Is a demand letter required before suing in small claims court?
Not required in most states, but highly recommended. Some states (like California) encourage or require an attempt to resolve the dispute before filing. A demand letter also demonstrates good faith and often leads to settlement.
How much should I demand in my demand letter?
Demand at least 10–20% above your actual damages to leave negotiation room. But don't demand an unrealistically high amount — it signals inexperience and may cause the other party to stop negotiating.
What should a demand letter include?
(1) A clear statement of what happened, (2) the specific amount owed and how you calculated it, (3) a deadline to pay, (4) a statement that you will file in small claims court if unpaid, and (5) your contact information.