DEMAND FOR SETTLEMENT - PROFESSIONAL MALPRACTICE

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

[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. ALABAMA-SPECIFIC LEGAL FRAMEWORK

A. Governing Law

This claim is governed by Alabama common law principles of professional negligence. [If legal malpractice: This claim is also governed by the Alabama Legal Services Liability Act (ALSLA), Ala. Code Section 6-5-570 et seq.]

B. Statute of Limitations and Repose

General Professional Malpractice: Under Ala. Code Section 6-2-38(l), actions for professional malpractice must be commenced within two (2) years from the date the cause of action accrues.

Legal Malpractice: Under Ala. Code Section 6-5-574:
- Actions must be brought within two (2) years from the accrual of the cause of action
- Six (6) year statute of repose from the date of the act or omission

Discovery Rule: Alabama applies the discovery rule, under which the statute begins to run when the plaintiff discovers, or in the exercise of reasonable diligence should have discovered, the injury and its cause. Hinkle v. Railway Express Agency, Inc., 242 So. 2d 374 (Ala. 1970).

Continuous Representation: The statute may be tolled during continuing representation in legal malpractice cases. Pinkerton & Laws v. Davis, 952 So. 2d 1127 (Ala. Civ. App. 2006).

Relevant Dates in This Matter:
- Date(s) of negligent services: [Date(s)]
- Date of discovery: [Date]
- Two-year limitations period expires: [Date]

C. Contributory Negligence - CRITICAL

Alabama is one of only four U.S. jurisdictions that still follows the doctrine of pure contributory negligence. Under this doctrine, if the plaintiff is found to have contributed to their injury in any degree, they are completely barred from recovery. Williams v. Delta Int'l Mach. Corp., 619 So. 2d 1330 (Ala. 1993).

Our investigation has determined that our client was in no way negligent or contributorily at fault for the damages sustained.

D. Standard of Care Under Alabama Law

Under Alabama law, a professional must exercise such reasonable care, skill, and diligence as other similarly situated professionals in the same field ordinarily exercise in similar circumstances.

Attorney Standard: An attorney must exercise "the skill, prudence, and diligence exercised by attorneys of ordinary skill and competence in the community." Bell v. Advertiser Co., 518 So. 2d 79 (Ala. 1987).

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. Boykin v. Arthur Andersen & Co., 639 So. 2d 504 (Ala. 1994).

Architect/Engineer Standard: Design professionals must exercise the ordinary skill and competence of members of their profession. Hinton & Sons, Inc. v. Weisman, Landrum & Brown, Inc., 654 So. 2d 888 (Ala. 1994).

E. Expert Witness Requirements

Expert testimony is generally required to establish the standard of care and breach thereof in professional malpractice cases. Boykin v. Arthur Andersen & Co., 639 So. 2d 504 (Ala. 1994).

Exception: Expert testimony may not be required where the breach is so obvious that a layperson can evaluate it without expert assistance.

Certification: We certify that we have retained a qualified expert who has reviewed the relevant materials and has concluded that the applicable standard of care was breached and that such breach proximately caused our client's damages.

F. Certificate of Merit - Legal Malpractice

Under Ala. Code Section 6-5-572, prior to filing a legal malpractice action, the plaintiff must file a certificate of merit signed by an attorney stating that the attorney has reviewed the facts and consulted with an expert qualified under Section 6-5-573 who believes the claim has merit.

G. Damage Caps

Alabama does not impose statutory caps on compensatory damages in professional malpractice cases.

Punitive Damages: Under Ala. Code Section 6-11-21, punitive damages are capped at the greater of:
- Three times compensatory damages; or
- $1,500,000

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, sanctions, and adverse inference instructions under Alabama law. Smith v. Atkinson, 771 So. 2d 429 (Ala. 2000).

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 Alabama law, a plaintiff must establish the following elements to prove professional malpractice:

A. Duty (Professional Relationship)

[Professional Name] owed a duty of care to [Client Name] arising from the [attorney-client / accountant-client / 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 such reasonable care, skill, and diligence as other similarly situated [attorneys/accountants/architects/engineers] in the same general practice ordinarily exercise in like circumstances.

Based on our expert's analysis, the applicable standard of care required [Professional] to:

1. [Standard 1]
2. [Standard 2]
3. [Standard 3]

Breaches:

Breach 1: [Detailed description]

Breach 2: [Detailed description]

Breach 3: [Detailed description]

C. Causation

"But For" Causation: But for [Professional Name]'s breach of the standard of care, [Client Name] would not have suffered the damages described herein.

Legal Malpractice - Case Within a Case: [If applicable for attorney malpractice:] Had [Attorney Name] properly [handled the matter], our client would have [obtained a favorable judgment / avoided liability / recovered damages of $X]. We are prepared to prove the merits of the underlying claim as a "case within a case." Clark v. Green, Tweedy & Assocs., P.C., 143 So. 3d 731 (Ala. 2013).

D. Damages

As a direct and proximate result of [Professional Name]'s 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, to a reasonable degree of professional certainty, that:

1. [Professional Name] breached the applicable standard of care;
2. These breaches were a direct and proximate cause of [Client Name]'s damages; and
3. Had appropriate professional services been rendered, [describe avoided outcome].

VI. DAMAGES

A. Direct Financial Losses

B. Consequential Damages

C. Incidental Costs

D. Summary of Damages

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. Central Time on [Expiration Date].

VIII. INSURANCE INFORMATION REQUEST

Please provide within ten (10) days:

1. All professional liability insurance policies applicable to this claim
2. Policy limits for each applicable policy
3. Any deductible or self-insured retention amounts
4. Excess/umbrella coverage information
5. 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. Alabama's contributory negligence doctrine does not apply because our client had no role in causing or contributing to the malpractice.

We are prepared to litigate this matter through trial in the Circuit Court of [County] County, Alabama if necessary. However, we believe early resolution serves all parties' interests.

Please respond by the deadline stated above.

Respectfully submitted,

[FIRM NAME]

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

ENCLOSURES: As noted above

cc: [Client Name]
File

ALABAMA PROFESSIONAL MALPRACTICE PRACTICE NOTES

• Contributory Negligence: Alabama follows pure contributory negligence - ANY client fault bars recovery entirely. This is critical in professional malpractice cases.

• Certificate of Merit: Required for legal malpractice claims under Ala. Code Section 6-5-572 before filing suit.

• Case Within a Case: In legal malpractice, plaintiff must prove the underlying case would have been successful (collectible judgment for plaintiff cases; avoided liability for defense cases).

• Expert Required: Expert testimony is typically required to establish standard of care unless the breach is obvious to a layperson.

• Privity Relaxed for Accountants: Third parties may have claims against accountants if they were known beneficiaries of the engagement. Boykin v. Arthur Andersen & Co., 639 So. 2d 504 (Ala. 1994).

• No Cap on Compensatory Damages: Unlike medical malpractice, professional malpractice has no statutory cap on compensatory damages.

• Statute of Repose: Six years for legal malpractice under the ALSLA.

• Venue: Proper venue is the county where the professional services were rendered or where the defendant resides.

• Insurance Coverage Issues: Many professional liability policies are claims-made; verify coverage applies to the relevant time period.

This template is specific to Alabama law. Professional malpractice claims in Alabama have strict requirements. Always verify current law and consult with qualified Alabama counsel.