Settlement Demand Letter

SETTLEMENT DEMAND PREPARATION LETTER

(Prepared for Attorney Customization – Universal / Choice-of-Law Template)

Classification notice: Counsel must determine whether any compromise-negotiation, confidentiality, privilege, filing, insurance, tax, lien, approval, or evidentiary rule applies. This template itself does not make the letter confidential, privileged, inadmissible, or protected from disclosure.

TABLE OF CONTENTS

1. Document Header
2. Recitals
3. Definitions
4. Operative Provisions
5. Representations & Warranties
6. Covenants & Restrictions
7. Default & Remedies
8. Risk Allocation
9. Dispute Resolution
10. General Provisions
11. Execution Block

1. DOCUMENT HEADER

Date: [DATE]
Via: [Certified Mail No. __________] and [Email]
To: [Opposing Counsel Name], Esq.
[Law Firm Name]
[Street Address]
[City, State ZIP]

From: [Your Name], Esq.
[Law Firm Name]
[Street Address]
[City, State ZIP]
Counsel for [CLIENT NAME] (“Client”)

Re: Settlement Demand – [Claim Description / Incident Date]

2. RECITALS

A. Incident. On [INCIDENT DATE], an event occurred at [LOCATION] involving [OPPOSING PARTY NAME] (“You” or “Your Client”) that caused substantial [bodily injury/property damage/financial loss] to Client.

B. Claimant’s Position. Based on the information presently available, Client contends that [DESCRIBE THE SPECIFIC ACTS, OMISSIONS, CONTRACT TERMS, OR OTHER FACTS] caused the claimed loss. Counsel must replace this statement with the supported position and must not characterize liability as established unless it has been adjudicated or admitted.

C. Purpose. The parties desire to explore early resolution to avoid protracted litigation, attendant expenses, and business disruption.

3. DEFINITIONS

For purposes of this Demand Letter:

“Applicable Law” means the substantive law of [Governing Law State/Country], without regard to its conflict-of-laws rules, except where federal law is controlling.

“Claim” means the dispute described in this letter and any specifically identified legal or contractual theory approved by counsel after reviewing the governing law and facts.

“Claimed Losses” means the amounts and nonmonetary effects documented in the loss schedule. Inclusion in this letter is not a conclusion that an item is legally recoverable.

“Demand Amount” means the sum of US $[___] in full and final settlement of the Claim, subject to the terms herein.

4. OPERATIVE PROVISIONS

4.1 Settlement Demand. Client hereby demands payment of the Demand Amount within [30] calendar days of Your receipt of this letter.

4.2 Basis of Damages
a. Economic Damages – $[___] (medical bills, lost wages, property damage, etc.).
b. Non-Economic Damages – $[___] (pain, suffering, emotional distress).
c. Future Damages – $[___] (projected medical care, diminished earning capacity).
d. Other claimed amount approved by counsel – $[___] (identify the factual and legal basis).

4.3 Documentation. Enclosed please find:

• Medical records and billing statements, if authorized for disclosure (Ex. A)
• Damage calculations and supporting assumptions (Ex. B)
• Witness statements or declarations approved for disclosure (Ex. C)
• Photographs, video, or other records approved for disclosure (Ex. D)

4.4 Optional Confidentiality Proposal. ☐ Propose confidentiality ☐ Propose non-disparagement ☐ Do not propose either. Counsel must draft any selected term with all required disclosure, reporting, tax, regulatory, and enforcement exceptions.

4.5 Tax and Payment Classification. Any definitive agreement must address payment characterization, reporting, withholding, allocation, and tax responsibility only after each party receives appropriate tax advice. This letter makes no tax representation.

4.6 Conditions Precedent. Settlement is conditioned upon:
a. Receipt of cleared funds by the deadline in Section 4.1; and
b. Execution of a mutually satisfactory Release Agreement.

5. REPRESENTATIONS & WARRANTIES

5.1 Negotiating Authority. Please identify the scope of your authority to receive this proposal, negotiate, recommend terms, or bind the recipient. No authority is assumed from receipt or discussion of this letter.

5.2 Assignment and Third-Party Rights Check. ☐ No assignment or transfer identified after review ☐ Possible assignment, lien, reimbursement, subrogation, or other third-party right identified: [________________________________].

5.3 Complete Information. The factual statements herein are based on current information; Client reserves the right to amend the Demand upon discovery of additional facts.

6. COVENANTS & RESTRICTIONS (Reserved for Future Release Agreement)

7. DEFAULT & REMEDIES

7.1 No Resolution by Response Date. If the parties do not reach a signed resolution by the response date, Client will evaluate the next steps approved by counsel. Delete any threatened filing, remedy, fee, interest, attachment, or damage category that is not supported by the governing law, contract, forum, and facts.

7.2 Preservation Request. Please preserve the specifically identified paper and electronic records listed in [PRESERVATION SCHEDULE]. Counsel must tailor the custodians, systems, date range, categories, burdens, and governing preservation duty; this request does not itself establish a litigation-hold obligation or a sanction.

8. RISK ALLOCATION

8.1 Other Responsible Persons or Sources. Identify any insurer, indemnitor, contributor, assignee, lienholder, reimbursement claimant, or other person whose rights or approval may affect settlement. Do not state a contribution, indemnity, or allocation rule until counsel verifies it.

8.2 Insurance Information Request. Please provide the insurance information that the recipient may lawfully and voluntarily disclose before litigation. Counsel must determine whether any statute, rule, policy condition, or filed proceeding creates a disclosure duty.

9. DISPUTE RESOLUTION

In the interest of efficiency, Client is willing to discuss non-binding mediation before a mutually acceptable neutral within [60] days. Mediation does not change the response date in Section 4.1 unless authorized signatories execute a separate written timing agreement.

10. GENERAL PROVISIONS

10.1 Governing Law Selection. This proposal does not select governing law. Any definitive agreement must identify the chosen law and forum after counsel reviews conflicts, mandatory law, and enforceability.

10.2 No-Waiver Position. Client does not intend the act of negotiating to waive a claim, defense, or remedy. Counsel must determine the legal effect of the parties' communications and conduct.

10.3 Reservation Position. Until a definitive agreement becomes effective, Client intends to preserve the positions identified by counsel. This sentence does not create or preserve a right that governing law, contract, prior conduct, or a deadline has already limited or extinguished.

10.4 Signature Method. Any definitive agreement must state whether counterparts and electronic signatures are permitted and when the agreement becomes effective.

10.5 Proposal Record. This letter records the current proposal only. It does not amend a contract, release a claim, waive a defense, supersede another communication, or create a binding settlement unless the definitive written agreement expressly says so.

11. EXECUTION BLOCK

Please respond by [TIME] [TIME ZONE] on [DATE] using the contact method below. A response, acknowledgment, negotiation, or signature on this page does not create a settlement. No party is bound unless authorized signatories execute a separate definitive agreement that states when it becomes effective.

Respectfully submitted,

__________________________________
[YOUR NAME], Esq.
[Law Firm Name]
Counsel for [CLIENT NAME]