Consider the "who, what, where, and when" of your dispute. Download a letter of intent to sue (with settlement demand) to inform a defendant that you will sue if they don't pay a settlement amount.A letter of intent to sue (with settlement demand) notifies an individual that the sender intends to file a lawsuit against them. Below is a sample demand letter from a medical malpractice case that thankfully settled before a lawsuit was filed. The names and parties have been changed. This letter serves as formal notice of intent to file a lawsuit. A settlement demand letter is used to ask for a settlement. The demand letter indicates that you are willing and ready to settle your claim. Demand letters are essentially letters demanding payment and stating your intent to sue in small claims court if the dispute cannot be resolved amicably.