DEMAND FOR SETTLEMENT - PROFESSIONAL MALPRACTICE

STATE OF ARKANSAS

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

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. ARKANSAS-SPECIFIC LEGAL FRAMEWORK

A. Governing Law

This claim is governed by Arkansas common law principles of professional negligence and the Arkansas Code Annotated.

B. Statute of Limitations

General Negligence: Under A.C.A. Section 16-56-105, the statute of limitations for negligence actions is three (3) years.

Legal Malpractice: Under A.C.A. Section 16-22-310, the statute of limitations for legal malpractice is five (5) years from the date the cause of action accrues.

Discovery Rule: Arkansas applies the discovery rule. The cause of action accrues when the plaintiff knows or should have known of the injury. Stephens v. Caulk, 318 Ark. 116, 884 S.W.2d 249 (1994).

Design Professionals - Statute of Repose: Under A.C.A. Section 16-56-112, actions against architects, engineers, and surveyors must be brought within 5 years after substantial completion.

Continuous Representation: The limitations period may be tolled during continuing representation.

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

C. Comparative Fault

Arkansas follows modified comparative fault under A.C.A. Section 16-64-122. A plaintiff is barred from recovery if the plaintiff's fault is equal to or greater than 50%. If the plaintiff's fault is less than 50%, recovery is diminished proportionally.

Our investigation establishes that our client bears no fault for the damages caused by the defendant's professional negligence.

D. Standard of Care Under Arkansas Law

Under Arkansas law, a professional must exercise the degree of skill and learning ordinarily used by members of the profession in good standing.

Attorney Standard: An attorney must exercise the skill, diligence, and care of a reasonably competent attorney practicing in Arkansas. Milam v. Milam, 312 Ark. 29, 847 S.W.2d 22 (1993).

Accountant Standard: An accountant must exercise the care and skill of a reasonably competent CPA under similar circumstances. Crain Industries, Inc. v. Cass, 305 Ark. 566, 810 S.W.2d 910 (1991).

Architect/Engineer Standard: Design professionals must exercise the care and skill ordinarily used by members of their profession.

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 common knowledge. Regions Bank v. Schwalb, 2012 Ark. 68, 386 S.W.3d 484 (2012).

Certification: We have retained a qualified expert who has reviewed the relevant materials and concluded that the applicable standard of care was breached.

F. Damage Caps

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

Punitive Damages: Under A.C.A. Section 16-55-208, punitive damages are limited to:
- $250,000; or
- Three times compensatory damages (whichever is greater)

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
• Professional liability insurance policies
• [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.

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 Arkansas law, a plaintiff must establish:

A. Duty (Professional Relationship)

[Professional Name] owed a duty of care to [Client Name] arising from the professional relationship established on [Date].

B. Breach of the Standard of Care

Applicable Standard: [Professional Name] was required to exercise the degree of skill and learning ordinarily used by [attorneys/accountants/architects/engineers] in good standing.

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]

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.

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]. The plaintiff must prove the underlying case within the malpractice case.

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. [Expert Name] has concluded that:

1. [Professional Name] breached the applicable standard of care;
2. These breaches were a 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. 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

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 Arkansas Circuit Court if necessary.

Please respond by the deadline stated above.

Respectfully submitted,

[FIRM NAME]

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

ENCLOSURES: As noted above

cc: [Client Name]
File

ARKANSAS PROFESSIONAL MALPRACTICE PRACTICE NOTES

• Modified Comparative Fault (49% Bar): Plaintiff barred if fault equals or exceeds 50%.

• No Certificate of Merit: Arkansas does not require a certificate of merit before filing.

• Extended Legal Malpractice Limitations: Five years for legal malpractice claims under A.C.A. Section 16-22-310.

• Discovery Rule: Limitations period runs from discovery of the injury.

• Design Professional Repose: 5-year statute of repose under A.C.A. Section 16-56-112.

• Expert Testimony Required: Essential for establishing standard of care.

• Case Within a Case: In legal malpractice, plaintiff must prove the underlying case.

• Punitive Damages Cap: Greater of $250,000 or three times compensatory damages.

• Venue: Proper where defendant resides or where the cause of action arose.

This template is specific to Arkansas law. Always verify current law and consult with qualified Arkansas counsel.