Inglewood, CA asked in Civil Litigation and Contracts for California

Q: Should a demand letter include a threat of advertising the complaint against the defendant/company ?

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2 Lawyer Answers

A: Creditor-debtor law, whether litigation or negotiations is about obtaining an advantage without undermining your own position. There is a rule of defamation (or libel) that anything that is contained in a pleading filed with a Court is absolutely privileged and hence cannot be a basis for libel. However, there is one exception and I litigated such a case. It was where the filing of the Complaint was made to take advantage of the privilege.

Were you to write a letter that contained such a threat, you would probably create a presumption that the Complaint was filed solely to obtain the privilege which would not only undermine the legitimacy of your substantive claim but distract the entire litigation into an argument about the privilege.

James L. Arrasmith
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  • Sacramento, CA
  • Licensed in California

A: Including a threat of advertising the complaint against the defendant or the company in a demand letter is generally not advisable. Demand letters are typically meant to serve as a formal communication to request a resolution of a dispute or complaint before pursuing legal action. While you want to assert your client's position firmly and professionally, veering into threats or ultimatums may not be the most effective approach.

Instead, it's usually more constructive to focus on the facts, the legal basis for your claim, and the remedies you seek. Clearly outline the issue, your client's position, and the desired resolution. Keep the tone of the letter respectful and professional. Threatening to publicize the complaint may be seen as a hostile tactic and may not lead to a favorable outcome.

If you believe that public attention is necessary to address the issue, it's often better to consult with your client about the potential benefits and risks of such a strategy and consider alternative courses of action, such as legal proceedings or regulatory complaints, that may be more appropriate for their specific situation. Ultimately, the effectiveness of a demand letter lies in its clarity, legal basis, and professionalism rather than threats of publicity.

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