Call Us 866.940.1101 ☰ ˟
866.940.1101
Logo
  • Home
  • About Us
    • About Us
    • Employee Directory
    • Partners Page
    • Event Calendar
    • Refer a Friend
  • Get A Quote
  • Products
    • Lawyers Malpractice Insurance
    • Professional Liability Coverage For Attorneys
    • Accountants Professional Liability
    • Dentist Malpractice Insurance
    • Business Owners Policy
    • Cyber Liability Insurance
    • Workers Compensation Insurance
    • Title Agents E&O Insurance
    • Paralegal Malpractice Insurance
  • Testimonials
  • Common Terms
    • Common Terms
    • Frequently Asked Questions
  • Blog
  • Contact
  • Areas We Serve
    • Grand Rapids, MI
    • Detroit, MI
    • Lansing, MI
    • Kalamazoo, MI
Home > Blog > Prevent Attorney Malpractice Claims by Using Non-engagement Letters & Disengagement Letters
MONDAY, SEPTEMBER 10, 2018

Prevent Attorney Malpractice Claims by Using Non-engagement Letters & Disengagement Letters

non-Engagement LettersAttorney Malpractice insurers find that the use of non-engagement /disengagement letters reduce legal malpractice insurance claims.  Insurers have defended and paid on claims where the client alleges that the law firm was still representing them when the law firm thought they were no longer providing representation or where the prospective client claims that the law firm was representing them in a matter, when the firm thought they were not.

Non-engagement Letters

To minimize risk law firms should send a non-engagement letter when it decides not to accept a client. A non-engagement letter should be direct, concise and in plain English, and it should explicitly inform the prospective client that the law firm will not accept engagement. It is highly advisable to send such letters via certified mail or e-mail with return receipt requested.  This evidence helps prevent allegations of attorney-client representation where none existed. 

Disengagement Letters 

When a matter or transaction has concluded, send a letter or e-mail to the client advising that the attorney-client relationship has terminated.  Disengagement letters are best delivered via certified mail or e-mail return receipt requested.  Sending a disengagement letter is an effective loss prevention tool. It provides a concrete date for purposes of statute of limitations defenses in the event of a later legal malpractice claim.  Disengagement letters may act to curtail any later tolling arguments of continuous representation.

The use of non-engagement letters and disengagement letters help mitigate situations where a bad outcome by the (prospective) client, gets turned into a bad outcome for the law firm.  Remember that if there is room for reasonable doubt as to whether or not there was an attorney-client relationship the law firm will seldom win.  It is best to be clear and concise whether representation existed and when it ended then to leave any doubt.  The best proof is documentation of the non-engagement & disengagement letters being sent.

There is no guarantee that a firm will not get sued even using non-engagement/disengagement letters, but generally the outcome for the firm will be better.  This saves the firm attorney malpractice insurance premiums by minimizing the insurer’s defense costs and malpractice indemnity payments.

As every state and jurisdiction has different standards and content requirements for engagement, non-engagement, and disengagement letters, it is best to check with your state or local bar for sample letters and requirements.

Posted 8:58 PM

Tags: legal liability, attorney malpractice insurance, lawyers professional liability insurance, attorney malpractice, good client communication, claim prevention, non-engagement letters, disengagement letters
Share |


No Comments


Post a Comment
Required
Required (Not Displayed)
Required


All comments are moderated and stripped of HTML.

NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive
  • 2022
  • 2021
  • 2020
  • 2019
  • 2018
  • 2017
  • 2016
  • 2015
  • 2013
  • 2011

  • lawyers professional liability insurance(429)
  • attorney malpractice insurance(348)
  • attorney malpractice(330)
  • legal malpractice(223)
  • legal liability(134)
  • cyber insurance(94)
  • data breach(92)
  • ethics(87)
  • erp(56)
  • malpractice insurance(49)
  • claims(39)
  • title agency e&o(36)
  • accountant e&o(34)
  • extended reporting period endorsement(30)
  • tail(29)
  • phishing(25)
  • claims made coverage(20)
  • extended reporting period(20)
  • prior acts(19)
  • legal malpractice insurance(18)
  • cyber liability(18)
  • cyber security(17)
  • accountant errors & omissions(17)
  • claims reporting(17)
  • ransomware(16)
  • claim prevention(16)
  • crime insurance(15)
  • attorney protective cle(14)
  • the hartford weekly newsletter(14)
  • mcgowan webinar series for cpas 2021(12)
  • professional liability insurance(12)
  • attorney protective cle webinar(12)
  • business owners insurance(11)
  • legal liability insurance(11)
  • fee suits(10)
  • retirement tail(10)
  • full prior acts(10)
  • bop(9)
  • title agent errors & omissions(9)
  • cyber crime(9)
  • accountant errors & omissions insurance(9)
  • prior acts date(8)
  • webinar(8)
  • non-practicing erp(8)
  • cyber liability insurance(8)
  • lawyers(8)
  • claims made(8)
  • employment practices liability(7)
  • attorney protective 2019 free cle webinar(7)
  • non-practicing extended reporting period endorsement(7)

View Mobile Version
Logo
Quick Links
Home Our Products Customer Service Payment Options Common Terms
About Us Refer A Friend Our Carriers Blog Contact Us
Location
2430 Camelot Ct SE
Grand Rapids, MI 49546

Local: 616.940.1101
Toll Free: 866.940.1101
Email: info@L2ins.com
Facebook Twitter Social LinkedIn
© Copyright. All rights reserved.
Powered by Insurance Website Builder