Demand Letter

A demand letter is a formal written request asking another person or business to pay money owed or take a specific action. Sending a demand letter is often the first step before filing a lawsuit and can frequently resolve disputes without going to court. In many cases, judges in conciliation (small claims) court will ask whether you attempted to resolve the dispute before filing – a demand letter shows that you did.

When to Use This Template

• Someone owes you money and has not responded to informal requests for payment
• A business has not honored a warranty, refund, or contractual obligation
• You suffered property damage and the responsible party has not paid for repairs
• You paid for services that were never performed or were performed poorly
• A landlord has not returned your security deposit within the required 21 days ( Minn. Stat. § 504B.178 )
• You want a written record that you attempted to resolve the dispute before filing in court
• An insurance company has denied or underpaid a valid claim

How to Use This Template

1. Download the template in your preferred format (PDF or DOCX).
2. Fill in your full legal name and address as the sender.
3. Fill in the recipient’s full legal name and address. For a business, use the business’s legal name and registered address.
4. Describe the dispute clearly and specifically:
   • What happened? Include dates, locations, and names.
   • What was the agreement or obligation? Reference any contracts, invoices, or receipts.
   • What went wrong? Describe how the other party failed to meet their obligation.
   • What have you already done to try to resolve it?
5. State exactly what you want – the specific dollar amount or action you are demanding. Show how you calculated the amount (e.g., itemized damages).
6. Set a deadline – give a reasonable timeframe, typically 10 to 30 days, for the recipient to respond or pay.
7. State what you will do if the demand is not met – such as filing a lawsuit in conciliation court or district court.
8. Attach supporting documents – copies (not originals) of contracts, invoices, receipts, photos, estimates, or other evidence.
9. Send via certified mail with return receipt requested. Keep a copy of the letter, all attachments, and the mailing receipt.

Writing an Effective Demand Letter

Structure Your Letter

A strong demand letter follows this format:

1. Introduction: State who you are and the purpose of the letter.
2. Facts: Describe the situation in chronological order. Stick to facts.
3. Legal basis: Explain why the recipient is legally obligated to pay or act. Reference contracts, invoices, statutes, or legal principles.
4. Demand: State the specific amount or action you are demanding and how you calculated it.
5. Deadline: Give a date by which the recipient must respond.
6. Consequences: Explain that you will pursue legal action if the demand is not met.
7. Closing: Sign and date the letter.

Calculate Your Damages

Be specific about how you arrived at the amount you are demanding:

• Direct damages: The actual amount owed (unpaid invoice, repair cost, replacement cost)
• Incidental damages: Additional costs caused by the breach (such as the cost of renting a replacement)
• Interest: For debts, you may be entitled to interest. Minnesota’s prejudgment interest rate is 4% per year unless a different rate is specified in a contract or statute ( Minn. Stat. § 549.09 )
• Statutory damages: Some Minnesota laws provide for specific damages. For example, in security deposit disputes, a tenant may be entitled to the return of the deposit plus a bad-faith penalty ( Minn. Stat. § 504B.178 )

Common Types of Demand Letters

Unpaid Debt or Invoice

If someone owes you money for goods or services:

• Reference the original agreement or invoice
• Include the amount owed, any applicable interest, and total demanded
• Attach copies of the invoice, contract, or other proof of the debt

Security Deposit Dispute

If your landlord has not returned your security deposit:

• Minnesota law requires landlords to return the deposit within 21 days of move-out, with an itemized statement of any deductions ( Minn. Stat. § 504B.178 )
• If the landlord acts in bad faith, you may be entitled to a penalty of up to $500 or the amount withheld, whichever is greater
• Include your forwarding address and the date you moved out

Property Damage

If someone damaged your property:

• Describe the damage and how it occurred
• Include repair or replacement estimates from qualified professionals
• Attach photos of the damage

Breach of Contract

If someone failed to perform under a contract:

• Identify the specific contract provisions that were violated
• Describe how the breach harmed you
• Calculate your damages based on the cost to complete the work, the difference in value, or other appropriate measure

Consumer Complaint

If a business engaged in unfair or deceptive practices:

• Describe the deceptive conduct
• Reference the Minnesota Consumer Fraud Act if applicable ( Minn. Stat. § 325F.69 )
• Note that the Minnesota Attorney General’s office may also investigate consumer fraud

Common Mistakes to Avoid

1. Being too emotional. Stick to facts. Anger and insults undermine your credibility and are counterproductive.
2. Demanding an unreasonable amount. Inflated demands are less likely to result in settlement and can hurt your credibility if the case goes to court.
3. Not showing your math. Break down the amount you are demanding so the recipient can see how you calculated it.
4. Forgetting to set a deadline. Without a deadline, the recipient has no urgency to respond.
5. Not keeping proof of delivery. Always send by certified mail with return receipt requested.
6. Threatening criminal prosecution. Do not threaten to file criminal charges in exchange for payment – this can constitute extortion ( Minn. Stat. § 609.27 ).
7. Waiting too long. Be aware of the statute of limitations for your claim. Common deadlines include 6 years for breach of written contract and 6 years for property damage ( Minn. Stat. § 541.05 ).
8. Not attaching supporting documents. Include copies of contracts, invoices, photos, estimates, and other evidence. This shows the recipient that you are serious and prepared.

What Happens After You Send the Letter

Filing in Court After the Demand

If the demand letter does not resolve the dispute, your options include:

• Conciliation court (small claims): For claims of $20,000 or less. No attorney needed. Filing fees are typically $50 to $90.
• District court: For claims over $20,000 or complex matters. More formal procedures apply.
• Attorney General complaint: For consumer fraud or deceptive business practices, you can file a complaint with the Minnesota Attorney General.

Related Resources

Small Claims Court (Conciliation Court) in Minnesota

• Minnesota Judicial Branch - Conciliation Court Forms – forms for filing in small claims court
• Minnesota Attorney General - Consumer Help – file consumer complaints