1. Review what was agreed, and how clear the agreement was.
2. Clarify how the other party has failed to live up to the agreement; consider to what extent you may have contributed.
3. Assess the loss you have suffered as a result; consider any loss they may claim to have suffered.
4. Collate evidence (eg written contracts, correspondence and witness statements).
5. Try to negotiate an amicable resolution; keep evidence of negotiations including copies of letters and notes on conversations.
6. Assess the other party’s ability to pay, for example by running a credit check (including records of outstanding county court judgments).
7. Take legal advice unless the dispute is straightforward, represents a relatively small amount and runs no risk of a significant counterclaim.
8. Assess whether you have a strong case - how clear the legal position and evidence are - and the risks of a counterclaim or losing in court.
9. Clarify the costs and timescales involved in taking the recommended form of legal action; decide whether it is worth pursuing.
10. Consider how far you are prepared to compromise either by accepting stage payments or partial payment for a quick resolution.
11. Either abandon the claim, or inform the other party in writing of your intention to take legal action; follow the appropriate procedure.
12. Track progress and legal costs as the case proceeds.
13. Continue to be prepared to compromise; accept any reasonable offer to avoid further delays and disruption and the risk of court action.
14. After a successful court case, be prepared to enforce judgment to obtain payment.
Do's & Don'ts
Do:
Try to negotiate an amicable resolution.
Assess whether you have a strong case.
Decide whether you need legal advice.
Be prepared for a protracted and costly process if you pursue legal action.
Accept a reasonable offer rather than going to court.
Don’t:
Waste time and money pursuing someone who cannot pay.
Refuse to compromise.
Ignore the risks of losing any legal action.
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