Dear Attorney,

I sent a demand letter to a company regarding an issue. I want to file a case, but I am unsure how long I should wait before doing so. How soon can I proceed with filing a case after sending the demand letter? Thank you.
— Concerned Party

Insights

Legal Effects of a Demand Letter in the Philippines

A demand letter is a formal document sent to an individual or entity requesting the fulfillment of a legal obligation or remedy for a wrong, typically sent before initiating legal action. It plays a critical role in providing the party in breach an opportunity to settle disputes out of court. It is also a crucial step in many civil and commercial disputes as it signifies the complainant's intent to pursue legal remedies if their demands are not met.

The Importance of a Demand Letter

In the Philippines, a demand letter is not always legally required, but it is often a strategic tool for initiating a legal process, particularly in cases of debt recovery, breach of contract, or claims for damages. Some cases, such as in civil actions involving unpaid obligations, may require a demand letter to establish that the debtor has already defaulted or breached the agreement.

Sending a demand letter shows good faith, a willingness to settle the issue without resorting to litigation. More importantly, it may demonstrate to the court that all reasonable steps were taken to resolve the matter amicably before initiating legal action.

Time Considerations After Sending a Demand Letter

There is no specific provision in the law that mandates a precise waiting period after sending a demand letter before filing a case. However, the appropriate time to wait depends on several factors, including the type of case and the nature of the demand. These considerations include:

Reasonable Time Period
The general principle in Philippine law is that after sending a demand letter, you should give the other party a "reasonable period" to respond or comply. What constitutes a reasonable time varies depending on the nature of the demand, but typically, it can range from 5 to 30 days, depending on the urgency of the matter. If the demand involves payment or the return of property, waiting for at least 15 days is usually advisable.
Negotiations and Extensions
Sometimes, the party receiving the demand letter may ask for an extension or attempt to negotiate. It is often practical to allow this extension, provided it is within reason. This can also demonstrate good faith on your part should the matter go to court, as it shows you have exhausted all possible avenues for settlement.
Legal Deadlines or Prescription Periods
It is critical to remember that certain cases have prescribed deadlines or statutes of limitations. For example, under the Civil Code of the Philippines, actions to enforce obligations based on written contracts must generally be filed within ten (10) years, while actions based on oral contracts or obligations created by law must be filed within six (6) years. While sending a demand letter may signal the start of negotiations, the filing of the case must still fall within the legally prescribed period. Hence, if there is a risk of the statute of limitations expiring, the complainant must act quickly, regardless of whether a response to the demand letter has been received.

Common Scenarios Requiring Demand Letters

Debt Recovery
A demand letter is commonly used to recover unpaid debts. In these cases, after the demand letter is sent, the debtor is given a reasonable time, often 15 to 30 days, to pay. If they fail to comply, the creditor may proceed with filing a civil case for collection or, if the amount falls within certain thresholds, pursue a small claims case before the appropriate courts.
Breach of Contract
When one party breaches a contract, the aggrieved party usually sends a demand letter before filing a case for specific performance or damages. The breaching party is typically given a deadline to rectify the breach or comply with the terms of the contract. In such cases, the demand letter serves as both a formal notification of the breach and a final opportunity for resolution without resorting to legal action.
Unlawful Detainer or Ejectment
In cases involving unlawful detainer or ejectment (e.g., a tenant refuses to vacate the premises after the lease has expired), the landlord must typically serve a demand letter to vacate the property. If the tenant fails to comply within the time specified in the demand letter, usually 15 to 30 days, the landlord may then proceed to file an ejectment case in the appropriate Municipal Trial Court.

Filing a Case After a Demand Letter

Once a demand letter has been sent and the recipient fails to respond or comply within the given time, the next step may be to file a case. The filing process involves several considerations:

Documentary Evidence
The demand letter, along with proof that it was received by the other party (e.g., proof of service via registered mail or acknowledgment receipt), is crucial evidence when filing a case. It shows that the complainant has taken the necessary steps to inform the other party of their claims and provided an opportunity to remedy the issue.
Legal Counsel and Filing
After the demand letter's deadline has passed without a satisfactory response, the complainant should consult with legal counsel to determine the next steps. This often involves preparing a formal complaint to be filed with the court, specifying the facts, legal basis, and remedies sought. Filing fees will also need to be paid when lodging the case with the court.
Small Claims Cases
If the dispute involves a small sum of money, such as unpaid loans, rent, or similar obligations, the complainant may be able to pursue a small claims case. These cases are designed for faster resolution and do not require formal legal representation. However, even in small claims, sending a demand letter and allowing a reasonable time for the debtor to respond is typically a good practice before proceeding with legal action.

Final Considerations
A demand letter is an essential preliminary step in resolving legal disputes in the Philippines. While the law does not stipulate an exact waiting period before filing a case, giving the other party a reasonable time to respond or comply with the demand is crucial. Always keep in mind the relevant prescription periods for filing a case, as failing to act within the allowed time frame could bar legal action.

To ensure the best course of action, it is recommended to consult with a lawyer who can provide tailored advice depending on the specific circumstances and legal issues involved.