If you are considering sending a demand letter to resolve some sort of dispute, you’re not alone. Many people use ContractsCounsel’s platform to hire lawyers to draft and send demand letters.
We analyzed a large sample of real client responses to questions we ask when posting a project so that we can better understand the situations that lead to demand letters and how clients approach them.
Wherever you are in the process, this guide will give you a better understanding of issues clients need to think through and how other clients respond.
Question: What is the main issue between the parties?
Answer: Breach of contract and unpaid debts are the two most common issues by respondents when searching for a lawyer.
Other common issues include property damage, failure to return a security deposit, employment-related disputes (i.e., unpaid wages, wrongful termination, etc.), personal injury claims, fraud, and real estate disputes (i.e., HOA conflicts or lease disagreements).
Takeaway: Demand letters can be used for a wide variety of disputes between parties. It is important to work with a lawyer to identify the exact legal issue and factual basis of your claim to make sure your letter is effective.
Question: If the demand letter isn’t successful, would you want to hire a lawyer for litigation?
Answer: Most clients say “Yes” to pursuing litigation if the demand letter isn’t successful.
Most clients said they would like to hire a lawyer to file a lawsuit if the demand letter isn’t successful in resolving the dispute. A smaller group says “No,” often because they want to avoid the costs.
Takeaway: Most clients are ready to file lawsuits, but use demand letters as a first step to resolve the dispute. A smaller group of clients understand lawsuits are costly and attempt to get to resolution using a demand letter, which is a much smaller cost.
Question: What docs or evidence do you have to support your claim?
Answer: Contracts, invoices, and written communications are the most common forms of evidence.
Most clients have a variety of evidence they can use to support their claims in the demand letter. The most common types of evidence include contracts, invoices, emails, and text messages. Other clients also say they have photographs, videos, receipts, and official reports (i.e., medical records, police reports, etc.).
Takeaway: Having strong evidence is critical and supporting your claim and most clients know exactly what they have before engaging a lawyer. It is best to organize all evidence to reduce fees related to hiring a lawyer – the more work you can do upfront, the better.
Question: Do you think the lawyer will need to do legal research to support the demand?
Answer: Most clients think legal research won’t be needed.
Most clients have the expectation that legal research will not be needed for their claims. This is likely true for straight forward claims. Some clients do have the expectation research will need to be done for things like specialized contracts, regulatory compliance, or novel claims.
Takeaway: Even if you think your case is simple, lawyers may need to do some research to make sure your claims stand on good footing. Keep this in mind when speaking to a lawyer about your matter.
Question: What State is the receiver in (party receiving the demand letter)?
Answer: California, Texas, Florida, and New York are the most states where demand letters are sent.
Clients hire lawyers to send demand letters nationwide, but the highest concentration goes to the largest economies in the US – California, Texas, Florida, and New York. Other states that have a high volume are Arizona, Georgia, Washington, Illinois, and Pennsylvania. Disputes are correlated with economic size and activity.
Takeaway: Demand letters are used in disputes across the country. The location of the recipient can matter for legal strategy because state laws and jurisdictional rules can affect how the letter is written and what happens next.
Final Thoughts on Demand Letters
Demand letters are great tools to resolve disputes and avoid the cost of filing a lawsuit. Clients that hire lawyers to send demand letters on their behalf often have organized evidence prepared, prior to engaging a lawyer.
Need help drafting or sending a demand letter?
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