• The People Clerk Team

How to Write a Demand Letter

Updated: Jun 5



Before you can file a small claims court lawsuit in California, the court requires that you request your money or property back from the person you intend to sue. You will have to confirm you have done this when you file your lawsuit.


Let us help you with your small claims court lawsuit.


How to Demand Your Money or Property Back


Requesting your money or property back can be done orally or in writing, but it is recommended you do so in writing. While there is no restriction against demanding your payment or property back via text message, writing a letter can sometimes be very effective. These letters are known as "intent to sue letters" or "demand letters."


Once you have sent a demand letter, keep it for your records. You can bring it to the small claims court hearing and show it to the judge (especially if the person you are suing claims they didn't receive the letter).


Why is a demand letter important?


  • Before you can file a small claims court lawsuit in California, the court requires that you request your money or your property back from the person you intend to sue. Demand letters are an effective way of completing this requirement.

  • They signal to the person or business receiving it that you are serious about the problem and are willing to spend time and money to get your money or property back.

  • When you let someone know that you intend to go to small claims court if they don't return your money or property, it can have a big effect on them returning your money without having to go to court.


What to include in the demand letter?


Here are a few suggestions:


  • How much money you are owed.

  • Why you are owed money.

  • Your contact information.

  • Where to send payment.

  • Give them a few days to respond (usually about 4 to 7 days).

  • State that if they don't respond, you intend to sue.


Sample Demand Letters


The California Court has several great templates to use:



Attorney Demand Letters


You can also hire an attorney to write or help you write a demand letter. We offer this service for $99. Send us a text message (650) 385-8507 or email us at help@peopleclerk.com to get started.


How to send the letter


It is recommended you send the letter via email and mail. For letters that you mail, consider the following:


  • Tracking. With tracking, you will know if the letter reached the person's mailbox.

  • Signature Required. When you send a letter with the receiver's signature requested, the postal carrier must hand-deliver the letter and the person must sign for the letter. If you are sending this letter to an individual, it can be difficult for the post office to obtain the signature. Once the post office attempts delivery 2-3 times, the post office returns the letter to the sender as "undeliverable." We don't recommend sending demand letters to individuals at a home address with signature required. A signature required mailing does work better when you send the letter to a business that is open during regular delivery hours.


What to do if the Demand Letter doesn't work?


So you sent someone a demand letter and they still don't return your money or property back, now what? It is time to consider filing a lawsuit in small claims court.


Types of Cases that Can be Filed in Small Claims


So long as there isn't another court better suited to hear the case, then the lawsuit can be filed in small claims. The most common types of small claims cases in California Small Claims Court are:


  • Landlord/Tenant disputes over the security deposit.

  • Landlord/Tenant disputes over early termination of the lease.

  • Unpaid rent.

  • Roommate disputes.

  • Disputes over loans.

  • Contracts (written and oral).

  • Auto accidents.

  • Disputes over auto repairs.

  • Disputes over remodeling or home repairs.

  • Damage caused to property.

  • Unpaid bills.


Small Claims Court Limits


To be able to file a small claims court in California, you are capped at the amount you can sue for, also known as "small claims court limits."

  • An individual or sole proprietor can sue for $10,000 or less.

  • A corporation or LLC can sue for $5,000 or less.


If you are owed for more than the amount you can sue for, you can still sue for the maximum amount allowed but you waive any additional amount over the limit.

Example: You are an individual and you paid $11,000 for someone to paint your home. They didn't paint your home. You can sue in small claims court for $10,000 and waive  $1,000.


Small Claims Court Filing Fees


The amount you will pay to file the lawsuit depends on how much you claim the Defendant owes you. If you are owed $1,500 or less, then your filing fee is $30.


  • If you are owed more than $1,500 but less than or equal to $5,000, then your filing fee is $50.

  • If you are owed more than $5,000 but less than or equal to $10,000, then your filing fee is $75.

  • If you have filed 12+ cases in California Small Claims Court in the previous 12 months, then it doesn't matter how much you are owed and your filing fee is $100.


How Long Does the Small Claims Court Process Take?


  • Once a case is filed, the hearing will be scheduled within 20- 70 days.


What is a Small Claims Court Hearing Like?


Small claims hearings are meant to be quick and informal. Here is what you can expect:


  • Right before the hearing, the judge will ask the parties to show each other the evidence that they have brought with them.

  • The Judge will ask the person who is suing why they are suing. The judge will turn to the person who has been sued and ask them for their side of the story.

  • The hearing will last around 15 minutes.

  • The judge will ask the parties to show him or her the evidence (Invoices, contracts, receipts, etc) they have brought to court that day. Sometimes the judge will keep the evidence, other times you will get the evidence right back.

  • Very rarely will a judge tell the parties their decision immediately after the hearing. Instead, the judge will tell the parties that the decision will be mailed to them (usually takes a few weeks to two months or so).


How do I prepare for the small claims hearing?


To prepare for your small claims court hearing:


  • Research the law. If you are unsure about your case, conduct your own research about the law or reach out to an attorney.

  • Prepare your evidence. Invoices, contracts, receipts, etc. You want to have your evidence organized with titles, dates, and why that piece of evidence is important. All your evidence should be geared towards showing the judge why you are correct.

  • Prepare what to say. During the hearing, the judge will ask the person suing why they are suing. If you are being sued, you will be asked why you don't owe the other party money.

  • Get your receipts for costs ready. For example, your filing fees and any process server costs. Make sure to let the judge know that you would like to be reimbursed for costs.

  • Print enough copies of all your evidence. You will need at least three copies (one for you, one for the judge, one for the other side).

Let us help you with your small claims court lawsuit.


People Clerk is here to help you throughout your small claims dispute.


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Courtam, Inc dba People Clerk is not an attorney or a law firm, therefore, People Clerk does not provide legal advice. People Clerk uses technology to reduce the costs of pursuing a small claims dispute. People Clerk can only provide self-help services at your direction. 

People Clerk is not affiliated or endorsed by the California Judicial Branch or any government agency. Blank small claims court forms are available for free on the California Courts website

 

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