Engagement Letter (Lite Scope) - Alabama

ENGAGEMENT LETTER (LITE SCOPE) — ALABAMA

Attorney / Firm Information

Firm Name: [________________________________]
Attorney Name: [________________________________], Alabama State Bar No. [________]
Address: [________________________________]
City, State, ZIP: [________________________________], AL [__________]
Phone: [________________________________]
Email: [________________________________]
Website: [________________________________]

Date and Client Information

Date: [__/__/____]

To:
Client Name: [________________________________]
Address: [________________________________]
City, State, ZIP: [________________________________]
Phone: [________________________________]
Email: [________________________________]

Re: [________________________________] (Matter Description)
Our File No.: [________________]

Dear [________________________________]:

Thank you for selecting this firm to represent you. This letter sets forth the terms under which we will provide legal services. Please read it carefully and ask any questions before signing. Under Alabama Rules of Professional Conduct Rule 1.5, a written fee agreement reduces the possibility of misunderstanding and is strongly encouraged. Rule 1.5(a)(9) specifically identifies the existence of a written fee agreement signed by the client as a factor in evaluating fee reasonableness.

1. Scope of Representation

1.1 Services to Be Provided

We are engaged to represent you in the following matter(s):

[________________________________]
[________________________________]

Type of Matter (check all that apply):

• ☐ Civil Litigation — Alabama State Court
• ☐ Civil Litigation — Federal Court (Northern / Middle / Southern District of Alabama)
• ☐ Family Law / Domestic Relations
• ☐ Criminal Defense
• ☐ Real Estate Transaction
• ☐ Business Formation / Corporate
• ☐ Estate Planning / Probate
• ☐ Employment Law
• ☐ Administrative / Regulatory Proceeding
• ☐ Workers' Compensation
• ☐ Appeals
• ☐ Other: [________________________________]

1.2 Explicit Exclusions

This engagement does not include the following unless a separate written agreement is executed:

• ☐ Representation in any appeal or post-judgment proceedings
• ☐ Representation in any related or collateral matters
• ☐ Tax advice or tax return preparation
• ☐ Representation in bankruptcy proceedings
• ☐ Collection of any judgment or award obtained
• ☐ Representation before any federal agency
• ☐ Any matter not specifically described in Section 1.1 above

1.3 Limited Scope Representation (Unbundled Legal Services)

Under Alabama Rules of Professional Conduct Rule 1.2(c), a lawyer may limit the scope of the representation if the limitation is reasonable under the circumstances and the client gives informed consent.

• ☐ This engagement is for limited scope representation as follows:
  [________________________________]
  [________________________________]

Client acknowledges: Limited scope means the attorney will handle only the tasks specifically identified above. The client is responsible for all other aspects of the matter.

Alabama-Specific Note: Alabama ARPC Rule 1.2(c) provides that the client may not be asked to agree to representation so limited in scope as to violate Rule 1.1 (Competence), or to surrender the right to terminate the attorney's services, or the right to settle litigation that the attorney might wish to continue.

2. Fee Arrangement

2.1 Fee Structure

Select the applicable fee arrangement:

☐ Option A: Hourly Rate

• Time is billed in increments of [____] of an hour (typically 1/10th = 6 minutes).
• Billable activities include legal research, drafting, telephone calls, emails, court appearances, travel time, and related tasks.
• Rates are subject to adjustment upon 30 days' written notice to the client.

Alabama Note (ARPC Rule 1.5(a)): A lawyer shall not enter into an agreement for, or charge, or collect a clearly excessive fee. Factors considered include the time and labor required, the novelty and difficulty of the questions involved, the skill needed, the fee customarily charged in the locality for similar services, the amount involved and the results obtained, time limitations, the nature and length of the professional relationship, and the experience, reputation, and ability of the attorney. Under Rule 1.5(a)(9), the existence of a signed written fee agreement is itself a factor in assessing reasonableness.

☐ Option B: Flat Fee

• Total flat fee for the above-described scope of work: $[________________]
• Payment schedule:
• $[________________] due upon execution of this agreement
• $[________________] due on [__/__/____]
• $[________________] due upon completion

Alabama Note (ASB Formal Opinion 2008-03): The Alabama State Bar has addressed the treatment of retainers and set (flat) fees. A "true retainer" (a fee paid solely to ensure availability of the attorney) is earned when paid and is the property of the attorney. An advance fee payment against which the attorney will bill must be deposited into the trust account. A flat fee for a specific service, if designated as earned upon receipt and the client gives informed consent, may be treated as the attorney's property, but this must be clearly disclosed in the fee agreement. If the flat fee is not earned upon receipt, it must be held in the client trust account.

☐ Option C: Contingency Fee

• Attorney's fee shall be [________]% of the gross recovery obtained.
• If the matter is resolved:
• Before filing suit: [________]%
• After filing suit but before trial: [________]%
• During or after trial: [________]%
• On appeal: [________]%

Alabama Requirement (ARPC Rule 1.5(c)): A contingent fee agreement shall be in a writing signed by the client and shall state the method by which the fee is to be determined, including the percentage or percentages that shall accrue to the lawyer in the event of settlement, trial or appeal; litigation and other expenses to be deducted from the recovery; and whether such expenses are to be deducted before or after the contingent fee is calculated. Upon conclusion of a contingent fee matter, the lawyer shall provide the client with a written statement stating the outcome and, if there is a recovery, showing the remittance to the client and the method of its determination. A contingent fee is prohibited in domestic relations matters and criminal cases.

• Expenses and costs shall be deducted: ☐ Before ☐ After the contingency fee is calculated.
• Client is responsible for costs and expenses regardless of outcome: ☐ Yes ☐ No

☐ Option D: Hybrid Arrangement

Description: [________________________________]
[________________________________]

2.2 Billing and Payment Terms

• Invoices will be issued: ☐ Monthly ☐ Bi-monthly ☐ Quarterly ☐ Upon completion
• Payment is due within [____] days of the invoice date.
• Payments may be made by: ☐ Check ☐ Credit Card ☐ Wire Transfer ☐ ACH
• A late charge of [____]% per month (not to exceed the lesser of [____]% annually or the maximum rate permitted under Alabama law) will be assessed on balances overdue more than [____] days.

Alabama Usury Note: Alabama Code § 8-8-1 sets the legal rate of interest at 6% per annum unless otherwise agreed. Contractual rates above applicable statutory limits may be unenforceable.

3. Retainer and Trust Account

3.1 Initial Retainer

• An initial retainer of $[________________] is required before work commences.
• The retainer will be deposited into our client trust account in accordance with Alabama Rules of Professional Conduct Rule 1.15 and the Alabama IOLTA program requirements.
• The retainer will be applied against fees and costs as they are incurred. Invoices will reflect amounts drawn from the retainer.

3.2 Replenishment

• If the retainer balance falls below $[________________], Client agrees to replenish the retainer to the original amount within [____] days of written notice.
• Failure to replenish the retainer may constitute grounds for withdrawal from representation pursuant to Alabama ARPC Rule 1.16.

3.3 Trust Account / IOLTA Information

Alabama IOLTA Requirement: Pursuant to Alabama Rules of Professional Conduct Rule 1.15 and Rule 1.15(g), all Alabama lawyers are required to maintain an IOLTA account for client or third-party funds that are nominal in amount or held for only a short period of time. IOLTA participation has been mandatory in Alabama since 2008. Interest earned on IOLTA accounts is remitted to the Alabama Civil Justice Foundation (ACJF). Larger client funds or those held for longer periods must be placed in a separate interest-bearing account for the client's benefit.

3.4 Refund of Unearned Fees

Upon termination of the engagement for any reason, any unearned portion of the retainer or advance fee will be promptly refunded to the Client, as required by Alabama ARPC Rule 1.16(d).

4. Costs and Expenses

In addition to attorney fees, Client is responsible for all costs and expenses incurred in connection with the matter, including but not limited to:

• ☐ Court filing fees and service of process fees
• ☐ Deposition and transcript costs
• ☐ Expert witness fees and consulting fees
• ☐ Travel expenses (mileage, lodging, meals)
• ☐ Copying, printing, and scanning charges
• ☐ Postage and courier / delivery fees
• ☐ Online legal research charges (Westlaw, LexisNexis, etc.)
• ☐ Mediation and arbitration fees
• ☐ Long-distance telephone charges
• ☐ Process server fees
• ☐ Other: [________________________________]

Costs and expenses will be: ☐ Advanced by the firm and billed to Client ☐ Billed directly to Client for payment before incurred

5. Client Responsibilities

Client agrees to:

• ☐ Provide complete, truthful, and timely information and documents relevant to the matter
• ☐ Respond promptly to all communications from this firm (within [____] business days)
• ☐ Appear at all scheduled court hearings, depositions, mediations, and other proceedings
• ☐ Keep the firm informed of any changes in contact information (address, phone, email)
• ☐ Pay all invoices and replenish retainers when due
• ☐ Not discuss the case with opposing parties or their attorneys without consulting this firm first
• ☐ Cooperate fully in discovery and document production
• ☐ Make timely decisions regarding settlement offers and litigation strategy

Failure to fulfill these responsibilities may impair our ability to represent you effectively and may constitute grounds for withdrawal under Alabama ARPC Rule 1.16(b).

6. Communication Policy

6.1 Primary Point of Contact

• Lead attorney for this matter: [________________________________]
• Paralegal / assistant contact: [________________________________]

6.2 Response Times

• We will endeavor to respond to client inquiries within [____] business days.
• Urgent matters should be communicated by telephone to [________________________________].
• Routine status updates will be provided: ☐ Monthly ☐ As developments occur ☐ Upon request

6.3 Preferred Communication Method

• ☐ Email
• ☐ Telephone
• ☐ Secure client portal
• ☐ U.S. Mail
• ☐ Text message (for scheduling only)

6.4 Electronic Communication Confidentiality Warning

Important Notice: Email and other electronic communications are not inherently secure. While we take reasonable steps to protect confidentiality, there is a risk of interception by third parties. By consenting to electronic communication, Client acknowledges and accepts this risk. Under Alabama ARPC Rule 1.6, we have an obligation to make reasonable efforts to prevent the inadvertent or unauthorized disclosure of, or unauthorized access to, information relating to the representation.

7. Termination of Representation

7.1 Client's Right to Terminate

Client may terminate this engagement at any time, for any reason, by providing written notice to the firm. Client remains responsible for payment of all fees earned and costs incurred through the date of termination.

7.2 Attorney's Right to Withdraw

The firm may withdraw from representation as permitted under Alabama Rules of Professional Conduct Rule 1.16, including but not limited to situations where:

• ☐ Client fails to pay fees or costs when due
• ☐ Client fails to cooperate or follow reasonable advice
• ☐ Continued representation would result in a violation of the Rules of Professional Conduct
• ☐ Client engages in conduct that renders representation unreasonably difficult
• ☐ The matter has become financially unfeasible for the client to pursue
• ☐ Other good cause exists

Withdrawal is subject to court approval where required. The firm will provide reasonable notice and take steps to protect the client's interests, including providing reasonable time for the client to retain substitute counsel.

7.3 File Return and Retention

Upon termination, the firm will promptly return client documents and property upon request. The firm may retain copies of the file for its own records.

Alabama Note (ASB Formal Opinion 2010-02): Upon termination, an attorney has a duty to promptly surrender papers and property to which the client is entitled. The client file, including original documents provided by the client and pleadings filed on the client's behalf, generally belongs to the client. The attorney may retain copies. Work product created by the attorney may be retained, subject to the obligation not to prejudice the client's interests.

8. Conflicts of Interest and Ethics Disclosures

8.1 Conflict Check

We have conducted a conflict check as of the date of this letter and have not identified any conflicts of interest that would prevent us from representing you in this matter. If a conflict arises during the course of representation, we will promptly notify you and take appropriate action under Alabama ARPC Rules 1.7 and 1.9.

8.2 Waiver of Conflict (if applicable)

• ☐ A potential conflict of interest has been identified and is described as follows:
  [________________________________]
  [________________________________]

Client provides informed consent, confirmed in writing, to the conflict after full disclosure: ☐ Yes ☐ No

8.3 Former or Current Client Relationships

• ☐ This firm has previously represented or currently represents: [________________________________]
  in matters that are: ☐ Related ☐ Unrelated to the current engagement.

9. Limitation of Liability and Dispute Resolution

9.1 Fee Disputes

If a dispute arises regarding fees charged by this firm, we encourage resolution through the following methods:

• ☐ Mediation through [________________________________] or the Alabama State Bar Lawyer Referral Service
• ☐ Binding arbitration (see important Alabama-specific note below)
• ☐ Litigation in the courts of the State of Alabama

Alabama-Specific Note (ASB Formal Opinion 2002-04): Alabama ethics rules permit an attorney to include a binding arbitration provision in a fee contract only if the client is independently represented by counsel in connection with the negotiation and execution of the contract. Without independent representation, mandatory binding arbitration clauses in engagement letters may be ethically impermissible.

9.2 Limitation of Liability

Alabama Note: Under Alabama ARPC Rule 1.8(h), a lawyer shall not make an agreement prospectively limiting the lawyer's liability to a client for malpractice unless the client is independently represented in making the agreement.

• ☐ No limitation of liability applies
• ☐ With independent counsel's consent, liability is limited to: $[________________]

10. No Guarantee of Outcome

Client understands and acknowledges that:

• No attorney can guarantee the outcome of any legal matter.
• Any expressions of opinion regarding the likely outcome or potential value of a case are based on the attorney's professional judgment and experience but are not promises or guarantees.
• The legal system is inherently uncertain, and outcomes depend on many factors beyond the attorney's control, including the actions of courts, opposing parties, witnesses, and government agencies.
• Past results in similar matters do not guarantee a similar outcome in Client's case.

11. Governing Law

This agreement shall be governed by the laws of the State of Alabama and the Alabama Rules of Professional Conduct. Any disputes arising from this agreement shall be resolved in the state or federal courts located in [________________________________] County, Alabama, unless an alternative dispute resolution method is selected above.

12. Entire Agreement

This letter constitutes the entire agreement between the parties regarding the subject matter herein. It supersedes all prior oral and written agreements or understandings. This agreement may not be modified except by a written instrument signed by both parties.

13. Acknowledgment and Signatures

By signing below, Client acknowledges that:

• ☐ Client has read and understands the terms of this engagement letter
• ☐ Client has had an opportunity to ask questions about the terms
• ☐ Client agrees to the scope of representation described herein
• ☐ Client agrees to the fee arrangement selected above
• ☐ Client understands that no outcome is guaranteed
• ☐ Client has received a copy of this executed agreement

Attorney Signature

Attorney Name: [________________________________]
Signature: ______________________________________
Date: [__/__/____]
Alabama State Bar No.: [________________]

Client Signature

Client Name: [________________________________]
Signature: ______________________________________
Date: [__/__/____]

If Client is an entity:
Printed Name of Authorized Representative: [________________________________]
Title: [________________________________]

14. Attachments Checklist

• ☐ Fee Schedule (if applicable)
• ☐ Flat Fee / Contingency Fee Agreement Addendum (if applicable)
• ☐ Conflict Waiver (if applicable)
• ☐ IOLTA Trust Account Disclosure
• ☐ Privacy and Electronic Communication Policy
• ☐ Client Intake Questionnaire
• ☐ Authorization for Release of Information
• ☐ Other: [________________________________]

Sources and References

• Alabama Rules of Professional Conduct — https://judicial.alabama.gov/library/RulesBarConduct
• Alabama ARPC Rule 1.5 (Fees) — https://judicial.alabama.gov/docs/library/rules/cond1_5.pdf
• Alabama ARPC Rule 1.15 (Safekeeping Property) — https://judicial.alabama.gov/docs/library/rules/cond1_15.pdf
• Alabama ARPC Rule 1.8 (Conflict of Interest) — https://judicial.alabama.gov/docs/library/rules/cond1_8.pdf
• ASB Formal Opinion 2008-03 (Retainers and Set Fees) — https://www.alabar.org/office-of-general-counsel/formal-opinions/2008-03/
• ASB Formal Opinion 2002-04 (Binding Arbitration in Fee Contracts) — https://www.alabar.org/office-of-general-counsel/formal-opinions/2002-04/
• ASB Formal Opinion 2010-02 (File Retention and Ownership) — https://www.alabar.org/office-of-general-counsel/formal-opinions/2010-02/
• Alabama Trust Accounting Guide — https://www.alabar.org/assets/2019/02/Trust-Accounting-2016_v2.pdf
• Alabama Civil Justice Foundation (IOLTA) — https://acjf.org/
• ABA Model Rules of Professional Conduct — https://www.americanbar.org/groups/professional_responsibility/publications/model_rules_of_professional_conduct/

This template is provided by ezel.ai for informational purposes only. It does not constitute legal advice. You must have this document reviewed and customized by a qualified attorney licensed in Alabama before use.