6 Golden Rules of Client Retainer Agreements

6 Golden Rules of Client Retainer Agreements

Whether you are just starting your firm or you’ve been at it for years…

Most states strongly suggest, but do not require, that all engagement agreements be put in writing.

Other states have gone further and require almost all engagement agreements be in writing.

Required or not, a written client retainer agreement is an opportunity for lawyers.

An opportunity that should not be wasted.

A well-drafted one sets the expectations and ground rules and helps both client and lawyer avoid misunderstandings.

Lawyers can get into trouble when there are misunderstandings as to who they do and do not represent.

This uncertainty can lead to claims of malpractice, assertions of conflicts, and other issues.

This is where a well-drafted client retainer agreement can be helpful.

Putting the terms of the engagement in writing and getting the client’s signature helps lawyers manage risk and should help minimize potential liability down the road.

For sure, the client engagement letter is often the first line of defense whenever there is a dispute between a lawyer and client, and it could be the determining factor in defending a malpractice claim or bar grievance.

One size does not fit all

Are you just using a form you got from another attorney?

Yes, those can get you started, but they may not have provisions you need. And they may have provisions that are unenforceable or worse, unethical.

What is appropriate for one practice area may not work for another.

When was the last time you took a close look at your client retainer agreements?

Have you ever reviewed and updated your client retainer agreement?

Does it give you maximum protection?

Client retainer agreements are the first line of defense for a lawyer.

When properly drafted, they:

  • Set expectations
  • Lay out duties/responsibilities
  • Comply w ethical duties
  • Protect you

But it’s not just about defense. An engagement letter can be used to set out your rights if the relationship ends or goes sideways.

For example, if a client fires you or refuses to pay, do you have contractual provisions that can help you?

If you’d like to talk to Law Firm GC about your client retainer agreements, please click the button below:

Get the rules!

For a law firm to be successful, it needs clients.

And for clients, it needs a good retainer agreement.