Why the client needed our help
Our client, a firm of solicitors, was owed more than £90,000 by a long-standing commercial client in respect of unpaid legal fees.
Despite repeated assurances that payment would be made, the debt remained outstanding. Importantly, the debtor had accepted that the sums were due and owing, but continued to delay settlement. The position had become increasingly frustrating for our client, particularly given the age of the debt and the impact the unpaid invoices were having on cash flow.
The client needed to recover the outstanding fees quickly and effectively, but without taking unnecessary steps too early. It was important to preserve leverage, maintain a strong legal position and move matters forward in a way that maximised the prospects of payment.
We were instructed to review the position and advise on the most effective recovery strategy.
How we helped
We carried out a swift review of the underlying contractual documentation, including the client care documentation, letter of engagement, terms of business, unpaid invoices and the communications in which the debtor had repeatedly acknowledged the debt and promised payment.
Having reviewed the evidence, we advised on a clear pre-action strategy designed to encourage early settlement while protecting our client’s position if the debtor continued to delay.
As part of that strategy, we prepared and sent a robust Letter Before Action seeking payment of the principal debt together with contractual interest due under the firm’s terms of business. The letter was drafted to make clear that the debt was being pursued formally and that, if necessary, further recovery steps would follow.
At the same time, we opened dialogue with the debtor to understand the reasons for non-payment and to test whether a practical commercial resolution could be achieved without immediate court proceedings.
Alongside this, we provided our client with clear, risk-based advice on the next available steps if payment was not made, including the issue of County Court proceedings and the enforcement options that could follow if judgment became necessary.
Our approach was designed to combine legal pressure with commercial realism, increasing the likelihood of recovery without incurring avoidable time and cost.
The outcome
Within 14 days of the debtor receiving the Letter Before Action, the debtor engaged with the claim and agreed terms of settlement.
Payment was secured by way of three instalments, resulting in recovery of the full outstanding invoice debt together with the accrued contractual interest due under the solicitors’ terms of business.
All sums were recovered within three months of the Letter Before Action being sent.
This meant our client achieved a full recovery without the need to issue court proceedings, saving time, cost and management distraction. It also delivered a swift improvement in cash flow and brought a long-running payment issue to a commercially sensible conclusion.
This matter demonstrates how a well-prepared pre-action strategy can often secure payment quickly, particularly where the debt is properly documented and liability has already been acknowledged. In the right case, firm and carefully structured early action can avoid the need for formal litigation altogether.
