Problems, lawsuits, and other court cases don’t get settled the first time a settlement offer letter is sent. A lot of things happen along the process before deciding what the outcome will be. If the other party comes into agreement about the offer, then a settlement offer acceptance letter is sent. If not, then the offering party should expect a settlement rejection letter. Acceptance and rejection letters are exact opposites, but they have one thing in common that makes the letter effective. Let’s find that out.
What Is a Settlement Rejection Letter?
Settlements are out of court transactions intended to quickly resolve a problem or conflict without having to go to court. Settlement offers are common in lawsuits, traffic accidents, insurance claims, and situations involving harm or injury to another. The party at fault makes a settlement offer, which is usually of monetary value. A settlement offer letter contains the offer amount and other conditions to end a conflict or lawsuit. Because different people are involved in different conflicts or lawsuits, the response to a settlement offer also varies. Offers are accepted if the price is right, but they are rejected most of the time. This is when a settlement rejection letter is necessary. The rejection letter is not the end, but the start of the negotiations. Together with the intent to reject the offer are the demands made by the other party. These demands could be a higher amount, shares in a company, staying away from the injured party, medical assistance, etc. Not all demands are of monetary value. Some may be in the form of a public apology or a chance to be heard. You can say that a settlement rejection letter is similar to a demand letter in some way.
What’s common between an acceptance letter and a rejection letter is that both letters include demands. Even if the offer is accepted, the other party will still try to negotiate specific requests that they find reasonable.
Why Should You Reject a Settlement Offer?
Some offers aren’t really much and may not be worth all the damages incurred. It is one of the reasons why settlement offers are rejected. However, there is still a lot more. It’s simple; you don’t want a low settlement offer, so you reject it. In some cases, low settlement offers are intentional because the offering party is anticipating that the other party will negotiate for something higher. Some insurance companies even hope that you accept the offer and then go away. Parties may do settlement negotiations face to face, but some people would prefer sending letters to allow them time to think of the appropriate response or rebut. Your goal is to get the maximum possible value for your case. So you should reject a settlement offer and negotiate for what it’s worth or more. Nevertheless, you should not negotiate settlement offers on your own, especially not with a reputable insurance company, because you will ultimately lose the case.
It’s okay to reject an offer if you find it insulting, but you must always be open to the consequences. Rejecting an offer means getting your case tried in court. The risk of going to trial is that you may lose the case and get way less than what was previously offered. Making the right decision is crucial, so you must not take settlement offers lightly.
FREE 5+ Settlement Rejection Letter Samples in PDF | DOC
1. Settlement Rejection Letter Sample
2. Settlement Rejection Letter Template
3. Settlement Rejection Template
4. Settlement Rejection Letter Example
5. Settlement Rejection Example
6. Settlement Rejection in DOC
How to Write a Settlement Rejection Letter
Practice writing a settlement rejection letter by following the steps below:
1. Choose the appropriate letter format
A formal business letter is a suitable format to use when rejecting a settlement offer to help you demand something higher.
2. Prepare your references
You will need a lot of references when writing a settlement rejection letter, and the most important one is the settlement offer letter sent to you. Here you’ll find information about the offering party, what or how much they’re offering, the case number, the identity of their lawyer, etc. You will also need rejection letter samples as reference.
3. Clearly state your intentions
Your letter should refute any inaccurate statements that are damaging to your claim and tell them that their offer is unacceptable. After that, clearly state the figure that you find acceptable, and explain why your demands and counteroffer is appropriate. Include copies of bills, receipts, and other supporting documents if you have special demands. Make sure that your claims or demands are complete and clearly stated. Moreover, you should avoid making accusations or give a hint of anger in your letter. Review your letter and make the necessary revisions if needed.
4. Talk to your lawyer
Discuss with your lawyer the demands you’ve made and ask their opinion if the move you are about to make is a good one. Note that they will give you an honest opinion, which you may or may not like. Just be open to suggestions on what you must do and how you should do it. Regardess, you still make the final decisions.
5. Send the letter to the other party
Your lawyer will be conveying your message to the other party’s lawyer. The negotiations will continue until an agreement is reached. However, there is no specific time or signal as to when the other party will stop sending their offer. When this happens, your case will be tried in court, and you must be prepared for the consequences.
Before rejecting an offer and making demands in a settlement, it is best to consult a lawyer who will honestly tell you what you are up to and options are available to you. Settlement rejection letters are tools used during negotiations, and the samples above make the perfect reference materials for your letter writing task.
7+ Sample Offer Letters
How to Politely Turn Down a Job Offer
FREE 11+ Appeal Letters
8+ Sample Job Offer Acceptance Letters
29+ Business Proposal Letter Samples
7+ Sample Salary Negotiation Letters
6+ Sample Application Letters
34+ Business Proposal Letters
14+ Appeal Letter Samples
9+ Sample Invoice Letters
8+ Sample Job Offer Letters
12+ Sample Example of Appeal Letters
FREE 7+ Financial Aid Appeal Letters
47+ Proposal Letter Examples
6+ Sample Response Letters