DEMAND FOR SETTLEMENT - PROFESSIONAL MALPRACTICE

STATE OF CALIFORNIA

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

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. CALIFORNIA-SPECIFIC LEGAL FRAMEWORK

A. Governing Law

This claim is governed by California common law principles of professional negligence and the California Code of Civil Procedure.

B. Statute of Limitations

Legal Malpractice: Under CCP Section 340.6(a), an action against an attorney for wrongful act or omission must be commenced within:
- One (1) year after the plaintiff discovers, or through reasonable diligence should have discovered, the facts constituting the wrongful act; but
- In no event more than four (4) years after the date of the wrongful act or omission

Tolling Events for Legal Malpractice: Under CCP Section 340.6(a), the period is tolled during:
1. The attorney's continued representation of the plaintiff on the specific matter
2. The attorney's willful concealment of facts
3. The plaintiff's legal disability

Other Professional Malpractice: Generally, two (2) years from accrual under CCP Section 339 (negligence based on oral representations) or four (4) years under CCP Section 337 (written contract basis).

Design Professionals - Statute of Repose: Under CCP Section 337.15, actions for latent defects against design professionals must be brought within 10 years of substantial completion.

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

C. Comparative Fault

California follows pure comparative fault under Li v. Yellow Cab Co., 13 Cal.3d 804 (1975). A plaintiff's recovery is reduced by their percentage of fault but is not barred regardless of the percentage.

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

D. Standard of Care Under California Law

Under California law, a professional must exercise that degree of skill, prudence, and diligence that members of the profession commonly possess and exercise.

Attorney Standard: An attorney must possess the degree of learning, skill, and ability ordinarily possessed by attorneys practicing in California. The attorney must apply that learning, skill, and ability with reasonable diligence and care. Kirsch v. Duryea, 21 Cal.3d 303 (1978).

Accountant Standard: An accountant must exercise the care and skill ordinarily used by reputable accountants. Bily v. Arthur Young & Co., 3 Cal.4th 370 (1992).

Architect/Engineer Standard: Design professionals must exercise ordinary skill and competence of members of their profession. Huber, Hunt & Nichols, Inc. v. Moore, 67 Cal.App.3d 278 (1977).

E. Certificate of Merit - Design Professionals

Under CCP Section 411.35, the plaintiff's attorney in an action for professional negligence against a licensed architect, engineer, or land surveyor must:
- File a certificate declaring that the attorney has reviewed the facts, consulted with a design professional, and concluded there is reasonable and meritorious cause for filing; OR
- File a certificate declaring that the attorney was unable to obtain such consultation within 90 days and setting forth why.

F. Expert Witness Requirements

Expert testimony is required to establish the standard of care and breach in professional malpractice cases. Unigard Ins. Group v. O'Flaherty & Belgum, 38 Cal.App.4th 1229 (1995).

Exception: Expert testimony is not required where the negligence is within the common knowledge of laypersons.

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

California does not impose statutory caps on compensatory damages in professional malpractice cases (unlike medical malpractice under MICRA).

Punitive Damages: Available upon clear and convincing evidence of malice, oppression, or fraud under Civil Code Section 3294.

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 under California 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 California 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]. Giacometti v. Aulla, LLC, 187 Cal.App.4th 1133 (2010).

B. Breach of the Standard of Care

Applicable Standard: [Professional Name] was required to exercise that degree of skill, prudence, and diligence that members of the [legal/accounting/design] profession commonly possess and exercise.

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. California requires proof of both actual cause and proximate cause.

Legal Malpractice - Trial Within a Trial: [If applicable:] Had [Attorney Name] properly handled the matter, our client would have [obtained a favorable judgment / avoided liability]. Under the "trial within a trial" method, we must prove the client would have obtained a more favorable result but for the negligence. Viner v. Sweet, 30 Cal.4th 1232 (2003).

Transactional Malpractice Standard: For transactional legal malpractice, plaintiff must prove a "but for" causal connection. Viner v. Sweet, 30 Cal.4th 1232 (2003).

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. Pacific 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 California Superior Court if necessary.

Please respond by the deadline stated above.

Respectfully submitted,

[FIRM NAME]

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

ENCLOSURES: As noted above

cc: [Client Name]
File

CALIFORNIA PROFESSIONAL MALPRACTICE PRACTICE NOTES

• Pure Comparative Fault: California follows pure comparative fault - recovery is reduced by plaintiff's percentage of fault but not barred.

• Legal Malpractice Limitations: One year from discovery but no more than four years from the act (CCP Section 340.6).

• Tolling for Continued Representation: The limitations period is tolled during continued attorney representation on the specific matter.

• Certificate of Merit for Design Professionals: CCP Section 411.35 requires filing before or with complaint.

• Trial Within a Trial: Legal malpractice plaintiffs must prove they would have won the underlying case.

• Transactional Malpractice: Must prove "but for" causation per Viner v. Sweet.

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

• No MICRA Caps: Professional malpractice is not subject to medical malpractice damages caps.

• Accountant Third-Party Liability Limited: Bily v. Arthur Young limits accountant liability to third parties.

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

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