Why Should You Write a Demand Letter and Not File a Lawsuit?

  • 11 months   ago

Well, it is always said to trust your gut, and I know at this moment you want to rush to the court and sue the opposition: Just stop! Not that your gut is wrong, but this time it’s not your gut’s intuition but your raging anger that is making you feel the urgency.

Not being paid for longer periods can really piss you off but you can’t let it take over your intelligence. Things can be done in a more systematic way and results can be achieved without actually filing a lawsuit. How? Via a well-drafted demand letter. Why? Because



1.     A lawsuit is a lot more hassle than expected

Filling a lawsuit means you are calling in for a healthy ordeal. Even if you avoid hiring an advocate or attorney and represent yourself, you must understand the complexity involved. The majority of your human resources will be invested in filling complaints, court hearings, collecting evidence, filing and opposing motions, infact, even you will also be trapped amidst the depositions. Trust me, somewhere in between this tiresome process, you will be compelled to doubt your decision.

Thus, it’s always wise to settle the matter with a demand letter. Ofcourse, if the demand letter doesn’t serve the purpose, you need to knock the legal doors but until then why invite the trouble?

2.    Your opponent doesn’t want to drag the matter to the court

Ofcourse no one wants a lawsuit and naturally, your opposition doesn’t want it either. But what made me add this as a separate point to our list? To remind you, that we are all HUMANS. Sometimes, some parties honestly forget about unpaid invoices and it is nothing but an honest mistake. All they need is a reminder to make the payment.

A formal demand letter comes exactly with that. It is polite, asks right for what you want, and claims the necessary intensity on your reminder.

3.     Attorneys are NOT so affordable

We all know that hiring an attorney means finances can get really out of control (sometimes). If they take charge of everything, that lists from consultations, filing complaints, gathering evidence, filing motions and much more: be prepared for a big-fat hole in your pocket.

When in litigation, it is, ofcourse, possible to represent yourself but it is not recommended. To turn the lawsuit to your favour, expertise and experience cannot be compromised. On the other hand, what if I tell you there’s a much easier route, wouldn’t you grab it right away? Well, here it is -

Draft and send a demand letter to your opposition. In some cases, when people really intend to hire an attorney, it is also recommended that you hire their services for drafting the letter. It can prove to be extremely useful.

4.     There is no such guarantee

We have had arguments in the past saying that demand letters do not come with a guarantee, so why choose them over litigation? Here’s the answer: even if you are entirely right, there is still no guarantee that in the court that the decision will be in your favor. You see, once the case goes to trial, there is a substantial influence of the outside factors, which you cannot control.

From witness’s testimonies to the opposition which makes your key evidence inadmissible in the court, you cannot really challenge, overcome or even question such factors. In a way, it is like you are leaving your fate in the hands of a judge, or jury, or any other honourable panel. However, a formal demand letter isn’t completely dependent. You control your requests and demand for your money/property in a fair and reasonable manner.

Final word.

The matter of this content piece was not against jurisdiction and litigation, it was a simple opinion on a large-scale observation that says: lawsuits are extreme measures of any discussion, there are other simple and effective ways available to extract ideal outcome. One out of them is demand letters. They have a credible history of collecting payments in a subtle way without hampering future transactions with your clients. Contact a pre-collection service and get a final demand letter notice for yourself.

Our justice department is always available and you can still approach them if the demand letters don’t serve the purpose. However, I am sure if put-to-use right, you wouldn’t have to disturb your daily course of action with legal battles.