What is a "Demand Letter"?

If you are owed a sum of money or have otherwise been damaged by an adverse party, you can sue the adverse party to recover the owed money and/or other damages. Lawsuits typically require engaging an attorney and can take a significant amount of time though.

An intermediate option is a demand letter. Demand letters aren’t magical. In other words, just because an attorney puts words on their letterhead does not guarantee that you will immediately get the result you are seeking.

But a well-drafted letter including factual and legal support that “demands” a result by a certain deadline and states the potential consequences of non-compliance (“or else”) can be an effective pre-litigation tool. And demand letters are usually less expensive than litigation and provide the opportunity for resolution on a much shorter timeframe.

There is an added incentive for a party receiving a demand letter to pay if your issue triggers Louisiana’s Open Account statute. Under the Open Account statute, if an adverse party does not pay a debt within 30 days of written notice, it can be responsible for attorney’s fees in addition to the debt.

If nothing else, demand letters can initiate settlement discussions to keep you out of court.