People ask, what is a demand letter and what’s the point of it? Well, a demand letter is something you send to the wrongdoer to say, hey, here’s where I’ve been wronged and here’s how much I want to be paid so that I don’t ﬁle suit. Now, many clients, when they’re just getting started, are very emotional. They feel they’ve been wronged and they want to ﬁle suit immediately. I always advise against it and I will always send a demand letter. And there’s a few reasons why.
First, the person or company you’re suing may have insurance, and what will happen is they’ll get this letter and hand it over to their insurance company. Honestly, it’s a lot easier to work with an insurance company than someone without. It’ll also show whether or not they may have assets worth protecting. If they answer my letter and get insurance involved, that means they’re willing to work out a deal. If they don’t, then maybe we’ll have to ﬁle suit and get what’s called a default judgment if they don’t show up.
Another reason for ﬁling a demand letter is to put everyone on notice, hopefully to work things out. Lawsuits actually cost a ton of money, and even more than that, they cost time and can be very stressful to go through the entire process because as the plaintiff, you have to prove everything. That means you have to show that the defendant caused the damage and that that damage caused you harm. A lot of this can be avoided with a simple demand letter and a settlement with an insurance company.
Finally, the demand letter gives the defendant the last clear chance to put everything behind them. It puts them on notice of what’s coming, so they can’t, in about a year later say, I never knew that this was an issue. I would have just paid you. It can avoid a lot of headaches, it can get the right people to the table, and it can get you a settlement faster than simply ﬁling a very expensive lawsuit. That can take a lot of time.
Thanks. And if you have any questions, call me at 440-940-6443 or email me at [email protected].
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