Before most lawsuits in Texas ever reach a courtroom, they begin with something far less dramatic: a written demand letter.

A properly drafted demand letter can trigger settlement, preserve legal rights, and even affect whether attorneys’ fees are recoverable later. A poorly written—or missing—demand letter can weaken an otherwise strong case.

If you are considering filing a lawsuit, understanding how demand letters and pre-suit notice work under Texas law is essential.

What Is a Demand Letter?

A demand letter is a formal written notice sent to another party asserting a legal claim and requesting specific action, such as:

• Payment of money
• Performance of a contract
• Return of property
• Correction of wrongdoing
• Compliance with an agreement

In many cases, the letter serves as a final opportunity to resolve the dispute without litigation.

While demand letters are common in business, real estate, landlord-tenant, and family law disputes, they also play an important legal role in court.

Why Demand Letters Matter Under Texas Law

1. Recovering Attorneys’ Fees

One of the most important reasons demand letters matter is their impact on attorneys’ fees.

Under Texas Civil Practice and Remedies Code § 38.002, a claimant seeking attorneys’ fees for certain contract and business claims must:

“present the claim to the opposing party and payment must not have been tendered before the expiration of the 30th day after the claim is presented.”

In practical terms, this means:

• You must give written notice of your claim
• The other side must be given at least 30 days to pay
• Only then may attorneys’ fees become recoverable

Without proper notice, you may win your case but lose the ability to recover legal fees.

2. Statutory Notice Requirements

Some Texas laws require formal notice before a lawsuit may be filed.

Examples include:

• Deceptive Trade Practices Act (DTPA) claims
• Construction defect claims
• Certain landlord-tenant disputes
• Debt collection matters

These statutes often require:

• Written notice
• Specific content
• Delivery methods
• Waiting periods

Failure to comply may result in dismissal or delay of your case.

3. Creating a Written Record

A demand letter creates contemporaneous evidence showing:

• When the dispute arose
• What was requested
• How the other party responded
• Whether they acted in bad faith

This documentation can become critical evidence in court.

Judges and juries often look favorably on parties who made reasonable efforts to resolve disputes before filing suit.

What Should a Proper Texas Demand Letter Include?

A strong demand letter should be precise, professional, and legally focused.

1. Identification of the Parties

The letter should clearly state:

• Who is making the demand
• Who is receiving it
• Relevant business entities, if applicable

Ambiguity weakens enforcement.

2. Statement of Facts

The letter should summarize:

• What happened
• When it happened
• How the other party breached obligations
• Supporting documentation

This section should be factual, not emotional.

3. Legal Basis for the Claim

Effective demand letters reference applicable law, such as:

• Breach of contract
• Property Code violations
• Family Code provisions
• DTPA claims
• Fiduciary duties

This signals seriousness and legal preparedness.

4. Specific Demand

A demand must be clear and measurable, such as:

• “Pay $18,500 by March 15, 2026”
• “Vacate the property within 14 days”
• “Execute corrective deed”
• “Provide accounting records”

Vague demands are easy to ignore.

5. Deadline and Consequences

A proper demand letter sets:

• A reasonable deadline
• Notice of potential litigation
• Reservation of rights

Example:

“If this matter is not resolved by [date], legal action will be pursued without further notice.”

Should You Send a Demand Letter Without a Lawyer?

Many people attempt to draft demand letters themselves. While this is sometimes adequate for small disputes, it carries risks:

Common Mistakes

• Admitting liability
• Using inflammatory language
• Misstating the law
• Making unenforceable threats
• Waiving rights unintentionally

Once sent, a letter can be used against you in court.

Strategic Considerations

An attorney can tailor a demand letter to:

• Preserve fee claims
• Trigger statutory rights
• Position the case for settlement
• Avoid harmful admissions
• Increase leverage

In many cases, a well-drafted letter resolves disputes without litigation.

When Demand Letters Backfire

Not every dispute benefits from early notice.

In some cases, a premature demand may:

• Alert parties to hide assets
• Encourage document destruction
• Trigger retaliation
• Harden positions

Strategic timing matters.

An experienced attorney evaluates whether sending a letter helps or harms the case.

Are Demand Letters Required in Texas?

Not always.

Some lawsuits may be filed immediately. Others require notice first. Many fall in between.

General rule:

• Contract and business disputes: Usually advisable
• Statutory claims: Often mandatory
• Emergency relief: Sometimes unnecessary
• Evictions and foreclosures: Strict notice rules apply

Each case must be evaluated individually.

How Demand Letters Affect Settlement

Well-crafted demand letters often lead to:

• Early negotiation
• Mediation
• Payment plans
• Voluntary compliance
• Cost savings

Litigation is expensive. Demand letters remain one of the most cost-effective dispute-resolution tools in Texas law.

Practical Example

Consider a real estate investor owed $42,000 under a private loan agreement.

A proper demand letter:

• Cites the promissory note
• References Texas fee statutes
• Sets a 30-day deadline
• Includes payoff instructions

Result: The borrower pays within three weeks—no lawsuit required.

Without notice, attorneys’ fees might have been unrecoverable.

Final Thoughts: Demand Letters Are Legal Tools, Not Formalities

In Texas, demand letters are more than courtesy notices. They are legal instruments that can:

• Preserve rights
• Enable fee recovery
• Strengthen lawsuits
• Encourage settlement
• Reduce litigation risk

Handled correctly, they can save clients thousands of dollars and months of litigation.

Handled poorly, they can damage strong cases.

Need Help With a Demand Letter or Pre-Suit Strategy?

If you are dealing with a contract dispute, property issue, family law conflict, or business disagreement in Texas, professional guidance at the pre-suit stage can make a major difference.

Consulting with an attorney before sending a demand letter often determines whether a dispute ends quickly—or turns into expensive litigation.

At David C. Barsalou, Attorney at Law, PLLC, we help clients navigate business, family, tax, estate planning, and real estate matters ranging from document drafting to litigation with clarity and confidence. If you’d like guidance on your situation, schedule a consultation today. Call us at (713) 397-4678, email barsalou.law@gmail.com, or reach us through our Contact Page. We’re here to help you take the next step.