An attorney engagement letter expresses how the attorney will represent the client and what they charge for all the services that will be performed. Furthermore, it establishes attorney-client privilege and confidentiality.

The client benefits from knowing how their money will be used, how their attorney will represent them, how disputes will be settled, and when they can terminate the relationship.

While attorneys are not legally obligated to execute engagement letters, most do so to maintain best management practices and avoid legal issues. The American Bar Association’s Model Rules of Professional Conduct Rule 1.5(b) states that the scope of representation and legal fees “shall be communicated to the client, preferably in writing.”

Lawyers should ensure they are current with their state’s requirements regarding written disclosure of legal fees and expenses.

Legal Services

The attorney should describe the legal services they will be performing for their client. Identifying tasks that won’t be included in their representation can also help clarify the attorney’s role.

Fees and Expenses

An engagement letter must include the attorney’s fees, how payment will be transferred, and who will be responsible for expenses incurred.

Contingency Arrangement

If the parties decide that the attorney’s compensation is conditional upon a certain outcome, they will record the details of this arrangement in the letter.

Retainer

The attorney may decide to charge a retainer fee, an upfront payment made by the client to secure the lawyer’s services. The attorney will only have access to the money once they start working for their client.

Confidentiality

Confidentiality, or lawyer-client privilege, guarantees that the lawyer will not share any information they obtain from their client with any other party. It is a right protected by law; in most cases, an attorney cannot be forced into disclosing this information.