Disengagement and File Closing Letter - Texas

DISENGAGEMENT AND FILE CLOSING LETTER — TEXAS

ATTORNEY / FIRM INFORMATION

[________________________________] (Attorney Name)
State Bar of Texas No. [____________]
[________________________________] (Firm Name)
[________________________________] (Street Address)
[________________________________] (City, State ZIP)
Phone: [________________________________]
Email: [________________________________]

Date: [__/__/____]

VIA: ☐ Certified Mail, Return Receipt Requested ☐ Hand Delivery ☐ Email (with read receipt)

TO:

[________________________________] (Client Name)
[________________________________] (Street Address)
[________________________________] (City, State ZIP)
Email: [________________________________]

Re: Formal Notice of Termination of Representation
Matter: [________________________________]
Our File No.: [________________________________]

Dear [________________________________]:

I. PURPOSE OF THIS LETTER

This letter constitutes formal written notice that the attorney-client relationship between you and this firm regarding the above-referenced matter is being terminated, effective [__/__/____] (the "Effective Date"). This letter also outlines the procedures for closing your file, identifies critical pending deadlines, explains the handling of your property and trust funds, and describes your rights under Texas law.

Please read this entire letter carefully. It contains critical information about pending deadlines that may affect your legal rights.

IMPORTANT NOTE ABOUT TEXAS RULES: Texas uses its own numbering system for its Disciplinary Rules of Professional Conduct, which differs from the ABA Model Rules used by most states. The Texas rule governing termination of representation is Rule 1.15 (not Rule 1.16 as in the Model Rules). The Texas rule governing safekeeping of property is Rule 1.14 (not Rule 1.15 as in the Model Rules).

II. REASON FOR TERMINATION

The representation is being terminated for the following reason(s) (select all that apply):

☐ Matter Concluded — The legal matter for which you retained this firm has been completed, and no further legal services are to be performed under our engagement agreement.

☐ Client Discharge — You have exercised your right to discharge this firm from representing you in this matter. Under Texas law, a client may discharge an attorney at any time, with or without cause.

☐ Mutual Agreement — Both you and this firm have agreed to terminate the representation.

☐ Permissive Withdrawal — This firm is exercising its right to withdraw under Texas Disciplinary Rule of Professional Conduct 1.15(b), for the following reason(s):

☐ Withdrawal can be accomplished without material adverse effect on the interests of the client. (Rule 1.15(b)(1))
☐ The client persists in a course of action involving the lawyer's services that the lawyer reasonably believes may be criminal or fraudulent. (Rule 1.15(b)(2))
☐ The client has used the lawyer's services to perpetrate a crime or fraud. (Rule 1.15(b)(3))
☐ A client insists upon pursuing an objective that the lawyer considers repugnant or imprudent or with which the lawyer has fundamental disagreement. (Rule 1.15(b)(4))
☐ The client fails substantially to fulfill an obligation to the lawyer regarding the lawyer's services, including an obligation to pay the lawyer's fee as agreed, and has been given a reasonable warning that the lawyer will withdraw unless the obligation is fulfilled. (Rule 1.15(b)(5))
☐ The representation will result in an unreasonable financial burden on the lawyer. (Rule 1.15(b)(6))
☐ The representation has been rendered unreasonably difficult by the client. (Rule 1.15(b)(7))
☐ Other good cause for withdrawal exists: [________________________________]

☐ Mandatory Withdrawal — This firm is required to withdraw under Texas Disciplinary Rule of Professional Conduct 1.15(a), because:

☐ Continued representation will result in a violation of the Texas Disciplinary Rules of Professional Conduct or other law. (Rule 1.15(a)(1))
☐ The lawyer's physical, mental, or medical condition materially impairs the representation. (Rule 1.15(a)(2))
☐ The lawyer is discharged, with or without good cause. (Rule 1.15(a)(3))

☐ Nonpayment of Fees — Despite prior written notice, outstanding fees and costs have not been paid, and this firm is withdrawing pursuant to Tex. Disc. R.P.C. 1.15(b)(5).

☐ Conflict of Interest — A conflict of interest has arisen under Tex. Disc. R.P.C. 1.06 or 1.09 that precludes continued representation.

III. WITHDRAWAL FROM PENDING LITIGATION (IF APPLICABLE)

☐ This section applies — There is currently active litigation in this matter.
☐ This section does not apply — There is no pending litigation.

If checked above, please be aware of the following:

A. Court Permission Required Under Texas Rule of Civil Procedure 10

Under Texas Rule of Civil Procedure 10, an attorney may withdraw from representing a party only upon written motion for good cause shown. The motion must be served on the party, all other parties or their attorneys, and must include:

1. The party's last known mailing address and telephone number;
2. A statement that a copy of the motion has been delivered to the party; and
3. A statement that the party has been notified in writing of the right to object to the motion.

This firm will file a Motion to Withdraw as Attorney of Record with the appropriate court.

B. Court's Discretion

The court may:
- Grant the motion if good cause is shown
- Set the motion for hearing
- Deny the motion if withdrawal would adversely affect the administration of justice
- Impose conditions on the withdrawal (e.g., requiring continued representation through a pending hearing or deadline)

Until the court grants the motion, this firm remains your attorney of record.

C. Notice Requirements

In accordance with TRCP 10, this firm will:
- Deliver a copy of the withdrawal motion directly to you
- Serve the motion on all other parties or their attorneys of record
- Include your last known contact information in the motion for the court's records

D. Your Obligations After Withdrawal

Upon this firm's withdrawal from pending litigation, you must:
- Retain new counsel or notify the court that you will represent yourself (pro se)
- File a written designation of new counsel or pro se status with the court
- Provide the court clerk with your current mailing address and telephone number
- Monitor all court docket entries, deadlines, and scheduled hearing dates independently
- Appear at all scheduled hearings, depositions, mediations, and court dates
- Comply with all pending discovery obligations, court orders, and scheduling orders

IV. CRITICAL PENDING DEADLINES AND DATES

THIS IS THE MOST IMPORTANT SECTION OF THIS LETTER. FAILURE TO ACT ON THESE DEADLINES MAY RESULT IN THE PERMANENT LOSS OF YOUR LEGAL RIGHTS.

Under Texas Disciplinary Rule 1.15(d), upon termination of representation, a lawyer shall take steps to the extent reasonably practicable to protect a client's interests, including giving reasonable notice to the client.

The following deadlines and important dates are currently known to this firm:

☐ No pending deadlines are currently known to this firm.

IMPORTANT: This list may not be exhaustive. You or your new attorney should independently verify all applicable deadlines. Texas courts strictly enforce statutes of limitations and court-imposed deadlines. Under Texas law, dismissal for want of prosecution and other sanctions may result from missed deadlines.

V. CLIENT FILE AND PROPERTY

A. Your Right to the File

Under Texas Disciplinary Rule 1.15(d), upon termination of representation, a lawyer shall take steps reasonably practicable to protect a client's interests, including "surrendering papers and property to which the client is entitled."

Texas Rule: The client file is considered the property of the client and must be returned upon request. A lawyer may retain papers relating to the client to the extent permitted by other law only if such retention will not prejudice the client in the subject matter of the representation.

B. Contents of the File

Documents You Are Entitled to Receive:
- ☐ Original documents you provided to this firm (contracts, deeds, photographs, etc.)
- ☐ Pleadings, motions, and court filings
- ☐ Correspondence (incoming and outgoing)
- ☐ Discovery materials (interrogatories, depositions, document productions)
- ☐ Court orders, judgments, and rulings
- ☐ Expert reports and opinions
- ☐ Settlement communications and agreements
- ☐ Evidence, exhibits, and demonstrative materials
- ☐ Transaction documents and closing binders

Attorney Work Product (firm may retain copies):
- ☐ Internal legal research memoranda
- ☐ Attorney notes and mental impressions
- ☐ Draft documents not delivered to client
- ☐ Internal communications among firm attorneys
- ☐ Litigation strategy documents

C. File Delivery Method

Please indicate how you would like to receive your file:

☐ Pick up at this firm's office (by appointment)
☐ Mail to address on file (at client's expense for shipping)
☐ Transfer directly to successor counsel at: [________________________________]
☐ Secure electronic delivery (for electronic files)

D. File Retention Policy

If you do not request your file within sixty (60) days of the date of this letter, this firm will retain and store your file in accordance with its retention policy and Texas ethics guidance.

Trust Account Records: Under Texas Disciplinary Rule 1.14(a), this firm is required to maintain trust account records for a minimum of five (5) years after termination of the representation.

General File Retention: This firm will retain the client file for a minimum of five (5) years following the conclusion of the matter or termination of representation, consistent with the legal malpractice statute of limitations under Tex. Civ. Prac. & Rem. Code § 16.003.

Prior to any destruction of file materials:
- Written notice will be sent to your last known address at least thirty (30) days before scheduled destruction
- An opportunity will be provided for you to retrieve the materials
- Original documents of intrinsic value will be retained indefinitely until returned to you

E. Electronic Files

Electronic documents, emails, and digital files will be handled as follows:
- Electronic copies will be made available upon request in standard format
- This firm will retain an electronic archive copy for its records
- Files will be provided in PDF or native file format, as requested

VI. FINANCIAL MATTERS

A. Final Billing Statement

A final billing statement is enclosed with this letter or will be provided under separate cover within fifteen (15) days of the Effective Date. The current accounting is as follows:

B. Trust Account / IOLTA Balance

Under Texas Disciplinary Rule 1.14, all client funds must be maintained in a designated trust account separate from the attorney's personal or operating funds. Nominal or short-term client funds are held in an IOLTA (Interest on Lawyers' Trust Accounts) account, administered through the Texas Access to Justice Foundation.

As of the date of this letter:

The net trust balance will be disbursed to you within thirty (30) days of the Effective Date. If there is a bona fide dispute regarding any portion of the trust funds, the disputed amount will remain in trust pending resolution, and the undisputed portion will be promptly disbursed, in accordance with Tex. Disc. R.P.C. 1.14(c).

Trust Account Records: Under Tex. Disc. R.P.C. 1.14(a), this firm maintains complete records of all trust account transactions for a minimum of five (5) years and will provide a full accounting upon your reasonable request.

C. Retainer Refund

☐ Your original retainer was $[________________]. The unearned portion of $[________________] will be refunded within thirty (30) days of the Effective Date. Under Tex. Disc. R.P.C. 1.15(d), this firm must refund any advance payment of fee that has not been earned.

☐ No retainer refund is due because all retainer funds have been fully earned and applied to services rendered.

D. Attorney's Lien Rights

Under Texas common law and applicable statutes, attorneys have the following lien rights:

1. Retaining Lien — A common law possessory lien on the client's papers, money, and property in the attorney's possession as security for unpaid fees.

2. Charging Lien — An equitable lien on the judgment, settlement, or recovery obtained for the client. The charging lien secures payment of fees and expenses from the proceeds of litigation.

Texas Limitation: Under Tex. Disc. R.P.C. 1.15(d), a lawyer may retain papers relating to the client only to the extent permitted by law and only if such retention will not prejudice the client in the subject matter of the representation. If withholding the file would harm the client, the attorney must release it even if fees remain unpaid.

This firm ☐ does / ☐ does not assert an attorney's lien against your file and/or proceeds.

If a lien is asserted:
- A detailed written accounting of amounts claimed under the lien will be provided
- The firm will not retain documents if doing so would prejudice you in a pending matter
- The lien may be resolved through negotiation, mediation, or court determination

E. Fee Dispute Resolution

If you disagree with any charges, you have the following options:

1. State Bar of Texas Client-Attorney Assistance Program (CAAP): The State Bar offers a voluntary complaint and mediation process for fee disputes. Contact CAAP at (800) 932-1900 or texasbar.com.

2. Local Bar Association Fee Dispute Committees: Several local bar associations in Texas (e.g., Dallas Bar Association, Houston Bar Association) operate voluntary fee dispute resolution programs.

3. Mediation — The parties may agree to submit the fee dispute to mediation before a neutral third party.

4. Court Action — Either party may file a civil action in the appropriate Texas court. Note that Texas has no mandatory fee arbitration requirement; fee arbitration programs in Texas are voluntary.

5. State Bar Grievance Complaint: If you believe there has been an ethical violation, you may file a grievance with the Office of Chief Disciplinary Counsel: (800) 932-1900 or texasbar.com/grievances.

VII. SUCCESSOR COUNSEL

A. Recommendation to Retain New Counsel

This firm strongly recommends that you consult with and retain new legal counsel as soon as possible, particularly if:
- You have pending litigation or unresolved legal matters
- Any statute of limitations or court-imposed deadline is approaching
- You require continuing legal advice regarding the subject matter
- A mediation, hearing, or trial date is approaching

B. Referral Resources

The following resources may assist you in locating new counsel:
- State Bar of Texas Lawyer Referral Service: (800) 252-9690 or texasbar.com/lawyerreferral
- Texas RioGrande Legal Aid: (888) 988-9996
- Lone Star Legal Aid: (800) 733-8394
- Texas Law Help: texaslawhelp.org
- Texas Courts Self-Help Resources: txcourts.gov

C. Cooperation with Successor Counsel

Upon receipt of your written authorization (a form is provided below), this firm will:
- Transfer your complete file to your new attorney within fifteen (15) business days
- Make itself reasonably available to answer questions about the file and case history
- Execute any necessary substitution of counsel forms or agreed motions
- Provide copies of all relevant documents
- Cooperate in any court-required transition proceedings

D. Authorization for File Transfer

I, [________________________________], hereby authorize [________________________________] (Firm Name) to release and transfer my complete client file in the matter of [________________________________] to:

New Attorney: [________________________________]
Firm: [________________________________]
State Bar of Texas No.: [____________]
Address: [________________________________]
Phone: [________________________________]
Email: [________________________________]

Client Signature: _________________________________ Date: [__/__/____]

VIII. IMPORTANT LEGAL NOTICE — MALPRACTICE STATUTE OF LIMITATIONS

PLEASE READ THIS SECTION CAREFULLY.

Under Texas Civil Practice and Remedies Code § 16.003, the general statute of limitations for a legal malpractice claim in Texas is two (2) years from the date the cause of action accrues. The cause of action accrues when the client knew or should have known of the facts giving rise to the claim.

Important Additional Provisions:
- Tolling During Underlying Litigation: Under Texas case law (Hughes v. Mahaney & Higgins, 821 S.W.2d 154 (Tex. 1991)), when the alleged malpractice occurs during the prosecution or defense of a claim that proceeds through litigation, the statute of limitations for the malpractice claim is tolled until all appeals are exhausted or the underlying lawsuit is otherwise concluded.
- Fraudulent Concealment: The statute may be tolled if the attorney fraudulently conceals the malpractice.
- This Termination May Affect Timing: The termination of the attorney-client relationship may affect when the statute of limitations begins to run or resumes running for any malpractice claim.

This notice is not an admission that any malpractice has occurred. It is provided solely to inform you of the applicable time limitations under Texas law. If you believe you may have a legal malpractice claim, you should consult promptly with an independent attorney.

IX. FUTURE COMMUNICATIONS

As of the Effective Date, this firm will no longer:
- Provide legal advice or representation regarding this matter
- Monitor deadlines, court filings, or developments in this matter
- Respond to inquiries from opposing parties or counsel on your behalf
- Accept service of process or other legal documents on your behalf

Any communications received by this firm after the Effective Date that pertain to your matter will be forwarded to your last known address or to your successor counsel (if known), but this firm assumes no responsibility for monitoring or acting on such communications.

Do not rely on this firm for any legal services after the Effective Date.

X. DOCUMENT CHECKLIST — ENCLOSED WITH THIS LETTER

The following items are enclosed with or will accompany this letter:

☐ Final billing statement
☐ Trust account disbursement check (if applicable)
☐ Client file (if picked up or delivered simultaneously)
☐ File inventory / index
☐ Motion to Withdraw / Substitution of Counsel form (if applicable)
☐ Authorization for file transfer form
☐ Copy of any pending court orders or deadlines
☐ [________________________________]

XI. ACKNOWLEDGMENT AND RECEIPT

By signing below, I acknowledge that I have received and read this Disengagement and File Closing Letter. I understand that the attorney-client relationship with the above-named attorney/firm is terminated as of the Effective Date. I understand the information regarding pending deadlines, my rights to the file, financial matters, and the recommendation to retain successor counsel.

☐ I request that my file be: ☐ Held by the firm ☐ Transferred to new counsel ☐ Sent to me ☐ Picked up by me

☐ I have no questions at this time.
☐ I would like to discuss the following items before the Effective Date: [________________________________]

Client Signature: _________________________________

Printed Name: [________________________________]

Date: [__/__/____]

XII. ATTORNEY SIGNATURE

I confirm that this letter has been sent to the client at the address and by the method indicated above.

Attorney Signature: _________________________________

Printed Name: [________________________________]

State Bar of Texas No.: [____________]

Date: [__/__/____]

SOURCES AND REFERENCES

• Texas Disciplinary Rules of Professional Conduct (Effective March 7, 2025): texasbar.com/tdrpc/
• Texas Rule 1.15 (Declining or Terminating Representation): legalethicstexas.com/resources/rules/texas-disciplinary-rules-of-professional-conduct/declining-or-terminating-representation/
• Texas Rule of Civil Procedure 10 (Attorney Withdrawal): Texas Rules of Civil Procedure, Rule 10
• Texas Civil Practice & Remedies Code § 16.003: guides.sll.texas.gov/hiring-and-firing-your-lawyer/terminating-the-relationship
• 28 Tex. Admin. Code § 152.6 (Attorney Withdrawal in Workers' Comp): law.cornell.edu/regulations/texas/28-Tex-Admin-Code-SS-152-6
• When It's Time to Say Goodbye (TLIE Article): tlie.org/resource/when-its-time-to-say-goodbye-terminating-the-attorney-client-relationship
• State Bar of Texas CAAP: texasbar.com
• Texas Access to Justice Foundation (IOLTA): teajf.org
• Texas Law Help: texaslawhelp.org