PERSONAL INJURY DEMAND LETTER — MICHIGAN

FOR SETTLEMENT PURPOSES ONLY — FEDERAL RULE OF EVIDENCE 408 / MRE 408

PRIVILEGED AND CONFIDENTIAL SETTLEMENT COMMUNICATION

Date: [__/__/____]

VIA CERTIFIED MAIL — RETURN RECEIPT REQUESTED

SENDER (Attorney/Law Firm)

RECIPIENT (Insurance Adjuster/Claims Department)

CLAIMANT INFORMATION

I. INTRODUCTION AND PURPOSE

Dear [________________________________]:

This office represents [________________________________] ("Claimant") in connection with personal injuries sustained in a motor vehicle collision that occurred on [__/__/____] in [________________________________], Michigan. This letter constitutes a formal demand for settlement of all third-party liability claims against your insured, [________________________________] ("Tortfeasor"), arising from the above-referenced incident.

This demand is made pursuant to and in accordance with Michigan law, including the Michigan No-Fault Insurance Act (MCL 500.3101 et seq.) and Michigan tort law. This communication is intended solely for settlement purposes and is protected under MRE 408 and Federal Rule of Evidence 408. Nothing herein shall be construed as a waiver of any rights, claims, or causes of action available to Claimant under applicable law.

Claimant has authorized this office to negotiate and settle all claims arising from this incident. A signed letter of representation is enclosed herewith for your records.

II. MICHIGAN NO-FAULT FRAMEWORK AND TORT THRESHOLD

A. No-Fault Background

Michigan is a no-fault automobile insurance state. Under MCL 500.3101 et seq., Personal Injury Protection ("PIP") benefits are the primary source of recovery for medical expenses, wage loss benefits, replacement services, and other allowable expenses resulting from motor vehicle accidents, regardless of fault.

B. 2019 No-Fault Reform (SB 1 — Effective July 1, 2020)

Michigan's no-fault system was significantly reformed by Senate Bill 1, signed into law on May 30, 2019. Key changes include:

PIP Coverage Tiers (MCL 500.3107c):

Claimant's PIP Tier: [________________________________]

C. Tort Liability Threshold (MCL 500.3135)

To pursue a third-party tort claim in Michigan, a claimant must demonstrate that the injuries meet the statutory tort threshold. Under MCL 500.3135(1), a person remains subject to tort liability for noneconomic loss caused by the ownership, maintenance, or use of a motor vehicle only if the injured person has suffered death, serious impairment of body function, or permanent serious disfigurement.

"Serious impairment of body function" is defined under MCL 500.3135(5) (codifying the McCormick v. Carrier, 487 Mich 180 (2010) standard) as an objectively manifested impairment of an important body function that affects the person's general ability to lead his or her normal life.

Claimant meets the tort threshold because:

☐ Death of the injured person
☐ Serious impairment of body function, specifically:

[________________________________]

☐ Permanent serious disfigurement, specifically:

[________________________________]

Supporting evidence for tort threshold:

☐ Treating physician opinion/affidavit
☐ Independent medical examination
☐ Diagnostic imaging (MRI, CT, X-ray)
☐ Surgical records
☐ Physical therapy records documenting functional limitations
☐ Vocational assessment documenting inability to work
☐ Activities of daily living (ADL) assessment

III. FACTUAL BACKGROUND

A. The Incident

On [__/__/____], at approximately [____:____ ☐ AM ☐ PM], Claimant was [________________________________] at or near [________________________________] (exact location), in the [☐ City ☐ Township ☐ Village] of [________________________________], [________________________________] County, Michigan.

At that time, Tortfeasor [________________________________] was operating a [____] [________________________________] [________________________________] (year/make/model), bearing Michigan license plate number [________________________________], in a [☐ northbound ☐ southbound ☐ eastbound ☐ westbound] direction on [________________________________].

Description of the incident:

[________________________________]
[________________________________]
[________________________________]
[________________________________]
[________________________________]

B. Emergency Response

C. Police Report Summary

The official police report [☐ does ☐ does not] indicate that Tortfeasor was cited for [________________________________] under Michigan Vehicle Code MCL [________________________________].

The police report [☐ does ☐ does not] attribute fault to Tortfeasor.

The police report [☐ does ☐ does not] note contributing factors, including:

☐ Failure to yield right of way
☐ Following too closely
☐ Improper lane change
☐ Running red light/stop sign
☐ Excessive speed
☐ Distracted driving (cell phone/texting)
☐ Driving under the influence
☐ Failure to signal
☐ Reckless driving
☐ Other: [________________________________]

D. Witness Information

E. Scene Evidence

☐ Photographs of the accident scene
☐ Photographs of vehicle damage
☐ Video/dashcam footage
☐ Surveillance camera footage
☐ Traffic signal/camera data
☐ Skid mark measurements
☐ Accident reconstruction analysis
☐ Weather and road condition reports
☐ Property damage estimates/repair records

IV. LIABILITY ANALYSIS

A. Michigan Negligence Standard

Under Michigan law, to establish a negligence claim, Claimant must demonstrate: (1) the defendant owed a duty to the plaintiff; (2) the defendant breached that duty; (3) the defendant's breach was the proximate cause of the plaintiff's injuries; and (4) the plaintiff suffered damages. Case v. Consumers Power Co., 463 Mich 1, 6 (2000).

B. Tortfeasor's Negligence

Your insured was negligent in the following respects:

☐ Failed to maintain a proper lookout
☐ Failed to yield the right of way in violation of MCL [________________________________]
☐ Operated the vehicle at an excessive rate of speed in violation of MCL 257.627
☐ Followed too closely in violation of MCL 257.643
☐ Failed to obey a traffic control device in violation of MCL 257.612
☐ Operated the vehicle while distracted in violation of MCL 257.602b
☐ Operated the vehicle under the influence in violation of MCL 257.625
☐ Made an improper turn/lane change in violation of MCL 257.648
☐ Failed to use due care and caution under the circumstances
☐ Other: [________________________________]

C. Michigan Comparative Fault (MCL 600.2959)

Michigan applies a modified comparative fault system with a 51% bar. Under MCL 600.2959:

• If Claimant's percentage of fault is not greater than the aggregate fault of all other persons, Claimant's damages are reduced by Claimant's percentage of fault.
• If Claimant's percentage of fault exceeds the aggregate fault of all other persons, noneconomic damages are barred entirely, but economic damages are still reduced by Claimant's percentage of fault.

Claimant bears no fault for this incident. The facts clearly establish that Tortfeasor was solely negligent. Specifically:

[________________________________]
[________________________________]
[________________________________]

D. Joint and Several Liability (MCL 600.6304)

If additional tortfeasors are identified, Michigan's joint and several liability rules apply as follows:

• Economic damages: Joint and several liability applies to defendants whose fault exceeds 50%
• Noneconomic damages: Several liability only; each defendant is responsible only for their allocated share
• Defendants whose fault is 50% or less are severally liable only for both economic and noneconomic damages

V. INJURIES AND MEDICAL TREATMENT

A. Initial Emergency Treatment

Date: [__/__/____]
Facility: [________________________________] Hospital/Emergency Department
Treating Physician(s): [________________________________], M.D.

Chief Complaints Upon Presentation:

[________________________________]
[________________________________]

Emergency Diagnosis:

☐ Concussion / Traumatic brain injury (TBI)
☐ Cervical spine strain/sprain (whiplash)
☐ Thoracic spine strain/sprain
☐ Lumbar spine strain/sprain
☐ Herniated/bulging disc(s) at [________________________________]
☐ Fracture(s): [________________________________]
☐ Dislocation: [________________________________]
☐ Ligament tear(s): [________________________________]
☐ Meniscus/cartilage tear
☐ Rotator cuff tear
☐ Contusions/abrasions
☐ Lacerations requiring sutures
☐ Internal organ injury
☐ Rib fracture(s)
☐ Pneumothorax
☐ Post-traumatic stress disorder (PTSD)
☐ Other: [________________________________]

Diagnostic Studies Performed:

☐ X-ray: [________________________________]
☐ CT Scan: [________________________________]
☐ MRI: [________________________________]
☐ Ultrasound: [________________________________]
☐ EEG/EMG/NCV: [________________________________]

Emergency Treatment Provided:

☐ Immobilization (cervical collar, splint, brace)
☐ Wound closure (sutures, staples, adhesive)
☐ Medications administered
☐ Admitted to hospital for [____] days
☐ Discharged with prescriptions and follow-up instructions

B. Hospitalization (If Applicable)

C. Surgical Intervention (If Applicable)

D. Follow-Up Medical Treatment

Primary Care Physician:
- Name: [________________________________], M.D.
- Dates of Treatment: [__/__/____] through [__/__/____]
- Number of Visits: [____]
- Treatment Summary: [________________________________]

Orthopedic Specialist:
- Name: [________________________________], M.D.
- Dates of Treatment: [__/__/____] through [__/__/____]
- Number of Visits: [____]
- Treatment Summary: [________________________________]

Neurologist/Neurosurgeon:
- Name: [________________________________], M.D.
- Dates of Treatment: [__/__/____] through [__/__/____]
- Number of Visits: [____]
- Treatment Summary: [________________________________]

Pain Management:
- Name: [________________________________], M.D.
- Dates of Treatment: [__/__/____] through [__/__/____]
- Number of Visits: [____]
- Treatment Summary: [________________________________]
- Procedures: ☐ Epidural injections ☐ Facet joint injections ☐ Nerve blocks ☐ Trigger point injections ☐ Radiofrequency ablation ☐ Spinal cord stimulator

Chiropractic Care:
- Name: [________________________________], D.C.
- Dates of Treatment: [__/__/____] through [__/__/____]
- Number of Visits: [____]
- Treatment Summary: [________________________________]

Physical Therapy:
- Name/Facility: [________________________________]
- Dates of Treatment: [__/__/____] through [__/__/____]
- Number of Sessions: [____]
- Treatment Summary: [________________________________]

Psychological/Psychiatric Treatment:
- Name: [________________________________], [☐ Ph.D. ☐ Psy.D. ☐ M.D. ☐ LCSW]
- Dates of Treatment: [__/__/____] through [__/__/____]
- Number of Sessions: [____]
- Diagnoses: ☐ PTSD ☐ Anxiety disorder ☐ Depression ☐ Adjustment disorder ☐ Other: [________________________________]

E. Current Condition and Prognosis

Claimant's current condition as of [__/__/____]:

☐ Claimant has reached Maximum Medical Improvement (MMI)
☐ Claimant continues to require ongoing medical treatment
☐ Claimant has permanent impairment rated at [____]% whole person

Permanent Restrictions/Limitations:

[________________________________]
[________________________________]

Future Medical Treatment Anticipated:

☐ Continued physical therapy: estimated [____] sessions at $[____] per session
☐ Additional surgery: [________________________________], estimated cost $[________________________________]
☐ Long-term pain management: estimated $[____] per year for [____] years
☐ Long-term medication: estimated $[____] per month
☐ Assistive devices/DME: $[________________________________]
☐ Home modification: $[________________________________]
☐ Future diagnostic imaging: $[________________________________]
☐ Life care plan prepared by [________________________________], estimated lifetime cost: $[________________________________]

VI. DAMAGES CALCULATION

A. Economic Damages (Past)

B. Economic Damages (Future)

C. Non-Economic Damages

Note: Michigan does NOT cap non-economic damages in non-medical-malpractice personal injury cases. The caps under MCL 600.1483 apply only to medical malpractice claims.

D. Damages Summary

VII. PIP/NO-FAULT BENEFITS COORDINATION

A. PIP Benefits Received and Pending

Michigan's no-fault system provides PIP benefits regardless of fault. The following PIP benefits have been or are being claimed through Claimant's own PIP carrier:

B. PIP Coverage Tier Analysis

Claimant elected the [________________________________] PIP coverage tier under MCL 500.3107c.

☐ Unlimited PIP: All reasonable and necessary medical expenses are covered without limit.
☐ $500,000 PIP: Medical expenses are covered up to $500,000 lifetime limit. Current PIP medical expenses total $[________________________________], leaving $[________________________________] remaining.
☐ $250,000 PIP: Medical expenses are covered up to $250,000 lifetime limit. Current PIP medical expenses total $[________________________________], leaving $[________________________________] remaining.
☐ $50,000 PIP: Medical expenses are covered up to $50,000 lifetime limit. Current PIP medical expenses total $[________________________________], leaving $[________________________________] remaining. Claimant's qualifying health insurance ([________________________________]) is covering/will cover excess medical expenses.
☐ Opt-Out: Claimant opted out of PIP medical coverage. Medical expenses are being covered by [☐ Medicare ☐ Qualifying health coverage: ________________________________].

Note regarding excess medical expenses: If Claimant's PIP coverage has been or will be exhausted, Claimant may pursue allowable expenses exceeding the PIP limit as part of the third-party tort claim under MCL 500.3135(3)(c).

C. Coordination with Third-Party Tort Claim

Under MCL 500.3135, this third-party demand seeks recovery of:

☐ Non-economic damages (pain and suffering) — available only if tort threshold is met
☐ Excess economic damages not covered by PIP
☐ Work loss benefits exceeding PIP maximums (3-year limit under MCL 500.3107(1)(b))
☐ Medical expenses exceeding PIP tier limits
☐ Other damages not compensable through PIP

VIII. INSURANCE COVERAGE ANALYSIS

A. Tortfeasor's Liability Coverage

Michigan Minimum Requirements (Post July 1, 2020, MCL 500.3009):
- Default: $250,000 per person / $500,000 per accident (BI); $10,000 (PD)
- Reduced Option (with signed form): $50,000 per person / $100,000 per accident (BI)

B. Claimant's UM/UIM Coverage

☐ UM/UIM claim is being made or reserved
☐ UM/UIM claim is not applicable at this time

C. MedPay/Additional Coverage

IX. PREJUDGMENT INTEREST (MCL 600.6013)

Under MCL 600.6013, interest on a money judgment recovered in a civil action is calculated from the date of filing the complaint to the date of satisfaction of the judgment.

Applicable Rate: The interest rate is calculated based on the five-year United States Treasury note rate of interest plus 1%, adjusted on January 1 and July 1 of each year by the state treasurer. For judgments calculated on or after January 1, [____], the applicable rate is [____]%.

Should this matter proceed to litigation, Claimant will seek prejudgment interest from the date of filing the complaint through the date of judgment satisfaction.

Projected prejudgment interest on compensatory damages of $[________________________________]:

X. PUNITIVE/EXEMPLARY DAMAGES

☐ Not applicable — The facts do not support a claim for punitive damages.

☐ Applicable — The following conduct by Tortfeasor supports a claim for exemplary damages:

Michigan does not have a general punitive damages statute for most tort actions, but exemplary damages may be available in limited circumstances, including:

☐ Operating under the influence (MCL 257.625) — creating a rebuttable presumption of gross negligence
☐ Willful and wanton misconduct
☐ Owner liability for permitting intoxicated person to drive (Dram Shop Act, MCL 436.1801)
☐ Product liability (MCL 600.2945a)

Description of conduct supporting exemplary damages:

[________________________________]
[________________________________]

XI. SETTLEMENT DEMAND

A. Demand Amount

Based upon the injuries sustained, the medical treatment required, the economic losses incurred, the non-economic damages suffered, and all applicable provisions of Michigan law, Claimant hereby demands the sum of:

$[________________________________]

in full and final settlement of all third-party liability claims against your insured arising from the [__/__/____] incident.

B. Demand Components

C. Response Deadline

This demand shall remain open for thirty (30) calendar days from the date of receipt. If your office fails to respond with a reasonable settlement offer within this period, Claimant will proceed with filing a civil action in the appropriate Michigan court without further notice.

D. Settlement Conditions

Any settlement is contingent upon:

☐ Full payment of the demanded amount
☐ Release of Claimant's third-party tort claims only (PIP rights preserved)
☐ No admission of liability clause acceptable
☐ Resolution of all applicable liens (Medicare, Medicaid, ERISA, PIP)
☐ Other: [________________________________]

XII. RESERVATION OF RIGHTS

Claimant expressly reserves all rights, claims, and causes of action not specifically addressed in this demand, including but not limited to:

☐ Claims against additional tortfeasors or responsible parties
☐ UM/UIM claims against Claimant's own carrier
☐ First-party PIP claims and disputes
☐ Claims under the Michigan Consumer Protection Act (MCL 445.903)
☐ Claims for bad faith insurance practices
☐ Claims for additional damages discovered after the date of this demand
☐ Any and all rights to proceed with litigation, including jury trial

NOTICE REGARDING STATUTE OF LIMITATIONS: The statute of limitations for this personal injury claim is three (3) years from the date of injury under MCL 600.5805(10). The statute expires on [__/__/____]. Claimant will file suit prior to expiration if settlement is not reached.

XIII. ENCLOSED DOCUMENTS AND EXHIBITS INDEX

Medical Records and Bills

☐ Emergency room records and billing — [________________________________]
☐ Hospital admission/discharge records — [________________________________]
☐ Surgical records and operative reports — [________________________________]
☐ Primary care physician records — [________________________________]
☐ Orthopedic specialist records — [________________________________]
☐ Neurological records — [________________________________]
☐ Pain management records — [________________________________]
☐ Chiropractic records — [________________________________]
☐ Physical therapy records — [________________________________]
☐ Psychological/psychiatric records — [________________________________]
☐ Diagnostic imaging reports (X-ray, MRI, CT) — [________________________________]
☐ Prescription records/pharmacy printout — [________________________________]
☐ Medical bills summary — [________________________________]
☐ Life care plan — [________________________________]

Liability/Investigation Documents

☐ Police/crash report — Report #[________________________________]
☐ Photographs of accident scene
☐ Photographs of vehicle damage
☐ Photographs of injuries
☐ Witness statements
☐ Accident reconstruction report
☐ Video/dashcam footage (available upon request)
☐ Traffic citation(s)

Income/Employment Documentation

☐ Employer verification of lost wages letter
☐ Tax returns ([____], [____], [____])
☐ Pay stubs (pre-accident and post-accident)
☐ Vocational assessment/rehabilitation report
☐ Disability determination

Insurance Documentation

☐ Declarations page — Tortfeasor's policy
☐ Declarations page — Claimant's UM/UIM/PIP policy
☐ PIP benefits ledger/payment history
☐ Health insurance Explanation of Benefits (EOBs)
☐ Medicare/Medicaid conditional payment letter
☐ ERISA lien documentation

Other

☐ Letter of representation
☐ HIPAA authorization
☐ Signed medical releases
☐ Property damage estimate/repair invoice
☐ Rental car receipts
☐ Other: [________________________________]

XIV. SIGNATURE AND CERTIFICATION

I certify that the information provided in this demand letter is true and accurate to the best of my knowledge and belief, based upon the medical records, documentation, and information obtained during our investigation of this matter.

Respectfully submitted,

______________________________________

[________________________________], Esq.
Attorney for Claimant
State Bar of Michigan No. P[________________________________]
[________________________________] (Firm Name)
[________________________________] (Address)
[________________________________], Michigan [____]
Tel: ([____]) [____]-[________]
Fax: ([____]) [____]-[________]
Email: [________________________________]

Date: [__/__/____]

XV. SOURCES AND REFERENCES

Michigan Statutes

• MCL 500.3101 et seq. — Michigan No-Fault Insurance Act
• MCL 500.3009 — Minimum Automobile Liability Coverage Requirements
• MCL 500.3107 — Personal Injury Protection (PIP) Benefits
• MCL 500.3107c — PIP Coverage Tier Elections (2019 Reform)
• MCL 500.3135 — Tort Liability; Threshold for Noneconomic Damages
• MCL 600.1483 — Noneconomic Damages Limitation (Medical Malpractice)
• MCL 600.2922 — Wrongful Death Actions
• MCL 600.2959 — Comparative Fault; Reduction of Damages
• MCL 600.5805 — Statute of Limitations (Personal Injury)
• MCL 600.6013 — Interest on Money Judgments (Prejudgment Interest)
• MCL 600.6304 — Joint and Several Liability

Key Michigan Cases

• McCormick v. Carrier, 487 Mich 180 (2010) — Serious impairment of body function standard
• Case v. Consumers Power Co., 463 Mich 1 (2000) — Elements of negligence
• Kreiner v. Fischer, 471 Mich 109 (2004) — Serious impairment standard (superseded by McCormick)

Michigan Resources

• Michigan Legislature: https://www.legislature.mi.gov
• Michigan Department of Insurance and Financial Services (DIFS): https://www.michigan.gov/difs
• Michigan Auto Insurance Reform FAQ: https://www.michigan.gov/autoinsurance
• Michigan Treasury (Interest Rates): https://www.michigan.gov/treasury