DEMAND FOR SETTLEMENT - PROFESSIONAL MALPRACTICE

STATE OF COLORADO

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

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. COLORADO-SPECIFIC LEGAL FRAMEWORK

A. Governing Law

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

B. Statute of Limitations

Legal Malpractice: Under C.R.S. Section 13-80-101, an action against an attorney based on the attorney's alleged professional negligence must be brought within three (3) years after the cause of action accrues, and in no event more than three years after the attorney-client relationship terminates for the specific matter.

Other Professional Malpractice: Under C.R.S. Section 13-80-102, actions for negligence (including professional malpractice) must be brought within two (2) years after the cause of action accrues.

Discovery Rule: Colorado applies the discovery rule. The cause of action accrues when the claimant knows or should know of the facts giving rise to the claim. Mastro v. Brodie, 682 P.2d 1162 (Colo. 1984).

Design Professionals - Statute of Repose: Under C.R.S. Section 13-80-104, claims against architects and engineers for defective design or construction must be brought within 6 years after 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

Colorado follows modified comparative fault (50% bar) under C.R.S. Section 13-21-111. A plaintiff is barred from recovery if the plaintiff's negligence is equal to or greater than the combined negligence of all persons against whom recovery is sought.

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

D. Standard of Care Under Colorado Law

Under Colorado law, a professional must exercise that degree of care, skill, and treatment which is recognized as acceptable and appropriate by reasonably competent professionals in the same field.

Attorney Standard: An attorney must exercise the degree of care, skill, diligence, and knowledge commonly possessed and exercised by a reasonable, careful, and prudent lawyer in the practice of law in Colorado. Bebo Const. Co. v. Mattox & O'Brien, P.C., 990 P.2d 78 (Colo. 1999).

Accountant Standard: An accountant must exercise the degree of skill and care ordinarily possessed by CPAs in good standing. Manns v. Skolnik, 666 P.2d 1095 (Colo. App. 1983).

Architect/Engineer Standard: Design professionals must exercise ordinary skill and competence of members of their profession.

E. Certificate of Merit - Legal Malpractice

Under C.R.S. Section 13-20-602, before filing a legal malpractice action, the plaintiff's attorney must file a certificate of review certifying:
1. The attorney has consulted with an attorney who practices in the same area; and
2. The consulted attorney has concluded that the defendant's conduct fell below the standard of care.

The certificate must be filed within 60 days after the service of the complaint.

F. Expert Witness Requirements

Expert testimony is required to establish the standard of care and breach in professional malpractice cases. Bebo Const. Co. v. Mattox & O'Brien, P.C., 990 P.2d 78 (Colo. 1999).

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

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

Non-economic Damages: Under C.R.S. Section 13-21-102.5, non-economic damages in personal injury cases are limited to $250,000, or $500,000 with clear and convincing evidence (this primarily applies to personal injury, not typical professional malpractice economic losses).

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
• 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]

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]

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 Colorado 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 that degree of care, skill, and learning commonly possessed by reasonably competent [attorneys/accountants/architects/engineers] in Colorado.

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]. Bebo Const. Co. v. Mattox & O'Brien, P.C., 990 P.2d 78 (Colo. 1999).

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. Mountain 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

IX. DOCUMENTATION ENCLOSED

• Engagement letter and correspondence
• Documents evidencing the professional's work
• Documents evidencing damages
• Expert curriculum vitae

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 Colorado District Court if necessary.

Please respond by the deadline stated above.

Respectfully submitted,

[FIRM NAME]

By: _________________________________
[Attorney Name]
Colorado Attorney Registration No. [Number]
Attorney for [Client Name]

ENCLOSURES: As noted above

cc: [Client Name]
File

COLORADO PROFESSIONAL MALPRACTICE PRACTICE NOTES

• Modified Comparative Fault (50% Bar): Plaintiff barred if fault equals or exceeds 50% of the combined negligence.

• Certificate of Review Required for Legal Malpractice: Must be filed within 60 days after service of complaint under C.R.S. Section 13-20-602.

• Three-Year Legal Malpractice Limitations: C.R.S. Section 13-80-101 provides three years from accrual.

• Discovery Rule Applies: Limitations period runs from discovery.

• Design Professional Repose: 6-year statute of repose under C.R.S. Section 13-80-104.

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

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

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

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