What to Do If You Receive a Letter Before Claim
A letter before claim (LBC) is a formal pre-action notice that the sender intends to issue court proceedings if the matter is not resolved. Ignoring it can lead to default judgment and cost penalties.
Quick Answer
Do not ignore a letter before claim. You normally have 14 days to acknowledge it (30 days for personal injury claims under the Pre-Action Protocol). Read it carefully, gather all relevant documents, consider whether the claim has merit, and respond in writing by the deadline. If the claim has any substance, take legal advice immediately. Failure to respond can result in a court order being made without your knowledge and adverse costs consequences.
Full Explanation
A letter before claim is the formal pre-action notice required by the Civil Procedure Rules (CPR) Pre-Action Protocols before a claimant can issue court proceedings. Its purpose is to allow the parties to exchange information, consider settlement, and attempt to resolve the dispute without litigation. Ignoring an LBC is never a sensible response โ courts expect parties to engage with pre-action correspondence, and an unreasonable failure to respond or engage can result in adverse costs orders even if you ultimately win the case.
The required response time depends on which protocol applies. For general civil claims the Practice Direction on Pre-Action Conduct and Protocols requires the defendant to acknowledge within a reasonable time โ usually 14 days โ and to provide a full response within a further reasonable period. For personal injury claims, the defendant must acknowledge within 21 days and respond fully within three months. For debt claims, the Pre-Action Protocol for Debt Claims requires a 30-day window and mandates that specific forms (including a Reply Form and a Standard Financial Statement if the debt is disputed on financial hardship grounds) be provided.
On receiving the LBC, read it closely and identify: whether you are the correct defendant; what the cause of action is; what sum is claimed; and what documents the claimant relies upon. Gather all relevant documentation โ contracts, correspondence, invoices, photographs, or any evidence that supports your position. If the claim is disputed, identify the specific grounds of dispute in your response. If you need more time to investigate or obtain legal advice, write to the claimant's solicitors immediately to request an extension, explaining your reasons.
If the claim has merit (even partial merit), consider whether early settlement is commercially sensible. Costs escalate dramatically once court proceedings are issued. A mediated or negotiated settlement before proceedings often saves significant cost and management time. If the LBC is misconceived or fraudulent, respond firmly with the specific grounds of defence.
If proceedings are issued and you did not respond to the LBC at all, you risk the claimant applying for a default judgment โ a court judgment entered without any hearing, simply because no defence was filed in time. A default judgment can be enforced immediately against your assets and will affect your credit rating. Although it can be set aside, doing so requires a court application, a fee, and demonstrating a real prospect of success and a good reason for the default.
Legal Basis
- ยงCivil Procedure Rules 1998, Practice Direction on Pre-Action Conduct and Protocols
- ยงPre-Action Protocol for Debt Claims (October 2017)
- ยงPre-Action Protocol for Personal Injury Claims
- ยงMitchell v News Group Newspapers Ltd [2013] EWCA Civ 1537 (proportionality and compliance)
What To Do
Read and Date-Stamp the Letter
Note the date of receipt and identify the response deadline. Calculate whether the protocol allows 14 or 30 days. Put the deadline in your diary immediately. Even if you dispute everything, the deadline still applies.
Gather Your Documents
Locate all contracts, correspondence, invoices, receipts, photographs, witness statements, or any other evidence relevant to the claim. Identify what the claimant is relying on and what you have that contradicts or contextualises it.
Take Legal Advice If the Claim Is Substantial
If the claim exceeds the small claims threshold (currently ยฃ10,000 for most claims), involves complex legal arguments, or you are unsure of your position, instruct a solicitor promptly. Legal aid is rarely available for civil claims but a fixed-fee initial consultation is often worth the cost.
Send a Written Acknowledgement
If you cannot provide a full response within the deadline, send an acknowledgement letter stating you have received the LBC and will respond fully within a specified (reasonable) further period. This preserves your position and demonstrates good faith.
Provide a Substantive Written Response
Your response should: confirm you are the correct defendant; identify which parts of the claim you admit and which you dispute; set out your factual case; and state whether you are willing to negotiate or mediate. Enclose any key documents that support your position.
Consider Counter-Claims and Set-Off
If you have your own claim against the claimant (for example, for defective goods or services they provided), you may have a counter-claim or right of set-off. Raise this in your response โ it can be a powerful negotiating tool and may result in a net zero or positive position.
Important Deadlines
Important Warnings
Never ignore a letter before claim โ even a frivolous claim, if not responded to, can result in default judgment being entered against you.
Check the letterhead carefully โ some debt collection agencies send letters formatted to resemble court documents. A letter before claim is not a court order, but it still demands a response.
If the letter gives you fewer than 14 days to respond, write back immediately pointing out this is insufficient and request the standard protocol period โ courts will take note of unreasonable time pressure.
Do not make any payment to avoid the claim without first obtaining a written settlement agreement that includes a full release of all related claims.