Letter · Costs, billing & litigation funding
Without prejudice save as to costs offer, with the client's settlement figures kept off the letter
Letter of offer made without prejudice except as to costs, using only figures the principal has approved, plus a separate note of the costs estimates to give the client before a litigious settlement is signed.
- Kind
- Letter. A letter or email you adapt and send.
- Where it applies
- New South Wales
- AI use
- Yellow You and the tool draft together, with you directing. You check every statement you rely on.
- Law stated as at
- 22 October 2026
- Status
- Maintained. Checked on 22 October 2026 against the 3 authorities it cites, for New South Wales.
- Version
- 1
- Source
- Written for this library
When to use it
Use when the principal has decided to make a costs-consequences offer that is not a notice under the court rules. In New South Wales proceedings, decide first whether an offer under UCPR r 20.26 is the better instrument. Do not put the client's own costs estimates in the letter to the other party.
Used for these tasks
Each task page says how far AI may help with the task and what the lawyer must review.
How AI may be used
AI may assemble the letter around figures and a time for acceptance that the principal has already written down. The principal sets the offer and approves every sentence that will be sent.
AI may
- Insert the approved sum, the claim it covers and the acceptance date into the numbered paragraphs
- Check that the letter does not say it is made under the Uniform Civil Procedure Rules
AI must not
- Must not choose the amount, the costs consequence or the time for acceptance
- Must not copy the client's costs estimates into the letter to the other party
- Must not predict that a court will order indemnity costs
The lawyer checks
- The principal has chosen this form rather than an offer under the court rules, and has approved the figure
- The letter is marked without prejudice except as to costs, and it does not claim to be an offer under UCPR r 20.26
- Before any settlement is executed, the client has the s 177 estimates in the separate note
Method: how the Green, Yellow and Red levels are decided. This is guidance for planning, not legal advice.
Read the full text
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- let the AI tools you connect read it from that knowledge base.
The summary, the law it rests on and the AI-use guidance above stay public. Privacy.
More in Costs, billing & litigation funding
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- Offer of compromise under UCPR rule 20.26 (NSW)
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- Letter when a flat fee should change because a tool did the work (United States)
- Disclosure to an associated third party payer, and of another law practice
- Notice to client of a significant change in legal costs (Uniform Law s 174(1)(b))
- Litigation funding agreement review checklist (including class actions)
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All precedents for Costs, billing & litigation funding · Tasks and AI use in this area