What Is the Demand Letter Timeline to Get a Settlement?
Please Note: The Peace Law Firm is licensed to practice only in North Carolina and South Carolina.
Following a personal injury accident, you are likely struggling financially. Medical bills are stacking up, you are missing time from work, and now you're unable to pay other household expenses.
You will typically send a demand letter to the responsible party to initiate settlement negotiations if you’re pursuing a third-party liability claim.
A demand letter is a formal written request outlining your injuries, your damages, and the compensation you seek for the harm caused. It serves as a crucial document in opening a dialogue with the opposing party and laying the groundwork for potential resolution outside court.
The response time to a demand letter is usually a few weeks, though it can extend to a few months depending on the case.
Victims want to know how long after a demand letter does settlement take. Every case is unique, so the demand letter timeline will vary from case to case. It may take a few weeks to several months to reach a settlement after sending a demand letter. Below, we’ll dive into the specific factors that can impact the timeline.
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How Long Does It Take a Lawyer to Write a Demand Letter?
A lawyer typically takes anywhere from a few days to a few weeks to draft a demand letter. However, this timeline can be influenced by factors pertaining to your case, as well as the workload of your attorney and their firm.
Drafting the Letter
It is important to talk with your attorney to understand the time expectations and discuss any factors that may impact your timeline. These factors may include:
- Investigation. Before drafting the demand letter, your attorney will investigate the circumstances surrounding your accident and gather medical records, police reports, witness statements, and other pertinent evidence. If these documents are not readily available, the investigation process may be lengthened before proceeding with the letter.
- Legal research. An attorney will need to ensure the demand letter is legally sound and accurately reflects the damages you’ve suffered. This may require research into relevant case law, statutes, and legal principles, which can add to the time it takes to draft the letter.
- Communication. Your lawyer will work closely with you to understand the full extent of your injuries and how they’ve impacted your life. It is important that you are available for these communications so that the drafting process is not delayed because your attorney could not reach you.
- Negotiation strategy. Crafting a negotiation strategy in your demand letter is imperative and will take time. Your attorney will need to determine the amount of compensation to demand and then decide how to present this demand persuasively to the opposing party.
Knowing about these factors can help you anticipate the time it may take to draft your demand letter.
Case Complexity
In addition, looking at case complexity can show you how different situations can result in different timelines.
- Straightforward cases. In instances where liability is clear and damages are well-documented, the demand letter can be drafted relatively quickly, within a matter of days. Your attorney should be able to focus on presenting a compelling case for fair compensation without running into any significant delays.
- Complex cases. Cases involving multiple parties, disputed liability, or extensive damages may require a more thorough and time-consuming approach to drafting the demand letter. The time required to gather additional evidence may extend the drafting time period to a few weeks, rather than days.
By considering both the complexities of your case and the factors discussed above, you and your attorney can work through the demand letter drafting process more smoothly, with clarity regarding timing. When the demand letter has been drafted, your attorney will send it to the opposing party. This marks the next step in the process, where negotiations and discussions regarding settlement may begin.
How Long After the Demand Letter Can I Expect Settlement?
Once you send the demand letter to the negligent party, the demand letter response time will vary because you’ve involved the insurance company or its attorneys. If you have legal representation, your attorney will include verbiage that this settlement demand expires in a certain number of days.
Insurance companies need to be diligent in responding to your demand because they could potentially face a bad faith claim down the line.
South Carolina insurance laws require insurers to acknowledge claim communications, such as a demand letter, "with reasonable promptness." This requirement includes personal injury claims presented by third parties, such as a car accident victim. While the adjuster cannot delay the settlement process unnecessarily, they can utilize legal tactics to stall.
Examples of How Insurance Companies Delay Settlements
In some instances, the insurance company has a valid reason for delaying settlement talks. The following are examples of legal tactics that could affect the demand letter timeline.
Disagreement on Settlement Value
If your case is worth more than the available limits, the insurance adjuster might "tender their limits" to resolve all monetary claims related to your injury.
Otherwise, the insurance company is not likely to pay your demand outright unless you are asking for significantly less than your case is worth. Instead, they will say your case is worth less than you're asking. The adjuster hopes you will give up and accept the lower amount by delaying a potential settlement.
Mistake or Missing Information
The adjuster might delay settlement by claiming you made a mistake on documentation or because they are missing information. Perhaps you sent the release of all claims back and didn't sign it. Promptly filling out the requested information puts the onus back on the insurance company to respond timely.
Need More Evidence
Sometimes, your case may not be ready for settlement talks because there’s not enough evidence to support discussing a settlement. You might still be treating, or the adjuster needs medical records and other documentation before the insurance company is willing to resolve your case.
How Long Does It Take to Receive the Check After I Settle?
Once you resolve your case, you will need to sign legal paperwork, usually a release of all claims. Once the adjuster receives the release, they will send the settlement check. If you hire a lawyer, the adjuster will send the settlement check to your attorney.
Your attorney will pay any outstanding costs and take their contingency fee first. They will send the remaining amount to you.
The timeline for this process can also vary significantly. Cases with liens and numerous costs can take longer to resolve. Your attorney legally must satisfy all liens before paying you. In a simple matter with no liens, you might receive your check within two to four weeks.
I Received No Response to a Demand Letter. What to Do Next?
While the demand letter response time will vary in each case, insurers still need to respond to the demand. If you don't receive a response, your next step is to contact a South Carolina personal injury lawyer.
Hiring a lawyer can help you determine the best course of legal action. When you hire the Peace Law Firm, we will review your case and help you understand the demand letter timeline in your case.
Contact a South Carolina Personal Injury Lawyer Today
If you sustained injuries due to another party's negligence, you might be entitled to compensation. Hiring a skilled South Carolina personal injury lawyer right away can help tremendously. Your attorney will gather all evidence and ensure you fill out all documentation correctly.
At the Peace Law Firm, our priority is to help you settle your case as quickly as possible without sacrificing the compensation you’re entitled to receive.
Contact the Peace Law Firm online or call (864) 298-0500 to schedule a free consultation when you need legal assistance after an accident. We have years of experience assisting injured victims just like you.
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