Difference between revisions of "Starting a Small Claim (20:V)"

The fastest and least expensive way to resolve a dispute is to tell the other person what you are claiming from them and why you are claiming  it.   If the other person agrees with the amount or responds in a manner that leads to a settlement, both  parties will save the time, effort, expense, and uncertainty of a lawsuit.  

''Bona fide'' attempts to settle may involve concessions and admissions of liability.   For example, a claimant may offer to settle for less than the claim to account for the cost, time investment, and risk of going to trial.   A defendant, for example, may admit liability but dispute the  amount owed. Whenever parties can agree on certain points, the likelihood of settlement increases.  

Because of the strong public interest in settlement, these ''bona fide'' settlement attempts are protected by settlement privilege.   This means  that, if the matter is not settled, any reductions in the claim or admissions made disappear and cannot be used against the party who made them38. It is prudent to include the words “WITHOUT PREJUDICE” in correspondence involving ''bona fide'' attempts to settle to indicate that the party sending the document wishes to rely  on settlement privilege; settlement privilege will still apply, however, even if “WITHOUT PREJUDICE” is not included.  

Settlement letters should be brief, factual, and clearly state the amount claimed even if that amount exceeds $25,000. Settlement letters should  have a courteous tone as a letter that invokes a hostile reaction from the recipient will be counter-productive.   A party writing a settlement  letter should never threaten criminal or regulatory penalties; '''extortion is a criminal offence'''.