Here we explore the process of drafting a letter of claim. Litigants sometimes balk at the cost of a letter of claim because, well, "It's only a letter..." and "That's not cost effective given the value of the claim"
We seek address this conundrum by arming you with the knowledge and tools which should position you well to draft a letter of claim tailored to the facts of your case.
The letter of claim is an essential pre-cursor to issuing a claim at court. A well crafted letter of claim can perform a number of functions including:
pave the way to resolving the dispute
Identify the legal basis for your case
Identify strengths and weaknesses in your case
save you huge cost if the claim is accepted because of the content of your letter
7 Pro Tips for Drafting Your Letter of Claim
Due Diligence
Ensure that you have the correct name, address (and email address if possible) for the proposed defendant. Securing this information early on will avoid delays and potential additional cost if you have to serve any additional documents, issue a claim or enforce a judgment.
Wherever possible, ascertain whether the proposed defendant has any assets and/ or income. A search at the Land Registry against the property in which the defendant lives costs less than £5 and could reveal an asset that could be used if it becomes necessary to secure or enforce a judgment.
Carry out a search of the Insolvency Register. If the proposed defendant is bankrupt you will have to liaise with his/ her trustee in bankruptcy. It is unlikely you will be able to pursue a claim against the proposed defendant directly.
Pre-Action Protocol
Before a civil dispute can be issued, the court will expect the parties to have complied with the relevant pre-action protocol. Dispute before the civil courts are governed by the Civil Procedure Rules ("CPR"). The CPR contains a number of Pre-Action Protocols - rules which govern the dispute resolution process before a claim is issued.
For our purposes (small claims) the most common Pre-action Protocol will be either:
The Debt Protocol (for debt recovery claims); or
The Practice Direction - Pre-Action Conduct and Protocols (for any claims which don't have a specific protocol.
Familiarize yourself with the requirements of the relevant pre-action protocol. Failure to comply with a protocol can result in sanctions being imposed on the defaulting party at a later date.
Evidence
Any successful claim will need to be supported by evidence. You will be the claimant, and therefore (save for a few exceptions) the onus will be on you to prove your claim.
At this stage all you will need is the key documentation to support your claim. So, if your claim is about an unpaid invoice you will need to locate the relevant invoice to be enclosed with your letter. If your claim is about a breach of contract, you will need to locate the contract (if written).
You can gather further evidence such as relevant emails, screenshots etc. They will be required later and it is good practice to preserve any electronic documents from being deleted or altered as soon as it becomes clear that an issue has become contentious. As will be seen later, you have a duty to preserve evidence.
Chronology
Prepare a chronology of relevant events. The evidence you have gathered will assist with this exercise.
The chronology should be in bullet point form so that you can easily identify key events leading up to the dispute.
The chronology is a document which will serve you throughout the dispute resolution process. It will help you identify gaps in the evidence, draft all of your documents and can be updated as new evidence comes to light.
Value of the Claim
It is important to ascertain the value of your claim. Generally speaking, only claims with a value of less than £10,000 will be permitted to proceed as a small claim.
We recommend using a spreadsheet to create a 'schedule of loss'. The schedule of loss can be enclosed with your letter of claim and updated as the matter progresses.
You will want to ascertain:
The principal sum claimed
The amount of any accrued interest
Any other sums which may be due such as statutory compensation
Use the Pre-Action Protocol to create headings for each section of your letter
Armed with the above information and documentation you are now equipped to put pen to paper and start writing your letter of claim.
As stated above it is important that you comply with the requirements of the pre-action protocol to avoid exposing yourself to sanctions at a later date. With that in mind, you may wish to use the headings in the pre-action protocol as headings for the various sections of your letter. This will ensure that you do not inadvertently fail to include relevant information in your letter
Use your chronology and schedule of loss to tailor your letter to the facts of your case.
Enclose the following documents with the letter of claim:
A copy of the relevant pre-action protocol
schedule of loss
Key documentary evidence
Details of how you can be paid
Concise and Factual
The primary purpose of the letter is to set out your case in terms clear enough that the proposed defendant can understand and respond to it.
There are however other functions of the letter of claim, most notably it is a document which will be seen by the court if a claim is issued. You want your letter of claim to present you as the reasonable party who has exhausted all reasonable avenues for resolving the dispute.
Be concise. The court will be less interested in your feelings and personal history and far more concerned with the facts leading up to and surrounding the issue(s) in dispute. Strip out anything that is not relevant.
Avoid hyperbole. There is nothing to be gained by using hyperbolic language. You want the letter to convey you as the reasonable person approaching the dispute with a level head. If a claim is exaggerated at the pre-action stage sanctions can be imposed on the offending party.
Unlock the Power of Templates
Use the templates below to assist you in drafting the letter of claim