You Have Received a Letter Before Claim
A letter before claim (LBC) is a formal pre-action letter warning you that court proceedings will be issued if you do not respond or settle. You must respond substantively within the stated deadline.
Quick Answer
Do not ignore a letter before claim. Identify which pre-action protocol applies (there are separate protocols for debt, personal injury, professional negligence, housing disrepair, and others). Respond within the stated timeframe (usually 14 days for debt, 21 days for many others). Ignoring the LBC will likely result in a court claim being issued and the court may penalise you in costs for failing to engage.
Full Explanation
The Civil Procedure Rules contain a Practice Direction on Pre-Action Conduct (the 'PDPAC') which applies to all civil claims that do not have a specific pre-action protocol. Specific protocols exist for: debt claims; personal injury; clinical negligence; professional negligence; housing disrepair; construction and engineering disputes; defamation; and others. The purpose of pre-action protocols is to encourage the parties to exchange information, consider ADR, and try to resolve the dispute without litigation.
A letter before claim (or 'letter before action') is the letter required by the relevant protocol to be sent before proceedings are issued. The Protocol for Debt Claims (which applies to most consumer debt and business-to-consumer debt claims) requires the creditor to send a 'letter of claim' containing specified information (the 'LBC pack') and to give the debtor at least 30 days to respond. For general claims under the PDPAC, the claimant must give a reasonable response period โ usually at least 14 days, often 21โ30 days for complex matters.
If you have received an LBC, your response should: acknowledge receipt; state whether you admit or dispute the claim (or admit part of it); if you dispute, set out the basis of your dispute; request any documents not already provided that you need to assess the claim; and propose ADR (if appropriate). A good response to an LBC can sometimes resolve the dispute without proceedings and will assist your position if the matter does go to court.
The court will consider the parties' pre-action conduct when making costs orders. A claimant who issues proceedings without sending an adequate LBC, or a defendant who ignores an LBC without good reason, may face adverse costs consequences. Under CPR r.44.2, unreasonable pre-action conduct is a relevant factor in the court's costs discretion.
For most civil claims (excluding personal injury and some specialist claims), the LBC is also the trigger for limitation period considerations โ if the debt or claim is old, check whether the limitation period has expired (Limitation Act 1980: 6 years for contract and most tort claims, 12 years for deeds).
Legal Basis
- ยงCPR Practice Direction on Pre-Action Conduct and Protocols
- ยงPre-Action Protocol for Debt Claims (2017)
- ยงCPR r.44.2 โ court's discretion on costs including pre-action conduct
- ยงLimitation Act 1980 s.5 โ 6-year limitation period for simple contract claims
What To Do
Read the Letter Carefully and Identify the Protocol
Read the LBC in full. Identify which pre-action protocol applies โ the letter should state this. Note the response deadline carefully. Gather all documents relevant to the claim.
Assess Whether the Claim Has Merit
Honestly assess whether the claim is valid, partially valid, or without merit. Consider whether the limitation period has expired. Check whether you have any counterclaim or set-off.
Seek Legal Advice If Needed
For significant claims, seek legal advice before responding. Citizens Advice, Law Centres, and solicitors offering fixed-fee consultations can help. Do not miss the response deadline while seeking advice โ if pressed for time, send an acknowledgement letter stating you are seeking advice.
Respond Substantively
Send a written response to the claimant's solicitor or the claimant directly. State clearly: (a) which parts of the claim you admit; (b) which parts you deny and why; (c) any documents you are providing or requesting. Keep a copy with proof of posting.
Propose Alternative Dispute Resolution
Even if you dispute the claim, consider proposing mediation or other ADR in your response. The court expects parties to consider ADR, and refusing reasonable ADR proposals can lead to adverse costs orders.
Important Deadlines
Important Warnings
Ignoring an LBC is not a defence โ the claimant can issue proceedings after the response period expires and will draw the court's attention to your failure to respond when seeking costs.
Admitting part of the claim in your LBC response is not a waiver of your dispute of the remainder โ a clear, qualified admission can help narrow the issues.
Check the limitation period before deciding how to respond โ if the claim is time-barred, this is a complete defence that should be asserted promptly.