A Surprise in the Mail

You received a letter of demand. Now what?

In some ways it is almost inevitable that, if you work or deal with large amounts of money or valuable property, you will at some point need to respond to people asserting rights against you. Usually, the person sending the letter of demand is seeking to let you know that if the demand is ignored litigation will follow. If the letter of demand is poorly worded, and inadequate to substantiate the case against you then that is something that you could potentially more easily deal with. However, when you receive a letter of demand that is clearly articulated and supports the contentions relied upon with documentary evidence your task in responding will be more difficult.

Dealing with the Demands

Ultimately, the decision about how to respond to demands is yours. It will probably help your case if you get prompt advice from a suitably qualified and experienced lawyer about your rights. An astute lawyer will parse the case against you very carefully by, among other, exploring both technical and substantive defences with reference to: -

  • Whether or not the correct entity is being threatened;
  • The rights underlying the demand to see if the demand is supported. (This means getting the contracts and facts to understand the cause of action e.g. a breach of contract case);
  • Seeing if the demand is accurate in terms of its calculations by perhaps getting an accountant to check the accuracy of amounts sought against invoices and interest calculations;
  • Clarifying whether any urgent relief will be sought and, if so, how that can be opposed by perhaps asking for undertakings;
  • Any counter-claims, set-offs and the like that may be raised.

Give Them Pause

Once it is clear what grounds can be relied upon, if any, to oppose the demand a well worded response is called for and that can be drafted by your litigation lawyers. In many cases a comprehensive response will give the other side pause and something to think about before they take their next step. In some cases the response to the letter of demand could be the end of the matter if your defence comprehensively deals with the allegations against you. However, in some cases litigation is inevitable in which case you are better off being well guided along the way (as opposed to trying to correct track).

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