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Writing a Demand Letter That Gets Results
by Ralph Warner
Copyright © 1994 Nolo Press
In the 16 years Nolo has published Everybody's Guide to Small Claims
Court,
readers have sent in hundreds of small claims success stories. One
thing has
particularly delighted us: Many self-proclaimed winners never filed a
small
claims case in the first place.
These readers followed Nolo's advice that before going to court it's
wise to
write the other party a clear, concise letter demanding payment. As a
result,
many readers received all or most of what they asked for.
That a simple letter can be so effective may seem almost too good to be
true,
especially if you have unsuccessfully argued with your adversary in
person or
over the phone. But a letter works in as many as one-third of all cases,
probably
because in the legal context the written word is far more powerful than
speech.
To see why, think about the times you have found yourself embroiled in
heated
consumer dispute. After angry words were exchanged--maybe even including
your
threat of a lawsuit--what happened next? Chances are, nothing. For all
sorts of
reasons, from a death in the family to the chance to take a vacation, to
simply
not having enough time, you didn't pursue the claim.
People expect that. But things change if you write a letter, laying out
the
reasons why the other party owes you money and stating that if you fail
to get
satisfaction, you plan to go to small claims court pronto. Now, instead
of being
just another cranky face on the other side of the counter or a voice on
the
phone, you and your dispute take on a sobering realness.
For the first time, the other party must confront the likelihood that
you won't
simply go away, but plan to have your day in court. And they must face
the fact
that they will have to expend time and energy to publicly defend their
position.
If your position has at least some merit, the chances that the other
party will
be willing to pay at least a portion of what you ask just went way up.
Writing the Letter
Making a demand for payment before filing suit is recommended by most
small
claims courts and required by a few. Here are some pointers to keep in
mind.
- In your letter, review the history of the dispute. At first
this may seem a bit odd; after all, your opponent knows the story. But
remember
that if you end up in court, the letter will be read by a judge who
doesn't know
the facts of your dispute.
- Be polite. You catch more flies with honey than by hitting them
over the head
with a mallet. Absolutely avoid personally attacking your adversary
(even one who
deserves it). The more annoying you are, the more you invite the other
person to
respond in a similarly angry vein. You want the other person to instead
adopt a
business-like analysis: what are my risks of losing, how much time will
a defense
take, do I want the dispute to be made public? Hopefully, the other
party will
decide it makes sense to compromise.
- Use a typewriter or computer and keep a copy.
- Say exactly what you want. Ask for a specific amount of money to be
paid by a
set date, or for the other person to do something, such as fix a
botched home
repair job.
- Conclude by stating that you will file in small claims court if
your demand
is not met.
Side Bar--Sample Letter
Tucker's Fix-It-Quick Garage
9938 Main St.
Chicago, IL 61390
Dear Mr. Tucker,
On May 21, 19xx, I took my car to your garage for servicing. Shortly
after
picking it up the next day, the engine caught fire because of your
failure to
properly tighten the fuel line to the fuel injector. Fortunately, I was
able to
douse the fire without injury.
As a direct result of the fire, I paid the ABC garage $681 for necessary
repair
work. I enclose a copy of their invoice.
In addition, as a direct result of the fire, I was without the use of my
car for
three days and had to rent a car to get to work. I enclose an invoice
for the
rental cost of $145.
In a recent phone conversation you claimed that the fire wasn't the
result of
your negligence and would have happened anyway. And even if it was your
fault, I
should have brought my car back to your garage so you could have fixed
it at a
lower cost.
As to the first issue, Peter Klein of the ABC Garage is prepared to
testify in
court that the fire occurred because the fuel line was not properly
connected to
the fuel injector.
Second, I had no obligation to return the car to you for further repair.
I had
the damage you caused repaired at a commercially reasonable price and am
prepared
to prove this with several higher estimates by other garages.
Please send me a check or money order for $826 on or before July 15. If
I don't
receive payment by that date, I'll promptly file this case in small
claims
court.
You may reach me during the day at 555-2857 or in the evenings until 10
p.m. at
555-8967.
Sincerely,
Marsha Rizzoli
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