A letter of intent to sue (with settlement demand) notifies an individual that the sender intends to file a lawsuit against them. 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.Consider the "who, what, where, and when" of your dispute. 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. A settlement demand letter is a written request to the party responsible for your injury or loss to pay you a fair amount of money without going to court. In most demand letters our lawyers write, we first lay out the itemized medical bills and economic losses. Then, we explain the negligence of the defendant. The demand letter should be factual, concise, and devoid of emotional language. Stick to the facts and lay out your demand in clear terms.