DEMAND FOR SETTLEMENT - PRODUCTS LIABILITY

STATE OF ALABAMA

[FIRM NAME]
Attorneys at Law
[Street Address]
[City, Alabama ZIP]
Telephone: [Phone]
Facsimile: [Fax]
Email: [Email]
Licensed in the State of Alabama

DATE: [Date]

VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
AND FIRST-CLASS MAIL

[General Counsel / Risk Management / Claims Representative]
[Manufacturer / Distributor / Retailer Name]
[Street Address]
[City, State ZIP]

RE: PRODUCTS LIABILITY CLAIM - SETTLEMENT DEMAND
Claimant: [Client Full Name]
Date of Incident: [Date]
Product: [Product Name, Model Number, Serial Number]
Manufacturer: [Manufacturer Name]
Purchase Date/Location: [Date / Retailer Name]
Claim Number: [If assigned]

Dear [Recipient Name]:

This firm represents [Client Name] in connection with serious personal injuries caused by a defective [Product Name] designed, manufactured, distributed, and/or sold by your company. This letter constitutes our formal demand for settlement pursuant to Alabama law.

I. ALABAMA-SPECIFIC LEGAL FRAMEWORK

A. Governing Law - Alabama Extended Manufacturer's Liability Doctrine

Alabama products liability claims are governed by the Alabama Extended Manufacturer's Liability Doctrine (AEMLD), established in Casrell v. Altec Industries, Inc., 335 So. 2d 128 (Ala. 1976), and refined in Atkins v. American Motors Corp., 335 So. 2d 134 (Ala. 1976). The AEMLD imposes liability on manufacturers for injuries caused by products that are defective and unreasonably dangerous.

Key Elements Under AEMLD:
1. The defendant manufactured, designed, sold, or leased the product;
2. The product was defective at the time it left the defendant's control;
3. The defect rendered the product unreasonably dangerous;
4. The defect proximately caused the plaintiff's injury; and
5. The plaintiff suffered damages.

See Sears, Roebuck & Co. v. Haven Hills Farm, Inc., 395 So. 2d 991 (Ala. 1981).

B. Theories of Liability Recognized

Alabama recognizes the following products liability theories:

1. Strict Liability (AEMLD):
Under the AEMLD, a manufacturer is strictly liable for injuries caused by defective products without proof of negligence. Casrell, 335 So. 2d at 132.

2. Negligence:
Traditional negligence claims for negligent design, manufacture, or failure to warn. Gurley v. American Honda Motor Co., 505 So. 2d 358 (Ala. 1987).

3. Breach of Warranty:
Express and implied warranty claims under Alabama's version of the UCC, Ala. Code Section 7-2-313 through 7-2-315.

C. Statute of Limitations

Under Ala. Code Section 6-2-38(l), the statute of limitations for products liability claims is two (2) years from the date of injury. This claim arises from an injury that occurred on [Date], and therefore the limitations period expires on [Expiration Date].

D. Statute of Repose

Alabama does not have a statute of repose for products liability claims. Claims may be brought regardless of when the product was manufactured, provided they fall within the statute of limitations.

E. Contributory Negligence - CRITICAL WARNING

ALABAMA IS ONE OF ONLY FOUR STATES THAT FOLLOWS PURE CONTRIBUTORY NEGLIGENCE.

Under Alabama law, any contributory negligence by the plaintiff is a complete bar to recovery. Williams v. Delta Int'l Mach. Corp., 619 So. 2d 1330 (Ala. 1993). However:

• Contributory negligence is an affirmative defense that must be pleaded and proven by the defendant
• Product misuse that is foreseeable does not constitute contributory negligence. General Motors Corp. v. Edwards, 482 So. 2d 1176 (Ala. 1985)
• Assumption of risk is a separate defense under Alabama law

Our client was not contributorily negligent: [Describe why client bears no fault]

F. Joint and Several Liability

Alabama has modified joint and several liability under Ala. Code Section 6-11-27. Defendants are:
- Jointly and severally liable for economic damages
- Severally liable only for non-economic damages (each defendant pays only their proportionate share)

G. Punitive Damages

Punitive damages are available in Alabama under Ala. Code Section 6-11-20 upon clear and convincing evidence that the defendant consciously or deliberately engaged in oppression, fraud, wantonness, or malice.

Caps on Punitive Damages (Ala. Code Section 6-11-21):
- Generally: Greater of 3x compensatory damages or $1,500,000
- Small business exception: Greater of $50,000 or 10% of net worth (up to $200,000)
- Physical injury cases: Greater of 3x compensatory or $1,500,000

II. PRESERVATION OF EVIDENCE - SPOLIATION WARNING

YOU ARE HEREBY DIRECTED TO IMMEDIATELY PRESERVE ALL EVIDENCE relating to this product and claim, including but not limited to:

Product-Related:
- [ ] The subject product and all component parts
- [ ] All exemplar products of the same make and model
- [ ] Design documents, specifications, and engineering drawings
- [ ] Manufacturing records for the subject product
- [ ] Quality control records and inspection reports
- [ ] Testing data and results (pre-market and post-market)
- [ ] Safety assessments and risk analyses
- [ ] FMEA (Failure Mode and Effects Analysis) documents
- [ ] All versions of owner's manuals, instructions, warnings, and labels

Regulatory and Complaints:
- [ ] Communications with FDA, CPSC, NHTSA, or other regulatory agencies
- [ ] Consumer complaints involving this product
- [ ] Prior claims and lawsuits involving this product
- [ ] Recall notices and service bulletins

Alabama recognizes the tort of spoliation of evidence. Smith v. Atkinson, 771 So. 2d 429 (Ala. 2000). Destruction of evidence may result in severe sanctions and adverse inferences at trial.

III. THE DEFECTIVE PRODUCT

A. Product Identification

B. Chain of Distribution

IV. THE DEFECT

A. Nature of Defect - Design Defect

Under Alabama law, a design defect exists when the product, as designed, is unreasonably dangerous for its intended use. Alabama applies the risk-utility test for design defects, weighing the likelihood and severity of harm against the burden of taking precautions. General Motors Corp. v. Edwards, 482 So. 2d 1176 (Ala. 1985).

Factors Considered:
1. The usefulness and desirability of the product
2. The availability of other safer products
3. The likelihood and probable seriousness of injury
4. The obviousness of the danger
5. Public expectation of the danger
6. The avoidability of injury by care in use
7. The ability to eliminate danger without impairing usefulness
8. The feasibility of spreading the loss

The [Product Name] contains a design defect in that:
[Detailed description of design defect]

Alternative Safer Design:
A feasible alternative design existed that would have prevented this injury:
[Describe alternative design]

B. Nature of Defect - Manufacturing Defect

A manufacturing defect exists when the specific product departed from its intended design, making it more dangerous than intended. The product at issue:
[Describe manufacturing defect if applicable]

C. Nature of Defect - Failure to Warn

Under Alabama law, a manufacturer has a duty to warn of known dangers that are not obvious to the ordinary user. Gurley v. American Honda Motor Co., 505 So. 2d 358 (Ala. 1987).

The warnings provided were inadequate because:
[Describe warning deficiencies]

V. THE INCIDENT

A. How the Injury Occurred

On [Date], at approximately [Time], our client was [describe what client was doing with the product]:

[Detailed narrative of the incident]

B. Foreseeable Use

Our client was using the product in a manner that was:
- [ ] Intended by the manufacturer
- [ ] Foreseeable by the manufacturer
- [ ] In accordance with provided instructions

C. No Contributory Negligence

Our client exercised reasonable care at all times. Under Alabama law, even if the defendant alleges contributory negligence, foreseeable misuse does not bar recovery. General Motors Corp. v. Edwards, 482 So. 2d 1176 (Ala. 1985).

VI. LIABILITY ANALYSIS

A. Strict Liability Under AEMLD

All elements of the Alabama Extended Manufacturer's Liability Doctrine are satisfied:

1. Defective Condition: The product contained a [design / manufacturing / warning] defect as described above.

2. Unreasonably Dangerous: Applying the risk-utility test of Edwards, the product's dangers outweighed its benefits.

3. Defect Existed When Product Left Defendant's Control: The defect was present at the time of sale.

4. Causation: The defect was the proximate cause of our client's injuries.

5. Damages: Our client has suffered substantial damages as detailed herein.

B. Negligence

Your company breached its duty of care by:

1. Negligent Design: Designing a product with an unreasonably dangerous characteristic when safer alternatives existed.

2. Negligent Manufacture: Failing to implement adequate quality control procedures.

3. Negligent Failure to Warn: Failing to provide adequate warnings of known dangers.

C. Breach of Warranty

Express Warranty (Ala. Code Section 7-2-313):
Your company expressly warranted that [describe warranty]. This warranty was breached.

Implied Warranty of Merchantability (Ala. Code Section 7-2-314):
The product was not fit for its ordinary purpose due to the defect.

VII. PRIOR KNOWLEDGE OF DEFECT

Evidence of your company's prior knowledge of this defect includes:
- [ ] [Number] prior complaints regarding this defect
- [ ] [Number] prior injuries from this defect
- [ ] Recall or service bulletins issued
- [ ] Internal documents acknowledging the defect

Such prior knowledge supports an award of punitive damages under Ala. Code Section 6-11-20.

VIII. INJURIES AND DAMAGES

A. Injuries Sustained

As a direct and proximate result of the defective product, our client sustained:

Physical Injuries:
- [ ] [Injury 1]
- [ ] [Injury 2]
- [ ] [Injury 3]

Surgeries and Procedures:
- [ ] [Surgery 1]
- [ ] [Surgery 2]

Permanent Conditions:
- [ ] [Permanent condition 1]
- [ ] [Permanent condition 2]

B. Medical Expenses

Future Medical Expenses: $[Amount]

C. Lost Wages and Earning Capacity

D. Non-Economic Damages

• Physical pain and suffering
• Emotional distress
• Disfigurement
• Loss of enjoyment of life

E. Summary of Damages

F. Punitive Damages

Your company's conduct warrants punitive damages under Ala. Code Section 6-11-20. Your company knew of the defect and consciously disregarded the safety of consumers.

IX. SETTLEMENT DEMAND

Based upon the clear liability of your company under Alabama law and the severe injuries suffered by our client, we hereby demand:

$[DEMAND AMOUNT]

This demand will remain open for forty-five (45) days from the date of this letter, expiring at 5:00 p.m. Central Time on [Expiration Date].

X. CONCLUSION

This case involves a defective product that caused serious, permanent injuries to our client. Your company is strictly liable under the Alabama Extended Manufacturer's Liability Doctrine. Our client was not contributorily negligent.

If this matter cannot be resolved, we are prepared to file suit in the Circuit Court of [County] County, Alabama, and to pursue this matter through trial.

Please contact me at your earliest convenience.

Respectfully submitted,

[FIRM NAME]

By: _________________________________
[Attorney Name]
Alabama State Bar No. [Number]
Attorney for [Client Name]

ENCLOSURES: [List]

cc: [Client Name]
[File]

ALABAMA PRODUCTS LIABILITY PRACTICE NOTES

• [ ] Contributory Negligence: Alabama is a pure contributory negligence state - any plaintiff fault bars recovery entirely. Carefully evaluate all facts.

• [ ] AEMLD: Alabama's strict liability doctrine - does not require privity but applies primarily to manufacturers.

• [ ] Retailer Liability: Retailers may be liable under negligence or warranty theories but typically not under AEMLD unless they are deemed part of the marketing chain.

• [ ] Punitive Damages Cap: Subject to statutory cap of greater of 3x compensatory or $1.5M under Ala. Code Section 6-11-21.

• [ ] Expert Testimony: Required to establish defect and causation in most cases. Ala. R. Evid. 702.

• [ ] Venue: Circuit Court of county where injury occurred or where defendant resides or does business. Ala. Code Section 6-3-7.

• [ ] Economic Loss Rule: Alabama recognizes the economic loss rule - purely economic losses without physical injury generally not recoverable in tort.

Alabama products liability law is complex. This template must be reviewed and customized by a licensed Alabama attorney before use.