § 800 (Mandatory Liability Coverage): https://legislature.vermont.gov/statutes/section/23/011/00800
• 23 V.S.A. § 941 (UM/UIM Coverage): https://legislature.vermont.gov/statutes/section/23/011/00941
• 8 V.S.A. § 4724 (Unfair Insurance Claim Settlement Practices): https://legislature.vermont.gov/statutes/section/08/129/04724