What Should I Do If I Receive a Demand Letter?
Receiving a demand letter can be stressful, but it does not necessarily mean that a lawsuit has been filed or that the claims being asserted are valid. A demand letter is typically a written request asking a person or business to take a specific action, such as making a payment, correcting alleged defects, or resolving a dispute before litigation begins.
The first step is to carefully review the letter and determine what is being claimed. Pay close attention to any deadlines, the factual allegations being made, and the documents referenced in the letter. Ignoring a demand letter may make it more difficult to resolve the dispute and could increase the likelihood of litigation.
You should also gather and preserve relevant evidence, including contracts, change orders, invoices, photographs, emails, text messages, and other project records. These documents may help evaluate the merits of the claims and prepare an appropriate response.
In construction disputes, demand letters often involve allegations of unpaid invoices, defective workmanship, project delays, mechanic's liens, or violations of Ohio's Home Construction Service Suppliers Act (HCSSA) or Consumer Sales Practices Act (CSPA). The legal significance of the letter will depend on the nature of the claims and the supporting facts.
Before responding, consider consulting an attorney. Your communications could be used against you later if a claim is filed against you. An attorney can evaluate the claims, identify potential defenses, and help determine whether settlement discussions, a formal response, or other action is appropriate. A carefully prepared response may help resolve the dispute before a lawsuit becomes necessary.