Do Something! Review Your Retainer Agreement

Aside from your jurisdiction’s ethical rules, the single most important document that defines your relationship with your client is your retainer agreement or engagement letter. When was the last time you reviewed your agreement?

Here are some essential elements to include in your retainer agreement:

1. Scope of work: Does your agreement accurately and specifically reflect the work you will perform for the client (and the work you won’t perform under the agreement?) If you’re retained for a litigation matter, does your retainer agreement include working on an appeal? Does preparation of a will for a client include a health care proxy, living will and durable power of attorney, or will those services require a separate agreement (and a separate fee)?

2. A time limitation. Don’t leave yourself open for problems with clients that fail to return your retainer agreement. Your agreement should state specifically that the provisions contained within it (including the fee) are only valid if the agreement iss signed within a specific period of time (i.e. 2 weeks. one month, etc.) Make it clear that if the agreement (and retainer fee) are not received within that period of time, you are not obligated to represent the client.

3. The fee, including the method of calculating the fee, responsibility for expenses, frequency of bills and timing and method of payment.

4. The responsibilities of the parties. Your agreement should set forth not only your obligations to your client, but also your client’s obligations to you  – in cooperating with you, responding to your requests, etc.

5. Staffing considerations: Does the client think they’re getting you and only you to handle their matter? Will a change of staff mean a change in the fee? Are all staff working on a matter being billed at the same rate?

6. Grounds for withdrawal or other consequences for breach of the agreement: Have you spelled out the circumstances under which you have the right to withdraw from the matter? Have you clearly noted the procedure for notifying the client of your intention to withdraw?

7. File retention policy: Does your retainer agreement indicate what you will do with clients’ original files and how long you will retain documentation?

8. Ethical considerations: When did you last review the ethical rules in your jurisdiction and how they relate to your retainer agreement? Some states require certain language or certain disclosure in your retainer agreement. Are you in compliance?

If you want help reviewing your retainer agreement and/or other forms or procedures in your office, feel free to contact me to see how I can help.