DEMAND FOR SETTLEMENT - PROFESSIONAL MALPRACTICE
STATE OF ALASKA
[FIRM NAME]
Attorneys at Law
[Street Address]
[City, Alaska ZIP]
Telephone: [Phone]
Facsimile: [Fax]
Email: [Email]
Licensed in the State of Alaska
DATE: [Date]
VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
AND FIRST-CLASS MAIL
[Professional's Name or Firm]
[Professional Liability Insurance Carrier]
[Street Address]
[City, State ZIP]
RE: PROFESSIONAL MALPRACTICE CLAIM - SETTLEMENT DEMAND
Claimant: [Client Full Name]
Date(s) of Negligent Services: [Date or Date Range]
Professional(s): [Professional Name(s)]
Type of Professional: [Attorney/CPA/Architect/Engineer]
Claim Number: [If assigned]
Dear [Recipient Name]:
This firm represents [Client Name] in connection with the professional malpractice committed by [Professional Name] during the provision of [legal/accounting/architectural/engineering] services. This letter constitutes formal notice of our client's claim and our demand for settlement.
I. ALASKA-SPECIFIC LEGAL FRAMEWORK
A. Governing Law
This claim is governed by Alaska common law principles of professional negligence and the Alaska Statutes.
B. Statute of Limitations
General Professional Malpractice: Under AS 09.10.070, the statute of limitations for professional malpractice is two (2) years from the date the cause of action accrues.
Discovery Rule: Alaska applies the discovery rule. The cause of action accrues when the claimant discovers, or reasonably should have discovered, the existence of all elements essential to the cause of action. Gudenau & Co. v. Sweeney Ins., Inc., 736 P.2d 763 (Alaska 1987).
Design Professionals - Statute of Repose: Under AS 09.10.055, claims against architects, engineers, and land surveyors for defective design or construction must be brought within 10 years after substantial completion.
Continuous Representation: The statute may be tolled during an ongoing professional relationship. DeNardo v. Bax, 147 P.3d 672 (Alaska 2006).
Relevant Dates in This Matter:
- Date(s) of negligent services: [Date(s)]
- Date of discovery: [Date]
- Two-year limitations period expires: [Date]
C. Comparative Fault
Alaska follows pure comparative fault under AS 09.17.060. A plaintiff's recovery is reduced by their percentage of fault, but the plaintiff can still recover even if more than 50% at fault.
However, our investigation establishes that our client bears no responsibility for the damages caused by the defendant's professional negligence.
D. Standard of Care Under Alaska Law
Under Alaska law, a professional must exercise the degree of care, skill, and learning expected of a reasonably prudent professional in the same field, acting in the same or similar circumstances.
Attorney Standard: An attorney must exercise the skill, prudence, and diligence that lawyers of ordinary skill and capacity commonly possess and exercise. Mallen & Smith, Legal Malpractice (applied in Alaska courts).
Accountant Standard: A CPA owes a duty to exercise the degree of care and skill that a reasonably competent accountant would exercise under similar circumstances. Gudenau & Co. v. Sweeney Ins., Inc., 736 P.2d 763 (Alaska 1987).
Architect/Engineer Standard: Design professionals must exercise the ordinary skill and competence of members of their profession. The standard is based on what a reasonably careful and prudent professional would do under similar circumstances.
E. Expert Witness Requirements
Expert testimony is required to establish the standard of care and breach in professional malpractice cases unless the negligence is within the common knowledge of laypersons. Blanton v. Friedberg, 819 P.2d 23 (Alaska 1991).
Certification: We have retained a qualified expert who has reviewed the relevant materials and concluded that the applicable standard of care was breached and that such breach proximately caused our client's damages.
F. Damage Caps
Alaska does not impose statutory caps on compensatory damages in professional malpractice cases.
Punitive Damages: Under AS 09.17.020, punitive damages are subject to limitations and may not exceed the greater of:
- Three times the compensatory damages; or
- $500,000
II. PRESERVATION OF EVIDENCE - LITIGATION HOLD
YOU ARE HEREBY DIRECTED TO PRESERVE ALL EVIDENCE relating to the professional services provided to [Client Name], including but not limited to:
- Complete client files (paper and electronic)
- All drafts and working papers
- Correspondence (including emails, texts, and messages)
- Engagement letters and fee agreements
- Time records and billing statements
- Internal memoranda and notes
- Conflict check documentation
- Any recorded communications
- Professional liability insurance policies
- All versions of documents with metadata
- [For Attorneys:] Case files, pleadings, research memoranda
- [For Accountants:] Work papers, tax returns, financial statements
- [For Architects/Engineers:] Drawings, specifications, calculations, project files
Modification, destruction, or concealment of any records will result in claims for spoliation and sanctions under Alaska law.
III. FACTUAL BACKGROUND
A. Professional Engagement
[Client Name] engaged [Professional Name/Firm] on or about [Date] to provide [type of professional services]:
Scope of Engagement:
- [Describe the scope of professional services]
- [Objectives or goals of the engagement]
- [Any specific representations made]
Professional Relationship:
- Engagement date: [Date]
- [If applicable:] Termination date: [Date]
- Fee arrangement: [Hourly/Fixed/Contingency]
B. Chronology of Events
[Date]: [Describe what occurred]
[Date]: [Describe what occurred]
[Date]: [Describe what occurred]
C. The Professional Error(s)
[Describe specifically what the professional(s) did wrong]
D. Discovery of Malpractice
Our client [did not discover / could not have reasonably discovered] the malpractice until [Date], when [describe discovery circumstances].
IV. ELEMENTS OF PROFESSIONAL MALPRACTICE
Under Alaska law, a plaintiff must establish the following elements:
A. Duty (Professional Relationship)
[Professional Name] owed a duty of care to [Client Name] arising from the professional relationship established on [Date].
Evidence of Duty:
- Engagement letter dated [Date]
- [Other evidence of professional relationship]
B. Breach of the Standard of Care
Applicable Standard: [Professional Name] was required to exercise the degree of care, skill, and learning expected of a reasonably prudent [attorney/accountant/architect/engineer] acting in similar circumstances.
Based on our expert's analysis, the applicable standard of care required [Professional] to:
- [Standard 1]
- [Standard 2]
- [Standard 3]
Breaches:
Breach 1: [Detailed description]
Breach 2: [Detailed description]
Breach 3: [Detailed description]
C. Causation
Proximate Cause: But for [Professional Name]'s breach of the standard of care, [Client Name] would not have suffered the damages described herein. Norville v. Carr-Gottstein Foods, Co., 84 P.3d 996 (Alaska 2004).
Legal Malpractice - Case Within a Case: [If applicable:] Had [Attorney Name] properly handled the matter, our client would have [obtained a favorable judgment / avoided liability / recovered damages of $X].
D. Damages
As a direct and proximate result of the malpractice, [Client Name] has suffered the damages set forth below.
V. EXPERT OPINION
We have retained [Expert Name], a [licensed attorney/CPA/architect/licensed professional engineer] with [number] years of experience in [relevant practice area]. [Expert Name] has concluded that:
- [Professional Name] breached the applicable standard of care;
- These breaches were a proximate cause of [Client Name]'s damages; and
- Had appropriate professional services been rendered, [describe avoided outcome].
VI. DAMAGES
A. Direct Financial Losses
| Category | Amount |
|---|---|
| [Description of loss 1] | $[Amount] |
| [Description of loss 2] | $[Amount] |
| [Description of loss 3] | $[Amount] |
| TOTAL DIRECT LOSSES | $[Total] |
B. Consequential Damages
| Category | Amount |
|---|---|
| [Lost business opportunity] | $[Amount] |
| [Additional professional fees to remedy] | $[Amount] |
| [Other consequential damages] | $[Amount] |
| TOTAL CONSEQUENTIAL DAMAGES | $[Total] |
C. Summary of Damages
| Category | Amount |
|---|---|
| Direct Financial Losses | $[Amount] |
| Consequential Damages | $[Amount] |
| Incidental Costs | $[Amount] |
| TOTAL DAMAGES | $[Grand Total] |
VII. SETTLEMENT DEMAND
Based upon the clear breach of the standard of care and the substantial damages incurred, we hereby demand:
$[DEMAND AMOUNT]
This demand will remain open for thirty (30) days from the date of this letter, expiring at 5:00 p.m. Alaska Time on [Expiration Date].
VIII. INSURANCE INFORMATION REQUEST
Please provide within ten (10) days:
- All professional liability insurance policies applicable to this claim
- Policy limits for each applicable policy
- Any deductible or self-insured retention amounts
- Excess/umbrella coverage information
- Claims-made policy retroactive dates
IX. DOCUMENTATION ENCLOSED
- Engagement letter and correspondence
- Documents evidencing the professional's work
- Documents evidencing damages
- Expert curriculum vitae
- [Other relevant documentation]
X. CONCLUSION
This case presents clear professional malpractice that caused significant financial harm to our client. We are prepared to litigate this matter through trial in the Alaska Superior Court if necessary.
Please respond by the deadline stated above.
Respectfully submitted,
[FIRM NAME]
By: _________________________________
[Attorney Name]
Alaska Bar No. [Number]
Attorney for [Client Name]
ENCLOSURES: As noted above
cc: [Client Name]
File
ALASKA PROFESSIONAL MALPRACTICE PRACTICE NOTES
-
Pure Comparative Fault: Alaska follows pure comparative fault - plaintiff can recover even if more at fault than defendant, but recovery reduced proportionally.
-
No Certificate of Merit: Alaska does not require a certificate of merit or expert affidavit before filing suit.
-
Discovery Rule: Limitations period runs from discovery of the injury, not from the date of the negligent act.
-
Design Professional Repose: 10-year statute of repose for architects, engineers, and surveyors under AS 09.10.055.
-
Expert Testimony Required: Expert evidence needed unless negligence is within common knowledge of laypersons.
-
Collectibility in Legal Malpractice: Plaintiff must prove not only that the underlying case would have been won, but that a judgment would have been collectible.
-
Venue: Generally proper in the judicial district where the professional services were rendered or defendant resides.
-
Pre-judgment Interest: Available under AS 09.30.070.
This template is specific to Alaska law. Professional malpractice claims have specific requirements. Always verify current law and consult with qualified Alaska counsel.