What is a 'without prejudice save as to costs' offer?

A 'without prejudice save as to costs' offer is a confidential settlement proposal. It is protected from being shown to the court when deciding the merits of the case. However, it can be disclosed to the court after judgment to help determine who should pay legal costs. This approach is useful when you want to protect your position on costs without creating a binding Part 36 offer.

When should I use a without prejudice save as to costs letter?

You should use this type of letter when you want to propose settlement terms that remain confidential regarding the case's merits but can be shown to the court for costs purposes. It is particularly useful in cases involving non-monetary remedies or where strict Part 36 requirements are difficult to satisfy. If you require full statutory costs protection under CPR Part 36, you should use a specific Part 36 Offer Letter instead.

Why is the 'save as to costs' wording important?

The 'save as to costs' qualification is essential because a purely 'without prejudice' letter cannot be shown to the court on the question of costs. Without this specific wording, the offer remains completely confidential and cannot be used to influence the court's decision on who pays legal fees after the case concludes. This distinction is derived from the case of Calderbank v Calderbank.

What mistakes should I avoid when drafting this letter?

You should avoid writing the letter in a threatening or aggressive tone, as this could lead to the privilege being lost if the letter is considered evidence of an improper threat. You must also avoid setting an unreasonably short response deadline, which undermines good faith. Additionally, do not omit a clear statement of the proposed terms, as the recipient needs to be able to evaluate the offer properly.

Do I need to keep a copy of the letter?

Yes, you should keep a copy of the letter. The document may need to be produced to the court after judgment if the matter proceeds to trial and costs are addressed. The letter explicitly states that the offering party reserves the right to draw the letter to the court's attention when addressing costs under CPR r.44.2.

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Legal Proceedings

Civil Litigation

Updated 2026-05-17

Without Prejudice Settlement Offer (Calderbank)

Make a confidential settlement offer marked 'without prejudice save as to costs' to protect your position on costs without creating a binding Part 36 offer.

This template was not drafted by a solicitor.

It is an editorial reference based on the official sources we cite. You are responsible for any document you send. For high-stakes matters (court proceedings, large sums, deportation, criminal allegations, child welfare), have a regulated solicitor review or draft your document.

When to use this template

Use this letter when you want to propose settlement terms that are protected from disclosure to the court on the merits of the case, but which can be shown to the court on the question of costs after judgment. It is especially useful in cases involving non-monetary remedies, or where strict Part 36 requirements are difficult to satisfy.

When NOT to use this template

Do not use if you want the full statutory costs protection of CPR Part 36 — use the Part 36 Offer Letter template instead. Do not mark correspondence 'without prejudice' in an attempt to conceal fraud, misrepresentation, or to suppress evidence of a concluded agreement.

Legal Basis

Without prejudice privilege is a common law principle confirmed in Cutts v Head [1984] Ch 290. The 'save as to costs' qualification derives from Calderbank v Calderbank [1976] Fam 93. Such offers may be brought to the court's attention when exercising its discretion on costs under CPR r.44.2.

Before you send

Not including the 'save as to costs' qualification — a purely without prejudice letter cannot be shown to the court on costs
Writing the letter in a threatening or aggressive tone that could lead to the privilege being lost (e.g. if the letter itself is evidence of an improper threat)
Setting an unreasonably short response deadline that undermines good faith

Common Mistakes to Avoid

✗Not including the 'save as to costs' qualification — a purely without prejudice letter cannot be shown to the court on costs
✗Writing the letter in a threatening or aggressive tone that could lead to the privilege being lost (e.g. if the letter itself is evidence of an improper threat)
✗Setting an unreasonably short response deadline that undermines good faith
✗Omitting a clear statement of the proposed terms so the recipient cannot evaluate the offer properly
✗Failing to keep a copy — the letter may need to be produced to the court after judgment

Build Your Letter

Fill in your details

Complete the fields below. Required fields are marked with *.

Your full name / firm name*

Your address*

Your email address*

Date of letter*

Opponent's name / firm*

Opponent's address*

Salutation*

Brief description of the dispute*

Claimant's full name*

Defendant's full name*

Name of party making the offer*

Proposed settlement terms*

Deadline for acceptance*

Optional fields

Claim number or reference

Letter preview

[YOUR FULL NAME / FIRM NAME]
[YOUR ADDRESS]
[YOUR EMAIL ADDRESS]

[DATE OF LETTER]

[OPPONENT'S NAME / FIRM]
[OPPONENT'S ADDRESS]

---

**WITHOUT PREJUDICE SAVE AS TO COSTS**

Dear [SALUTATION],

**RE: [BRIEF DESCRIPTION OF THE DISPUTE] — [CLAIM NUMBER OR REFERENCE]**

**[CLAIMANT'S FULL NAME] v [DEFENDANT'S FULL NAME]**

I write on behalf of [NAME OF PARTY MAKING THE OFFER]. This letter is written on a without prejudice save as to costs basis, pursuant to the principles established in Calderbank v Calderbank [1976] Fam 93 and Cutts v Head [1984] Ch 290. It is not admissible in evidence on the merits of this dispute, but may be drawn to the attention of the court on the question of costs following any trial or final determination.

**Offer to Settle**

Without any admission of liability, [NAME OF PARTY MAKING THE OFFER] hereby offers to settle all claims, counterclaims and costs in these proceedings on the following terms:

[PROPOSED SETTLEMENT TERMS]

**Response Deadline**

This offer is open for acceptance until **[DEADLINE FOR ACCEPTANCE]**. If it is not accepted by that date, it is automatically withdrawn, without prejudice to any further offer that may be made.

**Costs Consequences**

Should this offer not be accepted and the matter proceed to trial, [NAME OF PARTY MAKING THE OFFER] reserves the right to draw this letter to the court's attention when addressing costs, and to invite the court to exercise its discretion under CPR r.44.2 in a manner that reflects the reasonableness of this offer.

**Next Steps**

Please confirm acceptance in writing by **[DEADLINE FOR ACCEPTANCE]**. If you wish to discuss the terms of this offer, please contact me at the address or email above.

Yours faithfully,

[YOUR FULL NAME / FIRM NAME]

Unfilled fields appear as [FIELD NAME]. Review the letter carefully before sending. This template is a starting point — adapt it to your specific circumstances.

Related Guides

Civil Litigation Process

Official Resources

CPR r.44.2 — Court's discretion as to costs →Judiciary — Guidance on Without Prejudice Privilege →

Frequently asked questions

What is a 'without prejudice save as to costs' offer?: A 'without prejudice save as to costs' offer is a confidential settlement proposal. It is protected from being shown to the court when deciding the merits of the case. However, it can be disclosed to the court after judgment to help determine who should pay legal costs. This approach is useful when you want to protect your position on costs without creating a binding Part 36 offer.
When should I use a without prejudice save as to costs letter?: You should use this type of letter when you want to propose settlement terms that remain confidential regarding the case's merits but can be shown to the court for costs purposes. It is particularly useful in cases involving non-monetary remedies or where strict Part 36 requirements are difficult to satisfy. If you require full statutory costs protection under CPR Part 36, you should use a specific Part 36 Offer Letter instead.
Why is the 'save as to costs' wording important?: The 'save as to costs' qualification is essential because a purely 'without prejudice' letter cannot be shown to the court on the question of costs. Without this specific wording, the offer remains completely confidential and cannot be used to influence the court's decision on who pays legal fees after the case concludes. This distinction is derived from the case of Calderbank v Calderbank.
What mistakes should I avoid when drafting this letter?: You should avoid writing the letter in a threatening or aggressive tone, as this could lead to the privilege being lost if the letter is considered evidence of an improper threat. You must also avoid setting an unreasonably short response deadline, which undermines good faith. Additionally, do not omit a clear statement of the proposed terms, as the recipient needs to be able to evaluate the offer properly.
Do I need to keep a copy of the letter?: Yes, you should keep a copy of the letter. The document may need to be produced to the court after judgment if the matter proceeds to trial and costs are addressed. The letter explicitly states that the offering party reserves the right to draw the letter to the court's attention when addressing costs under CPR r.44.2.