Demand letters are useful instruments for creating data, dispute decision, and way more. However, they will backfire and result in legal responsibility for the sender and even its lawyer for threats or calls for which can be legally improper. At present, we’ll cowl a number of the fundamentals of when demand letters go too far.
What’s the objective of a requirement letter?
Many issues fall below the umbrella of a “demand letter” for functions of this publish: a stop and desist letter, discover of default, discover of breach, discover of violation, demand to treatment, and so forth. Demand “letters” are typically written, however for the needs of this publish, I additionally embrace non-written calls for (i.e., a phone name).
In a typical demand letter, the sender calls for that the recipient cease doing one thing or take a corrective motion. Recipients usually ignore these letters or reply and declare they didn’t do something flawed. Even in these circumstances, placing a celebration on discover of wrongdoing could also be useful to create a file. It might additionally fulfill a contractual requirement earlier than the sender can take formal authorized motion.
For the remainder of this publish, I need to have a look at two examples of when demand letters go too far: extortion and lawyer ethics violations.
When demand letters can turn into extortion
Extortion is usually a legal offense relying on the state. I observe in California, the place extortion is in our penal (legal) code. Right here’s what the legislation says partially:
(a) Extortion is the acquiring of property or different consideration from one other, together with his or her consent, or the acquiring of an official act of a public officer, induced by a wrongful use of pressure or concern, or below colour of official proper.
(b) For functions of this chapter, “consideration” means something of worth . . . .
