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Calderbank offer template, with a worked example

A Calderbank letter for Australian litigation, in Word and PDF with space for your logo. Filled in for a claim over unpaid invoices.

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The template

Formatted for Word, with a box for your logo. Placeholders are [highlighted] so nothing is missed.

Calderbank offer template

Your logo

[Firm name]

[Street address], [Suburb] [STATE] [Postcode]

T [Phone] · E [Email]

ABN [ABN]

[Date]

Without prejudice save as to costs

[Lawyer name]
[Firm name]
By email: [Email]

Our ref
[Matter number]
Your ref
[Their reference]

Dear [Lawyer name],

[Plaintiff] v [Defendant] ([court], proceeding [number]): offer to settle

We act for [our client] and make this offer in accordance with the principles in Calderbank v Calderbank [1975] 3 All ER 333.

1.The offer

[Our client] offers to settle the proceeding on these terms:

  • [Your client] pays [our client] $[amount] within [number] days of accepting this offer.
  • [Costs: e.g. the amount is inclusive of interest and costs, or each party pays its own costs.]
  • The proceeding is [dismissed / discontinued] with no order as to costs.
  • [Releases: e.g. the parties release each other from all claims arising from the matters in the proceeding.]

2.Why your client should accept

[The weaknesses in their case, the likely outcome at trial, and the cost of continuing, as they stand today.]

3.Time for acceptance

This offer remains open until [time] on [date]. Acceptance must be in writing and sent to [email].

4.Costs

If your client does not accept this offer and [our client] obtains a result no less favourable, we will produce this letter to the court and seek an order that your client pay [our client]‘s costs on an indemnity basis from [date the offer expires].

This offer is made without prejudice save as to costs. It is not an offer of compromise under [the court’s rules].

Yours faithfully,

[Lawyer name]

[Title]

[Firm name]

What is a Calderbank offer?

A Calderbank offer is a written offer to settle, marked ‘without prejudice save as to costs’. It cannot be shown to the court on the merits, but it can be produced when costs are decided.

If the offer is rejected and the other side does no better at trial, the court may order it to pay costs on an indemnity basis from the date of the offer, if rejecting it was unreasonable. The name comes from Calderbank v Calderbank [1975] 3 All ER 333.

  • Documents

What to include

  • The marking

    ‘Without prejudice save as to costs’, at the top.

  • A genuine compromise

    A real concession. An offer to simply give up is unlikely to carry costs consequences.

  • Clear terms

    The amount, when it is paid, costs, and what happens to the proceeding.

  • Reasons to accept

    Why the other side should accept, given its prospects today.

  • Time to consider

    A fixed expiry, with reasonable time for the stage of the case.

  • The costs warning

    That you will rely on the letter to seek indemnity costs if it is rejected.

  • Workflow

How to write a Calderbank offer

  1. 01

    Make a real compromise

    Give up something of value: part of the claim, interest or costs.

  2. 02

    Explain why to accept

    Courts look at the other side’s prospects when the offer was made. Say what they are.

  3. 03

    Allow reasonable time

    A deadline that is too short can make rejecting the offer reasonable.

  4. 04

    Warn about indemnity costs

    Say you will produce the letter and seek indemnity costs if it is rejected.

  5. 05

    Check the court rules too

    A formal offer of compromise under the rules may give more certain costs consequences.

  6. 06

    Keep proof of service

    Record when the offer was sent, and when it expires.

  • Recordings
  • Documents
  • Review

Start from the client’s instructions.

Law Brief records the meeting where your client gives settlement instructions and drafts the file note and client letter, in Australia. The figures and reasons for the offer are written down before you draft it.

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2:002:152:302:453:00
AlexConsultation · Alex
2:00 to 2:45
TranscriptTranscript
Ready in seconds
2:45
Letter and noteDella drafts letter and note
Under 5 min
2:49
Next: SamNext client · Sam
11 minutes to spare
3:00

The red bar is the consultation itself: 45 minutes with the client. Everything after it takes Della under 5. The letter and file note are waiting for your lawyer 11 minutes before the next client sits down.

Case study

Live since February at a Sunshine Coast law firm.

  • ~$420Ka year in staff time, from Della
  • 20legal professionals using it
  • 45 → 5minutes per client letter

How we worked it out: about $35,000 a month in staff time, on the firm’s own dashboard.

Also freeLetter of demand template, with a worked example

Questions.

Checked . General information, not legal advice. Sources: Hazeldene’s Chicken Farm v Victorian WorkCover Authority (No 2) [2005] VSCA 298
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