Demand letters and dispute resolution

Demand letters and resolution

Before proceedings,
much remains to be done.

The demand letter is the first formal step in a dispute. It puts the debtor in default, sets the starting point for interest and damages, and is often a precondition to certain remedies.

It is also a strategic act. What it asserts binds you: an exaggerated claim, an unreasonable deadline or a badly worded threat will be turned against you before the court, and may itself amount to a fault.

The Code of Civil Procedure now requires parties to consider private dispute resolution before turning to the courts. Negotiation, mediation and arbitration are no longer marginal alternatives: they are the routes to examine first.

Three people in a mediation session in an office

What we do

Formalize,
then look for the exit.

Drafting the demand letter

Precise description of the default, legal basis, quantified claim, reasonable deadline and consequence of failure. Each element has its own legal effect.

Responding to a demand letter

Once received, it should be neither ignored nor improvised. Silence can amount to tacit admission in certain circumstances, and a clumsy reply fixes your position for the rest of the file.

Structured negotiation

Discussions without prejudice, written settlement, release and confidentiality. A poorly drafted agreement reopens the file instead of closing it.

Mediation

A neutral third party helps the parties find a solution. The process is confidential and the resulting agreement can be homologated to become enforceable.

Arbitration

Where the contract provides for it or the parties agree. The arbitral award is final and enforceable, with very limited grounds of review.

Settlement and release

The document ending the dispute must cover everything that could flow from it. A partial release leaves the door open to a second file.

Services

Drafting demand letters
Responding to a demand letter received
Settlement negotiation
Settlement agreements and releases
Payment arrangements

Frequently asked questions

What we are asked most.

Is a demand letter required before suing?

Not always, but it is required in several situations and is almost always useful. The Civil Code also provides for cases of default by operation of law, where the mere passage of time suffices.

What deadline should a demand letter give?

A reasonable one in light of what is being asked. Ten days for a payment is common; the same deadline for major corrective work would be unreasonable and would weaken your position.

Can I write my own demand letter?

Nothing prevents it. The risk is asserting inaccurate facts, claiming an indefensible amount or using threats that amount to a fault. Those errors then sit in the court record.

Is mediation confidential?

Yes. What is said there cannot in principle be invoked later before the court, which allows the parties to speak frankly without compromising their position.

The underlying text: the demand letter, your first strategic move. Where the debtor is in difficulty, see your client goes bankrupt, the remedies you have left.