What to Do When You Receive a Demand Letter

Imagine the scenario: You receive an official-looking letter written on law firm stationary claiming that you are at fault for someone else’s injuries. The letter takes an accusatory tone, backing up its assertions with citations to a myriad statutes and other laws with which you may or may not be familiar. Receiving a demand letter such as this can be dread-inducing for any individual or business. If you’ve received a demand letter, a North Carolina personal injury defense attorney can help you defend your interests. 

Why You Might Get a Demand Letter

Demand letters are what they sound like — official demands from a party seeking redress for a perceived wrong on the part of the recipient. They can be used in a variety of ways, including to seek to enforce the terms of a contract, to alert the recipient to alleged intellectual property infringement, or, in personal injury cases, to seek compensation for an injury for which the sender believes the recipient to be at fault. While anyone can receive a demand letter, business owners — especially owners of high-volume public-facing businesses — are especially likely to receive them. 

What a Demand Letter Is Not 

A demand letter is not a complaint. Receiving one does not mean you are being sued (at least not yet, anyway). While a demand letter is often the first step in the litigation process, it does not mean that any legal action has been taken against you. The purpose of a demand letter is to alert you to the existence of a potential claim and open the door to negotiations to resolve the dispute. Even if a demand letter does not mean you are being sued, it means you might be sued; as such, you should consider contacting a North Carolina personal injury defense attorney if you receive one.

Typical Contents of a Demand Letter

Every demand letter is different, but they all follow a similar formula, depending on the area of law at issue. For example, a particularly detailed personal injury demand letter might have the following elements: 

1. The identity and contact information of the injured party 
2. A description of the events behind the letter (i.e., the accident) 
3. A discussion of the defendant’s liability for the accident, which may include citations to state statutes and case law 
4. A description of the injuries the person suffered 
5. A list of medical treatments the person underwent
6. An accounting of the person’s lost income 
7. A formal demand or offer of settlement
8. A promise to sue if the demand is not met 
9. A deadline to respond 

Many demand letters also include evidence attachments. In the personal injury context, these could include photos of the injuries and/or property damage, witness statements, and medical bills. 

Steps for Dealing With a Demand Letter

The most important thing to do if you receive a demand letter is to not panic. Remember, you are not being sued. The demand letter contains only the injured party’s version of events, which may or may not be enough to give rise to a cause of action. You won’t know how meritorious the allegations in the letter are until you have a North Carolina personal injury defense attorney look it over. 

Don’t Ignore the Letter 

First, do not ignore the demand letter. The fact that the injured party cared enough to hire an attorney to prepare and send the letter means that they are serious about their claim and are likely to take legal action if they don’t hear from you. Furthermore, the demand letter will likely be an exhibit in future litigation, and your refusal to negotiate in good faith will be used against you. 

Verify the Letter’s Legitimacy 

Unfortunately, fraudulent demand letters are not uncommon. If you receive a demand letter, verify the identity of (a) the injured party and (b) the attorney who drafted and sent it, as well as his or her firm. Under no circumstances should you send money to the sender without at least doing your due diligence on them. 

Assess the Facts 

Most demand letters contain a factual summary of the events giving rise to the letter. Check the sender’s version of the facts against your own memory of them, as well as the memory of others who may have witnessed the events. While plaintiffs’ attorneys do not lie, they cast the events in the light most favorable to their clients, which may or may not be accurate. 

Document Everything 

Don’t just rely on your memory and the memories of witnesses. Gather evidence. If you have video footage of the incident in question, make sure to preserve it. Take photographs of the area in which the accident occurred. Ask witnesses to provide preliminary statements attesting to their version of events. 

Weigh Your Options 

You have several options for responding to a demand letter. You could comply with the sender’s demand as-is, try to negotiate for a different amount, or fight the allegations in court, among others. In some cases, you might even be about to mount a counterclaim against the sender. However, all of those options cost time and money to varying degrees. Decide what is most important to you — fighting the allegations or making them go away as quickly as possible? 

Draft a Response 

Regardless of what you choose to do, you should at least respond to the demand letter within the requested time frame. While you do not need an attorney to draft a response, you should strongly consider hiring one, as an attorney will be able to respond to the sender’s allegations most forcefully. 

Speak to a North Carolina Personal Injury Defense Attorney if You Have Received a Demand Letter 

Time is of the essence if you have received a demand letter. The best way to protect your interests is to hire an experienced attorney who can evaluate the merits of the sender’s claims and draft an effective response. To get started, please contact a North Carolina personal injury defense attorney at Harris, Creech, Ward & Blackerby by calling 252-638-6666 or using our online contact form.