The English court system encourages parties to attempt to resolve disputes through pre-claim correspondence.
If you intend to take legal action against someone, you should first write to them outlining the legal basis for your claim. This should include relevant contractual terms, details of the defendant’s breach, the loss you have suffered as a result, and a request for payment within a reasonable timeframe, for example, 14 days from the date of your letter. Additionally, you should warn that failing to make the payment may result in legal action being taken against them.
If you win and they fail to pay the judgement order, you will seek to enforce the order against them. This may include pursuing bankruptcy (if the defendant is a person) or winding up (if the defendant is a company).
The reality is that in a small claim, the letter of claim or response might be a brief email that addresses some but not all necessary elements. This may require a follow-up response seeking further clarification before fully understanding the nature of the claim and responding comprehensively.
If the other party pays up, that’s great. If they don’t, it will be useful to show the court later on that you made an effort to resolve the matter before taking legal action. If the deadline in the letter of claim passes without a response, take another moment to consider if you still want to sue them.
Letter of response
When a defendant receives a letter of claim, they should respond to the claimant within the specified time frame, if it is reasonable. If needed, the defendant can request more time to respond but must provide a valid reason for the extension.
The response should explain why the claimant’s allegation of being owed money is incorrect, with specific reference to the letter of claim and any counterclaim that the defendant may have against the claimant.
The response letter will outline the likely defence of the defendant if you decide to sue them. This helps you assess the strength of your claim. If you are the defendant, the letter will outline your defence. If initial correspondence does not resolve the dispute, you may need to pursue or defend against a legal claim.
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