Before responding to a formal notice, it is strongly suggested to examine and assess the following factors:
- The validity of the claim against you. - Here is the question to ask to yourself: Has the sender of the formal notice the right to bring such a claim against me? - So, you must consider the legal rules and concepts applying to the dispute that has been exposed to you in the formal notice.
- The amount claimed from you. - Here is the question to ask to yourself: Is the amount claimed from you reasonable? - If you are able to prove that the amount claimed from you is unreasonable with regard to the relevant conflict situation, then you will have to inform the sender of the notice.
- fees to pay. - If you do not respond to the notice and you are later sued, you will have to pay Court costs and attorney fees in addition to losing working days for the hearing before the Court. You have to ask yourself whether or not it is better for you to pay all the various costs and fees that may be incurred during a lawsuit against you rather than trying to reach an agreement with the sender of the notice.
- A claim under $15000. - If you are claimed an amount of less than $15000, excluding interest, there is a good chance that any potential lawsuit is taken before the Small Claims Court if you do not respond to the formal notice. In this Court, you cannot be represented by a lawyer although you could still get advice from a lawyer before the trial begins, who can also help you prepare for the trial.
- The new obligation imposed by the Code of Civil Procedure of Quebec which provides for the use of alternate dispute resolution mechanisms before taking a legal action. - For example, if you participate in mediation in compliance with this new requirement and that it succeeds, you will not be sued, and you would mostly have the opportunity to assert your rights with respect to the obligations that you are required to the perform.
In all cases, it is suggested to consult with a legal advisor who can clarify your rights and obligations with respect to the dispute in question and guide you on what decision to make that would be most appropriate for your situation.