I've noticed that most people simply ignore demand letters, despite the clear warning therein that to do so would constrain the sender to file the appropriate legal case against the recipient.
More often than not, panic on the part of the recipient comes when the subpoena or summons, as the case may be, is finally received, and it is only at this time that a lawyer is consulted.
My advice is not to take demand letters lightly. If you're really confident about your legal position and have a reason for refusing to accede to the sender's demand/s, then it won't harm you if you simply respond to the same (of course, after consulting your legal counsel).
While some may suggest ignoring the demand letter to avoid revealing your legal position/ reason before an actual court case, I think that not responding to a demand letter will do more harm in the long run, as this may be construed as an admission on your part that the allegations in the demand letter are correct. Of course, legally, your silence does not ipso facto result to an admission. However, strategy-wise, your opponent may capitalize on this in his complaint or pleadings, making your reasons appear as mere afterthoughts.
So unless the circumstances require otherwise, I suggest that demand letters be responded to promptly and not simply ignored.
Responding to a demand letter early on, instead of waiting for a formal complaint to be filed against you, will also allow you or your legal counsel to prepare for litigation in the event the sender is not satisfied with your refusal to the accede to his/her demand/s and institutes a formal case before the proper court.
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