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Legal

Demand Letter Analysis

The letter says pay or be sued — analysis extracts who, how much, for what, and by when.

Demand letter analysis is the automated reading of the letters that open disputes: the attorney's demand for payment or action that precedes — and threatens — litigation. The analysis extracts the operative content: who demands (claimant and counsel), from whom, on what factual allegations, under which legal theories, for how much (with the components — specials, generals, penalties — broken out where stated), by what deadline, and with what attachments offered as support. For insurers, corporate legal departments, and defense firms, demand letters arrive in volume, and the clock they start makes reading speed operationally consequential.

The documents resist template extraction because they are advocacy prose: amounts appear mid-narrative, deadlines are phrased relatively ("within thirty days of receipt"), legal theories are implied as often as cited, and the aggressive framing is itself data — severity language, litigation-readiness signals, and time-limit demands that in some jurisdictions carry bad-faith exposure if mishandled. Language-model analysis handles this register well: extracting the structured facts, classifying claim types and theories, summarizing the factual narrative, inventorying the enclosures against what the letter claims to enclose, and flagging the features that drive urgent handling — statutory deadlines, policy-limit demands, pre-suit notice requirements.

Downstream, the extraction feeds triage and response machinery: matters opened with the facts pre-populated, deadlines calendared automatically (the missed response date being the unforced error this automation most directly prevents), severity routed to the right adjuster or counsel, reserves informed by demand components, and the demand's assertions lined up against the claim file's existing evidence — the medical records, the coverage terms, the prior correspondence — with discrepancies surfaced for the human strategist. As throughout legal document AI, the analysis carries citations back to the letter's text, and judgment calls — how credible, how to respond, whether to settle — remain squarely human.

Proof Perimeter runs document AI inside your own perimeter — with a provenance record on every field.

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