📋 What Is a Small Claims Demand Letter?
A small claims demand letter is a formal written notice sent to someone who owes you money or has wronged you. It explains what they owe, why they owe it, and gives them a deadline to pay or respond before you take legal action in small claims court.
Think of it as your final attempt to resolve the dispute without involving the court system. It puts the other party on notice that you're serious about pursuing your claim and gives them one last chance to make things right.
The Small Claims Process in California
Send Demand Letter
Document your claim and give them a chance to pay
Wait for Response
Give them 10-30 days to respond or pay
File Claim
If no response, file in small claims court
Attend Hearing
Present your case to the judge
💡 Pro Tip: Most Cases Settle
A well-written demand letter often results in payment or settlement without ever going to court. The recipient realizes you're serious, understands they might lose in court, and decides it's cheaper to just pay you than to spend time and money defending themselves.
💡 Why Send a Demand Letter First?
While California doesn't always require a demand letter before filing in small claims court, sending one is almost always a smart move. Here's why.
💰 Often Gets You Paid
Many disputes settle after a demand letter. People pay when they realize you're serious about going to court.
⚖ Judges Expect It
Judges often ask if you tried to resolve the dispute first. A demand letter shows good faith effort.
📄 Documents Your Claim
Creates a paper trail showing when you demanded payment and what the other party's response was.
⏰ Saves Time & Money
Even if you win in court, collecting can be difficult. Settlement through a demand letter is faster and more certain.
When a Demand Letter Is Required
In certain situations, California law actually requires you to send a demand before you can file a lawsuit:
🏠 Security Deposit Claims
▼Under California Civil Code 1950.5, landlords must return security deposits within 21 days. If they don't, you should send a demand letter before filing suit. The demand establishes that they failed to comply and gives them notice of potential liability for bad faith penalties (up to 2x the deposit).
🚗 Lemon Law Claims
▼California's Song-Beverly Consumer Warranty Act requires consumers to give manufacturers a "reasonable number of repair attempts" before pursuing lemon law remedies. While not strictly a demand letter requirement, documentation of repair attempts and written requests for replacement/refund are essential.
💼 Breach of Contract
▼Many contracts include provisions requiring written notice before legal action. Check your contract for any "notice and cure" provisions that require you to notify the other party of the breach and give them an opportunity to fix it before filing suit.
⚖ Claims Against Government
▼If you're suing a California government entity (city, county, state agency, school district), you must first file an administrative claim under the Government Claims Act. This is more than a demand letter - it's a formal claim with specific requirements and strict deadlines (typically 6 months for most claims).
⚠ Check for Contract Requirements
Before suing, review any contracts involved in your dispute. Many contracts require written notice, specific dispute resolution procedures, or even mandatory mediation/arbitration before filing suit. Failing to follow these requirements could get your case dismissed.
💰 California Small Claims Court Limits
Before you file, make sure your claim fits within California small claims court limits. If your claim is too large, you'll need to either reduce it or file in a different court.
| Claimant Type | Maximum Claim | Annual Limits |
|---|---|---|
| Individuals | $12,500 | 2 claims over $2,500 per year |
| Sole Proprietors | $12,500 | 2 claims over $2,500 per year |
| Corporations/LLCs | $6,250 | 2 claims over $2,500 per year |
| Other Entities | $6,250 | 2 claims over $2,500 per year |
Filing Fees
$30
Claims up to $1,500
$50
Claims $1,500.01 to $5,000
$75
Claims $5,000.01 to $12,500
Note: You can include these filing fees in your claim and recover them if you win. Service fees (typically $40-75 for personal service) can also be recovered.
What If Your Claim Exceeds the Limit?
⚠ Option 1: Waive the Excess
You can voluntarily reduce your claim to fit the limit. You give up the excess amount permanently - you can't sue for it later.
📈 Option 2: Limited Civil Court
For claims between $12,501 and $25,000, file in limited civil court. You may want an attorney, and the process is more formal.
⚖ Option 3: Unlimited Civil Court
For claims over $25,000, you'll need to file in unlimited civil court. Attorney representation is strongly recommended.
💡 Strategic Tip
If your claim is slightly over $12,500, consider whether it's worth waiving the excess to stay in small claims court. Small claims is faster, cheaper, and doesn't require an attorney. The time and cost savings may outweigh the extra amount you'd recover in a higher court.
✅ Key Elements of Your Demand Letter
A strong demand letter should include all of these elements. Missing any of them weakens your letter and your case.
👤 Your Information
- ✓ Your full legal name
- ✓ Your mailing address
- ✓ Phone number and/or email
- ✓ Today's date
👥 Their Information
- ✓ Full legal name (person or business)
- ✓ Correct mailing address
- ✓ If business: registered agent address
📄 The Facts
- ✓ Clear description of what happened
- ✓ Relevant dates and locations
- ✓ Reference to contracts, invoices, or agreements
- ✓ How the other party failed or wronged you
💰 The Demand
- ✓ Specific dollar amount demanded
- ✓ How you calculated the amount
- ✓ Clear deadline to respond (date, not just "30 days")
- ✓ How payment should be made
⚖ The Consequences
- ✓ Statement that you'll file in small claims court
- ✓ Mention of additional costs they'll owe (filing fees, service)
- ✓ Potential interest or penalties if applicable
📎 Attachments
- ✓ Copies (not originals) of contracts
- ✓ Invoices or receipts
- ✓ Photos of damage
- ✓ Prior correspondence about the issue
⚠ Keep It Professional
Your demand letter may be read by a judge if the case goes to court. Avoid emotional language, threats beyond legal action, or personal attacks. Stick to the facts, be firm but professional, and focus on what you're owed and why.
📝 Sample Demand Letter Language
Use these templates as a starting point for your demand letter. Customize the highlighted sections with your specific information.
[YOUR ADDRESS]
[CITY, STATE ZIP]
[YOUR PHONE]
[YOUR EMAIL]
[DATE]
[RECIPIENT NAME]
[RECIPIENT ADDRESS]
[CITY, STATE ZIP]
RE: Demand for Payment - [AMOUNT]
SENT VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
Dear [RECIPIENT NAME]:
This letter serves as a formal demand for payment of [AMOUNT] that you owe me for [BRIEF DESCRIPTION - e.g., "unpaid services," "unreturned security deposit," "damaged property"]. If I do not receive payment by [DEADLINE DATE - typically 14-30 days from letter date], I will file a claim against you in California Small Claims Court without further notice.
On [DATE], I provided [DESCRIPTION OF SERVICES/GOODS] to you at [LOCATION IF RELEVANT]. This was pursuant to our agreement dated [DATE], a copy of which is enclosed.
I completed the work/delivered the goods on [COMPLETION DATE]. I invoiced you on [INVOICE DATE] for [AMOUNT], with payment due within [PAYMENT TERMS, e.g., "30 days"].
Despite the passage of [TIME PERIOD] and my follow-up communications on [DATES OF FOLLOW-UPS], you have failed to pay the amount due. Your account is now [DAYS] days past due.
I was a tenant at [RENTAL ADDRESS] from [MOVE-IN DATE] to [MOVE-OUT DATE]. At the beginning of my tenancy, I paid a security deposit of [DEPOSIT AMOUNT].
I vacated the premises on [MOVE-OUT DATE], returned all keys, and left the unit in clean condition. Under California Civil Code Section 1950.5, you were required to return my security deposit, or provide an itemized statement of deductions, within 21 days of my move-out date.
As of today's date, [NUMBER] days have passed since I vacated, and I have not received my deposit or any itemized statement of deductions. [IF THEY SENT A STATEMENT: "The deductions you claimed of [AMOUNT] for [REASONS] are improper because [EXPLAIN WHY]."]
I hereby demand payment of [TOTAL AMOUNT], calculated as follows:
[PRINCIPAL AMOUNT] - Principal amount owed
[INTEREST IF ANY] - Interest at [RATE] per [PERIOD]
[OTHER AMOUNTS] - [Description, e.g., "Late fees per contract"]
TOTAL: [TOTAL]
Payment must be received by [SPECIFIC DATE]. Payment should be made by [ACCEPTABLE PAYMENT METHOD - e.g., "certified check or money order"] and mailed to my address above.
If I do not receive full payment by the deadline stated above, I will file a claim against you in California Small Claims Court. If I am forced to file suit, I will seek to recover:
- The full amount demanded above
- Court filing fees
- Service of process costs
- [ANY ADDITIONAL DAMAGES/PENALTIES, e.g., "Bad faith penalties of up to 2x the security deposit under Civil Code 1950.5"]
A judgment against you will become a matter of public record and may affect your credit.
I hope we can resolve this matter without litigation. If you wish to discuss settlement or have questions about this demand, you may contact me at the phone number or email address above.
Sincerely,
[YOUR SIGNATURE]
[YOUR PRINTED NAME]
Enclosures: [LIST ANY DOCUMENTS YOU'RE ATTACHING]
💬 Sending Your Letter
Send your demand letter via certified mail with return receipt requested. This gives you proof that the letter was delivered and when. Keep the green card that comes back - you'll need it as evidence if you go to court. Consider also sending a copy via regular mail and email.
🚀 Next Steps After Sending Your Demand
What happens after you send your demand letter depends on how the recipient responds.
Possible Outcomes
👍 They Pay in Full
Great! Dispute resolved. Keep records of payment. Send a brief confirmation that the matter is settled.
💬 They Want to Negotiate
Consider their offer. A reasonable settlement now may be better than uncertain court outcome later.
😐 No Response
After your deadline passes, proceed to file in small claims court. Their silence will not look good to the judge.
😠 They Deny They Owe You
Document their response and proceed to court. Their denial letter may actually help your case.
If You Need to File in Small Claims Court
-
Determine the Correct Court
Generally, file in the county where the defendant lives or does business, or where the incident occurred. For security deposits, file where the rental property is located.
-
Fill Out the Forms
You'll need SC-100 (Plaintiff's Claim and ORDER to Go to Small Claims Court). Get forms at your local courthouse or California Courts Self-Help Center.
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File and Pay the Fee
File your forms at the clerk's office and pay the filing fee ($30-$75). The clerk will give you a hearing date.
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Serve the Defendant
The defendant must be served with copies of your claim at least 15 days before the hearing (25 days if they're outside the county). You cannot serve them yourself - use a process server, sheriff, or adult friend.
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Prepare for Your Hearing
Organize all your evidence: the demand letter, certified mail receipt, contracts, invoices, photos, and any other documentation. Practice explaining your case clearly and concisely.
📅 Timeline Overview
- Day 1: Send demand letter via certified mail
- Days 7-10: Letter received (certified mail typically takes 3-7 business days)
- Days 14-30: Deadline for response (as stated in your letter)
- Day 31+: If no resolution, file in small claims court
- 30-70 days after filing: Typical hearing date
Need Help With Your Demand?
Get a 30-minute strategy call with an attorney to review your situation and discuss your options.
Book Consultation - $125Related Resources
🖩 Small Claims Damages Calculator
Use this interactive calculator to estimate potential damages in your case. Enter your information below to get an estimate of recoverable damages.