DEMAND FOR SETTLEMENT - PROFESSIONAL MALPRACTICE

COMMONWEALTH OF PENNSYLVANIA

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

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. PENNSYLVANIA-SPECIFIC LEGAL FRAMEWORK

A. Governing Law

Professional malpractice claims in Pennsylvania are governed by common law negligence principles. Key precedents include Kituskie v. Corbman, 552 Pa. 275 (1998) and Bilt-Rite Contractors, Inc. v. The Architectural Studio, 581 Pa. 454 (2004).

B. Statute of Limitations

Professional Malpractice: Under 42 Pa. C.S. Section 5524(7), actions for professional malpractice must be commenced within two (2) years from the date the cause of action accrues.

Discovery Rule: Pennsylvania applies the discovery rule. The cause of action accrues when the plaintiff knows or reasonably should know that he has been injured and that his injury has been caused by another party's conduct. Fine v. Checcio, 582 Pa. 253 (2005).

Legal Malpractice: The statute runs from the date the client discovers or should have discovered the harm. Wachovia Bank, N.A. v. Ferretti, 935 A.2d 565 (Pa. Super. 2007).

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

C. Comparative Negligence

Pennsylvania follows a modified comparative negligence system under 42 Pa. C.S. Section 7102. A plaintiff may recover damages only if their negligence is not greater than the defendant's negligence. If the plaintiff is 51% or more at fault, recovery is completely barred.

D. Standard of Care Under Pennsylvania Law

Under Pennsylvania law, a professional must exercise the knowledge, skill, and ability ordinarily possessed and exercised by members of that profession in similar circumstances. Kituskie v. Corbman, 552 Pa. 275 (1998).

Key Case Law:

• Attorneys: Must possess the knowledge, skill, and ability ordinarily possessed by attorneys, and exercise reasonable care in performing professional duties. Kituskie v. Corbman, 552 Pa. 275 (1998).
• Accountants: Must perform services in accordance with GAAP and GAAS standards. Bilt-Rite Contractors, Inc., 581 Pa. 454.
• Engineers/Architects: Must exercise the skill and care customarily used by practitioners in the profession. Bilt-Rite Contractors, Inc., 581 Pa. 454.

E. Certificate of Merit Requirement - CRITICAL

Pa.R.C.P. 1042.3 requires that in professional malpractice actions, the plaintiff must file a Certificate of Merit within 60 days of filing the complaint. The certificate must attest that an appropriate licensed professional has supplied a written statement that there is a reasonable probability the defendant's care fell outside acceptable professional standards.

Failure to file the Certificate of Merit may result in dismissal of the action.

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

F. Damage Caps

Pennsylvania does not impose statutory caps on damages in professional malpractice cases. Punitive damages are available for outrageous conduct.

G. Privity and Third-Party Claims

Legal Malpractice: Generally requires an attorney-client relationship or privity. Guy v. Liederbach, 501 Pa. 47 (1983) (intended beneficiary exception for estate planning).

Accountant Malpractice: Third parties may recover under certain circumstances. Bilt-Rite Contractors, Inc., 581 Pa. 454 (adopted Restatement approach for negligent misrepresentation).

H. Breach of Fiduciary Duty

Pennsylvania recognizes breach of fiduciary duty as a separate cause of action. In re Estate of Warden, 2 A.3d 565 (Pa. Super. 2010). 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 Pennsylvania law. Mount Olivet Tabernacle Church v. Edwin L. Wiegand Div., 781 A.2d 1263 (Pa. Super. 2001).

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 Pennsylvania 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 written statement required for the Certificate of Merit under Pa.R.C.P. 1042.3.

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. Kituskie v. Corbman, 552 Pa. 275 (1998).

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 at 6% per annum per 41 P.S. Section 202
• 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 Pennsylvania.

We are prepared to litigate this matter in the Court of Common Pleas of [County] County, Pennsylvania 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]
Pennsylvania Attorney ID No. [Number]
Attorney for [Client Name]

ENCLOSURES: As noted above

cc: [Client Name]
File

PENNSYLVANIA PROFESSIONAL MALPRACTICE PRACTICE NOTES

• Two-Year Limitations Period: Actions must be brought within 2 years from discovery of injury.

• Certificate of Merit Required: CRITICAL - Must be filed within 60 days of filing the complaint.

• Discovery Rule: Limitations period runs from when plaintiff knew or should have known of injury.

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

• Expert Testimony Required: Expert witness is necessary; same expert may support Certificate of Merit.

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

• Prejudgment Interest: 6% per annum per 41 P.S. Section 202.

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

• Commerce Court: Philadelphia has a Commerce Court for complex commercial cases.

• Punitive Damages: Available for outrageous conduct with clear and convincing evidence.

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