DEMAND FOR SETTLEMENT - PROFESSIONAL MALPRACTICE

STATE OF ARIZONA

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

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. ARIZONA-SPECIFIC LEGAL FRAMEWORK

A. Governing Law

This claim is governed by Arizona common law principles of professional negligence and the Arizona Revised Statutes.

B. Statute of Limitations

General Professional Malpractice: Under A.R.S. Section 12-542, the statute of limitations for professional malpractice is two (2) years from the date the cause of action accrues.

Discovery Rule: Arizona applies the discovery rule. The cause of action accrues when the plaintiff knows or with reasonable diligence should know of the injury and its cause. Walk v. Ring, 202 Ariz. 310, 44 P.3d 990 (2002).

Legal Malpractice: The statute of limitations for legal malpractice is two years under A.R.S. Section 12-542. The discovery rule applies. Kiley v. Jennings, Strouss & Salmon, 187 Ariz. 136, 927 P.2d 796 (App. 1996).

Design Professionals - Statute of Repose: Under A.R.S. Section 12-552, claims for design defects must be brought within 8 years after substantial completion of the improvement.

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

Arizona follows pure comparative fault under A.R.S. Section 12-2505. A plaintiff's recovery is diminished in proportion to their relative degree of fault, but the plaintiff can recover even if more than 50% at fault.

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

D. Standard of Care Under Arizona Law

Under Arizona law, a professional must exercise that degree of skill, care, and learning expected of a reasonably prudent professional in the same field.

Attorney Standard: An attorney is required to exercise that degree of skill, care, and knowledge commonly exercised by a reasonable, careful, and prudent lawyer in Arizona. Orme School v. Reeves, 166 Ariz. 301, 802 P.2d 1000 (1990).

Accountant Standard: An accountant must exercise the degree of care and skill that a reasonably competent accountant would exercise under similar circumstances. Standard Chartered PLC v. Price Waterhouse, 190 Ariz. 6, 945 P.2d 317 (App. 1996).

Architect/Engineer Standard: Design professionals must conform to the standard of care and skill ordinarily used by members of their profession practicing under similar conditions at the same time and locality.

E. Certificate of Merit - Legal Malpractice

Under A.R.S. Section 12-2602, before filing a legal malpractice action, the plaintiff's attorney must certify that:
1. The attorney has consulted with an attorney who has expertise in the area of law involved; and
2. The consulted attorney has concluded that there is a reasonable basis for filing the action.

Failure to file the certificate requires dismissal without prejudice.

F. Expert Witness Requirements

Expert testimony is required to establish the standard of care and breach in professional malpractice cases. Orme School v. Reeves, 166 Ariz. 301, 802 P.2d 1000 (1990).

Exception: Expert testimony is not required where the negligence is so grossly apparent that a layperson would have no difficulty recognizing it.

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

G. Damage Caps

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

Punitive Damages: Punitive damages must bear a reasonable relationship to compensatory damages. Linthicum v. Nationwide Life Ins. Co., 150 Ariz. 326, 723 P.2d 675 (1986).

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
• 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.

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 Arizona 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]. Phillips v. Clancy, 152 Ariz. 415, 733 P.2d 300 (App. 1986).

B. Breach of the Standard of Care

Applicable Standard: [Professional Name] was required to exercise that degree of skill, care, and learning expected of a reasonably prudent [attorney/accountant/architect/engineer] in Arizona.

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]. Glaze v. Larsen, 207 Ariz. 26, 83 P.3d 26 (2004).

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. Arizona 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 Arizona Superior Court if necessary.

Please respond by the deadline stated above.

Respectfully submitted,

[FIRM NAME]

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

ENCLOSURES: As noted above

cc: [Client Name]
File

ARIZONA PROFESSIONAL MALPRACTICE PRACTICE NOTES

• Pure Comparative Fault: Arizona follows pure comparative fault - plaintiff can recover even if more at fault than defendant.

• Certificate of Merit Required for Legal Malpractice: A.R.S. Section 12-2602 requires certification that plaintiff's counsel has consulted with an expert who believes there is a reasonable basis for the claim.

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

• Design Professional Repose: 8-year statute of repose under A.R.S. Section 12-552.

• Expert Testimony Required: Essential for establishing standard of care unless negligence is grossly apparent.

• Case Within a Case: In legal malpractice, must prove the underlying case would have been successful.

• Mandatory Arbitration: Some Arizona counties require arbitration for claims under certain amounts.

• Venue: Proper in the county where defendant resides or where the claim arose.

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