Personal Injury Law
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A demand letter does not, and cannot under the law, extend the time in which a lawsuit must be filed under the Statute of Limitations. A demand letter is an attempt to negotiate a settlement. The negotiation process has no effect on the strict time period in which a lawsuit must be filed.
A lawsuit can be filed even before any settlement negotiations or demand letter being sent. This occurs when a plaintiff needs to file suit because there has been no settlement prior to the expiration of the Statute of Limitations. Once a suit is filed, an attorney can be hired to negotiate a settlement. However, if the Statute of Limitations has expired, an insurance company will not entertain any settlement discussions as they are under no legal duty to do so now that a lawsuit cannot be brought.
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