---
name: tender-denial
title: Tender Letter Denial
description: Drafts legally defensible denial letters rejecting tendered defense and indemnification demands. Analyzes indemnification provisions, builds substantive and procedural grounds for denial, preserves rights, and positions client for coverage litigation. Use when denying tender obligations, rejecting indemnification demands, responding to defense tenders, or drafting coverage denial correspondence.
author: CaseMark
author_url: https://github.com/CaseMark/skills/tree/main/skills/legal/tender-denial
license: Apache-2.0
version: 0.1.0
execution_mode: open
jurisdiction: us
practice: insurance
language: en
tags: [drafting, letter, litigation]
---

# Tender Letter Denial

Draft a formal denial of a tendered defense/indemnification demand that builds a defensible record for potential coverage litigation.

## Prerequisites

Collect before drafting:

1. **Tender letter** — demand being denied, with date and sender
2. **Governing agreement** — contract, policy, or lease containing the indemnification provision
3. **Underlying complaint/claim** — allegations, parties, damages, legal theories
4. **Supporting evidence** — correspondence, reports, expert opinions, photos bearing on indemnity scope
5. **Client info** — full legal name of denying party and counsel details

## Quick Start

1. Gather all prerequisites above
2. Identify delivery method per contractual notice requirements
3. Draft letter sections in order below
4. Build multiple independent denial grounds (position survives if one fails)
5. Run checks before finalizing

## Letter Sections

### 1. Header & Denial Statement

- Letterhead, date, addressee (per tender letter signer), delivery method per contract
- Re: line with case caption, claim/contract/policy number, date of loss
- Identify counsel and client; acknowledge tender receipt by specific date
- State denial unambiguously: *"This letter constitutes [Client]'s formal denial of your tender of defense and indemnification dated [date] in the matter of [caption]."*

### 2. Substantive Analysis

Quote the exact indemnification language, then address applicable grounds:

| Ground | Focus |
|--------|-------|
| **Scope exclusion** | Claim outside "arising out of" / "caused by" / "in connection with" language per jurisdiction |
| **Indemnitee's own negligence** | Sole/active negligence or willful misconduct excluded by provision or public policy |
| **Causal break** | Indemnitee's independent acts sever causal chain |
| **Specific exclusions** | Match allegations to carve-outs (IP, employment, environmental, E&O, law violations) |
| **Anti-indemnity statutes** | Provision unenforceable under applicable statute — **VERIFY for jurisdiction** |
| **Control/responsibility** | Evidence of indemnitee's exclusive control, prior notice, or independent modifications |

For each ground: cite specific evidence (complaint paragraphs, communications, reports, dates).

Apply jurisdiction-specific interpretation: construe ambiguities against drafter, read contract as a whole, give effect to reasonable expectations.

### 3. Procedural Deficiencies

Assert as independent denial grounds where applicable:

- Untimely notice (cite contractual deadline vs. actual notice date)
- Missing required documentation (complaint, demand, proof of loss)
- Wrong recipient or delivery method
- Failure to cooperate with investigation/defense
- Failure to satisfy conditions precedent

### 4. Conditional Reconsideration

Offer a window (14–21 days) to submit additional information that materially alters the analysis. State that until such showing, client maintains denial and will not assume defense or indemnification obligations.

### 5. Reservation of Rights

Reserve:

- **Defenses** — late notice, failure to cooperate, breach, failure to mitigate, unauthorized settlement
- **Affirmative claims** — reverse indemnification, contribution, breach of contract
- **Enforceability challenges** — lack of clear/unequivocal own-negligence language, anti-indemnity statutes, unconscionability

### 6. Closing

- Professional signature block (name, title, bar admissions, firm, contact)
- cc: only if strategically appropriate — weigh privilege and work-product implications

## Checks

- **Tone**: Professional, confident, non-inflammatory — letter may become a coverage-litigation exhibit
- **Citations**: Verify all statutory citations and jurisdictional interpretation rules
- **Evidence**: Reference concrete facts (dates, documents, communications), not conclusory assertions
- **Consistency**: Proofread party names, dates, document titles, and contract references throughout
- **Privilege**: Assess whether cc distribution may waive attorney-client privilege or work-product protection
- **Length**: Target 2–4 pages depending on complexity
