
Here’s some sample language from
our standard letter of engagement. It will give you
insight into our working and billing processes:
“As compensation for performance
of the foregoing services, this firm will be paid
a legal fee by you
based upon the amount of time expended by our professional
staff in performing the services. The professional
time of the undersigned will be billed at the initial
rate of $___ per hour. To the extent that professional
time of other attorneys and legal assistants of this
firm may be required, their time will be taken into
account at their respective hourly rates billed in
minimum units of tenths of an hour. To the extent
other attorneys and legal assistants in our office
may be used in this engagement, they will be designated
and supervised by me in accordance with the best
judgment of this firm.
We will provide you with monthly statements indicating
the amount due for legal services rendered and costs
incurred during the period designated on the statement
and itemizing the particular services and costs covered.
All of our statements are payable on receipt.
As a matter of policy, we request a retainer on
all engagements. You should be aware that litigation
is expensive. Accordingly, we would require a payment
of $___ as a retainer for this engagement. As services
are performed, legal fees and costs will be applied
against the amount of the retainer. Your monthly
statements will reflect the application of the retainer
and the amount of the retainer remaining. If the
amount of legal fees for services rendered and costs
incurred exceeds the retainer balance, the excess
will be payable upon receipt and in such event we
will require that you deposit an additional retainer
to cover anticipated further fees and costs to be
incurred. If any balance owed is not promptly paid,
we shall have the right immediately to discontinue
rendering any further services. If a retainer balance
remains after completion of the legal services, such
amount shall be promptly returned to you.
In the course of the engagement, it may be necessary
for us to incur expenses for items such as long distance
telephone calls, messenger services, travel (including
lodging and meals) and the like. Also, some matters
require the use of ancillary services such as photocopying
(including photocopy charges incurred in duplicating
your file, if necessary), computerized legal research,
facsimile transmissions (FAX) and staff overtime.
These items are separately itemized on our statements
and will be billed to you in addition to the legal
services. In addition, costs of litigation, such
as depositions and expert witnesses may be incurred.
Such expenditures will not be made without your permission,
and will be billed as separately itemized expenses
on our statements.
Both you and this firm shall
have the right to terminate this engagement at
any time, subject to our obligation
to give you reasonable notice to make alternate arrangements.
Additionally, we hereby reserve the right to include
interest charges at a rate not to exceed the maximum
amount permitted by law on amounts due for services
rendered and costs incurred in excess of any credit
balance of the retainer, where such amounts are outstanding
for more than thirty (30) days after the invoice
is rendered. In the unlikely event that legal proceedings
are instituted to collect fees and costs owing to
this firm, the prevailing party shall be entitled
to the allowance of reasonable attorney's fees and
other costs incurred in the action or proceeding.” |