A notice of intention to sue should be given to the respondent before making a claim in court. Otherwise, the costs of filing the claim will not be recoverable. The notice can be given in the form of a Final Notice or a Letter of Demand. The recipient has 21 days to respond to your notice, in which time the recipient may:
pay the money that you claim you are owed
negotiate with you to come to an arrangement
ask to go to a pre-action meeting between the parties to negotiate a resolution
ignore the notice
If the respondent agrees to pay the money or you are able to negotiate an agreement, you will not need to take further action in court. If the other party does not want to pay, you have the option to proceed to a pre-action meeting if both parties agree to attend. See Mediation for more information.
It is important that you wait 21 days before making a formal claim. If you don’t wait 21 days and your claim is eventually successful, you may not be able to recover your costs from the other party.