Pre-lawsuit Negotiations

In our prior post, we explored an overview of the litigation process in federal court. In today’s post, we will explore the topic of “pre-lawsuit negotiations” in more detail.

Before a lawsuit is filed (or at anytime during the lawsuit), the parties may engage in negotiations to reach a settlement agreement. This could involve phone or video calls, in-person meetings, participating in mediation, etc. This could also involve drafting a demand letter to notify and inform the recipient of the legal dispute and claims.

While there are benefits of all of the above dispute resolution options, sending a demand letter is one of our favorite options for a few of the following reasons:

1. A demand letter is an opportunity to get clear on the dispute and claims against the recipient of the demand letter, which shows the recipient that you are serious about the dispute.

2. In addition, sending a demand letter is looked at favorably by the courts as a sign of "good faith."

3. A demand letter can also save you time and money; this is because if the demand letter's content is well-written, its content can be used in the complaint should the recipient refuses to comply with the demand or fails to respond in a timely manner.

Because sending a demand letter is one of our favorite dispute resolution options, we will be sharing a demand letter template in our next post.

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*This blog post should not be construed as legal advice on any specific facts or circumstances. The contents are intended for general information purposes only.