Arizona Personal Injury Demand Letter

PERSONAL INJURY DEMAND LETTER — STATE OF ARIZONA

PRIVILEGED AND CONFIDENTIAL
FOR SETTLEMENT PURPOSES ONLY — PURSUANT TO ARIZ. 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 Arizona 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 A.R.S. § 44-1201, costs, and any other relief available under Arizona law.

We have conducted a thorough investigation into this matter and have concluded that your insured bears [____]% liability for the incident described herein. Under Arizona's pure comparative fault system (A.R.S. § 12-2505), causative claimant fault ordinarily reduces damages proportionally rather than imposing a percentage bar, subject to the statute's intentional/wilful/wanton-conduct exception. Importantly, Arizona places no caps on compensatory damages — this protection is enshrined in the Arizona Constitution, Article 2, Section 31.

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

2. ARIZONA STATUTORY FRAMEWORK

The following Arizona statutes and constitutional provisions govern this personal injury claim:

2.1 Negligence and Comparative Fault

• A.R.S. § 12-2505 — Pure Comparative Fault: If the jury applies contributory negligence or assumption of risk, damages are reduced in proportion to claimant fault. The statute provides no comparative-negligence right to a claimant who intentionally, wilfully, or wantonly caused or contributed to the injury or death.

2.2 Statute of Limitations

• A.R.S. § 12-542 — An applicable personal-injury action must be commenced within two (2) years after the cause of action accrues. Date of loss: [__/__/____]. Separately verified accrual rule and facts: [________________________________]. Tolling or shorter public-entity deadline: [________________________________]. Calculated filing date: [__/__/____]. Do not treat the loss date alone as establishing that deadline.

2.3 No Damage Caps

• Arizona Constitution, Art. 2, § 31 — The right of juries to assess damages shall remain inviolate. The Arizona Constitution prohibits the legislature from imposing caps on damages in personal injury actions. There is no cap on economic damages, non-economic damages, or punitive damages in Arizona.

2.4 Prejudgment Interest

• A.R.S. § 44-1201 — Subsection (D) bars prejudgment interest on unliquidated, future, punitive, and exemplary damages. For a non-medical-debt judgment not governed by another statute or written contract, subsection (B) sets interest at the lesser of 10% or prime plus 1%.

2.5 Joint and Several Liability — Abolished

• A.R.S. § 12-2506 — Liability is generally several and proportionate, and qualifying nonparty fault may be considered. Subsection (D) retains exceptions for acting in concert, agency or servant relationships, and liability arising from a FELA duty.

2.6 Wrongful Death

• A.R.S. § 12-611 — When death of a person is caused by wrongful act, neglect, or default, and the act, neglect, or default is such as would, if death had not ensued, have entitled the party injured to maintain an action to recover damages, the person who would have been liable if death had not ensued shall be liable to an action for damages.
• A.R.S. § 12-612 — Action brought by surviving spouse, child, parent, or personal representative.

3. FACTUAL BACKGROUND

3.1 The Incident

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

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 Arizona 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 (A.R.S. § 28-772 et seq.)
☐ Following too closely in violation of A.R.S. § 28-730
☐ Exceeding the posted speed limit in violation of A.R.S. § 28-701
☐ Operating while under the influence of alcohol or drugs (A.R.S. § 28-1381)
☐ Distracted driving (cell phone, texting, other)
☐ Running a red light or stop sign (A.R.S. § 28-645)
☐ Failure to obey traffic control devices
☐ Unsafe lane change (A.R.S. § 28-729)
☐ Failing to maintain premises in a safe condition
☐ [________________________________]
☐ [________________________________]

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 (A.R.S. § 12-2505)

Under Arizona's pure comparative fault system, recovery is ordinarily diminished by claimant fault rather than barred, subject to § 12-2505's exception for a claimant who intentionally, wilfully, or wantonly caused or contributed to the injury.

Our position is that your insured bears [____]% fault for this incident.

IMPORTANT — SEVERAL LIABILITY (A.R.S. § 12-2506): In a personal-injury action, liability is generally several, and each defendant is liable only for the damages allocated in direct proportion to that defendant's fault. Subsection (D) retains acting-in-concert, agency/servant, and FELA-duty exceptions. Qualifying nonparty fault may be considered after a settlement with that nonparty or pretrial notice by the defending party in accordance with court rule (§ 12-2506(B)); identify the separate current rule and burden authority before relying on a nonparty allocation.

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

ARIZONA COLLATERAL SOURCE NOTE: Arizona follows the traditional collateral source rule. The full value of medical services rendered is recoverable regardless of amounts paid by insurance or other collateral sources.

B. Future Medical Expenses

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: $[________]

ARIZONA CONSTITUTIONAL PROTECTION: The Arizona Constitution, Art. 2, § 31 provides: "No law shall be enacted in this state limiting the amount of damages to be recovered for causing the death or injury of any person." Accordingly, there is NO CAP on non-economic damages in Arizona personal injury cases. The Claimant is entitled to the full value of pain and suffering, emotional distress, and all other non-economic losses without statutory limitation.

6.4 Total Compensatory Damages

7. INSURANCE COVERAGE ANALYSIS

7.1 Tortfeasor's Liability Coverage

7.2 Claimant's Coverage

ARIZONA INSURANCE NOTE: Arizona requires minimum auto liability coverage of $25,000/$50,000/$15,000 (A.R.S. § 28-4009). Arizona is a traditional tort state — there is no PIP requirement. UM/UIM coverage is not required in Arizona but is commonly carried. Arizona law does not mandate stacking of UM/UIM coverage.

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 (A.R.S. § 44-1201)

Under A.R.S. § 44-1201(D), a court may not award prejudgment interest on unliquidated damages, future damages, punitive damages, or exemplary damages. If a liquidated component qualifies for prejudgment interest, the applicable rate and accrual date require claim-specific analysis. A non-medical-debt judgment generally bears interest under subsection (B) at the lesser of 10% or prime plus 1%, unless another statute or written contract controls.

Date of loss / interest accrual: [__/__/____]

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

NOTE: Do not include prejudgment interest on unliquidated personal-injury damages. Calculate any recoverable liquidated interest component under current Arizona law.

9. PUNITIVE DAMAGES ANALYSIS

☐ Punitive damages are applicable to this claim.

Arizona imposes no statutory cap on punitive damages, consistent with Arizona Constitution Art. 2, § 31. However, the Arizona Supreme Court requires proof of an "evil mind" by clear and convincing evidence.

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

☐ The insured intended to cause harm
☐ The insured was motivated by spite or ill will
☐ The insured's conduct was outrageous, creating a substantial risk of tremendous harm to others
☐ The insured acted with conscious disregard of a known substantial risk of serious harm
☐ [________________________________]

ARIZONA "EVIL MIND" STANDARD: To recover punitive damages in Arizona, the plaintiff must establish by clear and convincing evidence that the defendant's conduct showed an "evil mind" — i.e., the defendant either: (1) intended to cause harm, (2) was motivated by spite, or (3) engaged in outrageous conduct creating a substantial risk of tremendous harm to others. See Rawlings v. Apodaca, 151 Ariz. 149 (1986); Volz v. Coleman Co., 155 Ariz. 567 (1987). Mere negligence, gross negligence, or recklessness alone is insufficient.

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 Arizona 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 Superior Court of the State of Arizona, County of [________________________________]
2. Pursuit of all available damages, including compensatory, punitive, prejudgment interest, costs, and attorney's fees where applicable
3. Potential for uncapped punitive damages — Arizona's constitutional prohibition on damage caps means there is no ceiling on punitive damage awards
4. Potential bad faith claim against the insurer for failure to reasonably evaluate and settle within policy limits, exposing the insured to personal liability for excess judgment

11. RESERVATION OF RIGHTS

The Claimant expressly reserves the following rights:

☐ To amend or supplement this demand based on additional information
☐ To file suit at any time prior to expiration of the statute of limitations
☐ To seek punitive damages based on the "evil mind" standard
☐ To seek prejudgment interest under A.R.S. § 44-1201
☐ To pursue claims against additional parties
☐ To designate non-parties at fault under A.R.S. § 12-2506
☐ To seek costs and attorney's fees as permitted by law
☐ To file a UM/UIM claim against Claimant's own insurer
☐ All other rights and remedies available under Arizona 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 (if applicable)

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]
State Bar of Arizona No. [________________________________]
[Street Address]
[City], Arizona [ZIP]
Telephone: [________________________________]
Email: [________________________________]

Date: [__/__/____]

14. SOURCES AND REFERENCES

Arizona Statutes and Constitutional Provisions

• Arizona Constitution, Art. 2, § 31 — No Legislative Caps on Damages
• A.R.S. § 12-542 — Statute of Limitations (2 years — personal injury, wrongful death, property damage)
• A.R.S. § 12-2505 — Comparative Negligence (Pure Comparative Fault)
• A.R.S. § 12-2506 — Joint and Several Liability Abolished; Apportionment of Fault
• A.R.S. § 12-611 — Wrongful Death — Liability
• A.R.S. § 12-612 — Wrongful Death — Parties Plaintiff; Recovery; Distribution
• A.R.S. § 28-701 — Speed Limits
• A.R.S. § 28-730 — Following Too Closely
• A.R.S. § 28-4009 — Motor Vehicle Liability Policy Requirements (25/50/15)
• A.R.S. § 44-1201 — Interest on Judgments / Prejudgment Interest

Key Arizona Case Law

• Rawlings v. Apodaca, 151 Ariz. 149 (1986) — "Evil mind" standard for punitive damages
• Volz v. Coleman Co., 155 Ariz. 567 (1987) — Punitive damages analysis
• Hutcherson v. City of Phoenix, 192 Ariz. 51 (1998) — Comparative fault principles
• Crackel v. Allstate Ins. Co., 208 Ariz. 252 (App. 2004) — Insurance bad faith

Regulatory Resources

• Arizona Department of Insurance and Financial Institutions — https://difi.az.gov/
• Arizona Judicial Branch — https://www.azcourts.gov/

This template is designed for use by licensed Arizona 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.