A few weeks after a shoplifting arrest in Texas, many people receive a certified letter at home from a law firm they have never heard of. The letter demands payment of several hundred dollars (sometimes significantly more than the value of whatever was allegedly taken) and threatens legal action if the amount is not paid within a specified time. It is alarming, official-looking, and often arrives at the same time the person is already dealing with a pending criminal charge.
This is a civil demand letter, and understanding exactly what it is (and what it is not) is the first step toward responding to it correctly.
What a Civil Demand Letter Actually Is
A civil demand letter is not a criminal charge, a court order, or a legal judgment. It is a demand for payment sent on behalf of the retailer, authorized by the Texas Theft Liability Act (Texas Civil Practice and Remedies Code §134.001–134.005). Under that statute, a merchant who has sustained damages due to theft may demand payment from the person who committed the theft independent of any criminal prosecution.
The statute allows merchants to seek actual damages (the retail value of the merchandise, even if it was recovered undamaged), plus up to $1,000 in additional statutory damages, plus reasonable attorney’s fees and court costs if the matter proceeds to civil litigation. The civil demand letter is typically the first step in that process. It’s an attempt to collect payment before filing a civil lawsuit.
Large national retailers (ex. Walmart, Target, Home Depot, Walgreens) send these letters as a matter of routine. They are generated by firms that specialize in civil recovery on behalf of retailers, often in states where those firms may not be licensed to practice law. Many firms send hundreds of these letters per year for a single retail client, knowing that a significant percentage of recipients will pay out of fear and confusion.
What a Civil Demand Letter Is Not
It is not a criminal charge. The civil demand letter and any criminal theft charge are entirely separate legal proceedings. The retailer does not control whether criminal charges are filed. That decision belongs to law enforcement and the prosecutor’s office. If you have been charged criminally, the civil demand letter does not resolve or dismiss those charges. If you have not been charged criminally, the civil demand letter does not mean criminal charges are coming.
It is not legally enforceable on its own. A civil demand letter is a request, not a judgment. The retailer cannot garnish your wages, place a lien on your property, or take any other collection action based solely on the letter. To enforce the demand, the retailer would have to file a civil lawsuit, obtain a judgment, and then pursue collection. Most retailers do not file civil lawsuits over shoplifting matters, particularly when the amounts involved are small. The cost of litigation significantly exceeds the potential recovery in most cases.
Paying it does not make the criminal case go away. If criminal charges have been filed, paying the civil demand does not resolve them. The criminal case proceeds independently. Conversely, if criminal charges have not been filed and you pay the civil demand, that payment does not prevent future criminal prosecution for the same incident.
Does Paying the Civil Demand Affect the Criminal Case
This is the question most people have, and the answer requires care. In most cases, paying or not paying a civil demand letter has minimal direct impact on the criminal case. However, there are two considerations that make it worth discussing with your criminal defense attorney before responding:
An admission of liability. Paying a civil demand without any qualifying language could be interpreted as an admission that you committed the theft. In a subsequent criminal trial, the payment could theoretically be raised as evidence. This is a relatively remote risk in most cases, but the possibility exists.
The payment itself is discoverable. In the unlikely event the criminal case goes to trial, the existence of the civil demand and any payment made could become part of the record. Your criminal defense attorney should know about any civil demand letter you receive so they can advise you on how and whether to respond.
How to Respond
The most important step is to consult with your criminal defense attorney before taking any action on the civil demand letter. Do not ignore it entirely but understand what it is and do not pay it or communicate with the sending firm without advice from counsel.
In most cases, the practical options are: do nothing and see whether the retailer takes further action (most do not); have your attorney respond on your behalf acknowledging receipt but declining payment; or, in cases where civil liability is clear and the amount is reasonable, negotiate a settlement under terms your attorney recommends. The last option is rarely appropriate until the criminal case is resolved in your favor.
One additional note: many of the firms that send these letters on behalf of large retailers are not licensed to practice law in Texas. A letter from an out-of-state firm demanding payment under Texas law, signed by attorneys not admitted to the Texas bar, may not be legally enforceable in any meaningful sense.
If you are facing theft charges in Texas, contact Deandra Grant Law for a free, confidential consultation. Call (214) 225-7117 or visit texasdwisite.com.