When to Use Demand Letters in Civil Litigation
In civil litigation, demand letters are key tools for persuasion, documentation, and sometimes warning. Whether the matter involves unpaid debts, a breach of contract, property damage, or business disputes, a demand letter may set the tone for what follows.
It provides notice to the opposing party that legal action is being considered and gives them the opportunity to respond before more formal steps are taken.
At Garcia & Ramires, PLLC, located in Dallas-Fort Worth, Texas, we often remind our clients that one of the most important first steps in civil litigation isn’t the filing of a lawsuit—it’s the demand letter. This document can open the door to resolution, clarify misunderstandings, and even save time and money for everyone involved.
Here, we’ll explain how demand letters work under Texas law, what they should include, when they’re appropriate, and how they shape the early stages of civil litigation.
What Does a Demand Letter Do?
A demand letter serves multiple purposes in civil litigation. First, it outlines the nature of the dispute, the harm that occurred, and what the sender expects as a resolution. This isn’t just about posturing. A well-crafted demand letter can lay the foundation for recovery or settlement.
In Texas, courts often appreciate when parties attempt to resolve matters before rushing into court. In some types of civil litigation, such as those governed by the Texas Deceptive Trade Practices Act (DTPA), sending a demand letter is actually a legal prerequisite to filing a lawsuit.
Even when not required, it often helps to show the court that reasonable efforts were made to settle the dispute before litigation began.
When to Use a Demand Letter in Civil Litigation
A lawyer may use demand letters in a variety of civil litigation matters. They are especially useful when the opposing party may not be fully aware of the harm they caused, or when there’s still a possibility of resolution without court involvement. In Texas, demand letters are commonly used in the following situations:
Breach of contract cases
Unpaid invoices or promissory notes
Personal injury claims (before filing a lawsuit)
Business disputes between partners or vendors
Consumer fraud or misrepresentation
Landlord-tenant disputes
Property damage
Employment disputes, such as unpaid wages or wrongful termination
Construction-related disagreements
Insurance claim denials
In each of these scenarios, a demand letter can document the complaint, give the other party a chance to respond, and potentially avoid the cost and time of formal civil litigation.
What Makes a Demand Letter Effective?
There is no formal legal template for a demand letter under Texas law. However, certain elements make a demand letter more effective, especially if it becomes part of a civil litigation case later. Here are some items you should consider including to strengthen a demand letter.
Persons involved: Clear identification of the parties involved
Statement of facts: What happened, when, and why it’s legally relevant
Description of damages or injuries: Including financial loss, inconvenience, or harm
Specific demand: Whether it’s payment, contract fulfillment, or some other resolution
Deadline for response: Giving the recipient a fair time frame to comply or reply
Warning of potential legal action: If the demand isn’t met
Contact information: So the recipient knows how to respond
A lawyer may also attach relevant documents like invoices, contracts, photographs, or repair estimates when they support the claim. These can add credibility to the request and make the demand harder to ignore.
Why Demand Letters Matter in Texas Civil Litigation
Under Texas law, demand letters aren’t just a formality; they serve strategic and procedural purposes in civil litigation. For instance, in a Texas Deceptive Trade Practices Act (DTPA) case, the law requires a consumer to send a 60-day notice letter before suing. Failing to do so can result in losing the right to recover attorney’s fees or even dismissal of the case.
Additionally, a demand letter often becomes part of the evidence if litigation proceeds. The courts may view a demand letter as evidence that the plaintiff attempted to settle the matter reasonably. Conversely, a poorly written or aggressive letter might backfire, appearing more like a threat than a good-faith effort to resolve a problem.
A lawyer understands how a well-drafted demand letter can set the stage for a favorable settlement and can help you use them to start the conversation on your terms. Often, well-structured demand letters can help avoid litigation altogether when the letter prompts a response and resolution.
Risks of Sending a Demand Letter Without Counsel
Sometimes, clients may try to send demand letters on their own. While Texas law doesn’t require a lawyer to send one, it’s important to recognize that anything written in the letter could later be used in court.
Poor wording, incorrect facts, or demands that exceed legal limits can weaken a future civil litigation case. For example, threatening criminal prosecution to force a civil settlement isn’t allowed and could invalidate the entire letter. Similarly, making exaggerated claims or demands that aren’t supported by evidence can reduce credibility.
When a lawyer writes a demand letter, they tailor it to the facts and the law. A lawyer can help you maintain a professional tone, support the demand with documentation, and leave room for negotiation. The goal is to show seriousness while remaining open to resolution.
How Recipients Typically Respond
Demand letters don’t always result in immediate resolution, but they often trigger movement. Once the recipient realizes legal action is a possibility, they may contact us to negotiate or settle the dispute. Commonly, the responses you receive will generally fall into one of three categories:
Compliance: The recipient agrees to the demand, pays the amount, or corrects the problem.
Negotiation: The recipient doesn’t fully agree but is willing to talk and resolve the matter informally.
Rejection or no response: The recipient ignores the letter or denies any wrongdoing, often leading to a lawsuit.
Regardless of the reaction, the demand letter helps frame the conversation. It establishes a timeline, documents the initial attempt to settle, and can show that the plaintiff acted in good faith—something Texas courts appreciate in civil litigation proceedings.
Advantages of Using Demand Letters in Civil Litigation
From our experience at Garcia & Ramires, PLLC, using demand letters often provides significant benefits. While the specific benefits can vary depending on your case, some of the key advantages include the following.
They may resolve disputes before formal litigation begins.
They preserve relationships by offering a less confrontational start.
They provide written records of the claim and response.
They show courts that a fair warning was given.
They can influence settlement terms in future negotiations.
They create a starting point for further legal action.
They keep clients informed and engaged with the legal process.
They allow for strategic planning before filing suit.
They sometimes expose the opposing party’s willingness to settle.
They reduce unnecessary costs associated with litigation.
These advantages make demand letters a decisive first move in civil litigation, especially when used with thoughtful preparation and legal knowledge. Although demand letters are practical tools, there are situations where they may not be helpful.
In cases involving emergency relief, such as a temporary restraining order or injunction, immediate court action may be necessary. Similarly, in disputes where time-sensitive evidence could be destroyed or altered, a delay in sending a demand letter could hurt the case.
Contact a Civil Litigation Attorney Today
Sending a demand letter can be a strategic tool to help resolve your legal matters. However, it's important to make sure your letter is legally sound and strong to maximize your chances of a successful outcome. At Garcia & Ramires, PLLC, we believe in using demand letters as strategic entry points into civil litigation.
If you find yourself in need of a lawyer, don't hesitate to contact us. With offices in Arlington, Fort Worth, and Dallas, Texas, we serve clients throughout the surrounding areas. Contact us today to schedule a consultation.
