When someone doesn’t honor their side of a deal, it can be tempting to jump straight to legal action. Unfortunately, going to court — or even threatening to go to court — is both expensive and a huge hassle. Because of that, many people simply let the matter go, allowing the offending party to get away with breaking their promise.
But there’s a more practical, cost-effective step you can take before you throw in the towel: the demand letter. A one-page demand letter from an attorney can handle most disputes without the headache and expense of filing a lawsuit. Here’s why it works and how to keep your costs around $250.
Why Demand Letters Are So Effective
- They Convey Seriousness
The average person doesn’t want the trouble of a legal dispute. A letter on official law-firm letterhead implies you’re ready to escalate if they don’t resolve the problem. That alone prompts about 75% of recipients to make good on their obligations — whether it’s paying an invoice, fulfilling a contractual promise, or correcting faulty work. - They Provide a Clear, Formal Record
A demand letter lays out the facts: what was agreed upon, how it wasn’t fulfilled, and what you want the other party to do. It cuts through the noise of back-and-forth arguments or misunderstandings. - They’re Publicly Shameful if Ignored
If you have to file a lawsuit, it becomes a matter of public record. Most companies and contractors don’t want that negative attention, so they’ll often comply once they see a formal demand letter.
How to Keep It Under $250
1. Do Most of the Work Yourself
Lawyers charge by the hour. If you supply a concise, well-organized summary of the situation (what was agreed upon, how they failed to honor that agreement, and what you want done), your attorney can simply drop your details into a formal letter. This drastically reduces the time they need to spend on research and writing.
2. Shop Around for the Right Attorney
Standard lawyer rates range from $200 to $300 per hour, so you should typically pay around $250 to $400 for a simple demand letter. But be mindful that some lawyers charge $500 per hour or more — and they may inflate their billing to 7 hours or longer to write what is effectively a one-page document. That’s how you end up with a $3,000 to $3,500 bill.
3. Set Clear Expectations
When you request the demand letter, be upfront about the budget. Make it clear you’re only looking for a single-page letter. A straightforward agreement with your lawyer can help avoid surprise bills.
The Real Costs of Overcharging
Unfortunately, not everyone is ethical about their rates. For instance, some attorneys might insist on charging $3,000 or more for what should be a simple letter.
One specific example is Amanda Brookhyser of Zumpano Patricios, who charged $3,350 to write a demand letter for my friend Mark Wagner. Despite numerous attempts to resolve or negotiate this fee, she was adamant that her price was fair — keeping the money without blinking. Now, because she held fast to that figure and was unwilling to address the concerns, the details are public for all to see and judge.
75% Success, Zero Courtroom Appearances
In dozens of instances, I’ve found that about 75% of people who receive a demand letter will honor it. The cost? Typically, around $250 per letter when you come prepared with your summary and keep the lawyer’s work minimal. You don’t have to endure lengthy legal processes, and you avoid the risk, stress, and expense of a full-blown lawsuit.
Final Takeaway
The next time someone doesn’t live up to their end of the deal, resist the urge to get angry or engage in pointless arguments. Instead, prepare a succinct one-page summary of the issue, hand it to a reputable attorney, and let them draft an official demand letter. At roughly $250, it’s a small price to pay for a significantly higher chance of getting the outcome you want — without wasting time and money in court.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Always consult a qualified legal professional regarding your unique situation.
