A formal notification initiated by legal counsel outlining a grievance and a proposed resolution sets in motion a series of potential actions. This correspondence, often referred to as a pre-litigation claim, serves as an initial attempt to resolve a dispute amicably, without the need for formal court proceedings. An example includes a letter from an attorney to a construction company alleging breach of contract and demanding specific performance or monetary compensation.
This preliminary step carries significant weight as it establishes a clear record of the claimant’s position and provides the opposing party with an opportunity to address the issue. The process can save time and expense associated with litigation, foster settlement negotiations, and potentially preserve business relationships. Historically, such communications have been pivotal in facilitating out-of-court settlements and avoiding costly legal battles.
