Thanks Alex, added your comment. Not sure about the last line though 'Please note that I will produce this letter to the court......' Is it okay?
‘Without prejudice save as to costs’
I enclose herewith defence together with the evidence which I will be relying on if the matter goes to trial. I have seen the medical report provided by Dr X and I understand the situation.
This is to be noted that during her stay at my property for about thirteen months she did not report any gas smell or any other obnoxious smell. At the last week of her tenancy she called British Gas and was surprised by the high gas bill and several hundred pounds worth of gas escaped unnoticed.
Miss Y and I enjoyed a good landlord and tenant relationship and I feel sorry that she suffered inconvenience while staying at my property.
As a gesture of goodwill I offer without prejudice an amount of £Z in full and final settlement for her all general and special damages. This will be on condition that there will be no future claim whatsoever from anyone and without accepting liability. This is to keep the cost low and to save Miss Boswell from anxiety and stress of the litigation.
Please note that I will produce this letter to the court on the issue of cost if the matter remains contested.
I look forward receiving your reply.