1) What a “demand letter” is (and why people pay lawyers to write one)

A demand letter is a written notice—usually sent before filing a case—requiring the recipient to pay, perform, cease, return, vacate, or comply within a stated period. In Philippine practice, it is a staple in collections, contract breaches, property disputes, employment issues, commercial conflicts, and tort claims.

A lawyer-prepared demand letter is commonly used to:

Place the other party in default (delay) when required under civil law principles on obligations.
Interrupt prescription through a written extrajudicial demand (important when claims are nearing prescriptive deadlines).
Create a paper trail showing good faith, notice, and an opportunity to comply before litigation.
Frame the dispute in legally accurate terms and avoid statements that could backfire (defamation, harassment, unfair collection conduct, admissions against interest).

Demand letters vary from a one-page collection notice to a multi-issue legal position paper with attachments, timelines, and settlement terms—so fees vary widely.

2) How lawyers in the Philippines typically charge for demand letters

There is no single government-fixed price for demand letters. Professional fees are generally contractual, but must remain reasonable under ethical standards (time spent, complexity, amount involved, urgency, skill required, and similar factors).

Common billing models:

A. Flat fee per letter (most common for individuals and small businesses)

A fixed amount covers drafting and finalization, sometimes including one round of revisions.

B. Hourly billing (common in corporate practice)

Firms may bill time for fact review, legal research, drafting, partner review, and calls.

C. “Demand letter included” in an acceptance/retainer fee

Some lawyers treat the demand letter as the first step of a broader engagement (collection, negotiation, litigation).

D. Success fee / contingency component (common in collection work)

The letter may be low-cost or bundled, with a percentage of recovered amount payable if settlement/collection succeeds.

E. Batch or volume pricing

Businesses that send many letters (e.g., receivables, rentals, HOA dues) may get per-recipient or per-batch pricing using templates customized per account.

3) Typical fee ranges (practical market bands)

Actual fees differ by city/province, lawyer seniority, firm size, urgency, and complexity. The ranges below reflect typical practice bands seen in the Philippine market, not a mandatory schedule.

A. Basic demand letters (simple collection / straightforward breach)

Typical scope: short fact summary, amount due, deadline to pay/comply, reservation of rights, and notice of intended legal action. Typical fees: ₱2,000 to ₱10,000 Often seen for: unpaid loans, simple receivables, rental arrears (basic), small consumer obligations.

B. Standard dispute demand letters (negotiation-ready; moderate complexity)

Typical scope: timeline, legal basis, itemized computations, demand for specific performance/return, proposed settlement terms, and supporting annex list. Typical fees: ₱10,000 to ₱30,000 Often seen for: contract termination disputes, service agreement breaches, landlord-tenant disputes needing precise grounds, employment-related monetary claims, non-delivery/non-payment disputes.

C. High-stakes or technical demand letters (corporate, regulatory, IP, construction, cross-border)

Typical scope: detailed legal theory, risk framing, multi-issue claims/defenses, structured settlement proposals, document-heavy annexing, careful defamation/risk language, sometimes multi-recipient coordination. Typical fees: ₱30,000 to ₱100,000+ Often seen for: shareholder/partnership disputes, construction claims, IP infringement cease-and-desist, complex commercial default, multi-party disputes.

D. Large-firm / major corporate practice (time-based or minimum fee)

Some firms apply minimum billing blocks and partner review. Demand letters in this setting commonly run ₱50,000 to ₱250,000+, especially when accompanied by meetings, negotiation calls, or compliance strategy.

E. Hourly-rate framing (instead of fixed per letter)

Where hourly billing is used, demand-letter work may include:

intake and fact review
legal research
drafting and revisions
internal review and approval
negotiation calls
final sending and documentation of service

Hourly rates vary widely. A practical way clients experience this is total billed time (often several hours for standard disputes, more for complex matters) multiplied by the firm’s rate.

4) What is usually included (and what is often billed separately)

Demand-letter quotes differ because “a letter” can mean different deliverables.

Often included in a flat fee

One finalized demand letter
Basic review of documents provided
One round of client revisions
Basic instructions on how it will be served/sent

Common add-ons (extra fees)

Multiple recipients (separate letters for different parties, guarantors, board members, etc.)
Follow-up letters (second/third demand, final notice, notice of intent to sue)
Settlement drafting (compromise agreement, quitclaim, release, payment plan)
Negotiation attendance (meetings, calls, mediation-style conferences)
Special computations (interest, penalties, liquidated damages, audit-based claims)
Fact investigation (site visits, interviews, trace requests)
Translation (Filipino/English versions, or local dialect needs)
Notarization (not required for a demand letter, but some clients request it)
Courier/registered mail costs and printing
Urgent rush drafting (same-day/next-day turnaround)

5) Costs beyond professional fees (out-of-pocket items)

Even when drafting is a flat fee, sending and documentation may involve:

courier fees / registered mail fees
printing, photocopying, scanning
notarial fees (if notarized attachments are required)
transport for service/meetings (if arranged)

In disputes where proof of receipt matters, many choose registered mail, reputable courier with proof of delivery, and/or email with verifiable transmission, depending on contract provisions and practical enforceability.

6) Taxes, official receipts, and withholding (practical compliance points)

Professional fees may be affected by:

whether the lawyer/law office is VAT-registered
whether the client is a withholding agent (common for companies that must withhold taxes on professional fees)
issuance of an official receipt and documentation of payments

In corporate settings, it is common for the client’s accounting to require:

a formal billing statement
an engagement letter
OR issuance and any required withholding documentation

(Exact tax handling depends on the provider’s registration and the client’s tax profile.)

7) Can “attorney’s fees” be charged to the debtor just because the letter says so?

A demand letter often includes language like “plus attorney’s fees.” Enforceability depends on the legal basis:

A. If there is a contract clause

Many promissory notes, leases, and commercial contracts contain a clause that obligates the debtor to pay attorney’s fees and costs of collection in case of default. Even then:

courts typically require that the amount be reasonable, and
excessive percentage clauses may be reduced.

B. If there is no contract clause

A creditor generally cannot unilaterally impose attorney’s fees by simply stating it in the demand letter. Attorney’s fees may still be recoverable as damages in specific circumstances recognized under civil law principles, but this usually requires:

litigation and a proper basis (e.g., bad faith), or
a settlement/compromise where the debtor agrees to include it.

C. Practical reality in settlements

In negotiated settlements, parties sometimes agree to a lump sum “inclusive of attorney’s fees” even if the original contract is silent—because settlement terms are contractual.

8) Ethical and risk constraints lawyers consider (which can affect price)

A careful demand letter avoids legal and ethical pitfalls that can create liability or weaken a future case, such as:

Defamation risk: accusing someone of theft/fraud in a letter copied widely (HR, neighbors, business partners) can backfire if not handled carefully.
Harassment / unfair collection conduct: repeated threats, public shaming, contacting unrelated third parties, or aggressive language can create exposure.
Improper threat of criminal action: using criminal accusations solely to force payment can be risky; while a letter may state available legal remedies, it must be framed responsibly and factually.
Data privacy concerns: disclosing personal data or debt details to third parties without a lawful basis can trigger complaints.
Unauthorized practice and misrepresentation: letters must be truthful and grounded in the record.

Higher fees often reflect the lawyer’s time spent risk-proofing language and strategy, especially in employment and corporate contexts.

9) Pricing by scenario (what commonly drives the quote)

A. Amount involved and urgency

Larger claims and urgent deadlines generally increase fees due to higher stakes and faster turnaround.

B. Complexity and documentation

A simple unpaid invoice differs from a dispute requiring review of contracts, emails, delivery receipts, minutes, or audit reports.

C. Number of issues

One obligation (pay ₱X) is cheaper than a letter covering multiple causes of action (rescission, damages, injunction demands, IP cease-and-desist, accounting, turnover of property).

D. Post-letter work expected

If the letter is meant to trigger negotiation, the fee may include calls/meetings.
If litigation is anticipated, the letter may be drafted to align with future pleadings, increasing effort.

E. Location and practice setting

Metro Manila pricing often differs from provincial pricing.
Solo practice vs boutique vs large firm pricing differs significantly.

10) What a client typically provides for an efficient, lower-cost demand letter

Fees often rise when facts are unclear. Useful documents include:

contract/lease/PO/invoice and amendments
delivery/acceptance proof, billing statements, demand history
payment records, bounced check details (if any), bank notices
emails/messages showing admissions, promised payments, refusals
IDs or correct addresses of the recipient
computation of the amount claimed (principal, interest, penalties)

A well-prepared factual packet reduces drafting time and cost.

11) Red flags in demand-letter fee arrangements

No clear scope (uncertain whether negotiation, revisions, follow-ups are included)
No documentation (no engagement letter or written fee agreement)
Unusually low fee with aggressive guarantees (demand letters cannot guarantee payment)
Excessive “attorney’s fees” add-on claimed from the other party without basis
Pressure to broadcast accusations (increases defamation and privacy exposure)

12) Practical fee “menu” examples (illustrative structures)

These are common ways quotes are structured:

Consult + draft + send

Consultation fee (sometimes creditable)
Flat drafting fee
Courier/registered mail billed at cost

Flat letter package

One letter + one revision + one follow-up within a set period

Collection engagement

Modest upfront (or included in acceptance fee)
Success fee (percentage of amounts recovered)
Separate litigation acceptance fee if filing becomes necessary

Corporate hourly

Time billed by level (associate/senior/partner)
Disbursements separately
Often requires an initial retainer deposit

13) Key takeaways

“Typical” demand-letter fees in the Philippines range from a few thousand pesos for simple matters to six figures for complex, high-stakes, or large-firm work.
The price depends less on the page count and more on risk, complexity, documentation, and the strategy needed to support settlement or litigation.
Attorney’s fees demanded from the other party are enforceable mainly when supported by contract, law, or settlement agreement, and are still subject to reasonableness.