What Should Be Included in a Demand Letter in California?

This guide explains what a California demand letter includes, when it is required, and how it can trigger settlement talks. It covers legal rules, tone, deadlines, damages, and next steps before filing a lawsuit in California civil disputes.

By Brad Nakase, Attorney

Email | Call (800) 484-4610

Have a quick question? We answered nearly 2000 FAQs.

Table of Contents

1. Introduction

2. Demand Letter: What is it?

3. Letter of Intent to Sue

4. Legal Requirements for Sending a Demand Letter

5. Who can send a Demand Letter in California?

6. Important Elements of a Demand Letter

7. Expectation After Sending a Demand Letter in California

8. Types of Compensation

Introduction

Suing someone is a grind. It’s expensive, it drags on for months (or years), and at the end of the day, a judge might still rule against you. There are no sure bets in a courtroom.

That doesn’t mean you should give up on justice. It just means you should be tactical.

A credible lawyer will never tell you that a lawsuit is off the table—sometimes it’s the only way to hold someone accountable. But before you dive into the deep end of litigation, you should seriously consider a demand letter.

In many California civil cases, a well-written letter is enough to make the other side’s insurance company realize that settling now is cheaper than fighting later.

We’re going to break down how these letters work in the California legal system and, more importantly, how to write one that actually gets a response.

Demand Letter: What is it?

In California civil law, a demand letter is essentially your official “first move.” It’s an informal but serious notice. It tells the other party that you believe they’ve wronged you.

It is the bridge between a polite conversation & a full-blown lawsuit.

What goes into the letter?

It lays out a factual argument.

The Incident: Exactly what the other person or company did wrong.
The Proof: Evidence of the injuries or financial losses you’ve suffered.
The Ask: The specific “relief” you want—which is usually a specific dollar amount.

Does the recipient have to answer?

Here is the catch: demand letters are not legally binding. In most cases, the person receiving it isn’t required by law to write back or give you a dime.

So, why bother? Because it signals that you aren’t just complaining—you’re preparing. It shows that you have your facts straight and that if they don’t settle now, a process server with a lawsuit might be the next thing they see.

It’s not just about the money

While most people use these letters to get paid for medical bills or car repairs, they can also be used to force action. You might send one to:

Make the landlord finally fix a dangerous staircase.
Force a business to honor a contract they’re ignoring.
Stop someone from infringing on your trademark.

Where are they used?

You’ll see demand letters across almost every area of law. In the personal injury world, they are the standard first step for car accidents, slip-and-falls, dog bites, or medical errors. They are also the go-to tool for property damage disputes and messy landlord-tenant fights.

Also Read: How Much Can You Sue an Employer for Misclassification?

Letter of Intent to Sue

In California, a letter of intent to sue is exactly what it sounds like: a formal warning shot. It is a document sent from a potential plaintiff to a prospective defendant to let them know that the time for “talking it over” is over.

If a standard demand letter in California is a request for a settlement, the letter of intent to sue is the final notice that a lawsuit is being drafted.

A Demand Letter is often the start of a negotiation. A Letter of Intent to Sue is the end of the negotiation.

These letters are common in personal injury and liability cases. They serve as a final reality check for the other party, showing them that you are no longer just considering your options—you are moving toward the courthouse. It is a way to prove the seriousness of your claim and often acts as the very last chance to avoid the cost and publicity of a public trial.

The Bottom Line: This letter is the final bridge before litigation. It’s meant to shake the other side out of their hesitation and force a decision: settle now or see you in front of a judge.

Legal Requirements for Sending a Demand Letter

In California, there isn’t one “official” state form for a demand letter, but that doesn’t mean it’s a free-for-all. Depending on your situation, the law might actually force you to send a letter before you’re even allowed to set foot in a courthouse.

Here is the reality of the legal “hoops” you need to jump through and the basics that keep your letter from being ignored.

When the Letter is Mandatory

For some disputes, a demand letter in California isn’t just a good idea—it’s a legal requirement. If you skip it, a judge might throw your case out later.

Consumer Protection (CLRA): If you’re suing a company for shady business practices or deceptive advertising, California law (the Consumer Legal Remedies Act) says you must give them a 30-day heads-up via a demand letter before filing a suit.
Libel and Slander: If someone has trashed your name, you usually have a tiny 20-day window from the moment you find out to send a formal demand for a retraction.
Medical Malpractice: There are very strict “notice of intent” rules here. You can’t just surprise a doctor with a lawsuit; you have to give them fair warning.

Identify the Right Target

It is obvious. People may still get this wrong. You need to identify exactly who is responsible. Is it an individual? A corporation? A partnership? If you don’t name the right person or entity, your “final notice” has no teeth.

Don’t Just Claim It—Prove It

A demand letter in California without evidence is just an expensive complaint. To get the other side’s insurance company to take you seriously, you have to attach the “why.”

The Paper Trail: Include copies of medical bills, repair estimates, & pay stubs.
The Visuals: Attach photos of the injuries or the damage to the property.
The Official Word: Reference police reports or incident logs. If you show them the “smoking gun” now, they’ll realize they’re likely to lose in court and will be much more open to writing a check.

Check Your Ego (The Tone)

You might be (rightfully) angry, but a “scorched-earth” letter full of insults is a rookie mistake. Why? Because a demand letter in California is often used as Evidence Exhibit A if you ever go to trial. A jury might not like you if you look unhinged or aggressive in your letter. You have to stay professional, calm, & clinical. You want to sound like someone who is offering them a “way out” before things get expensive.

The Bottom Line: California law gives you a lot of freedom in how you write these, but if you miss a mandatory deadline or name the wrong person, you could kill your case before it even starts.

Who can send a Demand Letter in California?

You don’t need a special license or a badge to send a demand letter. The law gives you the green light to stand up for yourself.

Who has the right to send one?

The Person Directly Affected: You are the main person with “standing” to write the letter if you were the one in the vehicle accident, the one bitten by the dog, or the one whose contract was disregarded.
Parents and Legal Guardians: Minors can’t file lawsuits or sign legal settlements on their own. A parent or court-appointed guardian sends the letter to protect the child’s interests.
Family Members in Wrongful Death Cases: The remaining family members (or the executor of the estate) have the right to claim a settlement if a loved one died as a result of someone else’s carelessness.

The “DIY” vs. Attorney Choice

Technically, you can sit down at your kitchen table right now and write your own demand letter in California. People do it all the time for small disputes. However, there is a massive difference between a letter sent by an individual and one sent by a law firm.

Why a lawyer’s letter carries more weight:

The “Bluff” Factor: When an insurance company sees a letter from an individual, they often assume you’re afraid of the courtroom. When they see a letterhead from a firm like Thompson Law, they know a lawsuit is just one click away.
Legal Deadfalls: California has “trapdoors”—hidden deadlines & specific phrasing requirements. A lawyer makes sure you do it in the right way.
Calculating the Real Value: Most people under-calculate what their case is worth. A lawyer knows how to factor in future medical costs and “pain and suffering” that a non-lawyer might leave off the table.

Important Elements of a Demand Letter

Writing a demand letter that actually gets a check in the mail isn’t about being the loudest person in the room—it’s about being the most prepared. If you send a rambling, angry email, the other side’s insurance company will just laugh it off. But if you send a structured, clinical breakdown of why they’re in trouble, they’ll start sweating the legal costs.

Here is how you build a “final notice” that actually commands respect in California.

Stick to the Cold, Hard Facts

Don’t use “I feel.” Use “The facts are.” You need to walk them through the timeline like you’re explaining it to a judge. Don’t just say they hit you if it was a car wreck. Tell them the exact intersection and the time of day. Communicate the specific traffic violation they committed.

Mention the police report number. Mention what the witnesses saw. You want the person reading this to realize that you have a folder full of evidence and you aren’t afraid to use it. If you can prove they were at fault in the first three paragraphs, they’ll be much more likely to open their wallet by the end of the letter.

Itemize Every Single Dollar (The Damages)

This is the “bill” part of the letter. You can’t just ask for a random lump sum; you have to show your work. In California, we generally break these “damages” into three piles:

Special Damages: These are the receipts. List out the hospital bills and the ambulance ride. Mention the physical therapy. The exact number of hours you missed at work. If you have a document for it, it belongs here.
General Damages: This is the compensation for “Pain and Suffering.” How did this mess ruin your life? It’s a massive part of your claim.
Punitive Damages: These are the “punishment” fees. You only bring these up if the other person was doing something truly reckless. It’s a way of saying, “The jury is going to hate you if we go to court.”

Make a Clear, No-Nonsense Demand

Don’t beat around the bush. You need to state the exact number it will take to make you go away. It should be a single, firm number. Tell them exactly what has to be done.

Set a Hard “Expiration Date”

A demand letter in California without a deadline is weak. You need to give them a specific window of time to respond. Usually, 30 days in California.

This creates a “ticking clock” effect. It forces the insurance adjuster or the at-fault party to make a choice: pay you now, or spend ten times that amount on defense attorneys once the lawsuit is filed.

The Big Picture: The goal here is to make the other side realize that you are organized, you are serious, and you know exactly what your case is worth. When they see a letter that is this detailed, they usually decide that settling is the “cheap” way out.

Expectation After Sending a Demand Letter in California

Once you send that demand letter out into the world, you’re basically waiting to see how the other side blinks. In California, you usually won’t get a “maybe.” It almost always falls into one of three buckets.

Here’s the reality of what comes next:

The Clean Break (They Say Yes)

Sometimes, a solid letter backed by real proof is enough to end the fight right then and there. The other person might just agree to your terms if they realize they’re at fault and your “ask” is fair. This is the goal: you get your check, and you move on. You don’t see the inside of a courtroom.

The Haggling Phase (The Counteroffer)

This is where most California cases live. The other side—or more likely, their insurance adjuster—will write back and try to poke holes in your story.

The “Lowball”: They’ll admit some fault but offer you way less money than you asked for.
The Negotiation: They might invite you to talk it out.

You aren’t stuck with their first offer. This is a game of poker. You can hold out for more if your evidence is strong.

The Cold Shoulder (Silence or Rejection)

This is the frustrating part. They might send a “get lost” letter. They might just ignore you completely.

If they reject you: They’re betting that you won’t actually sue.
If they stay silent: It’s a power move.

You can’t just keep sending the same letter. You have to decide at this point:

Do you walk away, or
Do you step up and file a formal lawsuit?

This is usually when you send a “Letter of Intent to Sue.”

The Bottom Line: You can tell exactly what kind of battle you’re in by the response—or lack thereof. It transforms a “maybe” into an obvious decision: accept what is offered or file a lawsuit.

Types of Compensation

A demand letter isn’t a “complaint”—it’s a bill. In California, you can use one for pretty much any civil dispute, but it really shines when you’re trying to recover specific, tangible losses.

Personal Injury: Paying for the Physical Toll

Most injury cases end at the mailbox. Not the courthouse. Because trials are such a gamble, most defendants would rather settle once they see a solid demand letter. You can go after:

Medical Debt: Every doctor’s visit, ER bill, and bottle of ibuprofen.
Lost Income: The money you didn’t make because you were too hurt to show up for work.
The “Hidden” Costs: This is the “pain and suffering” part—the compensation for the stress, the sleepless nights, and the physical agony of the recovery process.

Broken Contracts: The Cost of a Flaky Partner

If you had a deal and someone walked away, a demand letter holds their feet to the fire. It’s about more than just a broken promise. You must showcase the ripple effect on your life or business.

The Bottom Line: The supplier may owe you more than just a refund for failing to deliver. They may also owe you the money you would have made if you had the supplies.
Reputation Damage: If their failure made you look bad to your own customers, you can demand they pay for that “brand” damage too.

Property Damage: Taking on the Insurance Giants

Whether someone totaled your car or a pipe burst in your apartment, these letters are usually aimed at insurance companies.

Fighting the “Lowball”: Insurance adjusters are paid to save the company money. If they offer you $2,000 for a $5,000 repair, a demand letter is your way of saying, “I know what this is worth.”
The Last Resort: If you’ve already tried their “internal appeals” and they’re still playing games, a formal letter signals that you’re done being polite and are ready to file a “bad faith” claim.

The Bottom Line: The goal of the letter is to make the other person realize that paying you now is cheaper and easier than hiring a lawyer to fight you later. You aren’t just asking for money; you’re showing them why they already owe it to you.

Have a quick question? We answered nearly 2000 FAQs.

See all blogs: Business | Corporate | Employment

Most recent blogs:

What Should Be Included in a Demand Letter in California?

How to Advertise for Your Business on a Small Budget

Practical ways for small businesses to advertise on tight budgets using local search, websites, social media, email, and referrals. Covers free and paid tactics that build visibility, trust, and steady leads without wasting money or copying big brands.

What Is a Beneficiary, and What Role Do They Play in Estate Planning?

Define beneficiaries in estate planning, including primary and contingent roles, and how they direct assets from insurance, bank, and retirement accounts. Avoid probate delays, reduce court costs, and prevent mistakes by keeping beneficiary designations updated after major life changes.

Retail Schedule Tips That Make Staffing Easier for Small Business Owners

Practical retail scheduling tips that help small business owners reduce turnover, control labor costs, and keep staffing aligned with demand. Owner-tested methods show how predictable schedules, stronger communication, and scheduling apps support smoother shifts and steadier teams.

Is Tipping Mandatory in the USA? When to Tip and How Much

Is tipping mandatory in the USA, plus typical tipping amounts across restaurants, hotels, taxis, bars, and ride-share services. This guide explains when tipping is expected, common percentages, cash customs, screen prompts, and situations where tips are not expected.

Audit Documentation: Purpose, Evidence Types, and Why It Matters

Audit documentation records procedures, evidence, and conclusions that support financial statement audits and regulatory compliance. It strengthens accountability, review, and quality control by showing how audit judgments were formed and standards followed.

Training Expectations: What Employees Look For in Modern Learning Programs

Modern training programs that match employee expectations with mobile access, personalization, and clear goals help drive engagement, performance, and retention. Build L&D experiences that feel relevant, support continuous growth, and deliver measurable ROI on every training initiative.

Starbucks Verdict: Los Angeles jury awards $50 million to delivery driver burned by hot tea

Read how a Los Angeles jury awarded $50 million to a delivery driver burned by scalding Starbucks hot tea. See how the Starbucks verdict highlights corporate responsibility and parallels the McDonald’s coffee case over dangerous beverage temperatures.

HIPP Notice California: Medi-Cal Health Insurance Premium Payment Program

HIPP Notice California explains when Medi-Cal pays private health insurance premiums through the Health Insurance Premium Payment Program to cut costs. See who qualifies, how Eligibility Workers apply, required documents, timelines, and what DHCS does after approving or denying coverage.

Uncategorized Expense: Categorize Transactions Faster and Keep Accurate Books

Speed up categorizing uncategorized expenses and keep your books accurate with methods that cut manual work. Use smarter tools to spot errors faster, group transactions, and improve client communication for smoother month-end bookkeeping.

How to Hire an Attorney: Fees, Questions to Ask, and Legal Help Options

Compare fees, experience, and comfort to pick legal help that fits your situation. Ask smart questions and use referrals to match your case and budget.

Corrected Claim Code 7 in Medical Billing: 2025 Rules, Submission Steps, and Denial Prevention

Corrected Claim Code 7 in 2025: rules and submission steps for accurate updates and fast processing of medical claims. Prevent denials with payer guidance, original claim references, and complete line item resubmissions for corrected or replaced claims.

Tfue FaZe Contract: Breakdown of terms, splits, and the legal dispute

Tfue FaZe Contract details strict terms, heavy revenue splits, and conditions that sparked a high-profile esports legal dispute. The agreement outlines payment divisions, exclusivity, and rights fueling the ongoing conflict between Tfue and FaZe Clan.

Reasonable Attorney Fees California: What Counts as Reasonable

California courts set reasonable attorney fees by market rates, not client deals, supporting fair awards in fee disputes. Judges weigh case demands, lawyer experience, and prevailing rates to decide the appropriate compensation.

ICRAA Report: California’s Investigative Consumer Reporting Act Explained

California’s ICRAA strengthens consumer rights with strict rules on background checks, disclosures, and protections beyond federal FCRA standards. Employers, landlords, and insurers face penalties for violations, ensuring Californians fair treatment and safeguards against inaccurate or mishandled reports.

California Legislation: Structure, Process, and Important Details about the State Legislature

California's legislature includes a bicameral system with detailed structures, voting rules, session schedules, and committee influences. The process from bill drafting to law involves hearings, amendments, fiscal review, floor votes, and possible gubernatorial action.

How to Answer “What Are Your Compensation Expectations?” with Salary Ranges and Interview Examples

Prepare for salary expectation questions using clear ranges, market research, flexibility, and honest examples to strengthen interview responses. Give confident, well-prepared compensation answers that reflect your abilities, expenses, and willingness to negotiate when discussing pay.

Do You Need a College Degree to Be Successful? What Matters Most

A college degree can improve pay, job stability, and skills, but it’s not always required for professional success. What matters most are personal goals, career direction, and having a solid, actionable plan.

What Are TIPS? A Complete Guide to Treasury Inflation-Protected Securities and How They Work

TIPS are government-backed bonds that adjust for inflation and help protect purchasing power over the long term. They offer semi-annual interest, preserve principal, and may suit conservative investors or retirees seeking protection against rising living costs.

Complete List of California State Holidays and Designated Days

California marks official holidays and designated days affecting public office closures and institutional schedules across the state. This article outlines observed dates, state requirements, and adjustments when holidays fall on weekends.

How to Sell Books Online: A Complete Step-by-Step Guide for Beginners and Entrepreneurs

Sell books online with low startup costs, smart platform choices, and effective marketing to connect with readers around the world. Build inventory, price competitively, write appealing listings, and deliver a smooth customer experience with strategic methods.

Best Task Management Software for Teams and Individuals

Compare 20 top task management tools with key features, drawbacks, and ratings to improve productivity for individuals and teams. Find software that supports task delegation, automation, collaboration, and real-time tracking across various industries and team sizes.

Best Free VOIP Services for 2025

Compare the best free VoIP services for 2025, including Google Voice, Ringblaze, OnSIP, and Zoom Phone. Evaluate features, pricing, pros, and cons to choose a reliable communication tool without exceeding your business budget.

How to Start a Business With No Money

Start a business with no money by identifying ideas, building connections, and creating value through small, focused steps. Overcome self-doubt, engage real customers early, and grow sustainably without relying on upfront capital or flashy marketing.

Best Retail POS Systems for 2025

Square, Clover, Shopify, Lightspeed, and Epos Now rank among the top retail POS systems for 2025. Compare pricing, hardware, and features to find the best system for your store’s size, style, and growth needs.

Wix vs WordPress: A Complete Comparison of Features, Pricing, and Ease of Use

Compare Wix and WordPress on features, pricing, templates, and ease of use to find the right fit for your website. Wix offers simplicity and built-in tools, while WordPress provides advanced customization and flexibility for growing businesses.

How to Start a Cleaning Business in 2025

Start your cleaning business in 2025 using this guide on essentials, legal steps, pricing methods, and practical marketing strategies. Ensure success with business management tips, client attraction techniques, and smart budgeting for your cleaning startup.

Shopify vs Etsy: Features, Costs & Customization Compared

Compare Shopify and Etsy on features, pricing, and customization to decide the ideal e-commerce platform for your online business. Evaluate key differences in tools, fees, scalability, and storefront design to maximize your selling potential on Shopify, Etsy, or both.

Can I Legally Move Out at 17?

Is it legal to move out at 17? Emancipation allows minors to live independently, make financial decisions, and take on adult responsibilities. However, they still must follow certain laws like schooling and marriage.

What Is the California Fraud Assessment Fee?

The California fraud assessment fee is a mandatory charge for insurers, capped at $1 per insured vehicle, funding fraud investigations and prosecutions. Funds support the Fraud Division, California Highway Patrol, and district attorneys in combating auto insurance fraud and economic automobile theft.

See all blogs: Business | Corporate | Employment

902

What Should Be Included in a Demand Letter in California?

Introduction

Demand Letter: What is it?

Letter of Intent to Sue

Legal Requirements for Sending a Demand Letter

Who can send a Demand Letter in California?

Important Elements of a Demand Letter

Expectation After Sending a Demand Letter in California

Types of Compensation

Free Consultation