Arkansas Personal Injury Demand Letter

PERSONAL INJURY DEMAND LETTER — STATE OF ARKANSAS

PRIVILEGED AND CONFIDENTIAL
FOR SETTLEMENT PURPOSES ONLY — PURSUANT TO ARK. R. EVID. 408

ATTORNEY / FIRM INFORMATION

CLAIM INFORMATION

RE: Personal Injury Claim of [________________________________] v. [________________________________]
Claim No.: [________________________________]
Date of Loss: [__/__/____]

Dear [________________________________]:

1. INTRODUCTION AND PURPOSE

This firm represents [________________________________] ("Claimant") in connection with personal injuries sustained on [__/__/____] as a direct and proximate result of the negligence of your insured, [________________________________] ("Insured" or "Tortfeasor"). This letter constitutes a formal demand for settlement of all claims arising from the above-referenced incident.

This demand is made pursuant to Arkansas Rule of Evidence 408 and is intended solely for settlement negotiation purposes. Nothing herein shall constitute an admission or waiver of any rights or claims. Claimant expressly reserves all rights to pursue litigation, including but not limited to claims for compensatory damages, punitive damages, prejudgment interest under Ark. Code § 16-65-114, costs, and any other relief available under Arkansas law.

We have conducted a thorough investigation into this matter and have concluded that your insured bears primary liability for the incident described herein. Under Arkansas's modified comparative fault system (Ark. Code § 16-64-122), our client is entitled to full recovery reduced only by any percentage of fault attributable to the Claimant, provided the Claimant's fault is less than 50%.

Please direct all communications regarding this claim to this office. Do not contact our client directly.

2. ARKANSAS STATUTORY FRAMEWORK

The following Arkansas statutes and legal principles govern this personal injury claim:

2.1 Negligence and Comparative Fault

• Ark. Code § 16-64-122 — Modified Comparative Fault (50% Bar Rule): Arkansas applies a modified comparative fault system. A plaintiff's damages are diminished in proportion to their percentage of fault. However, if the plaintiff is 50% or more at fault, the plaintiff is completely barred from recovery. The trier of fact determines the percentage of fault attributable to each party.

2.2 Statute of Limitations

• Ark. Code § 16-56-105 — The statute of limitations for personal injury actions in Arkansas is three (3) years from the date of injury. The date of loss in this matter is [__/__/____], making the filing deadline [__/__/____]. We reserve all rights to file suit prior to this date should settlement not be reached.

2.3 Damages

• No cap on compensatory damages in general personal injury actions in Arkansas
• Ark. Code § 16-55-208 — Punitive Damages Cap: If punitive damages are not proven by clear and convincing evidence to exceed $250,000, they are capped at $250,000 or 3× compensatory damages, whichever is greater, not to exceed $1,000,000
• Act 28 (2025) — Medical Bill Compensation: Effective 2025, compensation for medical bills is limited to the amount actually paid rather than the amount billed

2.4 Prejudgment Interest

• Ark. Code § 16-65-114 — Prejudgment interest is available in personal injury actions as a matter of law. The rate equals the Federal Reserve primary credit rate on the date of judgment plus 2%. Where prejudgment interest may be collected, the injured party is entitled to it as a matter of right.

2.5 Joint and Several Liability

• Ark. Code § 16-55-212 — Arkansas has adopted several liability only (not joint liability). Each defendant is liable only for their proportionate share of fault. Exceptions:
• A defendant more than 10% at fault may be required to cover the share of an insolvent defendant
• Defendants acting in concert or as agents remain jointly liable

3. FACTUAL BACKGROUND

3.1 The Incident

On [__/__/____], at approximately [____] [a.m./p.m.], the Claimant was [________________________________] at or near [________________________________] (the "Incident Location") in [________________________________], Arkansas.

At that time and place, your insured, [________________________________], negligently [________________________________].

As a direct and proximate result of your insured's negligence, the Claimant sustained serious and significant personal injuries as described in detail below.

3.2 Scene and Conditions

3.3 Law Enforcement Response

3.4 Witness Information

3.5 Narrative Summary

[________________________________]

[________________________________]

[________________________________]

4. LIABILITY ANALYSIS

4.1 Duty of Care

Your insured owed the Claimant a duty of reasonable care as established under Arkansas common law. Specifically, your insured had a duty to [________________________________].

4.2 Breach of Duty

Your insured breached this duty of care by:

☐ Operating a motor vehicle in a negligent manner
☐ Failing to maintain a proper lookout
☐ Failing to yield the right-of-way
☐ Following too closely in violation of Ark. Code § 27-51-305
☐ Exceeding the posted speed limit in violation of Ark. Code § 27-51-201
☐ Operating while under the influence of alcohol or drugs (Ark. Code § 5-65-103)
☐ Distracted driving (cell phone, texting, other)
☐ Running a red light or stop sign
☐ Failing to maintain premises in a safe condition
☐ Negligent entrustment of a motor vehicle
☐ [________________________________]
☐ [________________________________]

4.3 Causation

The Claimant's injuries were the direct and proximate result of your insured's breach of duty. But for your insured's negligent conduct, the Claimant would not have sustained the injuries described herein. The injuries sustained were a foreseeable consequence of the insured's negligent acts.

4.4 Comparative Fault Analysis (Ark. Code § 16-64-122)

Under Arkansas's modified comparative fault system, a claimant is barred from recovery only if found to be 50% or more at fault. If the claimant's fault is less than 50%, the damages award is reduced by the claimant's percentage of fault.

Our position is that your insured bears [____]% fault for this incident. The Claimant bears either no fault or minimal fault as indicated. This allocation is supported by:

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

CRITICAL: Because the Claimant's fault is well below the 50% threshold, the comparative fault defense does not bar recovery in this case. Your insured remains fully liable for the Claimant's damages, reduced only by any minimal fault percentage attributable to the Claimant.

5. INJURIES AND MEDICAL TREATMENT

5.1 Summary of Injuries

As a direct and proximate result of the incident, the Claimant sustained the following injuries:

Primary Diagnoses:
☐ Traumatic brain injury (TBI) / Concussion
☐ Cervical spine injury (herniation, bulge, fracture)
☐ Thoracic spine injury
☐ Lumbar spine injury (herniation, bulge, fracture)
☐ Shoulder injury (rotator cuff tear, labral tear, dislocation)
☐ Knee injury (ACL, MCL, meniscus tear)
☐ Hip injury / fracture
☐ Rib fractures
☐ Wrist / hand fractures
☐ Ankle / foot fractures
☐ Facial lacerations / scarring
☐ Internal organ damage
☐ Soft tissue injuries (sprains, strains, contusions)
☐ Post-traumatic stress disorder (PTSD)
☐ Depression / anxiety
☐ [________________________________]
☐ [________________________________]

ICD-10 Codes:
| Code | Description |
|---|---|
| [________] | [________________________________] |
| [________] | [________________________________] |
| [________] | [________________________________] |
| [________] | [________________________________] |

5.2 Chronological Treatment History

Emergency / Acute Care

Primary Care / Follow-Up

Specialist Care

Physical Therapy / Rehabilitation

Surgical Procedures

Diagnostic Imaging

Mental Health Treatment

Prescription Medications

5.3 Current Condition and Prognosis

[________________________________]

[________________________________]

Treating physician's prognosis:
☐ Full recovery expected
☐ Permanent partial impairment — rated at [____]% whole person impairment
☐ Permanent total impairment
☐ Ongoing treatment required (estimated duration: [________________________________])
☐ Future surgery likely or recommended
☐ Maximum medical improvement (MMI) reached on [__/__/____]
☐ MMI not yet reached

5.4 Impact on Daily Living

[________________________________]

[________________________________]

6. DAMAGES CALCULATION

6.1 Summary of Economic Damages

A. Past Medical Expenses

NOTE RE: ARKANSAS ACT 28 (2025): Effective February 11, 2025, Arkansas limits compensation for medical bills to the amount actually paid rather than the amount billed by the provider. The amounts reflected above represent the [☐ billed amounts / ☐ paid amounts] for Claimant's medical care.

B. Future Medical Expenses

Note: Future medical cost projections based on life care plan prepared by [________________________________], dated [__/__/____], and/or treating physician recommendations.

C. Past Lost Wages / Income

D. Future Lost Earning Capacity

E. Property Damage

F. Out-of-Pocket Expenses

6.2 Total Economic Damages

6.3 Non-Economic Damages

The Claimant seeks compensation for the following categories of non-economic loss:

☐ Physical pain and suffering (past and ongoing)
☐ Mental and emotional distress
☐ Loss of enjoyment of life
☐ Loss of consortium (spouse: [________________________________])
☐ Disfigurement and scarring
☐ Inconvenience
☐ Humiliation and embarrassment
☐ [________________________________]

Non-Economic Damages Claimed: $[________]

ARKANSAS LAW NOTE: Arkansas does NOT cap non-economic damages in general personal injury actions. The full value of the Claimant's pain and suffering, emotional distress, and loss of enjoyment of life is recoverable without statutory limitation.

6.4 Total Compensatory Damages

7. INSURANCE COVERAGE ANALYSIS

7.1 Tortfeasor's Liability Coverage

7.2 Claimant's Coverage

ARKANSAS INSURANCE NOTE: Arkansas requires minimum auto liability coverage of $25,000/$50,000/$25,000 (Ark. Code § 27-22-104). Arkansas is a traditional tort state — there is no PIP requirement. Uninsured motorist (UM) coverage is required under Ark. Code § 23-89-202 unless rejected in writing by the insured.

7.3 Coverage Adequacy Assessment

☐ Claimant's damages are within tortfeasor's policy limits — full policy demand appropriate
☐ Claimant's damages exceed tortfeasor's policy limits — potential excess exposure to insured
☐ UM/UIM claim may be necessary to fully compensate Claimant
☐ Umbrella/excess policy may be implicated

8. PREJUDGMENT INTEREST (Ark. Code § 16-65-114)

Pursuant to Ark. Code § 16-65-114, the Claimant is entitled to prejudgment interest as a matter of law. Under Arkansas law, where prejudgment interest may be collected at all, the injured party is always entitled to it as a matter of right.

Applicable rate: Federal Reserve primary credit rate on date of judgment plus 2%

Date injury occurred / interest began accruing: [__/__/____]

Estimated prejudgment interest through date of demand: $[________]

NOTE: Continued delay in resolving this claim will result in continued accrual of prejudgment interest, substantially increasing the total liability exposure.

9. PUNITIVE DAMAGES ANALYSIS (Ark. Code § 16-55-206 et seq.)

☐ Punitive damages are applicable to this claim.

The conduct of your insured warrants an award of punitive damages because:

☐ The insured acted with willful and wanton disregard for the rights or safety of others
☐ The insured acted with malice
☐ The insured acted with conscious indifference to consequences
☐ [________________________________]

Under Ark. Code § 16-55-208, punitive damages are subject to the following caps:

• If not proven by clear and convincing evidence to exceed $250,000: Capped at $250,000 or 3× compensatory damages (whichever is greater), not to exceed $1,000,000
• If proven by clear and convincing evidence: The court may award an amount exceeding the cap

Punitive damages claimed: $[________]

☐ Punitive damages are NOT sought at this time. Claimant reserves the right to seek punitive damages in litigation.

10. SETTLEMENT DEMAND

10.1 Demand Amount

Based on the foregoing analysis of liability, damages, and applicable Arkansas law, the Claimant hereby demands the total sum of:

$[________]

to fully and finally resolve all claims arising from the incident of [__/__/____].

This demand is allocated as follows:

10.2 Response Deadline

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

10.3 Consequences of Non-Response

Failure to respond with a reasonable settlement offer within the stated timeframe will result in the following:

1. Filing of a civil complaint in the Circuit Court of [________________________________] County, Arkansas
2. Pursuit of all available damages, including compensatory, punitive, prejudgment interest, costs, and attorney's fees where applicable
3. Continued accrual of prejudgment interest under Ark. Code § 16-65-114
4. Potential bad faith claim against the insurer for failure to reasonably evaluate and settle within policy limits

11. RESERVATION OF RIGHTS

The Claimant expressly reserves the following rights:

☐ To amend or supplement this demand based on additional information, including ongoing medical treatment
☐ To file suit at any time prior to expiration of the statute of limitations
☐ To seek punitive damages under Ark. Code § 16-55-206
☐ To seek prejudgment interest under Ark. Code § 16-65-114
☐ To pursue claims against additional parties
☐ To seek costs and attorney's fees as permitted by law
☐ To file a UM/UIM claim against Claimant's own insurer if settlement is insufficient
☐ All other rights and remedies available under Arkansas law

Nothing in this demand shall constitute an admission or waiver of any rights, claims, or defenses. This demand does not represent the maximum amount recoverable at trial.

12. ENCLOSED DOCUMENTS AND EXHIBITS INDEX

Medical Records and Bills

☐ Emergency room records and bills — [________________________________]
☐ Hospital admission/discharge records — [________________________________]
☐ Primary care physician records — [________________________________]
☐ Specialist consultation records — [________________________________]
☐ Physical therapy / rehabilitation records — [________________________________]
☐ Surgical records and operative reports — [________________________________]
☐ Diagnostic imaging reports (X-ray, MRI, CT) — [________________________________]
☐ Mental health treatment records — [________________________________]
☐ Pharmacy / prescription records — [________________________________]
☐ Life care plan — [________________________________]
☐ Independent medical examination (IME) report — [________________________________]

Liability Documentation

☐ Police / incident report — Report No. [________________________________]
☐ Photographs of accident scene
☐ Photographs of vehicle / property damage
☐ Photographs of injuries
☐ Witness statements
☐ Surveillance / dashcam footage
☐ Expert accident reconstruction report

Financial Documentation

☐ Employer verification of lost wages
☐ Tax returns (prior [____] years)
☐ Vocational assessment / economic loss report
☐ Property damage estimate / repair invoice
☐ Rental car / transportation receipts
☐ Out-of-pocket expense receipts

Insurance Documentation

☐ Declaration page — Tortfeasor's policy
☐ Declaration page — Claimant's policy
☐ Proof of UM/UIM coverage

13. SIGNATURE AND CERTIFICATION

I certify that the information contained in this demand letter is true and accurate to the best of my knowledge. I am authorized to represent the Claimant in this matter and to make this demand on the Claimant's behalf.

Respectfully submitted,

______________________________________
[Attorney Name]
[Firm Name]
Arkansas Bar No. [________________________________]
[Street Address]
[City], Arkansas [ZIP]
Telephone: [________________________________]
Email: [________________________________]

Date: [__/__/____]

14. SOURCES AND REFERENCES

Arkansas Statutes

• Ark. Code § 16-56-105 — Statute of Limitations for Personal Injury (3 years)
• Ark. Code § 16-64-122 — Comparative Fault (Modified — 50% Bar)
• Ark. Code § 16-55-206 — Punitive Damages — Standards
• Ark. Code § 16-55-208 — Punitive Damages — Limitations
• Ark. Code § 16-55-212 — Several Liability / Apportionment
• Ark. Code § 16-62-101 — Survival of Actions
• Ark. Code § 16-62-102 — Wrongful Death Actions
• Ark. Code § 16-65-114 — Interest on Judgments / Prejudgment Interest
• Ark. Code § 27-22-104 — Motor Vehicle Financial Responsibility
• Ark. Code § 23-89-202 — Uninsured Motorist Coverage Requirements

Key Arkansas Case Law

• Riddell v. Little, 253 Ark. 686 (1972) — Establishing comparative fault principles
• Wal-Mart Stores, Inc. v. Tucker, 353 Ark. 730 (2003) — Punitive damages standards
• Farm Bureau Mut. Ins. Co. v. Foote, 341 Ark. 105 (2000) — UM/UIM coverage interpretation

Recent Legislative Changes

• Act 28 (2025) — Limits medical bill compensation to amounts actually paid (effective February 11, 2025)

Regulatory Resources

• Arkansas Insurance Department — https://insurance.arkansas.gov/
• Arkansas Judiciary — https://www.arcourts.gov/

This template is designed for use by licensed Arkansas attorneys. It must be customized for each individual case. All statutory citations should be verified against current law before use. This document does not constitute legal advice.