The Settlement Demand Letter is a critical document in Australian dispute resolution practice, serving as a formal mechanism to present settlement terms and initiate negotiations before or during litigation. It is typically used when parties seek to resolve disputes efficiently and avoid or minimize court proceedings. The document must comply with Australian civil procedure rules and pre-litigation protocols, incorporating specific legal requirements that vary by state or territory. A Settlement Demand Letter should clearly articulate the claim's basis, quantum, and settlement terms while maintaining professional tone and legal privilege. It's particularly important in demonstrating compliance with courts' expectations regarding genuine attempts to resolve disputes before litigation, and can have significant implications for cost orders if litigation eventually proceeds.
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1. Recipient Details and Date: Full name, title, and address of the recipient, along with the current date
2. Subject Line: Clear identification of the matter and any relevant reference numbers
3. Introduction: Identification of the writer, their client (if applicable), and the purpose of the letter
4. Background of Dispute: Concise summary of relevant facts and events leading to the dispute
5. Legal Basis: Brief outline of the legal grounds supporting the claim
6. Quantum of Claim: Clear statement of the amount claimed and how it was calculated
7. Settlement Demand: Specific terms of the proposed settlement
8. Response Timeline: Clear deadline for response and consequences of non-response
9. Without Prejudice Save as to Costs: Standard protection clause regarding the use of the letter in legal proceedings
10. Closing: Professional closing with contact details for response
1. Chronology of Events: Detailed timeline of relevant events - use when the dispute involves complex sequence of events
2. Previous Correspondence: Summary of prior settlement attempts - include when there has been significant prior communication
3. Interest Calculations: Detailed breakdown of interest claims - include when claiming interest on damages
4. Alternative Dispute Resolution: Proposed ADR methods - include when willing to engage in mediation or other ADR
5. Preservation of Evidence: Request for document preservation - include when there are concerns about evidence retention
6. Without Prejudice Except as to Costs: Alternative protection clause - use when intending to rely on the letter for costs arguments
1. Schedule A - Calculation of Damages: Detailed itemized breakdown of all damages claimed
2. Schedule B - Supporting Documents: List of key documents supporting the claim
3. Schedule C - Chronology: Detailed timeline of events in table format
4. Appendix 1 - Evidence Bundle: Copies of key supporting documents referenced in the letter
5. Appendix 2 - Expert Reports: Any relevant expert opinions or reports supporting the claim
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