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.

Authorities

Read the full text

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