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Letter Of Demand Cost for the United Kingdom

Letter Of Demand Cost Template for England and Wales

A Letter of Demand Cost is a formal written demand for payment of legal costs, typically issued following litigation or dispute resolution proceedings in England and Wales. The document outlines the costs claimed, provides a detailed breakdown of charges, specifies payment terms, and states the consequences of non-payment. It must comply with the Civil Procedure Rules and relevant legislation governing cost recovery in the jurisdiction.

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Letter Of Demand Cost

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What is a Letter Of Demand Cost?

A Letter of Demand Cost is a crucial document in the cost recovery process within the England and Wales legal system. It is typically used when seeking to recover legal costs following successful litigation, arbitration, or other dispute resolution proceedings. The document serves as a formal demand for payment and often precedes legal enforcement actions. It must include specific information such as the basis of the claim, detailed cost breakdown, and payment terms. The letter should comply with relevant Civil Procedure Rules and pre-action protocols, and may include claims for interest under the Late Payment of Commercial Debts (Interest) Act 1998.

What sections should be included in a Letter Of Demand Cost?

1. Recipient Details: Full name and address of the debtor, including any reference numbers

2. Matter Reference: Case reference numbers, dates, and any court references related to the costs claim

3. Amount Demanded: Clear statement of the total amount owed, including any interest or additional charges

4. Basis of Claim: Legal basis for the costs claim, including reference to relevant court orders or agreements

5. Payment Terms: Specific deadline for payment and acceptable payment methods

6. Consequences: Clear statement of legal actions to be taken if payment is not received by the deadline

What sections are optional to include in a Letter Of Demand Cost?

1. Interest Calculation: Details of statutory or contractual interest being claimed on the outstanding amount

2. Previous Correspondence: Summary of previous attempts to recover the costs and responses received

3. Settlement Offer: Proposed settlement terms or payment plan options if applicable

What schedules should be included in a Letter Of Demand Cost?

1. Schedule A - Cost Breakdown: Detailed itemized breakdown of all costs being claimed

2. Schedule B - Interest Calculations: Detailed calculations showing how interest has been computed

3. Schedule C - Supporting Documents: Copies of relevant court orders, agreements, or correspondence supporting the costs claim

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

England and Wales

Document Type

Demand Letter

Sector

Marketing

Cost

Free to use
Relevant legal definitions

























Clauses




















Industries

Civil Procedure Rules (CPR): Core procedural rules governing civil litigation in England and Wales, particularly Part 44 (General Rules about Costs), Part 47 (Procedure for Assessment of Costs), and Practice Direction 47 (Procedure for Detailed Assessment of Costs)

Legal Services Act 2007: Primary legislation governing the regulation of legal services in England and Wales, including regulations regarding legal costs, fees, and requirements for legal professionals

Late Payment of Commercial Debts (Interest) Act 1998: Legislation establishing statutory interest rates and compensation for late payment of commercial debts, relevant for calculating additional charges in demand letters

Limitation Act 1980: Statute setting out time limits for bringing claims and relevant limitation periods for cost recovery in England and Wales

Courts Act 2003: Legislation governing court fees and enforcement procedures in the English and Welsh legal system

Legal Aid, Sentencing and Punishment of Offenders Act 2012 (LASPO): Reform legislation affecting cost recovery, including changes to success fees and insurance premiums, and implementing significant changes to civil litigation funding

Case Law on Cost Recovery: Relevant judicial precedents and decisions that establish principles for cost recovery and assessment in England and Wales

Professional Conduct Rules: Regulatory requirements and ethical guidelines governing the conduct of legal professionals when dealing with costs and demands

Court Guidelines on Proportionality: Judicial guidelines ensuring that costs claimed are proportionate to the nature, complexity, and value of the claim

Pre-action Protocols: Procedural guidelines that parties must follow before commencing legal proceedings, including specific requirements for cost-related claims

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