Form 1-10

This letter is furnished only as a basic example and should not be used as a standard form. The attorney must be careful to tailor the details of the letter to the facts of the particular case. See sections 1.5:4 and 1.5:5 in this chapter concerning the basic engagement agreement.

Letter Detailing Basic Engagement Agreement and Fee Agreement for Simple Matters

[Date]

[Name and address of client]

Re:   [describe transaction]

[Salutation]

Thank you for asking me to represent you in the above-referenced matter. I consider it a privilege to do so. Please excuse the overly formal and detailed nature of this letter—it is intended to ensure that you know and understand the terms and conditions under which this firm will represent you.

1.Our fees for legal services are based primarily on the hourly rates for each lawyer and legal assistant at the time the services are rendered. Our current rates are $[amount] per hour for [name], $[amount] per hour for associates or contract lawyers, and $[amount] per hour for legal assistants.

2.It is our policy to bill clients periodically for fees and out-of-pocket expenses. These bills will generally describe services performed and the expenses incurred. If we are confronted with unanticipated expenses, we may request the supplier to bill you directly for any third-party expenses.

3.Our statements are reasonably detailed, and consequently our clients do not usu­ally have any questions about them. However, if you should ever have any question or com­ment, please do not hesitate to call us so that we can discuss the matter. Our hourly rates do not include any interest for slow payment. Because of this and the fact that we do not include a service charge for late payments, we must insist that our clients pay their bills promptly.

4.We require a [nonrefundable] retainer [when accepting work from new clients/before beginning work on a new matter]. Accordingly, we ask that you remit to [us/and main­tain with us during our representation] a retainer of $[amount]. [Include as applicable: We will place these funds in our trust account./The retainer will be applied to our final statement for fees and expenses or, at our discretion, to any past-due amounts./On the termination of our services, we will promptly refund the retainer, less any fees and expenses unpaid as of the date of our final bill.]

5.You agree that we are relieved from the responsibility of performing any further work should you fail to pay any statement for fees and expenses (including bills for expenses received from third parties) or for supplemental retainers within fifteen days of their receipt. In that event, you agree that we may move to withdraw as your counsel and that you will promptly execute any withdrawal motions to accomplish this.

6.You agree that this firm may retain papers relating to this matter to secure pay­ment of any amount you owe us, to the extent permitted by law, but only if such retention will not prejudice your interests in the subject matter of the representation.

7.During our discussions about handling this matter, we may have provided you with certain estimates of the fees and expenses that will be required at certain stages of our representation. Such estimates are just that, and the fees and expenses required are ultimately a function of many conditions over which we have little or no control, particularly the difficul­ties we encounter during negotiations with other parties. The reason we submit our clients’ bills shortly after the services are rendered is so they will have a means of monitoring and controlling their expenses. If you believe the expenses are mounting too rapidly, please con­tact us immediately so we can assist you in evaluating how they might be curtailed. If we do not hear from you, we assume that you approve of the overall level of activity in this matter.

8.The Supreme Court of Texas has adopted and promulgated the Texas Lawyer’s Creed. Although compliance with the Creed is voluntary, we have decided to adhere to its provisions. Please review the attached Texas Lawyer’s Creed, and if you have any questions, we will be glad to discuss them with you.

9.You may discharge us from this representation at any time. We will be free to withdraw at any time, with or without cause, subject to reasonable notice under the circum­stances and to approval by any court that may become involved in your matter. We will be entitled to receive compensation from you for all services rendered and all disbursements made, under the provisions of this agreement, up to the time of withdrawal. Circumstances may arise that will require us to withdraw from representation under the Texas Disciplinary Rules of Professional Conduct or other applicable professional standards. In such circum­stances, as well as in the instances referred to above, we will cooperate in the transfer of the matter to other counsel of your choice.

10.As is true with all legal services, we cannot and do not guarantee the results of our representation. We make no express warranties concerning this transaction, and disclaim any implied warranties concerning it.

11.Attorneys, like other professionals who advise on personal financial matters, are required by a federal law (the Gramm-Leach-Bliley Act) to inform their clients of their poli­cies regarding privacy of client information. Because attorneys have been and continue to be bound by professional standards of confidentiality that are even more stringent than those required by this new law, we have always protected our clients’ right to privacy. In the course of representing our clients, we receive all manner of significant personal financial information from them. As a client of the firm, you are advised that all information we receive from you will be held in confidence and not released to outside persons, except as agreed to by you or as required under applicable law. We retain records relating to professional services we provide to assist our clients with their professional needs and, in some cases, to comply with profes­sional guidelines. To guard your nonpublic personal information, we maintain physical, elec­tronic, and procedural safeguards that comply with our professional standards.

Our firm makes reasonable efforts to ensure the security of all electronic data including confidential records related to our clients and the electronic communications (such as e-mail, texts, telephone calls, voice-over-internet calls, video calls, cellular telephone, Twitter, and social networking sites) relating to our clients, whether those communications are between our firm and our clients or our internal communications relating to client matters. We believe that employing such electronic records and communications, including the use of cloud stor­age of data and communications, improves the efficiency of our work and our communica­tions with our clients. You understand that we cannot guarantee that any such electronic records or communications are not intercepted or accessed by unauthorized or unintended par­ties. Unless you specify otherwise in writing, our firm will continue to employ such electronic communications and record storage in performing our duties, and you understand and agree that we are not responsible for the unintended disclosure of any confidential information obtained by others through the interception or unauthorized access of such electronic records or communications.

At the end of our representation, please let us know if you need any documents from our files. We will retain documents for [five years/a limited time] and then destroy them in accordance with our record-retention policy then in effect.

We believe this candid discussion should prevent any misunderstandings later. Please sign a copy of this letter in the space below, expressing your agreement to the terms and con­ditions set forth above.

Sincerely yours,

   
[Name of attorney]

Enc.

ACCEPTED AND AGREED TO ON ________________________.

   
[Name of client]

Notice to Clients

Texas law requires that all attorneys provide their clients with the following notice about the existence of the attorney grievance process: “The State Bar of Texas investigates and prosecutes professional misconduct committed by Texas attorneys. Although not every complaint against or dispute with a lawyer involves professional misconduct, the State Bar’s Office of Chief Disciplinary Counsel will provide you with information about how to file a complaint. Please call 1-800-932-1900 toll-free for more information.”

The Texas Lawyer’s Creed

I am a lawyer. I am entrusted by the People of Texas to preserve and improve our legal system. I am licensed by the Supreme Court of Texas. I must therefore abide by the Texas Disciplinary Rules of Professional Conduct, but I know that professionalism requires more than merely avoiding the violation of laws and rules. I am committed to this creed for no other reason than it is right.

Our Legal System

A lawyer owes to the administration of justice personal dignity, integrity, and indepen­dence. A lawyer should always adhere to the highest principles of professionalism.

1.I am passionately proud of my profession. Therefore, “My word is my bond.”

2.I am responsible to assure that all persons have access to competent representation regardless of wealth or position in life.

3.I commit myself to an adequate and effective pro bono program.

4.I am obligated to educate my clients, the public, and other lawyers regarding the spirit and letter of this Creed.

5.I will always be conscious of my duty to the judicial system.

Lawyer to Client

A lawyer owes to a client allegiance, learning, skill, and industry. A lawyer shall employ all appropriate means to protect and advance the client’s legitimate rights, claims, and objectives. A lawyer shall not be deterred by any real or imagined fear of judicial disfavor or public unpopularity, nor be influenced by mere self-interest.

1.I will advise my client of the contents of this Creed when undertaking representa­tion.

2.I will endeavor to achieve my client’s lawful objectives in legal transactions and in litigation as quickly and economically as possible.

3.I will be loyal and committed to my client’s lawful objectives, but I will not permit that loyalty and commitment to interfere with my duty to provide objective and independent advice.

4.I will advise my client that civility and courtesy are expected and are not a sign of weakness.

5.I will advise my client of proper and expected behavior.

6.I will treat adverse parties and witnesses with fairness and due consideration. A client has no right to demand that I abuse anyone or indulge in any offensive conduct.

7.I will advise my client that we will not pursue conduct which is intended primarily to harass or drain the financial resources of the opposing party.

8.I will advise my client that we will not pursue tactics which are intended primarily for delay.

9.I will advise my client that we will not pursue any course of action which is with­out merit.

10.I will advise my client that I reserve the right to determine whether to grant accommodations to opposing counsel in all matters that do not adversely affect my client’s lawful objectives. A client has no right to instruct me to refuse reasonable requests made by other counsel.

11.I will advise my client regarding the availability of mediation, arbitration, and other alternative methods of resolving and settling disputes.

Lawyer to Lawyer

A lawyer owes to opposing counsel, in the conduct of legal transactions and the pursuit of litigation, courtesy, candor, cooperation, and scrupulous observance of all agreements and mutual understandings. Ill feelings between clients shall not influence a lawyer’s conduct, attitude, or demeanor toward opposing counsel. A lawyer shall not engage in unprofessional conduct in retaliation against other unprofessional conduct.

1.I will be courteous, civil, and prompt in oral and written communications.

2.I will not quarrel over matters of form or style, but I will concentrate on matters of substance.

3.I will identify for other counsel or parties all changes I have made in documents submitted for review.

4.I will attempt to prepare documents which correctly reflect the agreement of the parties. I will not include provisions which have not been agreed upon or omit provisions which are necessary to reflect the agreement of the parties.

5.I will notify opposing counsel, and, if appropriate, the Court or other persons, as soon as practicable, when hearings, depositions, meetings, conferences or closings are can­celed.

6.I will agree to reasonable requests for extensions of time and for waiver of proce­dural formalities, provided legitimate objectives of my client will not be adversely affected.

7.I will not serve motions or pleadings in any manner that unfairly limits another party’s opportunity to respond.

8.I will attempt to resolve by agreement my objections to matters contained in pleadings and discovery requests and responses.

9.I can disagree without being disagreeable. I recognize that effective representation does not require antagonistic or obnoxious behavior. I will neither encourage nor knowingly permit my client or anyone under my control to do anything which would be unethical or improper if done by me.

10.I will not, without good cause, attribute bad motives or unethical conduct to opposing counsel nor bring the profession into disrepute by unfounded accusations of impro­priety. I will avoid disparaging personal remarks or acrimony towards opposing counsel, par­ties and witnesses. I will not be influenced by any ill feeling between clients. I will abstain from any allusion to personal peculiarities or idiosyncrasies of opposing counsel.

11.I will not take advantage, by causing any default or dismissal to be rendered, when I know the identity of an opposing counsel, without first inquiring about that counsel’s inten­tion to proceed.

12.I will promptly submit orders to the Court. I will deliver copies to opposing coun­sel before or contemporaneously with submission to the Court. I will promptly approve the form of orders which accurately reflect the substance of the rulings of the Court.

13.I will not attempt to gain an unfair advantage by sending the Court or its staff cor­respondence or copies of correspondence.

14.I will not arbitrarily schedule a deposition, court appearance, or hearing until a good faith effort has been made to schedule it by agreement.

15.I will readily stipulate to undisputed facts in order to avoid needless costs or inconvenience for any party.

16.I will refrain from excessive and abusive discovery.

17.I will comply with all reasonable discovery requests. I will not resist discovery requests which are not objectionable. I will not make objections nor give instructions to a wit­ness for the purpose of delaying or obstructing the discovery process. I will encourage wit­nesses to respond to all deposition questions which are reasonably understandable. I will neither encourage nor permit my witness to quibble about words where their meaning is rea­sonably clear.

18.I will not seek Court intervention to obtain discovery which is clearly improper and not discoverable.

19.I will not seek sanctions or disqualification unless it is necessary for protection of my client’s lawful objectives or is fully justified by the circumstances.

Lawyer and Judge

Lawyers and judges owe each other respect, diligence, candor, punctuality, and protec­tion against unjust and improper criticism and attack. Lawyers and judges are equally respon­sible to protect the dignity and independence of the Court and the profession.

1.I will always recognize that the position of judge is the symbol of both the judicial system and administration of justice. I will refrain from conduct that degrades this symbol.

2.I will conduct myself in Court in a professional manner and demonstrate my respect for the Court and the law.

3.I will treat counsel, opposing parties, the Court, and members of the Court staff with courtesy and civility.

4.I will be punctual.

5.I will not engage in any conduct which offends the dignity and decorum of pro­ceedings.

6.I will not knowingly misrepresent, mischaracterize, misquote or miscite facts or authorities to gain an advantage.

7.I will respect the rulings of the Court.

8.I will give the issues in controversy deliberate, impartial and studied analysis and consideration.

9.I will be considerate of the time constraints and pressures imposed upon the Court, Court staff and counsel in efforts to administer justice and resolve disputes.