When to File: Decision Guide
Not every ignored demand letter should become a lawsuit. Use this guide to determine if filing small claims is the right move.
File Now If:
No Response After Deadline
Your demand letter deadline passed with no response at all.
- Deadline was reasonable (10-30 days)
- Letter was properly delivered
- No communication attempts from other party
Payment Refused
Defendant explicitly refused to pay or denied the debt.
- "I don't owe you anything"
- "I'm not paying"
- "Sue me if you want"
Broken Payment Promise
Defendant agreed to pay but didn't follow through.
- Promised payment date passed
- Check bounced
- Partial payment then stopped
Wait or Reconsider If:
Negotiations Ongoing
Defendant is actively negotiating a settlement.
- Set a firm final deadline
- Get any agreement in writing
- File if deadline passes without resolution
Legitimate Dispute
Defendant raises valid concerns about quality or performance.
- Evaluate their objections honestly
- Consider mediation first
- File if you're confident in your position
Judgment-Proof Defendant
Defendant has no assets or income to collect from.
- Unemployed, no bank accounts
- Filing fees may not be recovered
- Consider if situation may change
Statute of Limitations Warning: Don't wait too long. Written contracts: 4 years. Oral contracts: 2 years. Property damage: 3 years. Personal injury: 2 years. The clock starts when the breach occurred or when you discovered the harm.
Using Your Demand Letter as Evidence
Your demand letter is one of your most valuable pieces of evidence. It proves you tried to resolve the dispute, documents your claimed damages, and can demonstrate the defendant's bad faith.
What Your Demand Letter Proves
1
Good Faith Effort to Resolve
Shows the judge you attempted to settle before filing suit. Judges appreciate parties who try to resolve disputes without court intervention.
2
Defendant Had Notice
Proves defendant knew about your claim and the amount you're seeking. They can't claim surprise or say they would have paid if asked.
3
Damages Were Documented Early
The amount in your demand letter shows your damages calculation wasn't inflated for court. Consistent numbers build credibility.
4
Facts Were Stated Contemporaneously
Your letter's description of what happened, written closer to the events, is more credible than testimony months or years later.
5
Defendant's Response (or Lack Thereof)
No response suggests they have no defense. A response admitting some facts can be used against them. A hostile response shows bad faith.
How to Present Your Demand Letter in Court
- Make it Exhibit A: Your demand letter should be one of your first exhibits. It sets up your entire case narrative.
- Include proof of delivery: Attach the certified mail receipt, delivery confirmation, or proof of email delivery. This proves defendant received it.
- Include any response: If defendant responded (even to deny), include that as Exhibit B. Their own words can support your case.
- Reference it in testimony: "Your Honor, as shown in Exhibit A, I sent a demand letter on [date] requesting $[amount] for [reason]. The deadline passed with no response/defendant refused to pay."
Pro Tip: If your demand letter amount matches your lawsuit amount, it shows consistency and strengthens credibility. If you're claiming more now, be prepared to explain any additional damages discovered since sending the letter.
If Defendant Claims They Never Received It
This is why delivery documentation matters:
- Certified mail with return receipt: Green card proves delivery to their address
- USPS tracking showing "Delivered": Presumption of receipt
- Email with delivery/read receipt: Digital proof of receipt
- Process server affidavit: Third-party testimony of hand delivery
Legal Presumption: Under Evidence Code Section 641, a letter properly addressed and deposited in the mail is presumed to have been received. The burden shifts to defendant to prove non-receipt.
Calculating Damages for Court
Your small claims damages should include everything the defendant owes you, including costs you've incurred because of their failure to pay.
🎨 Small Claims Damages Calculator
Original Amount Owed ($)
Interest Accrued ($) - if contract allows
Late Fees ($) - if contract allows
Consequential Damages ($) - additional costs caused
Filing Fee ($)
Service Costs ($)
Total Claim Amount:
$0.00
What You Can Include in Your Claim
- Principal amount: The original debt, unpaid invoice, or value of services/goods
- Contractual interest: If your contract specifies an interest rate for late payment
- Late fees: If your contract includes late payment penalties
- Consequential damages: Additional costs caused by defendant's breach (e.g., cost to hire replacement contractor, storage fees, lost revenue if provable)
- Filing fee: The court filing fee you paid
- Service costs: Sheriff or process server fees
What You Generally Cannot Include
- Attorney's fees: Unless your contract specifically provides for them AND you hired an attorney for preparation (rare in small claims)
- Your time: You cannot charge for hours spent on the case
- Emotional distress: Difficult to prove in small claims, rarely awarded
- Punitive damages: Not available in most small claims cases
- Pre-judgment interest at 10%: Only applies after judgment is entered, not before
Don't Inflate Your Claim: Judges see inflated claims regularly and it hurts your credibility. Ask for what you can prove. A $5,000 claim you can fully document is better than a $10,000 claim that looks padded.
Adding Court Costs to Your Claim
California Code of Civil Procedure Section 116.420 allows the prevailing party to recover costs. Here's how to include them properly.
Recoverable Court Costs
| Cost Type | Typical Amount | Notes |
|---|---|---|
| Filing fee | $30-$100 | Based on claim amount |
| Service by sheriff | $20-$75 | Varies by county |
| Process server | $50-$150 | Reasonable costs only |
| Certified mail | $10-$15 | For service by mail |
| Witness fees | $35/day + mileage | If you subpoenaed witnesses |
How to Request Costs
- Include in your claim: Add filing fee and estimated service costs to SC-100 when filing
- Keep receipts: Save all receipts for costs incurred
- Update at hearing: Tell the judge your actual costs at the hearing
- The judge will add them: If you win, costs are typically added to your judgment
Cost Recovery After Judgment: If you win and need to collect, additional enforcement costs (like writ of execution fees, debtor examination filing) can also be added to what you collect.
Filing Timeline After Demand Letter
Day 0: Send Demand Letter
Include 10-30 day deadline for response/payment. Send via certified mail or other trackable method.
Day 15-30: Deadline Passes
If no response or payment, you're clear to file. Some attorneys recommend a brief second notice, but it's not required.
Day 31+: File Small Claims
Complete SC-100, pay filing fee, get hearing date. Court will set hearing 30-70 days out.
Within 5 Days of Filing: Serve Defendant
Serve defendant immediately to ensure the 15-day minimum before hearing is met.
Hearing Day: Present Your Case
Bring all evidence including your demand letter. Present your case to the judge.
30 Days After Judgment: Begin Collection
If you win and defendant doesn't pay, begin enforcement procedures.
Ready to File?
Use our complete small claims guide for step-by-step filing instructions, or create a pre-filing demand letter if you haven't sent one yet.