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Don't Lose Your Case Before It Starts

5 Simple Steps to Take Before Responding to a Demand Letter

 

August 1, 2011 | By Joseph H. Langerak IV

Joseph H. Langerak IV        812-422-9444         jhl@rfpj.com

Lawyers often send letters to individuals and businesses wronged by their clients. The responses received or not received often dictate how the case is handled and even how it is ultimately resolved. The irate business owner that responds to the lawyer often times provides so much information while he tells "his side" of the story that by the time he is done the lawyer's case is essentially complete. Five simple steps can help you avoid giving that lawyer the ammunition she needs to win their case all because of a response to a letter.

1. Read It; Don't Ignore It.

Whether it comes by Certified Mail or U.S. Mail, Federal Express or hand-delivery, read that letter the day you receive it. There is likely going to be a deadline to do something or contact someone. You do not want to miss an opportunity to resolve an issue before it moves to the next step: litigation. The letter is going to tell you exactly what is wanted of you and the circumstances that caused the lawyer to reach out to you on behalf of her client. After you are done reading it, put it down and read it again. After you have read it a second time, now is not the opportunity to simply ignore the problem because you do not believe what they are saying is accurate. You need to determine what your time-frame is to respond to the letter. More importantly, the response should not likely come from you.

2. Don't Google It.

While Google, and the Internet in general, provide endless amounts of information, data and commentary on various legal issues and theories, now is not the time for you to be the weekend warrior lawyer. You will undoubtedly find a story where the small business owner defeated the nasty lawyer. Even if that story is true, now is not the time to wade into waters such as jurisdiction, applicable law, negligence, contract and/or various other legal principles of which you probably have no background.

3. Keep Your Lips Sealed.

Don't start making calls to every party that might have been involved in the incident or transaction at issue. Now is not the time to start making statements to individuals or sending documents anyone's way other than your lawyer. Keeping your lips sealed and your files closed will prevent those comments or documents from ending up in the wrong hands. What has been written, done or said is in the past. It is unlikely saying or doing anything now without consulting your lawyer will make the problem any better. In other words, do not give the other side ammunition.

4. Get Professional Help.

I do not believe in creating litigation or disputes for the sole purpose of perpetuating my own profession. However, if a lawyer has written you on behalf of her client alleging wrong doing, now is the time for you get your lawyer involved. If the other side thought the issue was warranted enough to have their counsel involved, then you should too. If you don't have a lawyer, ask business partners, customers or family members of the name of a good lawyer. Then, call the lawyer. If the lawyer does not call you back in a reasonable amount of time (two days), call another lawyer. If that lawyer does not specialize in the issues at hand, ask her for a referral -- often times the best referral source for lawyers are lawyers. At the same time, keep every piece of paper, note and other document and tangible item and save them. Your lawyer will want to review them. Moreover, take diligent notes about what might be going on if the issue is still transpiring. Your lawyer will want to review those as well.

5. Notwithstanding the Foregoing, Use Common Sense.

If the demand letter is requesting $100, pay it and get a signed release. While principle can often be something worth fighting over, principle is expensive. If it is a minor dispute that can be resolved by a nominal payment of money, swallow your pride and pay the money and move on. It will save you headaches and attorney bills in the future. In addition, if you have been paying insurance premiums for years on end, it is to protect you from certain types of claims. You should submit this claim to your insurance company to see if it is covered under your policy. The resulting judgment, and your attorney fees, will often be covered by the policy, saving you the time and expense of finding, retaining and paying for a lawyer. It only makes business sense to utilize services for which you have already paid.

These five simple steps can help you avoid pitfalls that can often defeat your case before it even starts. 

This article was originally published in the August 2011 issue of the Tri-State Better Business Bureau newsletter Better Business Builder.

This article was written by Joseph H. Langerak IV, an attorney with Rudolph, Fine, Porter & Johnson, LLP in Evansville, Indiana. For additional information, you may contact Joe at (812) 422-9444 (e-mail: jhl@rfpj.com). His practice areas include business litigation, commercial litigation, insurance defense, and construction law.           

 

This article is intended solely as an information source and its contents should not be construed as legal advice. Readers should not act upon the information presented without professional counsel.