demand letter

[kristi]

Jurisdiction

California

If someone sends a demand letter that says if there's no response, a lawsuit will be filed, and then the defendant doesn't respond (or make a reasonable settlement offer), if a lawsuit isn't filed after all, can the defendant recover their attorney fees or sue for their attorney's fees? In a civil rights matter.

 

[army judge]

if a lawsuit isn't filed after all, can the defendant recover their attorney fees or sue for their attorney's fees?

If there is no lawsuit, there will be no damage award.

If a lawsuit wasn't filed, you'd generally not be responsible for paying the plaintiff's legal fees.

 

[zddoodah]

If someone sends a demand letter that says if there's no response, a lawsuit will be filed, and then the defendant doesn't respond (or make a reasonable settlement offer), if a lawsuit isn't filed after all, can the defendant recover their attorney fees or sue for their attorney's fees?

So...the scenario is this:

1. Person X sends a demand letter to Person Y. The letter states that, if Y doesn't respond by mm/dd/yy, a lawsuit will be filed. We have no more information about what the letter says.

2. Y did not respond by mm/dd/yy.

3. Despite the threat in the letter, X has not yet filed a lawsuit (which makes your references to "the defendant" a bit confusing).

Is that accurate?

And your question is whether Y is entitled to recover for some sort of attorneys' fees. Under the facts given, there is no apparent reason why Y should have incurred any attorneys' fees, and there is certainly no obligation owed by X to Y or ability for Y to recover anything from X. Note that, even if X had sued Y and Y prevailed, Y would not necessarily be able to recover his/her attorneys' fees. The "American rule" is that each side pays its own attorneys' fees. The exceptions are for suits based on a contract that provides for the recovery of fees and suits based on laws that allow for it.

 

[kristi]

If there is no lawsuit, there will be no damage award.

If a lawsuit wasn't filed, you'd generally not be responsible for paying the plaintiff's legal fees.

Thank you very much.

 

[kristi]

So...the scenario is this:

1. Person X sends a demand letter to Person Y. The letter states that, if Y doesn't respond by mm/dd/yy, a lawsuit will be filed. We have no more information about what the letter says.

2. Y did not respond by mm/dd/yy.

3. Despite the threat in the letter, X has not yet filed a lawsuit (which makes your references to "the defendant" a bit confusing).

Is that accurate?

And your question is whether Y is entitled to recover for some sort of attorneys' fees. Under the facts given, there is no apparent reason why Y should have incurred any attorneys' fees, and there is certainly no obligation owed by X to Y or ability for Y to recover anything from X. Note that, even if X had sued Y and Y prevailed, Y would not necessarily be able to recover his/her attorneys' fees. The "American rule" is that each side pays its own attorneys' fees. The exceptions are for suits based on a contract that provides for the recovery of fees and suits based on laws that allow for it.

Thank you so much. Yes, your recitation of the facts is accurate.

I meant "potential" defendant.
Y would incur attorneys' fees supposedly upon hiring counsel to evaluate the demand letter and the facts. Then in the scenario I gave, they don't respond because counsel advises them not to for some reason.

I would add that maybe there could be a scenario where they do respond but don't make a reasonable settlement offer. And the demand letter would indicate intent to sue if there isn't a response within a certain number of days nor a reasonable settlement offer (or something like that).

The demand letter has not yet been written, so I don't know what it would say, except that there would be some kind of threat to sue if X, Y or Z doesn't happen.

I tried to research if there were any laws that allow for the other side's attorney's fees in a civil rights matter in such a scenario, and I couldn't find any such laws, but I'm not very familiar with attorneys' fees in relation to demand letters, so I came here.

Thank you again!

 

[zddoodah]

Y would incur attorneys' fees supposedly upon hiring counsel to evaluate the demand letter and the facts.

Supposedly? Is this a real situation or just a hypothetical? In any event, Y's hiring of an attorney was a choice. Except in the circumstances, there's no right to recover fees from X.

 

[kristi]

Supposedly? Is this a real situation or just a hypothetical? In any event, Y's hiring of an attorney was a choice. Except in the circumstances, there's no right to recover fees from X.

Thank you.

I used the word supposedly because I hear that is what the potential defendant normally does when being sent a demand letter.

It's a real situation. It's just the demand letter hasn't been written yet.

Thanks again!