Last month, Vytue LLP successfully represented a small manufacturing business based in Manchester that had been left in financial limbo after a supplier breached a long-standing contract. With delivery delays mounting and losses accumulating, our client was on the brink of terminating the relationship entirely but worried about potential legal repercussions.

Through careful legal strategy, structured negotiation, and firm handling of pre-action correspondence, we were able to resolve the matter within eight weeks and recover over £42,000 in damages, all without going to court.

PROCESS

1. Understanding the Dispute

The client approached us with a situation that, unfortunately, is increasingly common: a supplier had repeatedly failed to deliver materials on time, despite being bound by a signed contract with clear delivery deadlines and penalty clauses.

We started with:
• A full contract review
• A timeline analysis of delivery failures
• Evidence of financial losses, including missed client orders and overtime labour costs
• Communications exchanged with the supplier over several months

The supplier had been evasive in writing and clearly in breach, but had yet to formally acknowledge their failure or offer compensation.

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2. Strategy and Risk Assessment

Our first step was to assess the commercial risk of litigation for our client. We explained the available options:
• File a civil claim for breach of contract in the County Court
• Use pre-action protocols to pressure for early settlement
• Explore alternative dispute resolution (ADR) routes such as mediation

Given the size of the loss and the supplier’s ongoing trading relationship, we advised pursuing a Letter of Claim as part of the Civil Procedure Rules’ Pre-Action Protocol, while preparing to escalate if needed.

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3. Issuing the Letter of Claim

We drafted and issued a detailed Letter of Claim that included:
• A summary of the contract terms
• A clear outline of how those terms were breached
• A calculation of direct and consequential losses (£42,800 total)
• A deadline of 14 days to respond
• A notice that we were prepared to litigate

The tone was professional but firm, showing we were serious without being unnecessarily aggressive.

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4. Supplier’s Response and Negotiation

The supplier responded within 10 days, denying full liability but acknowledging “delivery difficulties.” They attempted to offer a goodwill payment of £15,000.

We advised our client to reject the initial offer and counter with a well-reasoned figure closer to the actual losses. We included:
• Expert valuation of lost profits
• Cost breakdown of emergency replacement supplies
• Wasted labour costs during idle production hours

After three rounds of communication, we secured a settlement offer of £42,000, subject to a confidentiality clause and agreement not to pursue further legal action.

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5. Settlement Terms

The final settlement agreement included:
• A one-time payment of £42,000 within 7 days
• A clause terminating the commercial relationship with no further obligations
• A non-disparagement clause
• Our client’s legal fees to be paid separately (£4,500, covered in full)

The supplier paid within the deadline, and our client moved on to a more reliable supplier, with no further losses.

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Client Feedback

“We were nervous about involving lawyers, but your approach was professional, efficient, and respectful. You helped us recover what we were owed without damaging our brand or dragging it into court. We’ll absolutely come to you again.”

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Final Thoughts:

Civil litigation doesn’t always have to end in a trial. With the right legal strategy and an experienced team, many disputes can be resolved early, saving time, stress, and expense.

If your business is facing a breach of contract or commercial dispute, contact our civil litigation team today. We offer tailored legal advice, strategic planning, and aggressive advocacy when it matters most.