Auto Accident Demand Letter - Wyoming

DEMAND FOR SETTLEMENT - MOTOR VEHICLE COLLISION

STATE OF WYOMING

FOR SETTLEMENT PURPOSES — W.R.E. 408 MAY LIMIT SPECIFIED USES OF DISPUTED-CLAIM NEGOTIATIONS

[FIRM NAME]
[________________________________]
[________________________________]
[City], Wyoming [____]
Telephone: [________________________________]
Facsimile: [________________________________]
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, Wyoming. This letter constitutes a formal demand for settlement of our client's claims arising from the negligence of your insured, [________________________________].

If and to the extent this demand constitutes compromise negotiations concerning a claim disputed as to validity or amount, W.R.E. 408 may limit specified uses of the negotiations. It does not itself create confidentiality or privilege and may permit use for another purpose. We remind you that Wyoming recognizes a tort cause of action for the breach of the duty of good faith and fair dealing owed by an insurer, McCullough v. Golden Rule Ins. Co., 789 P.2d 855 (Wyo. 1990), and that the conduct proscribed by Wyoming's Unfair Claims Settlement Practices statute, Wyo. Stat. Ann. § 26-13-124, may support such a claim. Failure to evaluate and respond to this demand in good faith may expose your company to extracontractual liability.

I. WYOMING LEGAL FRAMEWORK

A. Modified Comparative Fault (50% Bar) - Wyo. Stat. Ann. § 1-1-109

Wyoming follows a modified comparative fault system under Wyo. Stat. Ann. § 1-1-109(b), which provides:

"Contributory fault shall not bar a recovery in an action by any claimant or the claimant's legal representative to recover damages for wrongful death or injury to person or property, if the contributory fault of the claimant is not more than fifty percent (50%) of the total fault of all actors. Any damages allowed shall be diminished in proportion to the amount of fault attributed to the claimant."

Under this statute, a claimant is barred from recovery if the claimant's contributory fault is more than 50% of the total fault of all actors. If the claimant's fault is 50% or less, the claimant may recover, with damages reduced in proportion to the claimant's percentage of fault. The trier of fact apportions fault among all "actors," defined to include any person whose fault was a proximate cause of the injury, whether or not a party to the litigation. Wyo. Stat. Ann. § 1-1-109(a)(i).

In the present case, your insured bears 100% of the fault for this collision. Our client was free of all contributory fault.

B. Several Liability - Wyo. Stat. Ann. § 1-1-109(e)

Under Wyo. Stat. Ann. § 1-1-109(e), each defendant is liable for that defendant's proportion of the total fault determined under subsection (c). Evaluate any separately supported vicarious or other liability theory before making a categorical statement about allocation.

C. Statute of Limitations - Wyo. Stat. Ann. § 1-3-105

Wyo. Stat. Ann. § 1-3-105(a)(iv)(C) gives four years after accrual only for a noncontract injury to rights not otherwise enumerated. The section does not make the collision date the accrual date. Classify every claim and determine accrual under current controlling authority before stating a deadline: [__/__/____].

D. Mandatory Liability Insurance - Wyo. Stat. Ann. § 31-9-405

Wyoming requires every motor vehicle operated on its highways to be covered by liability insurance meeting the following minimum limits under Wyo. Stat. Ann. § 31-9-405(b)(ii):

Under Wyo. Stat. Ann. § 31-9-405(f)(i), the liability of the insurer becomes absolute when injury or damage covered by the policy occurs, and the policy may not thereafter be cancelled or annulled as to that liability by any agreement between the insurer and the insured.

E. Uninsured/Underinsured Motorist Coverage - Wyo. Stat. Ann. § 31-10-101 et seq.

Under Wyo. Stat. Ann. § 31-10-101, uninsured-motorist bodily-injury coverage must be provided in qualifying motor vehicle liability policies, subject to rejection, at no less than the statutory financial-responsibility limits. Wyoming does not statutorily mandate UIM coverage; any UIM protection and trigger arise from the policy.

F. Bad Faith and Unfair Claims Settlement Practices

Wyoming recognizes a tort cause of action for an insurer's breach of the implied duty of good faith and fair dealing. McCullough v. Golden Rule Ins. Co., 789 P.2d 855 (Wyo. 1990). Under McCullough, an insurer that denies or fails to settle a claim without a reasonable basis—where the claim is not "fairly debatable"—may be liable in tort for extracontractual damages.

Wyoming's Unfair Claims Settlement Practices statute, Wyo. Stat. Ann. § 26-13-124, prohibits, among other things, "[n]ot attempting in good faith to effectuate prompt, fair and equitable settlements of claims in which liability has become reasonably clear" and "[c]ompelling insureds to institute litigation to recover amounts due under an insurance policy by offering substantially less than the amounts ultimately recovered." While § 26-13-124 itself does not create a private right of action (Herrig v. Herrig, 844 P.2d 487 (Wyo. 1992)), the conduct it proscribes is regularly offered as evidence supporting a common-law bad faith claim. We expressly reserve all such rights and remedies.

G. Collateral Source Rule

Identify the medical bills, amounts paid, reimbursement obligations, and any asserted offsets. Do not state an admissibility or recovery rule based solely on the existence of insurance; confirm the controlling Wyoming authority for the particular evidence and claim before using this demand in litigation.

II. STATEMENT OF FACTS

A. Accident Description

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

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 [________________________________] [law enforcement agency, e.g., Wyoming Highway Patrol, county sheriff, municipal police department]. The investigating officer, [________________________________], prepared a report 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 Wyoming law, the elements of a negligence claim are: (1) a duty of care, (2) a breach of that duty, (3) the breach proximately caused injury, and (4) damages. See Andersen v. Two Dot Ranch, Inc., 2002 WY 105, 49 P.3d 1011 (Wyo. 2002).

Your insured breached the duty of care by:

☐ Failing to maintain control of the vehicle
☐ Operating a vehicle in a careless or reckless manner (Wyo. Stat. Ann. § 31-5-229)
☐ Failing to maintain a proper lookout
☐ Following too closely (Wyo. Stat. Ann. § 31-5-210)
☐ Failing to yield the right of way (Wyo. Stat. Ann. § 31-5-201 et seq.)
☐ Operating a motor vehicle while distracted / texting (Wyo. Stat. Ann. § 31-5-237)
☐ Driving while under the influence (Wyo. Stat. Ann. § 31-5-233)
☐ Exceeding the posted speed limit / driving too fast for conditions (Wyo. Stat. Ann. § 31-5-301)
☐ Failing to obey a traffic control device (Wyo. Stat. Ann. § 31-5-205)
☐ [________________________________] [other negligent conduct]

B. Negligence Per Se / Safety-Statute Violation

A violation of a Wyoming traffic statute enacted for the safety of the public is evidence of negligence and may establish a breach of the standard of care.

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 Fault

Your insured bears 100% of the fault for this collision. Our client bears 0% contributory fault. Accordingly, no reduction under Wyo. Stat. Ann. § 1-1-109 applies.

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

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. 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 issues, anxiety, depression, loss of enjoyment, etc.]

Wyoming does not impose a statutory cap on non-economic damages in personal injury cases. Indeed, the Wyoming Constitution (Art. 10, § 4) prohibits laws limiting the amount of damages recoverable for personal injury or death.

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

2. Loss of Consortium

[If applicable] Our client's spouse, [________________________________], has suffered loss of consortium, including the loss of companionship, society, comfort, and services. Wyoming recognizes loss of consortium as a derivative claim.

Loss of Consortium Damages: $[________]

C. 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 Wyoming District 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

[OPTIONAL - POLICY LIMITS DEMAND] The damages set forth above substantially exceed the available liability coverage. We therefore demand tender of the full applicable policy limits of $[________]. This is a time-limited demand to settle within policy limits, open for [____] days. We request immediate written confirmation of all applicable liability, umbrella, and excess coverage. An insurer that, without a reasonable basis, fails to settle within policy limits where liability is reasonably clear and the claim is not fairly debatable exposes itself to extracontractual (bad faith) liability under McCullough v. Golden Rule Ins. Co., and all such rights are expressly reserved.

VII. SETTLEMENT NEGOTIATION PROVISIONS

A. Good Faith Claims Handling

Wyoming imposes a duty of good faith and fair dealing on insurers. The unreasonable failure to evaluate and pay a legitimate claim that is not fairly debatable may give rise to bad faith liability under McCullough. Wyoming also requires property and casualty insurers to accept or reject claims and pay within 45 days of receipt of the claim and supporting bills. Wyo. Stat. Ann. § 26-15-124(b).

B. Policy Limits Disclosure

We request immediate written confirmation of:

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

C. Reservation of Rights

This demand is without prejudice to all rights, including bad faith claims under McCullough, and all other available remedies.

VIII. LITIGATION WARNING

Should settlement fail, we will file suit in the District Court for [________________________________] County, Wyoming. We will pursue full compensatory damages, prejudgment interest where allowable, court costs, and all available relief.

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
☐ Photographs of accident scene
☐ Photographs of vehicle damage
☐ Photographs of injuries
☐ Medical records and bills (itemized)
☐ Proof of lost wages
☐ Property damage estimates/invoices
☐ HIPAA-compliant medical authorization
☐ Expert reports (if available)
☐ Witness statements
☐ [________________________________]

XI. DOCUMENTATION CHECKLIST - CLAIMANT FILE

☐ Accident/police report obtained
☐ All medical records collected
☐ All medical bills itemized (billed and paid)
☐ Lost wage documentation obtained
☐ Property damage documented
☐ Witness statements preserved
☐ Injury photographs at multiple recovery stages
☐ Insurance policy information confirmed
☐ Personal injury SOL deadline calendared ([__/__/____] - FOUR YEARS)
☐ Governmental Claims Act notice evaluated if a public entity is involved
☐ Treatment completed or at MMI
☐ Future medical projections obtained
☐ Pain and suffering documentation maintained
☐ Insurance correspondence documented
☐ HIPAA authorization executed
☐ Demand sent certified mail
☐ Settlement authority confirmed with client
☐ Lien search completed (health insurer, Medicare/Medicaid, hospital)
☐ Bad-faith documentation preserved (§ 26-13-124 conduct)

XII. WYOMING-SPECIFIC PRACTICE NOTES

☐ Modified Comparative Fault (50% Bar): Wyo. Stat. Ann. § 1-1-109 - claimant barred if contributory fault is MORE than 50% of total fault of all actors
☐ Liability allocation: Wyo. Stat. Ann. § 1-1-109(e) measures each defendant's judgment by that defendant's proportion of total fault; check any separately supported liability theory
☐ Residual Four-Year Category: Wyo. Stat. Ann. § 1-3-105(a)(iv)(C) - noncontract injury to rights not otherwise enumerated; classify claim and accrual first
☐ Governmental Claims Act: Wyo. Stat. Ann. § 1-39-101 et seq. - short notice-of-claim deadline if a public entity/employee involved
☐ Collateral Source Rule: Strictly followed - amounts billed (reasonable and necessary) presented to jury; amounts paid generally inadmissible
☐ Minimum Insurance 25/50/20: Wyo. Stat. Ann. § 31-9-405; insurer liability becomes absolute on occurrence
☐ UM/UIM Coverage: Wyo. Stat. Ann. § 31-10-101 - UM bodily-injury coverage required subject to rejection; UIM is contractual
☐ Bad Faith: McCullough v. Golden Rule Ins. Co., 789 P.2d 855 (Wyo. 1990) - tort for breach of good faith; "fairly debatable" objective standard
☐ Unfair Claims Settlement Practices: Wyo. Stat. Ann. § 26-13-124 - no private right of action (Herrig v. Herrig) but evidence of bad faith
☐ Prompt-Pay (45 Days): Wyo. Stat. Ann. § 26-15-124(b) - property/casualty claims
☐ No Damages Caps: Wyo. Const. art. 10, § 4 prohibits caps on personal injury/death damages
☐ Venue: Generally proper in the county where the claim arose or where a defendant resides

Respectfully submitted,

[FIRM NAME]

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

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

SOURCES AND REFERENCES

• Wyo. Stat. Ann. § 1-1-109 (Comparative Fault): https://law.justia.com/codes/wyoming/title-1/chapter-1/section-1-1-109/
• Wyo. Stat. Ann. § 1-3-105 (Statute of Limitations - Actions Other Than Recovery of Real Property): https://law.justia.com/codes/wyoming/title-1/chapter-3/section-1-3-105/
• Wyo. Stat. Ann. § 31-9-405 (Liability Policy; Required Coverage; 25/50/20): https://law.justia.com/codes/wyoming/title-31/chapter-9/article-4/section-31-9-405/
• Wyo. Stat. Ann. § 26-13-124 (Unfair Claims Settlement Practices): https://law.justia.com/codes/wyoming/title-26/chapter-13/section-26-13-124/
• McCullough v. Golden Rule Ins. Co., 789 P.2d 855 (Wyo. 1990): https://law.justia.com/cases/wyoming/supreme-court/1990/122383.html
• Herrig v. Herrig, 844 P.2d 487 (Wyo. 1992) (no private right under § 26-13-124)
• Wyoming Legislature - Title 1 (Code of Civil Procedure): https://wyoleg.gov/statutes/compress/title01.pdf
• Wyoming Governmental Claims Act (Wyo. Stat. Ann. § 1-39-101 et seq.)