Defending a disputed invoice

A disputed invoice defence should explain why the claimed obligation or amount is wrong. Dissatisfaction with the commercial relationship is not a substitute for answering the allegations in the particulars of claim. ^[1]

Separate the reasons for dispute

Identify whether the issue is identity, agreed scope, price, performance, payment, set-off or another legal defence. Match each point to the contract, variation, complaint or payment evidence. A document showing a defect should be linked to the relevant obligation and remedy rather than submitted without explanation.

Distinguish amounts accepted from amounts contested. If the defendant also seeks money, ask whether a counterclaim or another procedural step is required.

Address the pleaded case

Read the actual particulars and respond to the material allegations through the applicable rules. Preserve contemporaneous complaints and explain gaps or later developments honestly. Do not alter original emails to make the complaint appear earlier.

Court response procedure controls the deadline. Witness evidence may later establish what was agreed or delivered. Keep the defence focused on the claim before the court, and obtain advice where a technical breach, contractual limitation or competing claim changes the analysis.

Answer the allegation rather than the invoice label Work through the particulars of claim in their own order. Identify the alleged agreement, price, performance and outstanding balance, then record your position on each. CPR 16.5 distinguishes allegations admitted, denied and those the defendant cannot admit or deny but requires to be proved. A denial needs reasons, including the defendant's different account where one is advanced. This exercise prevents a genuine disagreement about one delivery being expressed as an unsupported rejection of the entire trading relationship. [1]

For a contested order, explain what was actually authorised and by whom. If the claimant relies on terms that you say were never agreed, locate the accepted quotation and the correspondence accompanying it. If you accept the order but dispute an extra charge, identify the original scope and the alleged variation separately. Avoid treating every unfavourable term as invalid simply because it was not read. The defence should describe the factual basis of the challenge so the legal significance can be assessed against the relevant agreement.

Connect a performance complaint to the sum resisted A complaint about quality needs more detail than a description of disappointment. Identify the contractual requirement, what was supplied and the particular respect in which it fell short. In a printing dispute, the issue might concern paper weight, quantity or an approved proof; each requires different evidence. Record when the problem was noticed and how it was communicated. If the claimant offered to inspect or remedy it, include that exchange and explain what happened next rather than leaving a gap after the initial complaint.

Then address how the complaint affects the amount claimed. An estimate for corrective work may help assess loss, but it does not automatically justify withholding every invoice from the supplier. Separate the disputed work from satisfactory work and identify any contractual provisions relevant to payment or remedies. If a replacement supplier improved the specification at the same time, distinguish that improvement from the alleged cost of correction. This gives the adviser a reasoned financial position to evaluate instead of a deduction chosen to cancel out the claimant's demand.

Distinguish payment, credit and a competing monetary claim Where the defence is that an invoice has already been paid, match the transfer to the account using amount, date and remittance information. Explain any allocation disagreement. A payment to another group company or an intermediary needs context showing why it discharged the obligation relied on. If a credit was promised, preserve the promise and establish whether it was conditional. Do not present an unaccepted negotiation proposal as an issued credit note simply because it would reduce the balance to a more favourable figure.

If you say the claimant owes you money, identify the source and calculation of that entitlement. A set-off relied on against the claim and a counterclaim seeking an affirmative remedy raise related but distinct procedural questions. CPR 16.6 addresses reliance on a monetary entitlement by way of set-off, while the appropriate treatment of an additional claim needs separate checking. Give the adviser the supporting contract, loss calculation and desired result. Avoid assuming that attaching a second invoice automatically places a properly formulated counterclaim before the court. ^[1]

Check the defence against the complete record Compare the proposed account with contemporaneous communications before finalising it. An email approving completed work may require explanation if the defence alleges that nothing was delivered. There may be a sound distinction between apparent completion and a later-discovered defect, but the chronology should make it clear. Identify what the writer knew at the time and what was learned afterwards. Preserve awkward documents rather than altering the history, and revise an allegation if the evidence does not support the certainty with which it was initially expressed.

Keep the formal defence focused enough to reveal the actual issues while complying with the applicable requirements. It is not a substitute for later witness evidence, document exchange or any necessary application. Check the statement of truth and ensure the person verifying the facts understands the final text. Record unresolved legal questions, including contractual limits or a technical issue, for timely advice. A useful defence gives a clear and supportable answer to the case brought, allowing both the court and the claimant to understand what must be decided.