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A demand letter from another business usually arrives without warning: a supplier says you owe for goods, a customer says your work was defective, or a competitor says you took something that belongs to it. How you handle the first few days matters. What you say, what you sign, and what you let slide can shape a dispute long before anyone files a lawsuit.
Do You Have to Respond to a Demand Letter by Its Deadline?
Unless a statute or your contract attaches a deadline, the date in a demand letter is the sender’s deadline, not a court’s. A demand letter is not a lawsuit, and ignoring one does not produce a default judgment. Some letters, though, are written to trigger a legal clock, and missing that clock can cost you options.
Did another business just send you a demand letter? Talk with a Jimerson Birr lawsuit defense attorney before you reply.
Which Demand Letters Come With Real Deadlines?
Two Florida statutes, and many commercial contracts, attach consequences to a written demand. Read the letter for a statute number or a contract section before you treat its deadline as a bluff.
Civil Theft Demands Under Section 772.11
Under section 772.11, Florida Statutes, a business that proves by clear and convincing evidence that it was injured by theft, as defined in sections 812.012 through 812.037, can recover three times its actual damages (minimum $200) plus reasonable attorney’s fees and court costs. Before suing, it must send a written demand for $200 or the treble damage amount.
- If you comply within 30 days after receiving the demand, you are entitled to a written release from further civil liability for that specific act.
- If the sender sues and the court finds the claim was “without substantial fact or legal support,” the defendant can recover its fees and costs.
A civil theft demand can arrive in a dispute over money or property between two companies. Paying it and fighting it both carry real cost, so the 30 days matter.
Construction Defect Notices Under Chapter 558
A notice of claim under chapter 558 must refer to that chapter, so look for it in the letter. Under section 558.004, Florida Statutes, the contractor, subcontractor, supplier, or design professional served with the notice must serve a written response within 45 days after service, or 75 days for an association representing more than 20 parcels. A subcontractor or supplier who receives a forwarded copy has only 15 days, or 30 days for an association. The recipient may also inspect the property within 30 days after service (50 days for an association) and forward the notice to others it believes are responsible within 10 days (30 days for an association). Unless your contract opts out of chapter 558 in writing, treat this notice as a deadline, and have our construction defect litigation attorneys review it.
Notice and Cure Provisions in Your Contract
Many commercial contracts require written notice of a breach and give the other side a set number of days to fix it. The demand letter may be that notice. If so, the cure period may already be running, and the letter may also trigger mediation or arbitration steps your agreement requires.
What Should You Do Before You Respond?
Before anyone at your company replies, gather the documents, lock down the record, and decide who speaks for the business. These steps protect your position no matter how the dispute ends.
- Record when and how the letter arrived. Keep the envelope, the email, or the delivery receipt. Statutory clocks can run from receipt or service.
- Pull the contract and everything around it. That includes amendments, change orders, purchase orders, invoices, and emails that changed the deal. Look for notice and cure terms, a dispute resolution clause that may send the matter to mediation or arbitration, a venue clause, and an attorney’s fee provision.
- Check the fee clause both ways. Under section 57.105(7), Florida Statutes, when a contract lets one party recover fees for enforcing it, the court may also allow reasonable fees to the other party when that party prevails, whether as plaintiff or defendant. A one-sided fee clause can cut both ways.
- Keep every record. Tell your team not to delete emails, texts, or files about the deal. Our post on managing internal communications during a business lawsuit explains why loose internal chatter can become a problem later.
- Read your insurance policies. Check the notice provisions and how each policy defines a “claim.” Late notice to an insurer can put coverage at risk.
- Pick one person to communicate. Sales staff and project managers should stop discussing the dispute with the sender.
An attorney such as firm founder Charles Jimerson can review the letter against the contract before your company commits to a position.
Can What You Say in Your Response Be Used Against You?
Yes. A reply to a demand letter can become evidence, and Florida’s settlement protection is narrower than many business owners expect.
Section 90.408, Florida Statutes makes an offer to compromise a claim “disputed as to validity or amount,” along with relevant statements made in negotiations about that compromise, inadmissible to prove liability or the claim’s value. That protection depends on what the statement actually was. A reply that admits a late delivery, concedes a defect, or agrees that money is owed outside of real settlement talks can still be offered against you.
Keep your first written response short and factual, or let counsel send it. Avoid apologies that read as admissions and threats you cannot back up.
Should You Pay, Negotiate, or Push Back?
The right move depends on the documents, the amount, and what a lawsuit would cost both sides. Common paths include:
- Pay or settle with a written release. If the claim is valid, a carefully drafted, signed release can resolve the claims it covers.
- Negotiate. Many business disputes can be resolved without going to court, and a contract may require mediation in a Florida business dispute before suit.
- Dispute the claim in writing. A documented response that points to the contract and the records can narrow the fight.
- Raise your own claims. If the sender breached first or owes you money, those facts belong in the analysis now. Our guide to breach of contract damages in Florida covers what each side may be able to recover.
Specialized letters follow their own playbooks. A lender’s demand follows a different path, covered in how lenders escalate from demand letters to lawsuits, and an intellectual property claim is covered in our post on a cease-and-desist letter for trademark infringement.
What Happens If the Sender Files a Lawsuit?
Once your company is served with a complaint, the court’s deadlines take over. Florida generally gives a defendant 20 days after service to respond, and missing that window can lead to a default. Our posts on how to respond to a lawsuit filed against your business, what to do when served with a breach of contract complaint, and what happens if you miss the deadline to respond walk through that stage. How long the sender has to sue is set by Florida’s limitations statutes, summarized in our statute of limitations quick reference, not by the letter.
The work you do before a complaint arrives, from saving records to reading the contract, is the same work a business litigation defense will rely on later. If the dispute centers on a contract, our breach of contract attorneys handle those disputes.
What Should You Check Before You Respond?
These facts change the answer for your company:
- The date you received the letter and how it was delivered. Statutory clocks can run from receipt or service.
- Whether the letter cites a statute or a contract section. A civil theft demand or a chapter 558 notice carries its own deadline.
- What your contract says about notice, cure periods, attorney’s fees, venue, and mediation or arbitration.
- The amount demanded compared with your own records, including any money the sender owes you.
- Who at your company has already talked to the sender, and what was put in writing.
These facts decide how your company should respond, and an attorney needs to review them before you send anything.
Is a deadline in the letter already running? Request a free consultation with Jimerson Birr and bring the letter and the contract.
How Can Jimerson Birr Help After a Demand Letter From Another Business?
If you got a demand letter from another business, our lawsuit defense attorneys review the letter, the contract, and the records, then help you decide whether to pay, negotiate, or defend. Call (904) 389-0050 or request a free consultation. Waiting has a cost: a civil theft demand allows 30 days after receipt to comply, and a chapter 558 notice can require a written response in as little as 15 days for a forwarded copy.