What to Do If Your Lawyer Sends You a Demand Letter in NJ

Receiving a demand letter from your lawyer can be an important step in your personal injury case. It signals the start of settlement discussions and lays out the basis for your claim. Understanding what it means and how to respond can help you get the best possible outcome.

What Is a Demand Letter?

A demand letter is a formal document sent to the opposing party, often an insurance company or an at-fault individual. It explains why the other party is responsible for your injuries and losses and requests a specific amount to settle the claim. This letter typically includes:

• A summary of the accident 
• Evidence proving liability
• Details of medical treatment and expenses
• Lost wages and other financial damages
• A settlement amount
• A deadline for response

The demand letter is meant to push for a fair settlement without going to court. In many cases, it is the first step in resolving a claim efficiently. A well-drafted demand letter can help speed up the settlement process and avoid unnecessary legal battles.

Demand letters are not just about requesting compensation; they also set the tone for negotiations. A strong, well-supported letter backed by clear documentation shows the opposing party that you are serious about your claim. This can encourage insurance companies to respond more quickly and with a fairer offer.

Why Your Lawyer Sends a Demand Letter

In New Jersey, demand letters serve multiple purposes, including:

• Starting Settlement Negotiations: The letter formally presents your case and the damages you are seeking.
  
• Providing a Legal Basis for Your Claim: It outlines the legal reasons the other party is responsible for your losses.
  
• Prompting Action: It creates pressure on the insurance company to respond rather than delay payment.
  
• Documenting Your Case: It establishes a clear record of your claim and sets a timeline for the negotiation process.

New Jersey follows a comparative negligence rule (N.J.S.A. 2A:15-5.1), meaning your compensation may be reduced if you are partially at fault. This makes the demand letter an important tool in making sure your claim is handled fairly.

Steps to Take After Receiving a Demand Letter from Your Lawyer

1. Read the Letter Carefully

   • Make sure all the details are accurate.
   • Confirm the settlement amount aligns with your expectations.
   • Understand the legal arguments presented in the letter.
     

2. Gather Supporting Documents

   • Medical bills and records
   • Lost wage statements
   • Police or incident reports
   • Photos and witness statements
   • Any communication with the insurance company regarding your claim
     

3. Discuss the Letter with Your Lawyer

   • Ask about potential responses from the opposing party.
   • Go over your options if the offer is too low.
   • Discuss whether adjustments need to be made to your settlement request.
     

4. Be Aware of the Statute of Limitations

   • In New Jersey, you generally have two years from the date of injury to file a lawsuit (N.J.S.A. 2A:14-2).
   • Failing to act within this timeframe can prevent you from recovering compensation.
     

5. Monitor Communication from the Opposing Party

   • Some insurance companies may delay responding.
   • Be prepared to follow up with additional legal action if needed.

What Happens If the Demand Letter Is Ignored or Rejected?

If the other party does not respond or refuses to settle:

• Counteroffers May Be Made – The insurance company may suggest a lower amount, which your lawyer can negotiate.
  
• A Lawsuit Can Be Filed – If negotiations fail, your lawyer may recommend taking the case to court.
  
• Alternative Dispute Resolution (ADR) – Mediation or arbitration can be an option before pursuing litigation.
  
• Court Proceedings – If the case goes to trial, a judge or jury will determine the compensation amount.

In Rodriguez v. Wal-Mart Stores, Inc., a New Jersey court ruled in favor of an injured plaintiff after the insurance company initially denied liability. This case highlights why demand letters are important in pushing insurers to take claims seriously.

Some insurers may delay responding, hoping that the claimant will accept a lower offer out of frustration. However, a firm response and readiness to take legal action can encourage insurers to settle fairly.

Common Mistakes to Avoid When Handling a Demand Letter

• Ignoring the Letter – Failing to take action can lead to missed settlement opportunities or legal consequences.
  
• Providing Insufficient Evidence – A weak demand letter may result in a rejected claim.
  
• Accepting a Low Settlement Too Quickly – Always consult with your lawyer before agreeing to an offer.
  
• Delaying Response – Insurance companies may use delay tactics to avoid paying what you deserve. Stay proactive in communication.
  
• Failing to Follow Up – If the opposing party does not respond, your lawyer should follow up and apply appropriate legal pressure.

How Long Does It Take to Get a Response to a Demand Letter?

There is no strict legal requirement for how long an insurance company or defendant must respond to a demand letter. However, typical response times include:

• A few weeks – If the insurer is cooperative and willing to negotiate.
  
• Several months – If the insurer is slow or conducting an extended investigation.
  
• No response – If the insurer ignores the letter, your lawyer may need to escalate the case.

The stronger the evidence supporting your claim, the faster a response is likely to come. Some insurers delay to see if the claimant will give up or accept a low settlement. Being prepared to take the next step can prevent unnecessary delays.

Consult with Our Experienced Attorneys

A demand letter is a crucial step in your personal injury case, and how you handle it can impact your settlement. Rosengard Law Group has years of experience fighting for injured clients in New Jersey. We ensure your demand letter is strong, supported by the right evidence, and positioned for success.

Our team understands the tactics insurance companies use and knows how to counter them effectively. We fight to maximize compensation for our clients, ensuring they receive fair treatment under New Jersey law.

If you need help with a personal injury claim, contact Rosengard Law Group today for a consultation. Our team is ready to protect your rights and fight for the compensation you deserve.