DEMAND FOR SETTLEMENT - PROFESSIONAL MALPRACTICE

STATE OF NEW JERSEY

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

DATE: [Date]

VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
AND FIRST-CLASS MAIL

[Professional / Firm Name]
[Professional Liability Insurance Carrier]
[Street Address]
[City, State ZIP]

RE: PROFESSIONAL MALPRACTICE CLAIM - SETTLEMENT DEMAND
Claimant: [Client Full Name]
Date(s) of Negligent Service: [Date or Date Range]
Professional(s): [Professional Name(s) and License Type]
Matter/Project: [Description]
Claim Number: [If assigned]

Dear [Recipient Name]:

This firm represents [Client Name] in connection with the professional malpractice committed by [Professional/Firm Name] in [his/her/their] provision of [type of professional services] services. This letter constitutes formal notice of our client's claim and our demand for settlement.

I. NEW JERSEY-SPECIFIC LEGAL FRAMEWORK

A. Governing Law

Professional malpractice claims in New Jersey are governed by common law negligence principles and the Affidavit of Merit statute, N.J. Stat. Ann. Section 2A:53A-26 et seq. Key precedents include Sommers v. McKinney, 287 N.J. Super. 1 (App. Div. 1996) and Grunwald v. Bronkesh, 131 N.J. 483 (1993).

B. Statute of Limitations

Professional Malpractice: Under N.J. Stat. Ann. Section 2A:14-1, actions for professional malpractice must be commenced within six (6) years from the date of the act or omission giving rise to the claim.

Discovery Rule: New Jersey applies the discovery rule. The limitations period does not begin to run until the plaintiff discovers, or by exercise of reasonable diligence should have discovered, the injury and its connection to the defendant's conduct. Lopez v. Swyer, 62 N.J. 267 (1973).

Legal Malpractice: The statute runs from the date the plaintiff discovers or should have discovered the negligence and resulting harm. Grunwald v. Bronkesh, 131 N.J. 483 (1993).

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

C. Comparative Negligence

New Jersey follows a modified comparative negligence system under N.J. Stat. Ann. Section 2A:15-5.1. A plaintiff may recover damages only if their negligence is not greater than the combined negligence of all defendants. If the plaintiff is 51% or more at fault, recovery is completely barred. If less than 51%, damages are reduced proportionally.

D. Standard of Care Under New Jersey Law

Under New Jersey law, a professional must exercise the knowledge, skill, and ability ordinarily possessed and exercised by members of that profession in similar circumstances. Sommers v. McKinney, 287 N.J. Super. 1 (App. Div. 1996).

Key Case Law:

• Attorneys: Must exercise the knowledge, skill, and ability ordinarily possessed by members of the legal profession. Sommers v. McKinney, 287 N.J. Super. 1 (App. Div. 1996).
• Accountants: Must perform services in accordance with GAAP and GAAS standards. Bondi v. Citigroup, 423 N.J. Super. 377 (App. Div. 2011).
• Engineers/Architects: Must exercise the skill and care customarily used by practitioners in the profession. Corestar Int'l Pte. Ltd. v. LPB Commc'ns, Inc., 513 F. Supp. 2d 107 (D.N.J. 2007).

E. Affidavit of Merit Requirement - CRITICAL

N.J. Stat. Ann. Section 2A:53A-27 requires that in professional malpractice actions, the plaintiff must provide an Affidavit of Merit within 60 days of the defendant's answer. The affidavit must be executed by a licensed professional in the same field who has concluded that there is a reasonable probability the defendant's care fell outside acceptable professional standards.

Failure to provide the Affidavit of Merit within the prescribed time may result in dismissal of the action.

Certification: We have retained a qualified expert who is prepared to provide the required Affidavit of Merit.

F. Damage Caps

New Jersey does not impose statutory caps on damages in professional malpractice cases. However, punitive damages are subject to limitations under N.J. Stat. Ann. Section 2A:15-5.14.

G. Privity and Third-Party Claims

Legal Malpractice: Generally requires an attorney-client relationship, though New Jersey recognizes claims by intended third-party beneficiaries. Petrillo v. Bachenberg, 139 N.J. 472 (1995).

Accountant Malpractice: Third parties may recover under the Restatement approach where the accountant knew the work would be relied upon. Rosenblum v. Adler, 93 N.J. 324 (1983).

H. Breach of Fiduciary Duty

New Jersey recognizes breach of fiduciary duty as a separate cause of action. F.G. v. MacDonell, 150 N.J. 550 (1997). Professionals who occupy positions of trust owe fiduciary duties to their clients.

II. PRESERVATION OF EVIDENCE - LITIGATION HOLD

YOU ARE HEREBY DIRECTED TO PRESERVE ALL EVIDENCE relating to services provided to [Client Name], including but not limited to:

• Complete client file (paper and electronic)
• All correspondence and communications
• Work product, drafts, and notes
• Billing records and time entries
• Engagement letters and contracts
• Emails and electronic communications
• Calendar entries and scheduling records
• Internal memoranda and analysis
• Research materials
• Any recorded statements
• Professional liability insurance policies
• Quality control and review documentation

Modification, destruction, or concealment of any records will result in claims for spoliation, sanctions, and adverse inference instructions under New Jersey law. Jerista v. Murray, 185 N.J. 175 (2005).

III. FACTUAL BACKGROUND

A. Engagement and Relationship

[Client Name] engaged [Professional/Firm Name] on or about [Date] to provide [type of professional services]:

Nature of Engagement:
- [Description of services to be provided]
- [Scope of representation/engagement]
- [Key objectives]

Fee Arrangement:
- [Description of fee arrangement]
- [Total fees paid: $Amount]

B. Chronology of Negligent Services

[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. STANDARD OF CARE VIOLATIONS

A. Applicable Standard of Care

Under New Jersey law, [Defendant Professional] was required to exercise the knowledge, skill, and ability ordinarily possessed and exercised by members of the [profession type] profession in similar circumstances.

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

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

B. Breaches of the Standard of Care

Breach 1: [Detailed description of breach]

Breach 2: [Detailed description of breach]

Breach 3: [Detailed description of breach]

C. Expert Opinion

We have retained [Expert Name], a [licensed/certified] [profession] with [number] years of experience in [relevant area]. [Expert Name] has concluded that:

1. [Defendant Professional] 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].

This expert is prepared to provide the Affidavit of Merit required by N.J. Stat. Ann. Section 2A:53A-27.

V. CAUSATION

A. "But For" Causation

But for the defendant's breach of the standard of care, our client would not have suffered the damages described herein. This claim satisfies the "but for" test for actual causation.

B. Proximate Causation

The defendant's professional negligence was a proximate cause of our client's damages. The harm suffered was a foreseeable consequence of the defendant's breach of duty.

C. Case-Within-A-Case (If Applicable to Legal Malpractice)

[If legal malpractice:] We are prepared to prove that but for counsel's negligence, the underlying matter would have resulted in a more favorable outcome for our client. Grunwald v. Bronkesh, 131 N.J. 483 (1993).

VI. DAMAGES

A. Direct Financial Losses

As a direct and proximate result of the defendant's professional negligence, our client has suffered:

Primary Damages:
- [Loss 1]: $[Amount]
- [Loss 2]: $[Amount]
- [Loss 3]: $[Amount]

B. Consequential Damages

C. Professional Fees Paid

D. Interest and Incidental Costs

• Prejudgment interest per N.J. Court Rule 4:42-11
• Court costs and filing fees
• Expert witness fees

E. Summary of Damages

VII. SETTLEMENT DEMAND

Based upon the clear breach of professional standards, the extent of our client's damages, and the strength of liability evidence, 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. Eastern Time on [Expiration Date].

VIII. RESPONSE AND ADDITIONAL INFORMATION REQUESTED

Please provide:

1. All professional liability insurance policies applicable to this claim
2. Policy limits for each applicable policy
3. Any self-insured retention amounts
4. Excess/umbrella coverage information
5. Consent to extend statute of limitations during settlement discussions

IX. DOCUMENTATION ENCLOSED

• Engagement agreement/retainer
• Correspondence between client and professional
• Work product demonstrating errors
• Documentation of damages
• Expert curriculum vitae
• Chronology of events

X. CONCLUSION

This case presents clear professional negligence that caused significant financial harm to our client. The defendant's conduct fell below the standard of care required of [profession type] in New Jersey.

We are prepared to litigate this matter in the Superior Court of New Jersey, [County] County, 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]
New Jersey Attorney ID No. [Number]
Attorney for [Client Name]

ENCLOSURES: As noted above

cc: [Client Name]
File

NEW JERSEY PROFESSIONAL MALPRACTICE PRACTICE NOTES

• Six-Year Limitations Period: One of the longer limitations periods for professional malpractice.

• Discovery Rule: Limitations period runs from when plaintiff discovered or should have discovered the injury.

• Affidavit of Merit Required: CRITICAL - Must be provided within 60 days of defendant's answer.

• Modified Comparative Fault: Recovery barred if plaintiff is 51% or more at fault.

• Expert Testimony Required: Expert witness is necessary; same expert may provide Affidavit of Merit.

• No Damage Caps: No statutory limits on compensatory damages in professional malpractice.

• Punitive Damages: Available but capped at 5 times compensatory or $350,000 (whichever is greater).

• Prejudgment Interest: Post-judgment rate plus 2% per N.J. Court Rule 4:42-11.

• Venue: Superior Court in county where cause of action arose or where defendant resides.

• Mandatory Arbitration: May be required for claims under certain amounts.

This template is specific to New Jersey law. Professional malpractice claims require careful attention to the Affidavit of Merit requirement and limitations periods. Always verify current law and consult with qualified New Jersey counsel.