DEMAND FOR SETTLEMENT - PROFESSIONAL MALPRACTICE

STATE OF UTAH

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

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. UTAH-SPECIFIC LEGAL FRAMEWORK

A. Governing Law

Professional malpractice claims in Utah are governed by common law negligence principles. Key precedents include Harline v. Barker, 912 P.2d 433 (Utah 1996) and Kilpatrick v. Wiley, Rein & Fielding, 909 P.2d 1283 (Utah Ct. App. 1996).

B. Statute of Limitations

Professional Malpractice: Under Utah Code Ann. Section 78B-2-307, actions for professional malpractice must be commenced within four (4) years from the date the cause of action accrues.

Discovery Rule: Utah applies the discovery rule. The cause of action accrues when the plaintiff discovers or should have discovered the injury. Harline v. Barker, 912 P.2d 433 (Utah 1996).

Legal Malpractice: The statute runs from the date the client discovers or should have discovered the negligence and resulting harm.

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

C. Comparative Negligence

Utah follows a modified comparative negligence system under Utah Code Ann. Section 78B-5-818. A plaintiff may recover damages only if their fault is not greater than the combined fault of all defendants. If the plaintiff is 50% or more at fault, recovery is completely barred.

D. Standard of Care Under Utah Law

Under Utah law, a professional must exercise the degree of care, skill, and diligence ordinarily exercised by members of the profession in similar circumstances. Harline v. Barker, 912 P.2d 433 (Utah 1996).

Key Case Law:

• Attorneys: Must possess the knowledge, skill, and ability ordinarily possessed by attorneys and exercise reasonable care. Harline v. Barker, 912 P.2d 433 (Utah 1996).
• Accountants: Must perform services in accordance with GAAP and GAAS standards.
• Engineers/Architects: Must exercise the skill and care customarily used by practitioners in the profession.

E. Expert Witness Requirements

Expert testimony is generally required in professional malpractice cases to establish:
1. The applicable standard of care;
2. That the defendant breached that standard; and
3. That the breach proximately caused the plaintiff's damages.

Harline v. Barker, 912 P.2d 433 (Utah 1996).

Exception: Expert testimony is not required when the professional's negligence is within the common knowledge of laypersons.

Certification: We have retained a qualified expert who has reviewed the relevant documents and has concluded that the applicable standard of care was breached and that such breach proximately caused our client's damages.

F. Damage Caps

Utah does not impose statutory caps on damages in professional malpractice cases. Punitive damages are subject to limitations under Utah Code Ann. Section 78B-8-201.

G. Privity and Third-Party Claims

Legal Malpractice: Generally requires an attorney-client relationship. Utah may recognize claims by intended third-party beneficiaries in limited circumstances.

Accountant Malpractice: Third parties may recover under certain circumstances involving known reliance.

H. Breach of Fiduciary Duty

Utah recognizes breach of fiduciary duty as a separate cause of action. First Sec. Bank of Utah, N.A. v. Banberry Dev. Corp., 786 P.2d 1326 (Utah 1990). 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 Utah law.

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 Utah law, [Defendant Professional] was required to exercise the degree of care, skill, and diligence ordinarily 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].

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. Harline v. Barker, 912 P.2d 433 (Utah 1996).

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 10% per annum per Utah Code Ann. Section 15-1-1
• 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. Mountain 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 Utah.

We are prepared to litigate this matter in the District Court of [County] County, Utah 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]
Utah State Bar No. [Number]
Attorney for [Client Name]

ENCLOSURES: As noted above

cc: [Client Name]
File

UTAH PROFESSIONAL MALPRACTICE PRACTICE NOTES

• Four-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.

• Modified Comparative Fault: Recovery barred if plaintiff is 50% or more at fault.

• Expert Testimony Required: Expert witness is generally necessary except for obvious negligence.

• No Damage Caps: No statutory limits on compensatory damages.

• Prejudgment Interest: 10% per annum per Utah Code Ann. Section 15-1-1.

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

• Commercial Court: Utah has a specialized Commercial Court for complex business disputes.

• Punitive Damages: Available for willful and malicious or reckless conduct per Utah Code Ann. Section 78B-8-201.

• Mediation: Courts may require mediation or other ADR.

This template is specific to Utah law. Professional malpractice claims require careful attention to limitations periods and expert requirements. Always verify current law and consult with qualified Utah counsel.