I received a letter of Claim. What shall I do ?

1. Whatever you do, never reply immediately. Your emotions will be running high and you will not be thinking straight.

Emotional intelligence is having the presence of mind to know when to take a deep breath, go for a walk around the block, and not to respond in anger because it will affect your Judgment.

Make a diary note of when you received the letter, when you are expected to acknowledge that letter, when you are expected to respond. Ignore the deadlines at your peril.

 2. You usually have 14 days to respond to a letter of claim.

If you have Indemnity Insurance or other Insurance Policy, notify them immediately of this potential claim. Not doing so, may invalidate any claim you later wish to make.

3. Check to see whether you have a Legal Insurance Policy. You may have one in your business, or home or car policy. You may also have such cover from your Bank. If you do have such cover, see if you are covered. Sometimes an Insurer will say initially that you are not covered, but that may not be the case and you sometimes need to persevere.

4. The Insurer may want you to use a panel lawyer. What lawyer you wish to choose is entirely your prerogative, and do not let anyone tell you otherwise.

5.   Take independent legal advice. You may think you know the answer, but you are likely to be subjective and not objective. You can take such advice from a Solicitor, a Barrister through direct access, a Citizen’s Advice Bureau, or a Pro Bono Unit (which may offer advice for free). You may qualify for Legal Aid/Public Funding, but this is means tested according to what you earn, the value of your house, and any savings you have. Such funding is becoming more and more limited. There are lawyers who offer ‘No Win, No Fees’. Be cautious in thorough in checking that those giving you advice are not salespeople, but qualified legal advisors usually registered with the Solicitors’ Regulation Authority, or the Bar Council.

6. Make sure that you acknowledge the letter and say you are seeking legal advice. If you ignore such a letter, you may trigger proceedings being issued without further notice or reference to you. Never ever ignore the letter. Make sure you acknowledge within the time specified. Acknowledging the letter is not the same as giving a response.

7. If you do not want to use a lawyer to respond, make sure your substantive response is measured, relevant, does not enlarge upon questions being asked, does not give information that you need not give; Is not a response to what amounts to a fishing expedition; Seeks clarity if unclear. Again, do not ignore or forget to respond.

The writer is a Solicitor-Advocate, Partner and Head of Litigation at Darlingtons, a member of the London Solicitors’ Litigation Association, and a visiting Associate Professor of Law at Brunel University.