Receiving a demand letter can be unsettling, especially for business owners unsure whether it is a serious legal threat or just a negotiation tactic. While Florida law generally does not require you to respond to a demand letter, ignoring one can still have real consequences.
Here’s what you should know before deciding to do nothing.
What Is a Demand Letter?
A demand letter is a written notice, often from an attorney, claiming that you or your business have committed a legal wrong, such as breaching a contract, failing to pay a debt, or engaging in improper conduct. The letter usually demands payment, corrective action, or a response by a deadline.
In many cases, a demand letter is sent as a precursor to a lawsuit.
Are You Required to Respond?
Most demand letters do not legally require a response. However, that does not mean silence is without risk. Demand letters are often used to:
- Establish notice of a claim
- Show an attempt to resolve the dispute before litigation
- Trigger contractual or statutory rights
Ignoring the letter can place you at a disadvantage if the dispute escalates.
What Happens If You Ignore It?
- A Lawsuit May Follow
A common result of ignoring a demand letter is that the sender proceeds directly to litigation. Silence is often interpreted as unwillingness to resolve the issue, leaving the other side little reason to negotiate further. - You Lose Early Settlement Leverage
Resolving disputes early is typically faster and less expensive. Once a lawsuit is filed, legal costs increase and positions harden, making settlement more difficult and costly. - Attorney’s Fees Can Increase
Some contracts and Florida statutes allow recovery of attorney’s fees. If a court finds that a demand was reasonable and ignored without justification, that conduct may be cited to support a fee claim or show lack of good faith. - Deadlines May Matter
Some demand letters trigger contractual or statutory deadlines, such as cure periods or pre-suit notice requirements. Missing these deadlines can limit defenses or increase exposure.
When Ignoring a Demand Letter Might Be Appropriate
In limited circumstances, non-response may make sense, such as when a letter is clearly frivolous, sent in bad faith, or legally defective. In those situations, responding without a clear strategy can be worse than not responding at all, as an improper response may create admissions or unintended consequences.
Ignoring a demand letter in Florida may feel like the easiest option, but it often increases legal risk and cost. Even when a response is not required, understanding the potential consequences before a dispute escalates can significantly affect the outcome.
If your business has received a demand letter, having counsel evaluate it early can help you decide whether to respond, negotiate, or prepare for litigation on your own terms.