When individuals or businesses experience a legal dispute, the initial instinct may be to immediately file a claim with the Small Claims Court or another tribunal. However, an essential yet often overlooked first step is issuing a demand letter. In Ontario, sending a demand letter is not just a formal gesture—it can be a strategic move with legal and financial benefits. At MTS Paralegal Services, we emphasize the importance of this document in resolving disputes efficiently and economically.

What Is a Demand Letter?

A demand letter is a formal written notice sent from one party (the claimant) to another (the respondent), outlining the details of a grievance, the remedy being sought, and a specified timeframe to resolve the issue. It serves as both a notice and an opportunity to settle the dispute out of court.

In Ontario, demand letters are not legally required before initiating litigation in most civil matters. However, courts often look favourably upon parties who have made reasonable attempts to settle disputes before resorting to formal claims. A well-drafted demand letter demonstrates good faith and a willingness to resolve matters without litigation.

Why Demand Letters Matter

1. Opportunity for Resolution Without Court Intervention
Many disputes can be resolved through communication. A demand letter provides the other party a chance to rectify the issue—whether through payment, performance of a service, or another form of settlement. This can save both parties time, money, and stress.

2. Establishing a Legal Record
Sending a demand letter creates a paper trail. Should the matter proceed to court, the letter may be submitted as evidence that the claimant attempted to resolve the matter prior to litigation. This can strengthen a party’s case and possibly impact the awarding of costs.

3. Encouraging a Prompt Response
Receiving a professionally written demand letter often signals the seriousness of the issue to the respondent. It may prompt them to take immediate action to avoid escalation. The language and structure of the letter—especially when drafted by a legal professional such as a licensed paralegal at MTS Paralegal Services—can make a significant difference in the recipient’s response.

4. Strategic Leverage in Negotiations
Demand letters often initiate negotiations. By outlining the facts, damages, and legal basis of the claim, the letter can lead to meaningful discussions, and even settlement agreements, without stepping foot in a courtroom.

5. Cost-Efficient Legal Step
Filing a claim involves time and court fees. A demand letter, on the other hand, is relatively low-cost and may avoid the need for litigation altogether. Engaging a paralegal to prepare the letter ensures it is written clearly, concisely, and within the appropriate legal context.

Why Work With Tim at MTS Paralegal Services

A demand letter carries more weight when professionally prepared. At MTS Paralegal Services, Tim brings a strong understanding of Ontario legal processes and civil procedure to every matter. Whether the dispute involves unpaid debts, property damage, breach of contract, or another civil matter, Tim ensures that the demand letter is appropriately worded and strategically structured for the best chance of success.

Taking legal action is a serious step. Before filing a claim, speak to a licensed paralegal who can help assess your situation and draft a demand letter that gets results.

Call Tim today at (226) 444-4882 or visit https://mtsparalegalservices.com/ to get started.