We'll Take 1/3 - A Case Study

A Case Study

Background

• Dec 2021 – Invoice issued.

• Client hesitant to pursue payment: "I won't pay for any work done for Matthew (debtor’s ex-business partner)."

• 16 Oct 2022 – Eventually approved for follow-up by a Partner at the Creditors.

• 18 Oct 2022 – Debtor’s ex-partner (Matthew) agreed to pay one-third before the email was sent.

• 22 Oct 2022 – Email sent, with a copy to a law firm.

• 30 Oct 2022 – Payment received.

The Email

Dear Andrew,

In your previous email, you indicated you were willing to pay your share but wouldn’t assume responsibility for any advice provided to Matthew. On this basis, the firm is prepared to make the following limited-time offer on a WITHOUT PREJUDICE basis.

The firm will accept one-third of the original invoice (attached) — totaling seven hundred and sixty dollars and eighty-three cents ($760.83) — as full and final settlement of your commitment, provided the amount is received by 2:00 pm on Friday, 01 November.

Should you decline this offer, which is reluctantly extended:

1. Full debt recovery will be transferred to a third party to take necessary actions in the firm’s interest.

2. Additional costs may arise, for which ABC Company could also be liable if our claim against them is successful.

In summary:
The firm is confident in a favorable judgment, as we maintain accurate records of all work completed and can show that we have made reasonable efforts to resolve any issues before pursuing legal action. If judgment is awarded, it will be noted on the public record, which may impact ABC Company’s credit standing for up to five years. To avoid potential embarrassment and additional costs, please remit $760.83 by 2:00 pm on Friday, 01 November.

Best regards,
[Your Firm’s Name]

Email Format and Techniques Used

• Opening Paragraph: States facts, presents the offer as “WITHOUT PREJUDICE.”

• Details of Offer: Clear breakdown of the offer and deadline, mentioned twice for emphasis.

• Implications of Non-Payment: “Reluctantly given” underscores the seriousness; consequences are specified — total debt may be pursued, with inferred legal action and additional costs.

• Summary: Emphasizes the firm’s efforts to resolve issues, possible impact on the debtor’s credit rating, and the potential for embarrassment and further expenses.

• Notable Point: a CC of the email was sent to a law firm, signaling seriousness; the debtor likely notices the law firm’s involvement.