What Is a Demand Letter in Louisiana?
A demand letter in Louisiana carries special legal significance. Known in Louisiana civil law as a mise en demeure, or putting in default, a formal demand letter is often a legal prerequisite to recovering certain damages. Louisiana operates under a civil law system derived from French and Spanish legal traditions, which distinguishes it from the common law systems used in the other 49 states. This means demand letters serve a more formal legal function in Louisiana than in most other jurisdictions.
Louisiana-Specific Legal Requirements
Louisiana law places particular importance on written demands in several contexts:
- Putting in default: Under Louisiana Civil Code Article 1991, an obligor is put in default by a written request of performance or by the terms of the contract. A formal demand letter puts the other party in default and triggers the right to recover damages, including interest and attorney fees in some cases.
- Open accounts: Under Louisiana Revised Statutes 9:2781, a creditor who prevails on an open account claim is entitled to attorney fees if a written demand was sent and the debtor failed to pay within 15 days. The demand must be sent by certified mail.
- Security deposit disputes: Under LRS 9:3251, landlords must return security deposits within 30 days of move-out. Tenants should send a written demand if the deposit is not returned.
- Bad check claims: Under LRS 9:2782, a payee must send written demand by certified mail and allow 15 days for payment before pursuing penalties for a dishonored check.
- Insurance claims: Louisiana's bad faith insurance statutes (LRS 22:1892 and 22:1973) impose penalties on insurers who fail to pay claims within statutory deadlines after receiving proper notice.
Certified Mail Requirements
Louisiana law specifically requires certified mail for several types of demand letters:
- Open account claims: LRS 9:2781 requires demand by certified mail to recover attorney fees
- Bad check claims: LRS 9:2782 requires demand by certified mail
- General demand letters: While not always required by statute, certified mail with return receipt requested is strongly recommended for all demand letters in Louisiana to provide proof of delivery
Because Louisiana's civil code gives demand letters formal legal effect, the method of delivery is especially important.
Small Claims Court in Louisiana
Louisiana handles small claims through the Small Claims Division of the City Court or Justice of the Peace Courts. Key details include:
- Claim limit: Up to $5,000
- Filing fees: $30 to $200 depending on the court and the amount of the claim
- Court names: Small Claims Division of City Court or Justice of the Peace Court, depending on the parish
- Attorney representation: Allowed but not required
- Where to file: In the parish where the defendant resides or where the obligation was to be performed
- No jury trials: Small claims cases are heard by a judge
Louisiana uses parishes instead of counties. The court structure varies by parish, so check with the local clerk of court for specific procedures and fees.
Statute of Limitations (Prescriptive Period) in Louisiana
Louisiana uses the term prescriptive period rather than statute of limitations. Your demand letter must be sent and any suit filed within these deadlines:
- Written contracts: 10 years (Louisiana Civil Code Article 3499)
- Oral contracts: 10 years (Louisiana Civil Code Article 3499)
- Property damage (delictual actions): 1 year from knowledge of damage (Louisiana Civil Code Article 3492)
- Personal injury (delictual actions): 1 year from knowledge of injury (Louisiana Civil Code Article 3492)
- Open accounts: 3 years (LRS 9:2781)
- Fraud: 1 year from discovery (Louisiana Civil Code Article 3492)
Louisiana is notable for having a 10-year prescriptive period for both oral and written contracts but only a 1-year period for personal injury and property damage claims. The 1-year delictual action period is among the shortest in the nation.
Interest Rates on Judgments
Louisiana sets the legal interest rate on judgments at the rate established by the state treasurer, which is adjusted annually based on a statutory formula (LRS 9:3500). The rate is typically in the range of 5 to 8 percent but varies by year. If your contract specifies an interest rate, that rate applies subject to Louisiana's usury limits.
Under Louisiana law, sending a mise en demeure can trigger the accrual of legal interest from the date of the demand rather than only from the date of judicial demand (filing suit). This is an important reason to send a formal demand letter promptly.
What to Include in Your Louisiana Demand Letter
Identifying Information
- Your full legal name and address
- The recipient's full legal name and address
- The date of the letter
The Mise en Demeure Language
- A clear statement that this letter constitutes a formal demand and places the recipient in default under Louisiana Civil Code Article 1991
- Reference to the specific obligation that has not been performed
Description of the Dispute
- A factual account of the agreement or transaction
- The specific obligations the other party has failed to fulfill
- Relevant dates and details
- References to any contracts, invoices, or other documents
The Demand
- The exact dollar amount claimed
- An itemized breakdown of damages
- Interest at the contractual or legal rate
- A response deadline of 15 to 30 days
- A statement that you will file suit in the appropriate court if the demand is not met
- For open accounts, a specific reference to LRS 9:2781 and the 15-day payment deadline to preserve attorney fee recovery
Supporting Documentation
- Copies of contracts, invoices, or receipts
- Evidence of damages such as photographs or repair estimates
- Prior correspondence regarding the dispute
- Proof of payments made
Timeline Expectations
- Day 1: Send the demand letter via certified mail with return receipt
- Days 1-15: For open account claims, the 15-day statutory period runs
- Days 15-30: Follow up if no response. For open account claims, attorney fee recovery rights vest after 15 days.
- Day 30 and beyond: File suit in Small Claims Division or the appropriate court
When to Escalate to Court
Consider filing suit in Louisiana if:
- The recipient does not respond within the statutory or demanded timeframe
- The recipient refuses to pay without justification
- Settlement negotiations have failed
- The prescriptive period is approaching, especially for the 1-year delictual actions
For claims over $5,000, file in City Court (up to $50,000 in most parishes) or District Court (unlimited jurisdiction). Given Louisiana's unique civil law system, consulting an attorney is advisable for complex claims or amounts that exceed the small claims limit.