Demand letters can be the precursor to filing a lawsuit or act as an effective document that can resolve legal issues without having to use litigation. In most cases, demand letters are used by companies that are owed money or services from their business partners, suppliers, or customers. Even though demand letters are fairly straightforward as you are simply demanding something, this is likely the first legal document you are sending someone. Thus, it is vital that this letter be drafted and reviewed by an experienced attorney or you risk having the entity you are sending the letter ignore your claim or use this document against you in court.
Why Use a Demand Letter
If the sender of the demand letter enlists the help of an attorney to property draft this document, they can expect to receive the following benefits.
A Demand Letter Shows the Other Party that you are Serious
If you are in a dispute with another company, you have likely made phone calls and sent emails to this entity. However, the other company may think that you are not going to pursue the issue legally and instead are simply blowing off steam. When you have your attorney send a demand letter, the other company will view the possibility of the lawsuit as real and take your claims seriously.
The Courts Typically see Demand Letters as a Sign of Good Faith
From a judicial perspective, a demand letter shows that the party sending the document wants to resolve the issue. Courts like to see that plaintiffs made an effort to solve the issue internally before pursuing litigation and a demand letter signals just this. Further, in certain states, a plaintiff must send a demand letter before going to court.
Sending a Demand Letter can Save you Time and Money
Although it costs money to enlist an attorney who can draft a demand letter for you, if this letter helps you settle the dispute outside of court, you are saving yourself thousands of dollars. Even if you win the dispute in court, you will have to pay legal and court fees, while also committing countless hours to the complaint.
Final Thoughts
While an attorney does not technically have to write your demand letter, a lawyer will be able to expertly draft this document—working to ensure that it initiates your desired outcome. For example, if a demand letter comes directly from a law firm, the person receiving the letter will be much more likely to take this document seriously and comply with your requests.