What Is a Letter Before Action
A letter before action is a formal letter sent to the person you intend to sue before you start court proceedings. It gives them notice of your claim, a clear statement of what you are alleging, the amount you are seeking, and a reasonable time to respond before you issue proceedings.
It is required by the Pre-Action Protocols, which are codes of conduct that apply before litigation begins. Failure to send a letter before action can result in costs sanctions by the court, even if you win the case.
What It Must Contain
The letter must clearly identify: who you are and who the letter is addressed to, a concise statement of the facts on which you rely, the legal basis for your claim (breach of contract, negligence, etc.), the amount you are claiming and how it is calculated, any documents you rely on, what you want the defendant to do, and the deadline for response.
Send the letter by recorded delivery or email with a read receipt. Keep proof of sending. If the matter goes to court, you will need to demonstrate that the letter was sent and received.
The Response Period
Give a realistic time to respond. For a simple unpaid invoice, 14 days is usually sufficient. For a more complex claim, 30 days may be appropriate.
Do not set an unreasonably short deadline. A court will take a dim view of a claimant who gives the defendant three days to respond to a complex claim before issuing proceedings.
If There Is No Response
If the defendant does not respond within the time given, or responds unsatisfactorily, you can issue proceedings. At that point, the letter becomes evidence that you complied with the pre-action requirements.
Keep a complete paper trail: the letter, proof of sending, any response received, and any without-prejudice settlement discussions that did not resolve the dispute.
Without Prejudice Correspondence
Settlement discussions should be clearly marked "without prejudice." This means they cannot be shown to the court as evidence of an admission or a concession on the merits.
The letter before claim itself should not be marked without prejudice -- it is a formal notification of your claim, not a settlement offer.