According to a recent Law360 article, weak engagement letters are to blame for a flurry of recent legal malpractice claims. The article, which you can read here, discusses the use of engagement letters in recent legal malpractice claims and says in 65% of the cases, an engagement letter wasn’t used. It goes on to say that in only 5% of the cases, there was a well drafted engagement letter that limits the law firms liability.
While there are many things we recommend law firms to do craft strong engagement letters, here are three tips:
- Do not provide any guarantees
- Be very clear with the client about the project you were hired for
- If the client is new to the firm, get a retainer and make sure it is substantial