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972-248-8080 DALLAS
713-830-2207 HOUSTON
512-691-4100 AUSTIN
a blue and orange check mark with the letter w on it as the Wilson Whitaker Rynell Logo

Responding to Demand Letters: A Checklist

John Wilson • May 22, 2024

What to Do When You Receive a Demand Letter

What is a Demand Letter?

A demand letter is a formal written document used to assert a legal right or claim against another party. It typically serves as a precursor to potential legal action, aiming to resolve disputes without resorting to court proceedings. The letter is often from an attorney's office and provides the core of the demand. Most often, a lawyer will provide the client's statement of facts or their position, offering a clear and concise summary of the events or circumstances that led to the grievance. The demand letter will often include additional background information, including specific dates, locations, and relevant actions or transactions that form the basis of the claim.  It will further outline the the sender's legal position, referencing applicable laws, contracts, or agreements that support their claim.


Don't Ignore a Demand Letter!

Failing to respond promptly to a demand letter can have serious consequences for you or your business. Typically, demand letters require a written reply within a specified timeframe. Failure to respond may prompt the sender, often a law firm, to pursue legal action against you by filing in court. While nothing obligates you to respond before the deadline, understanding the timeframe can indicate the sender's readiness to escalate the matter legally or willingness to settle, depending on the situation. Pay close attention to the tone of the letter as it can be a strong indication of whether negotiation is feasible. Often, people disregard demand letters, even if sent via certified mail through the post office. Not reading or signing for the letter can leave the sender with little choice but to initiate legal proceedings sooner than anticipated. Once the sender invests in legal representation and files a formal complaint, halting the process becomes much more challenging and undoubtedly expensive. In legal proceedings, the sender will often argue that they provided a reasonable opportunity to resolve the matter amicably, highlighting your failure to engage with their efforts in good faith.


Importantly, a certified letter (even the ones you don't open or sign for) counts as service of process in most states. This means you may have been sued, and you won't know it was more than a demand letter until it's too late (e.g., they've seized your bank account or taken other assets). Legal process can be served via certified mail. Surprise! You have been sued!



What to Do When You Receive a Demand Letter


Below is a checklist of what to do when you receive a demand letter:


  • Stay Calm and Carefully Read the Letter

The first step is to stay calm. You're going to be upset, but panic or anger can cloud your judgment. In this moment, it's best to do nothing but carefully read the letter in its entirety to understand the nature of the demand. Look for key details such as the sender's identity, the reason for the demand, and any deadlines mentioned. Don't email, text, or call friends and family, as everything you say and do could create evidence if litigation ensues. Think before you act.


  • Verify the Legitimacy of the Letter

Ensure that the demand letter is legitimate. Check the sender’s credentials and verify the details. Fraudulent demand letters are not uncommon, so it's important to confirm that the claim is genuine.  For instance, scam letters targeting trademark owners are not uncommon, aiming to trick them into paying a fraudulent invoice demands. While these letters may appear genuine, they often aren't. Moreover, contacting the number provided on such a demand letter without verifying its legitimacy could make you vulnerable to fraud, potentially resulting in the disclosure of personal information you should not share.


  • Document Everything

Keep a record of all communications related to the demand letter. This includes the letter itself, any emails, phone calls, or subsequent letters. Proper documentation can be vital if the matter escalates to legal proceedings. If it's a legitimate demand, gather all historical documents related to the demand as well. At this stage, you have a legal obligation to preserve all evidence that may relate to this potential claim. Intentionally destroying evidence at this stage is called spoliation and can be held against you in court.  The judge might infer that the destroyed evidence could have been incriminating or damaging to your argument or defense. As a result, the judge might rule in favor of the opposing party or impose penalties or sanctions against you for the destruction of evidence.


  • Review Your Rights and Obligations

Understand your legal rights and obligations concerning the demand. Depending on the nature of the claim, this might involve reviewing contracts, agreements, or relevant laws. It’s essential to know where you stand before proceeding taking any next steps.  Once you've gathered all relevant materials, validated the demand letter, and assessed your rights and obligations, it's time to promptly consult an attorney.


  • Seek Legal Advice to Evaluate the Claim’s Validity

Consulting with an attorney early and often is a wise move when dealing with a demand letter. A professional contract review lawyer can provide clarity on the situation, help you understand your options, and assist in drafting a response. A skilled lawyer will help you evaluate the validity of the claim, and consider whether the demands are reasonable and justified. If the claim appears baseless or inflated, you lawyer can write a responsive letter which may end the dispute. 


  • Draft a Response

Formulating a well-thought-out response is crucial. Your attorney can help craft a letter that addresses the demands appropriately. Your response might include accepting the claim, negotiating terms, or denying the claims if they are unfounded. It's very possible your lawyer may advise you to ignore the demand entirely; however, that should only be done in particular circumstances where your lawyer has conducted the necessary due diligence to determine its a scam or spam.


  • Negotiate if Necessary as You Consider Settlement Options

In many cases, the demand letter is a starting point for negotiations. Be open to discussing the matter with the sender to find a mutually acceptable resolution. Negotiation can often prevent the need for more formal legal action. Sometimes, settling the matter out of court can be the best course of action. Weigh the pros and cons of settlement versus litigation. Settlements can save time, money, and stress, but ensure that any settlement agreement is fair and comprehensive. Sure, nobody wants to pay money to settle a demand; however, sometimes it's the right thing to do and saves costs in the long run. Check your principles versus your practical side and go with your gut on any reasonable settlement


  • Prepare for Possible Legal Action

If the issue cannot be resolved through negotiation or settlement, be prepared for the possibility of legal action. Work closely with your attorney to prepare your case and understand the legal process ahead. If litigation is inevitable, consider being the first to file litigation on the demand by seeking a declaratory action that you do not owe it. Being the first to file makes you the Plaintiff. This means, as the Plaintiff, you will have the first and last word in any final trial on the demand (e.g., Plaintiffs always open and close the case at trial). Rest assured, the demand sender will not be happy if you take the lead on what was otherwise their case. In law, strategy is everything!


At Wilson Whitaker Rynell, our contract review attorneys know that receiving a demand letter can be daunting, but by staying calm, understanding your rights, and seeking professional advice, you can navigate the situation effectively. Always take demand letters seriously and respond promptly to protect your interests.

Do I Need a Settlement Agreement and Release Before I Settle a Demand Letter?


You absolutely need a release of some form before giving over anything of value in response to a demand letter. Lawyers refer to an agreement to settle a dispute as a 'release' because it involves one party giving up, or releasing, their claim against another in exchange for some act, usually a payment of money. For example, if Sarah's car is damaged when Michael accidentally backs into it in a parking lot, Sarah might agree to release Michael from liability and not pursue legal action if he agrees to pay $1,500 for the repair costs. If court action hasn't yet been initiated, a signed settlement agreement and release in exchange for the agreed payment would suffice. If a lawsuit has already been filed, the exchange of the signed settlement and payment should occur before the lawsuit is dismissed.


Contact Our Dallas, Frisco, Plano, Texas Breach of Contract Lawyers for Assistance with Demand Letters


Looking for expert legal guidance in Dallas, Frisco, Plano, or throughout Texas for your breach of contract issues? Look no further than Wilson Whitaker Rynell. Our seasoned team of contract lawyers specializes in breach of contract cases and can provide you with the assistance you need, including drafting and sending demand letters. Contact us or call us at 972-248-8080 today for comprehensive contract dispute legal support tailored to your specific needs and let us help you resolve your contract disputes effectively.

A person is holding a cell phone in front of a book titled artificial intelligence
By John Wilson February 19, 2025
Copyright and Translated Content: Who Owns the Creative Rights? Understanding Copyright Law and Translation Copyright law protects creative work and bestows sole authority over the work upon the creators. For example, the owner of the work of a novel has the right over the work under the concept of the right under the copyright. Courts have found that “the degree of protection afforded by the copyright is measured by what is actually copyrightable in the publication and not by the entire publication.” See, e.g., Dorsey v. Old Sur. Life Ins. Co., 98 F.2d 872, 873 (10th Cir. 1938) (emphasis added). For translations, the situation is not very clear. Translations involve creative judgments over word translation and not the translation of mere words. Hence the knowledge about the applicability of the concept of the right over the work is essential for establishing the right over the work. For example, a Court in the Northern District of California stated that: “ the determinative question is whether Plaintiff holds a valid copyright. ” Signo Trading Intern. Ltd. v. Gordon, 535 F. Supp. 362, 363 (N.D. Cal. 1981). The Signo Trading Court dismissed Plaintiff’s infringement claims because plaintiff did not have a valid copyright as a matter of law in the translations and transliterations at issue because they lacked the “requisite originality.” Id. at 365. Can Translation Be Considered a Creative Process? The Practice of Translating Translation goes beyond the replacement of one word by the equivalent word from the source text. Translating literary work, poetry, and fiction with deeper meanings beyond the surface text is a complex, artistic process. Translating books like The Iliad, for instance, requires the practice of artistic translation to translate the emotions, thoughts, and the culture correctly. Technical Translations and Legal Translations Conversely, technical writing and texts for the law need less creativity and instead value correctness over all else. These writing forms require strict adherence to the original sense, leaving very little room for artistic interpretation. Translations for these writing forms thus typically involve less creative contribution and less potential for the work being protected by copyright. Why Is Creativity Important for Translations for Copyright? Originality when translating For a work to be subject to copyright, some creativity, however slight, is essential. Even when the translation is taken from the work, the translation also includes some creative work by the translator. This creativity can make the translation subject to copyright. A derivative work must “recast, transform[], or adapt[]” a preexisting work and “consist[] of editorial revisions, annotations, elaborations, or other modifications which, as a whole, represent an original work of authorship.” Id. In other words, it must change or alter the pre-existing work’s content and must itself be an original work of authorship. The Supreme Court stated that “ [t]he sine qua non of copyright is originality ” and that “ [t]o qualify for copyright protection, a work must be original to the author. ” Feist Publ’ns, Inc. v. Rural Tel. Serv. Co., Inc., 499 U.S. 340, 361 (1991) at 345. “Original, as the term is used in copyright, means only that the work was independently created by the author (as opposed to copied from other works), and that it possesses at least some minimal degree of creativity.” Id. (citing 1 M. Nimmer & D. Nimmer, Copyright §§ 2.01[A], [B] (1990)). In granting a Rule 12 motion to dismiss, the Signo Trading Court held that: " It is inconceivable that anyone could copyright a single word or a commonly used short phrase, in any language. It is also inconceivable that a valid copyright could be obtained for a phonetic spelling, using standard Roman letters, of such words or phrases. Although lists of words and translations of larger works may be copyrightable, Plaintiff cannot claim credit for any of the elements which make those things copyrightable. For these reasons, Plaintiff does not hold a valid copyright on the translations or transliterations ... " Signo Trading, 535 F. Supp. at 365. The Problem of the Derivative Work However, translations are generally "derivative works" - derived from the work of another. Because of this, the owner or author of the work is generally required to agree to the translation. Translations made illegally can be held under the classification of copyright violations, even when the translator has added creative elements. Who Has the Right over the Translated Work? Employer-Commissioned Translations Ownership of the copyright for the translation work varies. If the translation is commissioned by the owner of the original work, the owner will retain the right. Even when the translator adds creativity by passing over the original emotions and thoughts, the owner will not necessarily lose the right over the translation work. In some circumstances, the translation work can be accredited by the translator without them holding the right over the work. Independent Translations If a translation is performed independently by the translator, the translator can even be identified as the co-author of the translation. Nevertheless, the author typically has the underlying copyright, restricting the translator’s right over the work. Creative Translations from the Public Domain In certain cases, a translation may be creative enough to warrant its own copyright. For example, a translator adapting a classic work or a book in the public domain into modern language may introduce enough originality to qualify for copyright protection. However, direct, word-for-word translations are typically not considered original enough to receive new copyright protection. What About Machine Translations? The Human Creativity Copyright Requirement Machine-generated translations, including those produced by platforms like OpenAI , operate through advanced algorithms that replicate language patterns rather than capture the human touch. Unlike translations crafted by human translators who often infuse cultural insight and genuine emotion into the work, OpenAI's output is rooted in statistical patterns and data. Consequently, while these translations are impressively efficient and accurate, they typically fall short of the originality required for copyright protection. This distinction underscores the human creativity requirement needed to secure a valid copyright . Ultimately, although machine-generated translations serve as powerful tools, they do not offer the same legal and creative protections as those provided by human translators. The Bottom Line: Navigating Copyright in Translations Translations occupy the middle ground under the law of the copyright. Albeit the right of the original author generally has the right under the copyright, the right under the copyright can also be claimed by the translator provided the translation is creative enough. Central considerations here include the creativity the translator has added, the nature of the work being translated, and whether the work is under the public domain. These considerations establish the right of the owner under the copyright for the translation. Why Wilson Whitaker Rynell for Your Copyright Work? At Wilson Whitaker Rynell, our professional lawyers specialize in the practice of copyright law and copyright litigation , including the complex subject matter of translation work. We can provide you with advice about the ownership of your work under the provisions of the copyright, and protect your creative property. If you are the author, the publisher, or the translator, you can rely upon the advice from our firm. Copyright Translation FAQS
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Female Divorce Attorneys in the Dallas-Fort Worth Area In many instances, divorce cases are challenging and emotionally taxing experiences. For this reason, it’s common for people to prefer working with an attorney of the same gender because they feel as though the attorney can empathize and understand their situation more. At the end of the day, the gender of your attorney may not affect the outcome of your case, but it’s important to feel as comfortable as possible while navigating through the process. At Wilson Whitaker Rynell, our experienced female divorce attorneys offer compassionate and empathetic approaches while they develop a comprehensive legal strategy to represent you. Why Should You Choose a Female Divorce Lawyer? There are many reasons why hiring a female divorce attorney can help you throughout your divorce. 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Whether it’s issues surrounding custody of children, alimony, or asset division, our female divorce lawyers ensure each client receives high-quality legal advice. Our firm’s female divorce attorneys provide the highest level of personal attention, ensuring that each client’s unique needs and concerns are addressed through every step. Unique Challenges Women Face in Family Law Disputes in Texas Family law disputes can be emotionally charged and legally complex, especially for women navigating the process in Texas. Women often encounter unique challenges due to their roles in the marriage and family dynamic, particularly when it comes to child custody, child support, and the division of marital assets. Child Custody Challenges In many marriages, women take on the primary caregiving role for their children. However, when it comes to custody decisions, courts in Texas prioritize the best interests of the child over parental gender. While this often works in favor of mothers, women may still face hurdles in proving they are better suited to provide the stable environment the child needs, especially if their ex-spouse disputes custody. Factors such as work schedules, living arrangements, and financial stability can come under scrutiny. Child Support Issues While Texas law allows women to seek child support, collecting these payments can sometimes prove difficult. Women awarded child support may find themselves dealing with ex-spouses who delay payments, make partial payments, or refuse to pay altogether. Enforcing child support orders often requires legal intervention, which can add to the emotional and financial strain. Division of Marital Assets In Texas, a community property state, marital assets are typically divided equitably during divorce. Women who are awarded assets such as the family home may face challenges related to maintaining the property, refinancing a mortgage, or covering associated expenses. 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Understanding Writs of Execution in Texas: A Layperson’s Guide If a court determines that someone owes money to another party, the debtor—referred to as the "judgment debtor"—typically has 30 days to pay off the debt. If the debt remains unpaid after this time, the creditor, or "judgment creditor," can take legal action to enforce the payment through a Writ of Execution . This legal process, governed by Texas law, enables creditors to collect what they are owed by seizing and selling the debtor’s non-exempt assets. What Is a Writ of Execution? Under Texas Rules of Civil Procedure 629 , a Writ of Execution is a court order that authorizes a sheriff or constable to seize the debtor’s property to satisfy the debt. This writ is an essential tool for creditors when voluntary repayment has not occurred. Once the writ is issued, it is handed over to a county constable or sheriff, who is required to act “without delay” in collecting the debtor’s real and personal property. The seized property is then sold, and the proceeds are used to pay off the debt. If multiple writs are filed against the same debtor, the assets are distributed in the order the writs were received. What Property Can Be Seized Under a Writ of Execution? Texas law is very specific about which types of property can and cannot be seized to satisfy a judgment. Exempt Property Certain assets are protected from seizure under Texas Property Code § 41.001. These include: The debtor’s homestead (primary residence) Wages earned from employment Professionally prescribed health aids Workers’ compensation benefits College savings plans Some insurance benefits Personal property valued up to $50,000 for individuals and $100,000 for families Unique to Texas, the law also protects items like family Bibles, two firearms, pets, and for rural residents, livestock (e.g., 12 head of cattle and 120 fowl). This extensive list reflects Texas's cultural heritage and values. Non-Exempt Property Assets that are generally not exempt include: Vacation homes Timeshares Pleasure boats Airplanes Jewelry exceeding certain value thresholds The specific procedures for seizing different types of property are detailed in Texas Rules of Civil Procedure 639 . Can a Writ of Execution Be Avoided? Judgment debtors have a few options to avoid the execution of a writ: Filing a Supersedeas Bond A supersedeas bond can temporarily halt enforcement of the writ. This bond, filed with the county clerk or justice of the peace, preserves the status quo while the debtor seeks further legal remedies. This option is governed by Texas Rules of Civil Procedure 634 . Challenging the Execution Debtors can file a claim for wrongful execution in situations such as: The debt has already been paid Exempt property is being seized The levy is excessive Additionally, courts take extra care to protect property classified as a homestead under Texas Property Code § 41.002(c) . When only one spouse is responsible for the debt, Texas Family Code § 3.202(a) and related provisions provide guidance on levying against community or separate property. The Role of County Officials in Executing the Writ Once the writ is issued, its enforcement falls on county officials, typically a sheriff or constable. These officials must act in accordance with Civ. Prac. & Rem. Code § 34.072 , which requires them to execute the writ and report back to the court. They must: Give proper notice of the sale of seized property Ensure the proceeds are appropriately delivered to the creditor Avoid overstepping legal boundaries, such as seizing exempt property Failing to execute the writ properly can result in serious consequences, where a sheriff’s refusal to levy on a property initially listed as exempt (but later deemed abandoned) led to court action and damages awarded to the creditor. Preventing Fraudulent Transfers One challenge creditors face is when debtors attempt to hide or transfer assets to avoid collection. To address this, Texas follows the Uniform Fraudulent Transfer Act under Tex. Bus. & Comm. Code § 24.001 et seq .. This act provides legal remedies to creditors when a debtor’s transfer of assets is deemed fraudulent. Effect of a Defendant's Death on Writs of Execution Under Civ. Prac. & Rem. Code § 34.072 , the death of a defendant after a writ of execution is issued halts execution proceedings. However, any lien acquired from the writ's levy is still enforceable by the county court when paying off the deceased's debts. Why Proper Execution Of The Writ Is Crucial The rules for filing and serving a Writ of Execution are strict and detailed. Missteps, such as filing the writ in the wrong county, failing to serve the proper parties, or missing key deadlines, can lead to delays or even render the writ ineffective. Both creditors and debtors must ensure compliance with these rules to avoid unnecessary complications. For creditors, failure to properly enforce the writ could mean losing the opportunity to collect on a judgment. For debtors, not responding appropriately to a writ could result in the loss of valuable assets, even those that might have been exempt.
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The Wilson Legal Group are Dallas attorneys that specializes in Patents, Trademarks, Copyrights, Trade Secrets, Complex Litigation, Business/Corporate Law, Family Law and Real Estate Law. At the Wilson Legal Group, our clients are our focus. Our philosophy is simple and straight-forward: Understand our clients' needs, hopes, and interests in order to help them flourish. Our staff strives to build strong relationships with our clients in order to appreciate their best interests and help them achieve their goals.

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