When you hire a lawyer to write a demand letter, you’re usually looking at $500 to $2,500 in costs (or just $299 if you click below). No lawsuit, no court appearance — just for the letter itself. Naturally, you want that money back on top of whatever the other party already owes you.
You can ask for attorney demand letter fees, and most of the time it makes sense, but sometimes it can derail an otherwise smooth settlement. Read on to find out when and when it doesn’t make sense to ask for demand letter fees.
What we’ll cover:
- When attorney fees make strategic sense
- When to skip the attorney fees
- Sample language for different scenarios
- Using attorney fees as negotiation tools
When Attorney Fees Make Strategic Sense
To show the other side costs will keep mounting.
Including attorney fees can demonstrate that legal costs have already begun to accumulate, and they’ll only get worse if this matter drags on. When you add “Attorney fees for demand letter: $750” to your damages, you’re establishing a pattern. If they don’t settle now, the next letter might mention thousands in litigation costs. It’s particularly effective to note something like “fees incurred to date” rather than just “attorney fees,” signaling that the meter is running.
The other party breached a contract with an attorney fee clause.
This is your strongest position. If your lease, service agreement, or purchase contract states that the winning party is entitled to attorney fees, include them without hesitation. Your demand would say something like: “Pursuant to Section 8.3 of our Service Agreement, which provides that the prevailing party shall be entitled to reasonable attorney fees, we are seeking reimbursement of $750 in legal fees incurred in preparing this formal demand.” You’re enforcing agreed terms, not asking for a favor.
They’ve wronged you before.
If this is the same landlord who illegally withheld your deposit three years ago, or the contractor who left your last project unfinished, including attorney fees sends the message that you’re not an easy target anymore. Someone who’s taken advantage of you before needs to understand that this time is different. The attorney fees show you’re willing to spend money to get justice, making you a less attractive victim for the next time.
You need room to negotiate.
Attorney fees create space to compromise without touching your actual damages. Let’s say you need $10,000 for repairs. You can try asking for $10,000 plus $750 in fees. When they push back, you can waive the fees to close at your real number. They might feel like they won something, while you get what you need. This works especially well with business defendants who expect negotiation and are almost disappointed if there’s nothing to negotiate away.
You’re setting up for litigation.
If you’re genuinely prepared to sue, including attorney fees in your demand letter starts establishing the cost pattern. It shows you’re tracking legal expenses from day one.
When to Skip the Attorney Fees
You’re dealing with individuals.
If you send a demand to someone who owes you $3,000, and add $800 in attorney fees, their emotions might boil over. They don’t think “lawyers cost money.” They think “you’re trying to profit off me.” Someone ready to pay you back might get angry instead. The guilt can transform into outrage. For individual debtors, seeking additional fees can turn financial disputes into personal vendettas.
The relationship has future value.
If this is a client who might hire you again or a business partner you’ll keep working with, attorney fees can poison the well. Getting your $5,000 invoice paid matters more than the $500 in legal fees if it means preserving a $50,000 annual relationship.
You’re prioritizing speed over money.
Adding attorney fees can trigger additional approval layers at companies. The person who can cut a $5,000 check might need their boss’s permission for a $5,750 check. If rent’s due next week, getting $5,000 today beats maybe getting $5,750 next month.
The fees dwarf the dispute.
Asking for $1,500 in attorney fees on a $2,000 claim looks terrible. It suggests you’re being vindictive or trying to profit from the situation. Try to keep attorney fees reasonable unless you have an ironclad contractual right to them.
Small business owners might react poorly.
Small business owners fall somewhere between corporations and individuals. They understand that lawyers cost money, but take it personally when asked to pay YOUR lawyer. A contractor might agree to pay $8,000 to fix shoddy work but refuse the extra $800 for your lawyer. To them, there’s a difference between “making it right” and “paying your lawyer to come after me.”
You’re in an emotional dispute.
Divorce-adjacent issues, family business breakups, disputes with a friend, or harassment from a neighbor are already emotional powder kegs. Attorney fees often light the fuse. If there’s any chance of preserving a relationship or ending things amicably, consider eating the legal costs.
Sample Language for Different Scenarios
Here are some examples you might find in a demand letter asking for payment of lawyer demand letter fees:
For businesses (professional but firm)
“Legal fees incurred to date total $750. These costs were necessitated by your company’s failure to respond to multiple attempts at informal resolution.”
For individuals (softer approach)
“Unfortunately, the lack of response has required me to seek legal assistance, incurring $650 in fees. I remain hopeful we can resolve this without further legal expenses for either of us.”
For insurance companies (direct and specific)
“Attorney fees for demand letter preparation and case evaluation: $850. These fees were necessarily incurred due to claim handling delays.”
The vanishing discount (creates urgency)
“My client has incurred $750 in attorney fees for this demand letter. However, if this matter is resolved within ten (10) days, my client will waive these fees. After that time, any settlement must include the full amount plus all attorney fees incurred.”
Using Attorney Fees as Negotiation Tools
Experienced negotiators include attorney fees, sometimes knowing they’ll likely give them up. It’s not deception, it’s strategy. Here’s how it typically plays out:
You demand $15,000 plus $1,000 in attorney fees. They counter at $12,000 total. You come down to $15,000, including fees. They offer $14,000. You finally agree to $14,500 with no attorney fees.
Without that initial attorney fee request, the same negotiation might have ended at $13,500. The fees gave you room to concede something while protecting your core number.
This vanishing discount approach can work particularly well. Tell them if they settle within 10 days, you’ll waive the attorney fees. After that, the full amount applies. Defendants feel smart for acting quickly and saving money, rather than feeling forced into payment.