What is a Letter of Claim?
In accordance with the Civil Procedure Rules under the relevant Pre-Action Protocol, it is required that steps are taken to engage in Alternative Dispute Resolution as far as possible before commencing legal action in the County Court.
This is most commonly done by a claimant serving a Letter of Claim (otherwise known as a ‘Letter Before Action’, or a ‘Pre-Action Letter’) upon the proposed defendant. This is done to; 1) notify the defendant of the intention to commence legal proceedings; and 2) to attempt to resolve the matter before the former is required, generally as a last resort.
The Letter of Claim is an important summary of the claimant’s proposed claim and may also be accompanied by an offer to settle.
How do I respond to a Letter of Claim?
Whilst receiving such a letter can be daunting, as your business may be at risk of legal action being brought, it is essential that the letter is responded to and not ignored.
Under the Practice Direction on Pre-Action Conduct, recipients of a Letter of Claim must aim to respond within a reasonable timeframe. This is no later than 14 days for non-complex ‘straightforward’ claims and no later than 3 months, should the matter be more complex. However, it is essential that steps are taken to respond sooner, rather than later.
Should you fail to respond to the Letter of Claim, and the claimant later serves legal proceedings upon your business, you may face criticism from the County Court for failing to engage in the relevant Pre-Action Protocol / Alternative Dispute Resolution, which may have prevented the need for the claimant to take legal action. The County Court may also impose sanctions on defendants who have failed to engage in the process. Such sanctions can include financial orders requiring payment of the Claimant’s legal costs in the claim.
How can we help?
If you have received a Letter Before Action in relation to a discrimination claim and you are unsure of the options available to you or require assistance in preparing a response, please do not hesitate to contact our specialist discrimination law team on 0161 696 6170.
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