Engagement (Retainer) Letter: Practical Considerations Checklist

by Practical Law Litigation

A Checklist that provides a guide for outside counsel on drafting a client engagement letter. This Checklist covers crucial initial considerations, such as defining the client, specifying the scope of the engagement, and identifying potential or actual conflicts. It explores various fee structures in detail, including traditional hourly and contingency fees, as well as alternative fee arrangements like capped fees, blended rates, fixed fees, collared fees, and holdbacks. The Checklist also addresses how to handle retainers, particularize expenses for different fee models, and establish clear billing procedures. Key sections focus on managing conflicts of interest, including provisions for advance waivers, and outlining the terms for the termination of representation. Furthermore, this resource details important optional clauses that can be included in an engagement letter, covering topics such as client cooperation, arbitration, choice of law, privacy, attorney-client privilege, and the use of artificial intelligence (AI) tools.