Receiving a claim form, letter before action or formal complaint can feel unsettling, particularly when you are trying to run a business at the same time. The decisions you take in the first two days often shape the cost, length and outcome of the entire matter. This guide sets out the practical steps we advise our commercial clients across England and Wales to take from the moment a claim lands.
The first 48 hours
Begin by recording exactly when and how the claim was received. Keep the envelope, note the date stamp and save any covering email. If the document has been issued through the courts, the clock for filing an acknowledgement of service or a defence will already be running, and missing those deadlines can result in a judgment being entered against you in default.
Resist the temptation to respond immediately. A quick reply written in frustration can later be used in evidence and may concede points that a solicitor would have argued against. Instead, circulate the document only to those who genuinely need to see it inside the business and treat it as confidential.
Preserving and gathering evidence
Once a dispute is reasonably in contemplation, you are under a duty to preserve documents, including emails, instant messages, contracts and accounting records. Suspend any automatic deletion policies and instruct staff in writing not to destroy material that might be relevant.
- Pull together the full contractual chain, including signed agreements, variations and any side correspondence.
- Identify the individuals who handled the relationship and ask them to write a short note of events while memories are fresh.
- Secure any physical evidence such as faulty goods, photographs or site records.
Understanding the response deadlines
Under the Civil Procedure Rules, a defendant served with a claim form in England and Wales typically has 14 days to file an acknowledgement of service and a further 14 days to file a defence. Pre-action correspondence often gives a longer window, but the deadlines stated in the letter are not optional. If you cannot meet a deadline, ask in writing for an extension and keep the response.
Why early legal advice matters
The cost of instructing a solicitor at the start of a claim is almost always a fraction of the cost of correcting a misstep later. A short review can clarify whether the claim has merit, whether a counterclaim exists, whether your insurance responds and whether an early commercial settlement is sensible.
The clients who fare best are those who treat the first letter as a strategic decision, not an administrative one.
Practical guidance for UK businesses
Notify your insurers without delay, even if you are unsure whether cover applies. Check whether the dispute triggers any reporting obligations to regulators, lenders or shareholders. Most importantly, allocate one person inside the business to act as the single point of contact with your legal advisers. Clear lines of communication keep cost and stress down and make sure nothing important slips through.