DEMAND LETTER - BREACH OF CONTRACT
State of Alaska
[LAW FIRM NAME]
Attorneys at Law
[FIRM ADDRESS LINE 1]
[CITY], Alaska [ZIP]
Tel: [TELEPHONE]
Fax: [FAX]
Alaska Bar No. [BAR NUMBER]
SENT VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
[DATE]
[RECIPIENT NAME]
[RECIPIENT TITLE]
[COMPANY NAME]
[ADDRESS LINE 1]
[CITY, STATE ZIP]
Re: Formal Demand for Cure of Material Breach of Contract
Contract Date: [CONTRACT DATE]
Our Client: [CLIENT NAME]
Demand Amount: $[TOTAL DEMAND AMOUNT]
Dear [RECIPIENT NAME]:
This firm represents [CLIENT NAME] ("our Client") in connection with the above-referenced agreement (the "Contract") between our Client and [BREACHING PARTY NAME]. We write to formally notify you of your material breach and to demand immediate cure and compensation.
THIS IS A FORMAL DEMAND. ALASKA RULE 82 PROVIDES FOR ATTORNEY FEE AWARDS TO PREVAILING PARTIES. FAILURE TO RESOLVE THIS MATTER WILL RESULT IN LITIGATION AND SUBSTANTIAL FEE EXPOSURE.
I. BACKGROUND
On or about [CONTRACT DATE], our Client and you entered into the Contract. Our Client has fully performed. You have materially breached by:
☐ Breach #1: [DESCRIBE BREACH AND CITE CONTRACT PROVISION]
☐ Breach #2: [DESCRIBE]
☐ Breach #3: [DESCRIBE]
II. ALASKA LAW - BREACH OF CONTRACT
Under Alaska law, the elements of a breach of contract claim are: (1) existence of a contract; (2) breach of a duty arising under the contract; and (3) resulting damages. See Integrated Resources, Inc. v. Justice Resources, 789 P.2d 365 (Alaska 1990).
III. DAMAGES UNDER ALASKA LAW
A. Compensatory Damages
| Category | Amount |
|---|---|
| Direct Damages | $[AMOUNT] |
| Consequential Damages | $[AMOUNT] |
| Incidental Damages | $[AMOUNT] |
| SUBTOTAL | $[AMOUNT] |
B. Prejudgment Interest
Under AS 09.30.070, prejudgment interest accrues at the rate set annually by the Commissioner of Revenue. The current rate is 10.5% per annum.
| Principal | Rate | Period | Interest |
|---|---|---|---|
| $[AMOUNT] | 10.5% | [DATES] | $[AMOUNT] |
C. Attorney Fees Under Alaska Rule 82
IMPORTANT: Alaska Rule of Civil Procedure 82 provides for attorney fee awards to the prevailing party. If our Client prevails in litigation, you will be responsible for a substantial portion of our Client's attorney fees in addition to damages. This exposure can be significant.
The prevailing party in a contested case is entitled to:
- 20% of the first $25,000 recovered
- 10% of the next $75,000
- 10% of the next $400,000
- 10% of any amount over $500,000
This fee exposure is a significant reason to resolve this matter before litigation.
D. Total Demand
| Category | Amount |
|---|---|
| Compensatory Damages | $[AMOUNT] |
| Prejudgment Interest | $[AMOUNT] |
| TOTAL | $[TOTAL] |
IV. STATUTE OF LIMITATIONS
Under AS 09.10.053, contract claims must be brought within three (3) years of accrual. Our Client's claims are timely.
V. DEMAND
Within [30] calendar days, you must:
☐ Cure the breach by [SPECIFIC ACTIONS]; AND/OR
☐ Pay the sum of $[TOTAL DEMAND AMOUNT]
Payment should be made by certified check payable to [PAYEE] and delivered to [ADDRESS].
VI. CONSEQUENCES OF NON-COMPLIANCE
Failure to resolve this matter will result in immediate litigation in the Superior Court for the State of Alaska, [JUDICIAL DISTRICT], seeking:
- All compensatory damages
- Prejudgment interest at 10.5% per annum
- Attorney fees under Alaska Rule 82
- Costs of litigation
- Any other appropriate relief
VII. DOCUMENT PRESERVATION
Preserve all documents relating to this matter. Spoliation may result in sanctions.
Govern yourself accordingly.
[LAW FIRM NAME]
By: _______________________________
[ATTORNEY NAME]
Alaska Bar No. [BAR NUMBER]
Enclosures:
☐ Exhibit A - Contract
☐ Exhibit B - Damage Calculations
cc: [CLIENT NAME]