Letter Before Action Legal Guide
When running a business, disputes are often unavoidable. Whether it’s a customer who hasn’t paid, a supplier who’s failed to deliver, or a contract that’s gone wrong, taking the right steps early on can make all the difference.
A well-crafted letter before action is often the first and most powerful tool to secure a resolution without going straight to court. In this guide, we break down everything businesses need to know about using, issuing and responding to a letter before action – in plain English and with practical advice throughout.
What is a letter before action?
A letter before action is a formal notice sent to a business or individual demanding resolution before legal proceedings. It is used in commercial disputes to seek payment, remedy, or other action.
A letter before action:
- Sets out a legal claim
- Requests that the recipient resolves the matter before court action is commenced.
It is a key step before initiating formal legal proceedings and is commonly referred to as a letter before claim, pre-action letter, or pre-action protocol letter.
What is the purpose of a letter before claim?
In most cases, businesses use a solicitor’s letter before action to underscore the seriousness of their claim and to ensure they comply with the required legal requirements during a commercial dispute (more on that later…).
A letter before action serves several purposes:
It warns the other party that you are willing to take legal action
A letter before action signals to the other party that you are serious about your claim and are prepared to take legal action if necessary. It formally notifies them of the issue and gives them a final chance to resolve matters outside of court.
It complies with the relevant pre-action protocols
Sending a letter before claim is not just good practice; it is often a necessary step to comply with the Civil Procedure Rules (CPR). These rules require parties to engage in reasonable pre-action conduct before starting legal proceedings.
It opens the door to a potential settlement without the need to litigate
Litigation can be time-consuming, costly and stressful. A letter before action encourages early resolution by inviting the recipient to settle the dispute informally. Many cases are resolved at this stage, avoiding court entirely.
It sets out your claim in a clear and structured way
A letter before claim provides the other party with a clear summary of your legal position. It details the facts of the case, the legal basis for your claim, and the specific remedy you seek – whether that’s payment, performance, or an alternative resolution. This clarity helps the other side understand what is being claimed and why.
Real-life example of a letter before claimIn early 2025, lawyers representing Waspi campaigners threatened the government with legal action over alleged maladministration relating to changes to the state pension age. The campaign sent a letter before action to the Department for Work and Pensions (DWP), warning of legal proceedings if the issue is not resolved.
Is a letter before action legally required under UK law?
The courts expect disputing parties to behave in a certain way before starting legal proceedings. This is governed by the Civil Procedure Rules 1998 (CPR), which require parties to engage in pre-action conduct that promotes cooperation, transparency and cost-efficiency. A letter before action helps you comply with these rules.
What are pre-action protocols?
Some types of dispute are covered by specific pre-action protocols. These include:
- Construction and engineering disputes
- Clinical negligence disputes
- Debt claims
- Disease and illness claims
- Housing disrepair claims
- Judicial review
- Media and communications claims (including defamation)
- Personal Injury Claims
- Professional negligence disputes
- Possession of property claims (by social landlords and mortgage arrears).
Where no particular protocol applies, parties are still expected to follow the general pre-action conduct rules.
These rules are designed to:
- Encourage early and full exchange of relevant information so each side understands the case against them
- Help parties make informed decisions about how to proceed
- Promote efforts to settle without involving the court
- Encourage the use of alternative dispute resolution (ADR) methods, such as mediation or arbitration
- Avoid unnecessary delays and costs.
Courts take a dim view of parties who bypass the protocol process or act unreasonably during this early stage of dispute resolution. So, a failure to follow the protocol can have serious legal consequences – including being made to pay both parties legal costs, even if you win your case.
How a letter before claim encourages Alternative Dispute Resolution (ADR)
One of the key objectives of a letter before claim is to promote meaningful engagement between parties before litigation begins. By clearly setting out your position – including the facts, legal arguments, and supporting documents – you let the other side understand your case and give them a chance to respond constructively and comprehensively.
This exchange of information helps both sides assess their position and make informed decisions about whether court proceedings are necessary. This can often lead to direct negotiations or an invitation to explore alternative dispute resolution (ADR) methods, such as mediation.
ADR is usually quicker, more cost-effective and less adversarial than formal litigation. By encouraging this early dialogue, the letter before claim becomes a gateway to resolution rather than confrontation.
Where to use a letter before action
Debt claims
When your usual reminders and requests have been ignored, a formal debt recovery letter before action can be the turning point in debt claims. A well-drafted pre-claim letter sets out the balance due, any relevant contract terms, and the consequences of continued non-payment. For commercial debt, a 7-day letter before action is often used to urge prompt settlement and avoid litigation.Breach of contract disputes
A breach of contract can be frustrating and costly for businesses. If another business fails to uphold its side of a contract, a letter before action is often the first formal step in enforcing your rights. It sets out how the agreement has been breached and what you expect by way of remedy.Supply of goods and services disagreements
Disputes over the quality, delivery or scope of goods and services supplied are common in business relationships. A letter before action can help clarify your position and demand a resolution. Including details such as order numbers, dates, and prior communication adds credibility. It also shows the court (if matters escalate) that you attempted to resolve the dispute reasonably.Property and landlord/tenant matters
A letter before action is useful in residential and commercial landlord and tenant disputes. It can be used for rent arrears, breach of lease terms, or unauthorised use of premises. Setting out your position clearly and inviting the other party to rectify matters within a specific timeframe can often lead to swift compliance, avoiding formal court proceedings.Shareholder and partnership disputes
Shareholder disputes and partnership disputes can be particularly sensitive and complex, often involving long-standing relationships. A letter before action can act as a catalyst for formal discussions, restructuring, or negotiated exits.Employment disputes
Employment-related disputes can arise between businesses and current or former employees, covering matters such as breach of contract, restrictive covenant enforcement, or the misuse of confidential information. A letter before action can be an effective way to formally set out your position before pursuing court or tribunal proceedings.Intellectual property disputes
Letters before action are commonly used to address unauthorised use of intellectual property, such as copyright infringement or trademark misuse. These letters put the infringing party on notice and give them the opportunity to cease the activity before formal proceedings are started.Franchise and licensing disputes
Disputes can arise between franchisors and franchisees, or licensors and licensees, over issues such as breach of agreement, misrepresentation, or brand misuse. A letter before action allows a business to formally raise its concerns and seek corrective action or compensation.Construction disputes
Construction disputes often involve disagreements over payment, delays, defective work, or failure to comply with the terms of a contract. Whether you are a contractor, subcontractor, supplier or developer, clearly stating your claim in a pre-action letter shows the court that you have attempted to resolve the matter proportionately.
When urgent action is needed – injunctions
In some commercial disputes, waiting for a response to a letter before action may not be enough. If the other party is about to do something that will cause immediate harm to your business – such as misusing confidential information, transferring assets, or breaching a restrictive covenant, you may need to apply for an injunction.
An injunction is a court order that either stops someone from doing something (a prohibitory injunction) or requires them to take specific action (a mandatory injunction). These emergency remedies can sometimes be sought without prior notice to the other side.
Letter before action vs. cease and desist letter
Letters before action and cease and desist letters are legal tools designed to prompt compliance or resolution. However, they serve different purposes and are used in different contexts.
- Letter before action: A letter before action is typically used to initiate a legal claim, often involving debts, breaches of contract or other commercial disputes.
- Cease and desist letter: A cease and desist letter is used to stop unlawful or harmful behaviour, such as defamation, harassment, or intellectual property infringement. While not always a precursor to court proceedings, it serves as a warning that legal action will follow if the behaviour doesn’t stop.
How to issue a solicitor’s letter before action
Issuing a letter before action involves more than simply demanding payment or compensation. The letter must be carefully drafted to set out your case clearly and in accordance with any relevant pre-action protocol.
In general, the steps to issue a letter before claim include:
- Identifying the legal basis for your claim: This might be a breach of contract, non-payment of a debt, or some other cause of action.
- Compiling the relevant evidence: This could include contracts, invoices, emails, delivery notes, or other documentation.
- Drafting the letter before action: Ensure all required elements are included in the letter (see below).
- Serving the letter on the other party: While traditional post is still standard, many businesses now send a letter before action by email. This is acceptable if the recipient is likely to receive and read it.
- Setting a clear deadline: Typically, seven or fourteen days. A 7-day letter before action is often used in urgent debt claims.
It is wise to instruct litigation solicitors to draft and issue the letter on your behalf. A solicitor’s letter before action carries more weight and increases the chances of a swift resolution.
What should be included in a solicitor’s letter before action?
A strong letter before action will contain all the essential details of the claim and a clear demand for resolution. If your matter falls under a pre-action protocol, the letter must also comply with those specific requirements.
At a minimum, your pre-action letter should include:
- Your name and contact details
- The recipient’s name and contact details
- A concise statement of the facts giving rise to the dispute
- The legal basis for your claim
- Details of the loss or damage suffered
- Any relevant documents (or a list of these)
- A clear demand (e.g. payment within 7 days)
- A warning that court proceedings will be issued if no response is received
- An invitation to settle or engage in alternative dispute resolution
- A deadline for response.
Letter before action template
Here is a basic example of a letter before action. This template is for general guidance only. You should always seek legal advice and tailor it to the specifics of your dispute.
[Your Name / Company Name]
[Your Address]
[Email Address]
[Telephone Number]
[Date]
[Recipient’s Name / Company Name]
[Recipient’s Address]
Re: Letter before action – [Brief Description of Dispute]
Dear [Recipient’s Name],
I am writing in relation to [set out the nature of the dispute, e.g. your failure to pay invoice number X dated XX/XX/20XX for the supply of goods/services provided on XX/XX/20XX].
Despite previous reminders and requests, the outstanding amount of £[amount] remains unpaid. Under the terms of our agreement, payment was due on [due date], and you are now in breach of contract.
Unless payment in full is received within [7/14] days of the date of this letter, I will have no option but to initiate legal proceedings against you without further notice. This will include a claim for interest, statutory compensation, and costs.
In accordance with the Civil Procedure Rules, I am willing to resolve this matter amicably and invite you to respond with payment proposals or suggestions for alternative dispute resolution.
Please treat this letter as a final opportunity to resolve the matter without court involvement.
Yours sincerely,
[Your Name / Position]
How to respond to a letter before action
- Reviewing the letter thoroughly: Make sure you understand the allegations and the claim’s legal basis.
- Seeking legal advice immediately: This is particularly important if the claim is complex or high value.
- Checking the facts and gathering evidence: You will need documentation to support your response.
- Responding within the stated deadline: This shows the court that you are engaging constructively.
- Considering making a settlement offer: If appropriate, offer to negotiate or propose mediation.
How long do I have to respond to a letter before claim?
The time allowed for a response to a letter before action will vary depending on the nature of the dispute and whether a specific pre-action protocol applies.
Time limit to respond to a pre-action letter
- Typically, 14 days is considered reasonable for most commercial disputes
- In urgent debt matters, a 7-day letter before action is commonly used
- Where a relevant pre-action protocol applies, it may specify a more extended response period, such as 30 days.
Always check whether a protocol governs your dispute, and ensure your letter gives the other party a fair opportunity to reply. Courts will expect that the deadline you impose is proportionate and allows sufficient time for the recipient to seek legal advice and consider their response.
What happens if there is no response to a letter before action?
If the recipient fails to respond to your letter before action by the specified deadline, the next step is typically to initiate legal proceedings. The lack of response can demonstrate a refusal to engage or negotiate; in some cases, this can work in your favour when it comes to costs and liability.
However, ensuring that your original letter was drafted correctly and served properly is essential, so keeping a clear record of all communication is vital.
Why choose our letter before action solicitors?
At Summit Law, we are specialists in commercial dispute resolution. Our solicitors draft and respond to letters before action on behalf of clients across a range of sectors. We understand your business’s commercial realities and aim to resolve disputes swiftly and cost-effectively.
Working with our team offers several advantages:
- Clear, commercially driven advice
- Fast, effective drafting of letters before action
- Full compliance with pre-action protocols
- Strong negotiating strategies to encourage early settlement
- Support through all stages of dispute resolution and litigation, if needed.
Whether you are issuing a letter before action or responding to a pre-action protocol letter, we provide strategic legal guidance that protects your business interests.
Pre-action Letter - FAQs
While the letter itself is not strictly required by law, the Civil Procedure Rules require parties to comply with pre-action protocols or general pre-action conduct, which is typically done by sending a letter before action. Failure to do so can lead to costs consequences.
You should include details of the claim, the legal basis, the remedy sought, supporting documents, and a deadline for response. See the relevant section above for full guidance.
Yes, in many cases, a letter before action can be sent by email, especially where email has previously been used for business communications between the parties. Courts are increasingly accepting email as a valid method of service, including in commercial disputes, as long as it is a recognised and reliable communication channel.
If you use email to send your letter before claim, retain delivery and read receipts, and keep the email on record with attachments included. For added certainty, it’s often sensible to also send a copy by post.
Technically, yes. But only where WhatsApp is an established, documented, and mutual method of business communication between the parties (e.g. sole traders or informal commercial relationships). However, it’s not generally recommended or standard practice – especially in commercial disputes.
You should review the letter carefully, seek legal advice, respond within the deadline, and provide any requested documents. Avoid ignoring the letter, as it may escalate matters unnecessarily.
Ignoring a letter before action is strongly discouraged. If you fail to respond by the specified deadline, the sender may initiate formal court proceedings. Courts expect parties to act reasonably and attempt to resolve disputes before litigation. Ignoring a letter before action may damage your credibility and weaken your position.
The recipient may respond with a defence or a settlement proposal. If no response is received, court proceedings may follow. Settlement negotiations, mediation, or other ADR options may also be explored.
Contact our commercial litigation solicitors today
The letter before action is a vital tool in commercial dispute resolution. Whether you are issuing or responding to one, getting the process right can help you avoid costly litigation and achieve a more favourable outcome.
If your business is dealing with a commercial dispute, contact our experienced litigation solicitors today. We provide clear, commercial advice and robust support from the first letter to the final resolution.
For your free consultation, call us today on 020 7467 3980 or complete the online enquiry form and one of our expert litigation solicitors will be in touch.