Most disputes settle before anyone sees a judge, and the ones that settle early cost the least. Before you issue a claim, weigh three things: what you can prove, what you can recover and what it will cost you to get there.

Test the strength of your case

Start with the documents. A claim built on a signed contract, clear invoices and emails that record what each side agreed stands on firmer ground than one that depends on memory. Gather them now and put them in date order. Your solicitor will read them for gaps before the other side does.

Check the time limit as well. In England and Wales most contract claims must be issued within six years of the breach, and some claims have far shorter limits. A missed deadline ends the claim, however strong it is.

The courts expect you to follow a pre-action protocol: a letter setting out your claim, a fair time for the other side to reply and a real attempt to settle. A party who skips these steps can lose part of its costs even if it wins.

Work out what you could recover

A judgment is worth what you can collect. Before you spend money, find out whether the other side has assets or income to pay. A company in financial difficulty may not survive the claim, and an individual with nothing in their name may leave you holding a judgment and no money.

Think about costs in the same way. The winner can recover part of its legal costs, but not all of them, and claims on the small claims track recover almost none. Ask for an estimate of your own costs at each stage, so you can compare them with the sum in dispute.

Use the routes that avoid a hearing

Mediation brings both sides together with a neutral mediator for a day, and many disputes settle in that room. Anything either side says there stays confidential and cannot be used at trial. The courts encourage it, and a party who refuses to mediate without good reason can face a costs penalty.

A formal settlement offer under Part 36 of the court rules puts pressure on the other side. If they reject a reasonable offer and fail to beat it at trial, they can face extra interest and costs.

Court makes sense when the evidence is strong, the other side can pay and attempts to settle have failed. Preparing as though the case will reach trial is what makes an early settlement possible, so we start that preparation on the first day.

This briefing is general information, not legal advice.