Every now and then, someone calls us up with a familiar script:
“I need a business litigation lawyer. But I don’t want to sue. I just want you to send a strong letter. That should do it.”
We get it. Lawsuits are expensive. Emotional. Public. Messy. So the idea of a well-crafted demand letter that scares the other side into paying up? Sounds good.
Unfortunately, it almost never works like that—especially in commercial litigation.
We’re not saying demand letters are useless. But we are saying this:
We only write demand letters if we’re ready to sue on them. And if you’re not ready to sue, you probably shouldn’t send one at all.
Let’s break down why.
1. Demand Letters Are a Test of Resolve—And Every Commercial Litigation Attorney Knows It
When you represent both plaintiffs and defendants—as we do at Equal Justice Solutions—you see the other side’s playbook up close.
And here’s the truth:
The first thing a defense lawyer or company asks when they receive a demand letter is, “Are they actually going to sue?”
If the answer is probably not, you’ve already lost leverage. You’ve told them—without saying it—that you’re hoping to settle without going to war.
Guess what happens next?
- They ignore it.
- They offer a token amount.
- They slow-walk you with “we’ll get back to you” stall tactics.
- They assume you’ll flame out.
And they’re not wrong to think that way. Because in our experience, at least a third to half of demand letters are bluffs. No client funds a full lawsuit. No lawyer files it. It fizzles.
So why would they treat your letter seriously?
2. Demand Letters Rarely Yield What Clients Want
If you’re thinking a letter will get you six or seven figures—especially in a business litigation dispute—you’re in for disappointment.
Most of the time, here’s what happens:
- We send the letter.
- The other side either ignores it or offers a lowball amount.
- You (the client) are frustrated by the number.
- We go back and forth, and nothing really changes.
- You’ve wasted 3–5 months—and you haven’t even filed the complaint yet.
You’re already emotionally and financially fatigued before you’ve even made it to the starting line.
Litigation is a marathon. And you’ve just worn yourself out pacing in the parking lot.
And yes—cards on the table—I once settled a case for $3.9 million off a demand letter.
But here’s why it worked: the facts were scorching. The other side had been caught red-handed in serious misconduct after a forensic investigation. We had a prior settlement agreement in place—one they blatantly breached.
We didn’t just threaten litigation—we were ready to sue. In fact, we were preparing to move for expedited injunctive relief—an emergency proceeding that would’ve put them in court within days.
That’s not a typical demand letter. That was a lit fuse next to a gas can.
It worked because it was credible. And it’s rare.
3. You Can’t Build Leverage Without Litigation
Let’s be blunt: Demand letters don’t create real pressure. Lawsuits do.
- Lawsuits create court deadlines.
- Lawsuits trigger insurance reporting.
- Lawsuits impose real legal costs.
- Lawsuits get people’s attention.
In many cases, the only thing that moves a commercial defendant is seeing a case survive a motion to dismiss. That’s when they know you’re serious. That’s when they re-evaluate.
Until then? It’s all vibes.
Business Defendants Are Trained to Ignore Letters
You have to understand the broader context.
Institutional defendants (especially companies, insurers, or funds) operate on a pendulum:
- Sometimes they pay to make things go away—until they feel like they’re paying too much.
- Then they get tough, fight everything, and let litigation bills balloon.
- Then they get hit with a big verdict and swing back toward early settlements.
- Then they over-settle again—and it swings back.
It’s a cycle. And if you hit them at the “we’re playing hardball” phase, your demand letter goes straight in the trash.
Unless there’s an immediate, concrete risk—like a pending funding round, merger, or public scandal—your letter won’t scare them.
5. We’re a Litigation Shop, Not a Letter Mill
Some firms make their money writing demand letters that go nowhere. That’s not us.
Equal Justice Solutions is a commercial litigation firm that litigates.
We’re selective. We do strategy first. And we don’t want our brand diluted by firing off letters for clients who aren’t ready to take the next step.
That doesn’t mean demand letters are useless. There are exceptions.
- If the other side does care about PR, especially in the startup, finance, or social impact world.
- If there’s a clear reputational risk, or a deal on the line.
- If there’s already been pre-suit negotiation and you’re confirming terms in writing.
Yes—we’ve gotten high five-figure and even low six-figure settlements on letters.
But that’s rare. And it’s not something you should bank on.
So… When Do We Send a Demand Letter?
Simple:
When we’re fully prepared to sue within 14 days if the letter doesn’t work.
Not threatening to sue. Actually suing.
That’s what makes the letter real. That’s what makes it land.
If you’re not ready for that? Then it’s probably best to hold off and save your powder.
Final Word from a Business Litigation Lawyer
We get that demand letters seem efficient. But commercial litigation isn’t efficient by nature.
It’s strategic. It’s emotional. It’s adversarial.
And if you’re serious about getting a result, you have to be willing to litigate.
Otherwise, all you’re sending is expensive stationery.
If you’re ready to actually take action—not just talk about it—then we’ll fight for you.
We’re Equal Justice Solutions. We’re business litigation lawyers who tell the truth.
Even when it’s not what you wanted to hear.
Let’s talk.