How to Write a Formal Demand Payment Letter and Avoid a Lawsuit

By Patrick T Langley

Were you injured in a place of business because of negligence or an unsafe environment, received an injury that had to be treated, and have made the decision to file a claim to get compensation? If so, a formal demand payment letter should be your first step.

A demand letter is a short correspondence with a business or individual which gives them a chance to resolve an injury claim before it gets taken to court, and is highly recommended before any personal injury lawsuit. Trials are costly and time-consuming-for both parties-and some businesses would rather settle out of court then go through a lengthy lawsuit.

Demand letters are successful about a third of the time, but the key to increasing your odds of settling out of court lies in how you construct your demand.

Here are 5 steps to writing a formal demand payment letter:

1. Review. The very first thing you will want to do when writing a demand letter is to review the cause of your dispute. This is important not necessarily for the defendant, as they should already be familiar with the particulars of the case, but for the possible lawsuit in the future. The letter may be presented to the judge if it results in a trial, and the judge may not know the details of the disagreement, so a clear overview of the dispute is helpful.

2. Be polite. The last thing you want to do in your demand letter is put the defendant on the defensive. If you use harsh words or criticize the defendant, then they will most likely respond in a similar manner-making your attempt to settle out of court extremely unlikely. Also, you don't want to be perceived as antagonistic if a judge looks at the letter later.

Instead, try to come across as calm and professional, regardless of whether or not the defendant deserves harsh criticism. That way, hopefully the person will consider the business aspect of a lawsuit, such as the risks, costs, and time it takes to go to trial-not to mention the bad publicity.

3. Make it look professional. A defendant will not take a demand letter seriously if it doesn't look professional. If you want them to take your offer seriously, present it in a serious and professional way. Use a computer to type up the document, and include the name of the business, address, current date, and the name of the defendant. Remember to keep a copy for your records.

4. Enclose documentation and list witnesses. In your letter you will want to include the total cost of your injury (medical treatment, therapy, lost time at work, etc.), as well as any documentation and receipts proving your expenses. It is also be beneficial to provide a list of witnesses who observed the accident and are willing to testify in court on your behalf.

5. Threaten court action. Finally, you will want to conclude your demand letter by saying you intend to file a lawsuit against the defendant if your demands go unanswered. Remember to be polite, but also firm. It must be clear that this is their one and only offer to avoid a trial.

There is no length limit to a formal demand letter. However, the more clear and concise it is, the better. It generally should not be more than a couple pages. A letter that is brief and gets to the point will convey that you are serious about filing a lawsuit.

If your demand letter receives no response, or the defendant chooses not to settle out of court, then contact a personal injury attorney to take further legal action.

For common legal issues and practical tips on how you can handle those issues, please visit Lawteryx online legal guide.

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