A letter of demand before a claim: when it works and when it harms
The letter of demand in a 30-second video
Video transcript
Before you sue: 3 things about a letter of demand. The law does not require you to send a letter of demand before suing, but when awarding costs, the court looks at who tried to resolve the dispute. A good letter fixes a date, commits the other side to a position, and sometimes ends the dispute before it has even begun. Where there is a risk of assets being spirited away, advance warning does harm, and the right step is an application for interim relief, not a letter.
In brief
The law does not require a letter of demand before filing a claim, but when costs are awarded, the court looks at who tried to resolve the dispute. A good letter fixes a date and forces the other side to take a position, and sometimes ends the dispute before it has begun. Where there is a risk that assets will be spirited away, the right step is an application for interim relief, not a letter.
For the full explanation: Letter of demand before suing: when it works and when it backfires. A good letter of demand can end a dispute within two weeks. A hasty one can expose your line of argument, give the other side time to prepare, and cost money later on.
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