Received a letter before claim? Here’s what happens next.

What’s happened?

A letter before claim (sometimes called a letter before action) sets out what someone says you owe or have done wrong, and what they want. The courts expect parties to exchange information and try to settle before anyone issues a claim, and this letter is how that process starts.

Why should you care?

• It will usually give you a deadline. For straightforward matters that is often around 14 days. Where the claim is for a business debt, the debt pre-action protocol gives you 30 days to reply.
• If you ignore it, the other side can go ahead and issue a claim. The court can also take your silence into account later, including when it decides who pays the legal costs.
• What you say now can be used later, so a rushed or angry reply can cause more harm than good.

What can you do about it?

1. Note the deadline and diarise it straight away.
2. Gather the contract, emails, invoices and anything else that tells the story.
3. Don’t admit or deny anything until you understand your position. Get advice first.
4. If you need more time to respond properly, ask for it in writing. Reasonable requests are usually agreed.

This article is general information, not legal advice. Every situation is different, so please speak to us about yours.