What the other side’s lawyer hopes you miss
Do not give the letter control
A lawyer’s letter can feel like a trap, especially when it arrives while you are busy on site, chasing cash, or juggling staff. Do not let the pressure decide your response. Read the deadline, identify what is demanded, and assume the clock matters. If the matter may move to mediation, preparation and timing matter too. ([fedcourt.gov.au](https://www.fedcourt.gov.au/services/ADR/mediation?utm_source=openai))
Federal Court guidance says mediation works best when parties understand the issues in dispute, what they want out of any resolution, and what settlement contents might be possible. That is useful before you reply to any demand. Do not answer in a rush with a half-formed position. A short pause can save a long dispute. ([fedcourt.gov.au](https://www.fedcourt.gov.au/services/ADR/mediation?utm_source=openai))
Never miss the deadline
If the letter gives you a deadline, treat it as a real one, not a courtesy. Missed time limits can hand the other side an easy advantage, and court processes are built around dates, documents, and steps. Put the deadline in your calendar, tell one other person in your office, and work backwards from today. ([fedcourt.gov.au](https://www.fedcourt.gov.au/law-and-practice/practice-documents/practice-notes?a=33539&utm_source=openai))
That matters because the Court expects parties to get themselves into the most informed position possible for any ADR process. In plain terms, you should know what is in dispute, what documents support you, and what gaps still need fixing. If you wait until the last day, you lose options before you even start today. ([fedcourt.gov.au](https://www.fedcourt.gov.au/law-and-practice/practice-documents/practice-notes?a=33539&utm_source=openai))
Source: Official guidance
Do not admit disputed facts
Be careful with every sentence you send back. If you agree with one point, say only that point. If you dispute a number, a date, or the quality of work, say so clearly and keep the rest separate. A loose apology can be read as an admission, even when you only meant to be polite. ([fedcourt.gov.au](https://www.fedcourt.gov.au/services/ADR/mediation?utm_source=openai))
The safer approach is to answer with facts, documents, and questions. Ask for the basis of the claim, the contract clause relied on, and the records the other side says support its position. That keeps the conversation anchored to evidence. It also helps you avoid writing something broad that later narrows your defence at all. ([fedcourt.gov.au](https://www.fedcourt.gov.au/services/ADR/mediation?utm_source=openai))
Use written offers to protect costs
If you want to settle, put the offer in writing. Federal Court costs guidance encourages offers to compromise, and the Court’s mediation material notes that parties can consider possible contents of an offer and the method of communication. A written offer gives you a clear record of what was proposed and when it was sent. ([fedcourt.gov.au](https://www.fedcourt.gov.au/law-and-practice/practice-documents/practice-notes/gpn-costs?utm_source=openai))
If the other side later argues about costs, your written offer becomes part of the story. That is why you should keep the offer measured, realistic, and easy to read. Overblown threats can harden the dispute. A sensible offer may help the parties narrow the issues even if settlement is not immediate or certain today. ([fedcourt.gov.au](https://www.fedcourt.gov.au/law-and-practice/practice-documents/practice-notes/gpn-costs?utm_source=openai))
Build the file today
Before you send anything, assemble a simple file. Put the letter, the deadline, the contract, the disputed invoices, the key emails, and any notes from calls into one place. The point is not volume. It is control. If the dispute goes to mediation, the Court expects you to arrive informed and ready for it too. ([fedcourt.gov.au](https://www.fedcourt.gov.au/law-and-practice/practice-documents/practice-notes?a=33539&utm_source=openai))
Then respond in writing, even if it is only to ask for more time. If the matter is serious, or if the deadlines are already tight, get help early. CRP coordinates independent professionals who can help assess the dispute and plan the next step. This is general information only, not legal advice. Call CRP today. ([fedcourt.gov.au](https://www.fedcourt.gov.au/services/ADR/mediation?utm_source=openai))