Should I send a demand letter before suing?
Asked by: Prof. Rick Veum III | Last update: August 12, 2025Score: 4.9/5 (1 votes)
Writing a demand letter is important because it helps the sender outline their case, show they've made an attempt to resolve the issue outside of court, and in some situations, fulfill the necessary court requirement before filing a small claims case.
What are the disadvantages of a letter of demand?
However, sending a letter of demand can have its disadvantages. Depending on the situation, the other party may feel threatened and respond negatively, or they may not respond at all. They might engage a lawyer, or they might even start legal action against you.
When should a demand letter be sent?
Someone owes you money. You bought something that does not work. A service provider did not perform the promised work. If you disagree with an individual or a company, and informal efforts to resolve your dispute fail, you should write a demand letter.
Is a demand letter the same as suing?
To be clear, sending a demand letter is not the same thing as filing a lawsuit. It is a request (a demand) to settle a claim outside of litigation. Of course, that does not mean that you are going to get a check for the full and fair value of your damages in the mail simply because you sent a demand letter.
How successful are demand letters?
No, demand letters don't always work—and they're less effective now than they were ten years ago. However, they remain a valuable step in most cases. Here's why: the time spent preparing a demand letter is never wasted.
Attorney Demand Letter 101: When an employment attorney sends out a demand letter
Can a demand letter backfire?
Before you draft your own demand letter and fire it off thinking your actions will result in getting paid, getting the services you contracted for, demanding the satisfaction that you were expecting, consider that writing your own demand letter can backfire badly!
Do people take demand letters seriously?
Are Demand Letters Serious? Demand letters are absolutely serious, and you should take them seriously. The fact that someone is investing time and resources to send you a formal letter to demand something from you is evidence of their seriousness.
How much do lawyers charge for a demand letter?
Hiring a lawyer to draft a demand letter will incur fees because it requires the time of a licensed attorney to complete the task. ContractsCounsel's marketplace data shows the average demand letter costs to be $380.00 across all states and industries.
What not to say in a demand letter?
Don't Be Threatening
While the dispute of payment may have become personal, a demand letter is meant to encourage a desirable resolution. The use of threatening or insulting language may embolden the owner into not paying when they otherwise would have. And remember, a judge may one day look at this letter in court.
Can you threaten to take someone to small claims court?
Sometimes another person who owes you a debt or who is infringing on your rights may believe that you will not stand up for yourself. Writing a strong demand letter and threatening to file a lawsuit or go to small claims court can change that impression.
What are the risks of a demand letter?
Potential Legal Risks
Demand letters that include threats of litigation, accusations of infringement, recitations of the legal requirements for infringement, and/or a refusal for the marks to co-exist may increase the risk that the trademark holder will be subject to a declaratory judgment action.
Is it worth sending a demand letter?
Writing a demand letter is important because it helps the sender outline their case, show they've made an attempt to resolve the issue outside of court, and in some situations, fulfill the necessary court requirement before filing a small claims case.
Should you tell someone you are going to sue them?
After you file your lawsuit, you have to let the defendant know that you are suing them. Usually, the defendant knows about the case a long time before it starts. Hopefully you talked to the defendant and tried to settle the case before you filed.
What if someone ignores a demand letter?
If someone has taken the time to send a demand letter, then he is most likely serious about pursuing this issue. This is even more true if he hired an attorney to do it for him. If you simply ignore the letter, the plaintiff's next step will almost certainly be to file a lawsuit.
Do you need a lawyer for a demand letter?
You can send a demand letter without a lawyer.
If you currently have a dispute against a person or company, consider sending a demand letter as a way to resolve the issue outside of court. A demand letter is a letter outlining a set of requests you would like the other person or company to fulfill.
What is the disadvantage of demand?
Market Volatility: Demand forecasts are inherently susceptible to market fluctuations, unexpected events, and economic changes. Abrupt shifts in consumer behavior, external economic factors, or disruptive events can introduce volatility that may disrupt forecast accuracy.
How powerful is a demand letter?
Demand letters show the owner that you're serious about getting paid. Sending a demand letter prior to litigation is a sign of good faith in the eyes of the law. In court, the language in your demand letter can support your case. Successful demand letters significantly reduce the cost of getting paid.
Is it worth going to small claims court for $500?
Conclusion: Going to small claims court may be worth it for $500, but it will determine how you weigh your costs versus benefits. At a minimum, it is worth it to send a demand letter.
Does a demand letter need to be notarized?
Why Notarize a Demand Letter? Although notarization is not legally required for demand letters, there are certain advantages to notarizing such a document: Strengthening the Evidence: A notarized document carries more weight in legal proceedings.
What happens after my lawyer sends a demand letter?
Typically sent via certified mail, the recipient may respond with acceptance, denial, or a counteroffer. If no agreement is reached, the dispute may proceed to court. Detailed information is listed below.
Why are demand letters so expensive?
First, good demand letters can be expensive because it takes a lot of time to make a letter that contains enough details and legal research to convince the other side that (a) your claims could possibly win in court and (b) you're willing to spend a lot of money and so it's better for them to settle than to fight you.
How long does a lawyer have to respond to a demand letter?
How Long After a Demand Letter Can I Expect a Settlement? Most demand letters include a deadline for response. This deadline is typically 30 business days from the date the letter is received. Unfortunately, that doesn't mean you can expect a settlement within a month.
How can a demand letter backfire?
Demand letters are valuable tools for creating records, dispute resolution, and much more. But, they can backfire and lead to liability for the sender and even its attorney for threats or demands that are legally improper.
How do you write a strong demand letter?
- Maintain a polite, neutral tone.
- Outline the facts clearly.
- Explain the costs or "damages" you've incurred.
- Make your total demand explicit.
- Ask for more than you want to allow for negotiation.
- Specify a response deadline.
- Explain what you will do if the demand isn't met.
Are demand letters worth it?
Demand letters are a relatively, quick, easy, and cost-effective form of dispute resolution. A well-crafted demand letter can help you settle your dispute without having to go to court.