A demand letter is a formal written request one party sends to another. It outlines a grievance (usually money-related), requests resolution, and serves as a formal notice that you may take legal steps if the matter is not resolved.
A lack of response is frustrating and worrisome, especially when legal action is on the line. In this article, we’ll explain how to protect your interests, what legal actions you can take, common reasons for not responding, and what the recipient risks by ignoring your demand letter.
Why Is a Response to a Demand Letter Important?
The recipient’s response is crucial because it creates a space to resolve the issue without litigation. Responding to a demand letter allows both parties to communicate directly, address the grievance, and negotiate a resolution.
For example, demand letters can be related to a missed debt payment, unpaid rent, breach of contract disputes, personal injury demands, or property disputes.
Demand letters are often the first step in resolving disputes, saving both sides time, money, and stress. However, if the recipient fails to respond, the situation can escalate, leading to more aggressive legal actions. Responding to a demand letter can also be evidence in a potential lawsuit.
Common Reasons for No Response to a Demand Letter
There are several reasons why the person or business may not respond to a demand letter:
- Law – The recipient has no legal requirement to respond, although they may suffer legal consequences such as litigation, or weakening their case if they fail to show good faith.
- Misunderstandings – The other party did not understand why they were supposed to pay you a certain amount or perform an action, or it wasn’t stated enough. They may also not understand your intent to sue.
- Delays – Some recipients hope that you will give up and won’t pursue further action. They may also be buying time until they decide on their next move.
- Avoidance – They ignore the letter or dispute its content as they consider the amount of money you seek too high, feel offended, or believe there is no reason they should pay or complete the request.
Understanding the reason behind the lack of response can help you make an informed choice about your next steps.
Next Steps to Take if There Is No Response
If the recipient doesn’t respond to your demand letter, you can use other legal tools to pressure them into settling the issue:
- Contact an attorney – Seek legal advice from a lawyer specialized in your type of case (e.g., personal injury). They can review your case and the communication between you and the other person and suggest legal action.
- Send a follow-up letter – Send a follow-up letter via certified mail so you have evidence that the letter has been delivered.
- File a lawsuit – If there’s no response to the second letter, you may need to resolve the dispute by filing a formal complaint and submitting it to the appropriate court.
Document all attempts at communication throughout the process, as it can serve as evidence in court. This includes:
- Letters
- Emails
- Phone calls
- Text messages
- Any other form of communication
This documentation will strengthen your case when you decide to file a lawsuit. It will show the judge that you made attempts to communicate and resolve the issue amicably while the other person failed to respond.
Potential Legal Actions After No Response
If you decide to take legal action, there are two paths you can take. After you consult your lawyer, you can file a lawsuit or pursue arbitration. When you file a lawsuit, you present your case in court and demand financial compensation or the enforcement of a contract.
If your lawsuit succeeds, the non-responding party will be liable for the damages and court costs, attorney fees, and interest on the debt. Moreover, the court may enforce the judgment through wage garnishment, property liens, freezing bank accounts, or seizing funds. In addition, the court may issue a default judgment in your favor.
You can also pursue arbitration, which is usually faster and less formal. During arbitration, a neutral third party reviews the evidence and arguments presented by both sides and makes a binding decision. This is also the more affordable option often used in contractual disputes.
How an Attorney Can Help in These Situations
Lawyers can help their clients write demand letters protecting their interests if they escalate the dispute further. They can aid you by sending a more formal follow-up, preparing a lawsuit, or suggesting alternative dispute resolution methods.
They can also offer legal advice, help with negotiations, and craft responses while ensuring you avoid costly and unnecessary moves.
Secure Expert Legal Counsel!
While a lack of response to a demand letter can be frustrating, there are clear steps you can take to move the issue forward. A Chicago personal injury attorney from Rosenfeld Injury Lawyers can help you choose the best course of action, whether sending a follow-up letter, pursuing legal action, or considering arbitration.
Call us at (888)424-5757 to book a free consultation and understand your legal rights.