TRW & Co · Disputes and arbitration
Letter Before Claim: Pre-Action Protocol Requirements
A letter before claim is the formal pre-action letter a claimant must send before suing in England and Wales. It sets out the claim, the facts, the remedy sought and how any sum is calculated, and invites a response and ADR. Getting it right protects your costs position; getting it wrong can cost you interest and costs even if you win.
Key pointThe court can penalise a winning claimant for poor pre-action conduct, so a letter before claim that sets a realistic deadline and proposes ADR is as much about protecting costs and interest as about persuading the other side to pay.
At a glance
Set by the CPR
The Practice Direction on Pre-Action Conduct and Protocols governs disputes without a specific protocol, and specific protocols apply to debt, construction, negligence and other claims.
Core contents
The letter should state the basis of the claim, summarise the facts, say what the claimant wants and explain how any money claimed is calculated.
Response periods
Defendants should reply within a reasonable time: 14 days in a straightforward case and no more than three months in a very complex one.
Debt protocol: 30 days
Where a business claims a debt from an individual or sole trader, the debt protocol requires prescribed forms and gives 30 days to reply.
Sanctions for non-compliance
Courts can order costs, including on the indemnity basis, adjust interest by up to 10% above base rate or stay the claim.
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The short answer: what a letter before claim must do
A letter before claim is the formal letter a claimant sends before starting court proceedings in England and Wales. It sets out who is claiming, the basis of the claim, a summary of the facts, what the claimant wants and, for a money claim, how the amount is calculated. It gives the recipient a fair chance to respond, disclose key documents and consider settlement or alternative dispute resolution (ADR) before anyone goes to court.
The requirements come from the Practice Direction on Pre-Action Conduct and Protocols, which forms part of the Civil Procedure Rules (CPR), and from specific pre-action protocols for particular kinds of dispute. The court expects parties to follow them. A party that ignores them risks paying extra costs, losing interest or facing a stay of its claim, even if it wins on the merits.
As of October 2026, the core requirements have been stable for years, but the court's approach to ADR has become noticeably firmer, which changes how a letter before claim should deal with settlement.
The legal framework: Practice Direction and protocols
The Practice Direction on Pre-Action Conduct and Protocols applies to disputes where no specific pre-action protocol applies. Its objectives are that, before proceedings start, the parties exchange enough information to understand each other's position, make decisions about how to proceed, try to settle without proceedings, consider ADR, support efficient management of any proceedings and reduce costs.
Where a specific protocol exists, the parties should follow it instead. Protocols cover, among others, debt claims, construction and engineering disputes, professional negligence, defamation, judicial review, dilapidations of commercial property and housing disrepair. A full list is on the CPR pre-action protocols page.
The Practice Direction also contains a warning that is easy to overlook: a person who knowingly makes a false statement in a pre-action protocol letter may face proceedings for contempt of court. A letter before claim is not just a negotiating document.
What to include in a letter before claim
Paragraph 6 of the Practice Direction sets the baseline. A letter before claim should give concise details of the claim, including:
- the basis on which the claim is made, such as breach of a specific contract term;
- a summary of the facts;
- what the claimant wants from the defendant; and
- if money is claimed, how the amount has been calculated.
In practice, a well-drafted letter before claim also identifies the parties precisely, encloses or lists the key documents relied on, states the deadline for a response, proposes a form of ADR, and explains that proceedings may be issued without further notice if no satisfactory response is received. Where interest is claimed, it should say on what basis, for example contractual interest or statutory interest under the late payment legislation; see our guide to late payment interest.
Tone, format and delivery
There is no prescribed format outside the specific protocols, but clarity matters more than length. Use headings, number the key allegations and attach a schedule of sums claimed if the calculation is complex. Address the letter to the correct legal entity at its registered office or the address in the contract's notice clause, and keep proof of delivery. Email is common, but check whether the contract requires notices to be served in a particular way.
Avoid threats that go beyond what you are entitled to do. Threatening criminal proceedings to recover a civil debt, or making statements you cannot support, can damage your position and may be improper. A firm, factual tone is more persuasive.
Write the letter before claim as if the judge will read it, because one day they might. Measured, specific and well-evidenced letters strengthen a costs argument later; aggressive or inaccurate ones can undermine credibility at trial and, in serious cases, expose the author to contempt proceedings.
Response deadlines and the defendant's reply
Under the Practice Direction, the defendant should respond within a reasonable time: 14 days in a straightforward case and no more than three months in a very complex one. The response should say whether the claim is accepted and, if not, why, identify which facts and parts of the claim are disputed, and state whether the defendant has a counterclaim, giving details if so. Both sides should disclose key documents relevant to the issues.
Where a specific protocol applies, its timetable takes priority. The table below compares common routes.
| Regime | Who it applies to | Response period |
|---|---|---|
| Practice Direction on Pre-Action Conduct | Disputes with no specific protocol, including most commercial contract claims | Reasonable time: 14 days in a straightforward case, up to three months in a very complex one |
| Pre-Action Protocol for Debt Claims | Businesses (including sole traders and public bodies) claiming a debt from an individual, including a sole trader | 30 days to return the reply form, with more time where the debtor seeks debt advice |
| Other specific protocols | For example construction, professional negligence, defamation and judicial review | Set by the relevant protocol; check it before sending the letter |
The debt claims protocol
The Pre-Action Protocol for Debt Claims, in force since 1 October 2017, applies where a business claims payment of a debt from an individual. It requires a more detailed letter, enclosing a prescribed information sheet, a reply form and a financial statement. It does not apply to business-to-business debts unless the debtor is a sole trader. Using the general Practice Direction for a consumer or sole trader debt is a common error that can delay judgment.
The pre-action process step by step
- Check limitation and the contract. Confirm when the limitation period expires and whether the contract requires notice, escalation or a particular dispute resolution route before proceedings.
- Identify the right protocol. Decide whether a specific protocol applies or whether the general Practice Direction applies.
- Assemble the evidence. Gather the contract, correspondence, invoices and any documents the other side will need to understand the claim.
- Send the letter. Set out the claim, the remedy sought, the calculation and a response deadline, and propose ADR.
- Review the response. Consider the defendant's position and documents, and whether the claim should be narrowed or adjusted.
- Take stock. The Practice Direction expects a stocktake if the dispute has not settled, with the parties seeking to narrow the issues before proceedings are issued.
- Issue, or settle. If the matter remains unresolved, issue proceedings. Settlement offers, including offers under Part 36, can be made before issue.
Responding to a letter before claim
Receiving a letter before claim is the point at which a defendant has the most control over cost and outcome. The first step is to diarise the deadline and check whether the claim falls under a specific protocol. If the deadline is unrealistic for a complex claim, ask for more time in writing, explain why and propose a date. Courts generally view a reasoned request for an extension more favourably than silence.
A good response engages with the substance. It should say which parts of the claim are accepted and which are disputed, give reasons, enclose the documents the defendant relies on and set out any counterclaim. Where part of the sum is genuinely owed, paying or offering that part can narrow the dispute and reduce the risk of interest and costs.
The response is also the place to deal with ADR. If the defendant is willing to mediate, say so and suggest timing. If not, explain why, for example because essential information is missing. A short, factual and complete reply usually serves a defendant better than a long rebuttal written in anger.
ADR expectations and costs sanctions
The Practice Direction states that litigation should be a last resort, and that parties should consider negotiation or another form of ADR. A party's silence in response to an invitation to ADR, or a refusal to take part, may be treated as unreasonable and lead to a costs order.
That expectation now has firmer support. In Churchill v Merthyr Tydfil County Borough Council [2023] EWCA Civ 1416, the Court of Appeal held that the court can order parties to engage in ADR, and the CPR were amended from 1 October 2024 to reflect that power and to allow the court to take a failure to engage into account on costs. A letter that proposes mediation, and a response that engages with it, protect both sides.
If a party fails to comply with the Practice Direction or a protocol, the court can order that party to pay all or part of the other side's costs, including on the indemnity basis. A claimant at fault can be deprived of interest or awarded interest at a lower rate. A defendant at fault can be ordered to pay interest at a higher rate, up to 10% above base rate. The court can also stay proceedings while the missed steps are taken. It will focus on substance rather than minor or technical breaches, particularly in urgent cases.
The Civil Justice Council has also reviewed the pre-action protocols and recommended further reforms, including a stronger emphasis on ADR and a more structured pre-action stage. Check the current CPR before relying on older templates.
An illustrative scenario
The following scenario is illustrative only and does not describe any real client or matter.
A UK software company is owed a substantial sum by a corporate customer for implementation work. The customer has stopped responding to invoices. Because the debtor is a company, the debt claims protocol does not apply, so the supplier follows the general Practice Direction.
Its letter identifies the contract, the milestones completed, the invoices unpaid and the contractual interest rate. It encloses the signed acceptance certificates and proposes mediation, giving 14 days to respond. The customer replies within the deadline, disputes one milestone and accepts the rest, and agrees to mediate. The parties settle the disputed element at mediation, and the accepted balance is paid. Without that structured letter, the supplier would probably have issued against the whole sum and spent months arguing about one milestone.
Risks and common mistakes
Using the wrong protocol
Sending a general letter before claim to an individual or sole trader debtor, instead of following the debt claims protocol with its prescribed forms, is one of the most common errors. It can lead the court to stay the claim or refuse default judgment until the protocol is complied with. Similarly, construction, professional negligence and defamation claims have their own protocols with longer, more structured steps. Always check which regime applies first.
Unrealistic deadlines
Giving a defendant seven days to respond to a complex claim is unlikely to be seen as reasonable, and it hands the defendant an argument that the claimant failed to comply. Equally, a defendant that takes months to respond to a straightforward claim will struggle to justify the delay. Set a deadline that reflects the complexity, and explain why if you need to move faster, for example because limitation is close.
Ignoring ADR or refusing it without reasons
Since the 2024 rule changes, the court has clearer power to order ADR and to penalise unreasonable refusals in costs. A letter that does not mention ADR, or a response that ignores a mediation proposal, can count against a party even if it wins at trial. If you believe ADR is unsuitable, say so and give reasons. Our guide to mediation in commercial disputes explains the options.
Letting limitation run during correspondence
Pre-action steps do not stop the limitation clock. If time is short, either agree a written standstill agreement or issue proceedings to protect the position and then apply for a stay while the protocol steps are completed. See our guide to limitation periods in the UK.
The cross-border angle
A pre-action letter to a defendant outside England and Wales still matters, because the English court will look at pre-action conduct when it manages the case and decides costs. It should be sent to the address specified in any notice clause, and it is sensible to translate it or provide a summary where language could otherwise be an excuse for delay. Where the contract contains an arbitration clause, the court pre-action rules do not apply in the same way; the arbitration rules and any contractual escalation steps take over.
For counterparties in Bangladesh, it is worth taking Bangladeshi advice on whether a separate local-form notice would also help, particularly where enforcement there is likely. Our UK–Bangladesh disputes team coordinates both.
What to do next: a checklist
- Confirm the limitation date and any contractual notice or escalation steps.
- Identify the applicable protocol, or the general Practice Direction.
- Collect the key documents and calculate the sum claimed, including interest.
- Draft a concise, accurate letter before claim with a reasonable deadline and an ADR proposal.
- Diarise the response deadline and the date for a stocktake.
- Consider a Part 36 or other settlement offer before issue.
- If you have received a letter before claim, take advice promptly and respond within the deadline, even if only to seek more time.
Our debt recovery solicitors and commercial litigation team draft and respond to pre-action letters every week. For a wider view of what comes next, read our guide to how civil litigation works in England and Wales, or, where the debt is undisputed, our guide to statutory demands. To discuss a claim, please contact our London office.
Frequently asked questions
01Is a letter before claim legally required?
There is no statute requiring one, but the Civil Procedure Rules expect it. The Practice Direction on Pre-Action Conduct and Protocols, and specific pre-action protocols, set out the steps the court expects before proceedings are issued. If a party issues without following them, the court can impose costs sanctions, adjust interest or stay the claim until the steps are taken. The main exceptions are urgent applications, such as injunctions, and cases where limitation is about to expire.
02How long does someone have to respond to a letter before claim?
Under the general Practice Direction, the defendant should respond within a reasonable time, which is 14 days in a straightforward case and no more than three months in a very complex one. Where a specific protocol applies, its own timetable governs. Under the Pre-Action Protocol for Debt Claims, an individual or sole trader debtor has 30 days to return the reply form, and more time should be allowed if they are seeking debt advice.
03What happens if I ignore a letter before claim?
The claimant can issue proceedings, and the court will take your failure to respond into account when managing the case and making costs orders. If you are the defendant and the claimant wins, the court may order you to pay costs on the indemnity basis or interest at an enhanced rate. Ignoring the letter also means losing the chance to resolve the dispute cheaply. Even if you dispute the claim, respond within the deadline or ask for more time.
04Does a letter before claim stop the limitation clock?
No. Sending or receiving a letter before claim does not pause the limitation period. If limitation is close, the parties can agree a written standstill agreement, or the claimant can issue proceedings to protect its position and then ask the court to stay the case while the pre-action steps are completed. Waiting for a response to a letter before claim while limitation expires is a serious and avoidable mistake.
05Should a letter before claim mention mediation or ADR?
Yes. The Practice Direction expects parties to consider ADR, and since the October 2024 rule changes the court has clearer power to order ADR and to take an unreasonable refusal into account on costs. A letter that proposes mediation or another form of ADR protects the claimant's costs position, and a defendant who ignores or refuses it without good reason risks a costs penalty even if it ultimately succeeds.
06Who should send a letter before claim: me or a solicitor?
Anyone can send a letter before claim, and for small, simple debts businesses often do it themselves. For larger or disputed claims, a solicitor's letter tends to be taken more seriously and is more likely to comply fully with the relevant protocol, set out the legal basis accurately and avoid statements that could cause problems later. It also allows the claimant to start planning disclosure, ADR and enforcement at the same time.
Sources and official materials
- Practice Direction: Pre-Action Conduct and Protocols — Contents, response times, ADR and sanctions
- Pre-Action Protocol for Debt Claims — Debt claims against individuals and sole traders
- CPR pre-action protocols — List of specific pre-action protocols
- Churchill v Merthyr Tydfil CBC [2023] EWCA Civ 1416 — Court's power to order ADR
- A guide to civil mediation (GOV.UK) — How civil mediation works
- Limitation Act 1980 — Time limits that pre-action steps do not pause
General information only, current as at 21 October 2026. It is not legal advice and does not create a solicitor–client relationship. It reflects the law of England and Wales unless stated otherwise; Scotland and Northern Ireland have separate legal systems, and the law changes frequently. Check current official sources and take advice on the facts of your matter.