Demand Letter Before Litigation: Purpose and Sample Letter

You have suffered an injustice and wish to sue. While this is your right, in some cases it is preferable (and sometimes mandatory) to use a simpler method, such as a pre-litigation letter of warning.

This article explains what a letter of warning is, when you are required to send one, and how to send one. Can you send one via WhatsApp? What if there is no response?

A sample pre-litigation warning letter is attached. Sample Pre-Litigation Warning Letter.

What is a Letter of Warning?

Sending a pre-litigation letter means issuing a written warning to the opposing party (the one you intend to sue) as a “last chance” before filing a lawsuit.

This is a letter you send to the opposing party without any court involvement.

Why send a letter before filing a lawsuit?

• To convey a serious message that you intend to uphold your rights and that if the violation is not rectified, you intend to pursue legal action.
• To create written documentation that you gave the other party an opportunity to rectify the wrongdoing (and you never know where such documentation might serve you).
• If the opposing party responds, you may be able to understand their version of events and make a more informed decision about how to proceed.
• And of course, there is a chance that the opposing party will offer a settlement that is worthwhile enough to avoid legal proceedings.

How to Locate the Defendant’s Information?

Locating the defendant’s information using an ID card; locating a defendant’s address; what the law states if the information is missing or incorrect; and how to complete a small claims lawsuit form. Continue reading the article on Locating the Defendant’s Information.

When Are You Required to Send Such a Letter?

Except in specific cases, you are not required to send a letter of warning; it is a common practice that has developed over the years. However, courts tend to view more favorably a plaintiff who has attempted to settle the dispute through alternative means. Conversely, they tend to view negatively a defendant who ignored a letter of warning or responded in a way that inflamed the situation.

However, in certain consumer violations, the law stipulates cases where a written demand is mandatory to receive compensation without proof of damage; a letter of warning serves as a written demand. Explanation:

The Consumer Protection Law specifies cases where a consumer may file a claim for compensation without proof of damage (“exemplary damages”), up to 10,000 NIS; and in cases of repeated violations, up to 50,000 NIS. (Amounts updated for 2023)

Compensation without proof of damage allows suing for the violation itself, even if it did not cause any damage. The legislator established this mechanism as a tool to deter businesses from committing “minor” consumer violations, considering that it would be difficult for consumers to prove that they suffered damage from the violation and therefore they would not sue.

According to Section 31a(b) of the Consumer Protection Law, there is a list of cases where it is not possible to claim compensation without proof of damage without first sending the violating business a written request for compensation. For our purposes, a “written request” is of course also a pre-litigation warning letter.

Important Note: You can demand compensation without sending a warning; however, it will not be “compensation without proof of damage.” In other words, you will not be “exempt” from proving that the consumer violation caused damage.

How to Send a Letter of Warning?

You may send the letter by any written means – electronic (yes, WhatsApp message), fax, or registered mail. The important part of sending the letter is obtaining confirmation that it was received by the recipient.

For example, you can send a letter by registered mail (with a tracking number) to the business’s registered address. Upon sending, you will be given a tracking number, which can be tracked via Israel Post’s “Shipment Tracking”.

Similarly, you can send a warning via a messaging app (and show a blue checkmark) or by email with delivery confirmation.

What to Write in the Warning Letter?

You are not bound to a uniform format. You may draft it as you see fit. However, logic and experience show that there are some details that should appear in the letter for it to be effective:

1. Date of the letter
2. Full details of the recipient
3. Statement “without prejudice”
4. Subject (“Pre-Litigation Warning”)
5. Brief summary of the facts
6. The demand
7. Specified time for fulfilling the demand
8. If demanding financial compensation – beneficiary details and bank account for transferring the payment
9. Full name and signature

What to Do If There Is No Response to the Warning Letter?

You now have two main options:

1. You can drop the matter
2. You can file a small claims lawsuit with the Small Claims Court. A small claims lawsuit is a civil lawsuit with a sum of up to 38,900 NIS (as of 2024).

Many choose to file a small claims lawsuit even if the potential compensation they can claim is higher. There are many considerations for this
It is a fast process (an average of six months to receive a judgment), significantly cheaper (even the court fee is less than half the fee for a regular civil proceeding).

The proceedings are conducted without lawyers on either side. Judges are not bound by the rules of evidence and procedure (meaning documents and evidence that would not necessarily be accepted in a regular civil court can be presented), and more…