Looks like some kind of fungal blight or could be damage from some sort of spray.

Have you used any chemicals on your yard?

No, haven't used any chemicals since I moved in last September. I got a letter from the previous owner that they also gardened organically.

that looks like a cherry laurel... is it? I have a cherry laurel and when i first got it, i did a little research on laurels. there are some fungal problems that can afflict it. a quick search yields the following, quote:

Problems: Cherry laurel is more disease- and insect-resistant than other Prunus species, but root rot can be a problem if the shrub is planted in a wet location. A fungal disease called "shot hole," produces purple to reddish leaf spots. The spots drop out, leaving circular holes in the leaf. Mild, wet summer weather promotes this leaf spot. Avoid overhead watering. The fungus botryosphaeria causes limb dieback.

my laurel suffered from shot hole this spring and just looks disgusting now. lots of leaf drop and leaves full of holes. dunno what to tell you... maybe spray an anti-fungal and hope the spring growth will cover up the damage.

kitova, I think it is shot hole fungus, having looked at pictures of it after a web search. It's too bad there's no organic solution save removing the affected leaves, cleaning up under the plant and avoiding overhead watering. I can avoid doing it myself, but I do live in Seattle! Thanks for the ID!

you're welcome! good luck with your laurels. if you can, i'd really appreciate a follow up after you've treated your plant. tell me what works for you.. my laurel looks pretty bad right now and not quite sure what to do about it myself..