What is a settlement demand letter?

A settlement demand letter is a formal document sent by a person who has been injured or suffered damages due to someone else’s negligence or intentional actions. It is sent to the person or organization at fault that explains the injured party’s grievances and demands a settlement to cover their losses. In Texas, these letters are addressed to the at-fault party or their insurance company and must be written carefully to ensure that the full amount of damages is properly documented and requested. The settlement demand letter outlines the facts of the case, explains the injuries or losses, and states the amount of compensation the injured party is seeking. This amount typically includes the cost of medical bills, lost wages, and damages for pain and suffering. The amount requested in the settlement should be reasonable and supported by evidence such as medical documents or bills. The settlement demand letter serves as a starting point for negotiations. After receiving the letter, the at-fault party may agree to the amount in the demand or counter with a lower amount. If an agreement cannot be reached, the injured person may decide to pursue a lawsuit. In Texas, a settlement demand letter must be filed with the court before any lawsuit can be filed.

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