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Overview of Engagement Letters

Engagement letters confirm the representations scope setting forth the parties’ responsibilities, billing rates/contingency agreements and expense costs.  Engagement letters should discuss the scope and  limits of the firm’s representation. The engagement letter should memorialize the bounds of the firm’s actual representation. For instance, if the law firm has no intention of pursuing appeals on behalf of its client, then the letter should explicitly state that appeals are not part the firm’s representation, unless a separate retainer is executed. 

A written letter of engagement should be provided prior to commencing representation, or within a reasonable time thereafter.  Very occasionally it may be impracticable if the scope of services to be provided cannot be determined at the time of the commencement of representation then an overview of the provided services as best as possible should be provided.   

Engagement Letters should address the following matters:

1.       Explanation of the scope of the legal services to be provided

2.       Explanation of attorney’s fees to be charged, expenses and billing practices

3.       If there is a requirement to arbitrate fee disputes then this should be disclosed 

 

Engagement letters may not be required in the following situations:

1.       Where the fee to be charged is expected to be less than  a certain dollar amount

2.       Where the attorney’s services are of the same general kind as previously rendered to the client

Engagement letters are an essential part of a risk management program for a law firm to make sure that the clients expectations are laid out and met.  If there is a disagreement later to the services provided or fees charged, it can be an essential part in resolving those disputes without malpractice litigation or the allegations of attorney malpractice.

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