The Business Owner's Guide to Pre-Suit Demands in order to achieve Litigation Avoidance - Hackstaff, Snow, Atkinson & Griess, LLC

The Business Owner’s Guide to Pre-Suit Demands in order to achieve Litigation Avoidance

lawsuit No matter what type of business you own or run, you know that staying on top of your accounts receivables is imperative to your success. When one or more of your clients or consumers doesnt pay an invoice, it can quickly and severely hurt your business. Perhaps youve already done your best to contact them and politely ask for payment, and youve been put off or ignored. You simply want to be paid for the services or goods your company provided; you dont want to invite drama or waste your valuable time or money. The good news is that you have options that may not even involve going to court. Not all disputes need to go before a judge or jury; some can be settled with a simple letter. 

Using a Pre-Suit Demand Letter 

There are several different ways you can attempt to settle a financial dispute other than filing a lawsuit; one of the most effective ways is through a pre-suit demand letter. Typically, an attorney drafts this formal letter on your behalf. It informs the party you are in dispute with or their attorney (if they are represented by one) that they need to take action on this issue. Pre-suit demand letters usually firmly and succinctly detail: 

  • The nature of the debt is supported by copies of any documents establishing the basis for the debt 
  • The sender’s position on the matter 
  • A proposed resolution method—usually a monetary payment or for the receiver to stop doing something 
  • A deadline for the receiver to act on the proposed resolution or to contact the sender and work out another resolution 

The Benefits of Sending a Pre-Suit Demand Letter 

Pre-suit demand letters have many benefits. They can significantly decrease the amount of time required to settle a dispute. While some lawsuits take a year or more to conclude, an effective demand letter could bring the issue to a close within a matter of weeks. Without the need to pursue litigation, pre-suit demand letters also save thousands of dollars in legal expenses.  

Other potential benefits of these letters include: 

  • Discovering whether the other party’s lawyer is good at legal research and writing 
  • Finding out who is legally representing them 
  • Providing the other party and their attorney an opportunity to view the matter from your perspective 

What Happens Next? 

About 90 percent of pre-suit demand letters receive a response from the receiver or their attorney. Their response helps the sender understand the dynamics of the issue from the receiver’s viewpoint, which can also help resolve the matter. The dispute can often be resolved by a phone call or two between each party’s attorney. 

If you don’t receive a response, it generally means either the other party: 

  • Isn’t willing to work with you to resolve the matter without litigation 
  • Isn’t paying attention to your dispute 

In these cases, your lawyer can advise you as to the next best steps. Typically, this means if the other party doesn’t act within the deadline given in the letter, your attorney will help you file a lawsuit against them to recover what you are owed. 

Do You Need to Settle an Account but Want to Avoid Lengthy and Costly Litigation? Call Hackstaff Snow Atkinson & Griess Today 

At Hackstaff Snow Atkinson & Griess, we understand how unpaid invoices can impact your company and the concern they cause. Our experienced attorneys have the talent and experience to draft and send effective pre-suit demand letters. We can save you time, money, and hassle by sending such letters. If a letter doesn’t bring your legal matter to a close by chance, they aren’t afraid to litigate on your behalf. Give our office a call today to learn more about how we can help.