Engagement Letter (Lite Scope) - Texas

ENGAGEMENT LETTER (LITE SCOPE) — TEXAS

Attorney / Firm Information

Firm Name: [________________________________]
Attorney Name: [________________________________], State Bar of Texas No. [________]
Address: [________________________________]
City, State, ZIP: [________________________________], TX [__________]
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.

TEXAS NOTE: Under Texas Disciplinary Rules of Professional Conduct Rule 1.04(a), a lawyer shall not enter into an arrangement for, charge, or collect an illegal fee or unconscionable fee. A failure to give at the outset a clear and accurate explanation of how a fee is to be calculated may indicate a fee could be unconscionable. While Texas does not require a written fee agreement for all engagements (except contingency fee matters), the State Bar of Texas strongly recommends written fee agreements to prevent misunderstandings and potential grievances.

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 — Texas State Court (District / County / Justice of the Peace)
• ☐ Civil Litigation — Federal Court (Northern / Southern / Eastern / Western District of Texas)
• ☐ Family Law / Domestic Relations
• ☐ Criminal Defense
• ☐ Real Estate Transaction
• ☐ Oil & Gas / Mineral Rights
• ☐ Business Formation / Corporate
• ☐ Estate Planning / Probate
• ☐ Employment Law
• ☐ Personal Injury / Tort
• ☐ Workers' Compensation
• ☐ Immigration
• ☐ Administrative / Regulatory Proceeding
• ☐ Appeals (Court of Appeals / Texas Supreme Court / Court of Criminal 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 or state agency
• ☐ Any matter not specifically described in Section 1.1 above

1.3 Limited Scope Representation (Unbundled Legal Services)

Under Texas Disciplinary Rules of Professional Conduct Rule 1.02(b), a lawyer may limit the scope, objectives, and general methods of the representation if the client consents after consultation.

• ☐ 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.

Texas-Specific Note: Texas Rule of Civil Procedure 10 permits attorneys to provide limited scope representation. An attorney providing limited scope services should clearly define the limitations in writing. Under TRCP Rule 10, an attorney's signature on a document filed in limited scope representation does not make the attorney the attorney of record for all purposes in the suit.

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.

Texas Note (TDRPC Rule 1.04(a)-(b)): A fee is unconscionable if a competent lawyer could not form a reasonable belief that the fee is reasonable. Factors considered include: the time and labor required; the novelty and difficulty of the questions; the skill needed to properly perform the legal service; the fee customarily charged in the locality; the amount involved and results obtained; time limitations imposed by the client or circumstances; the nature and length of the professional relationship; the experience, reputation, and ability of the lawyer; and whether the fee is fixed or contingent.

☐ 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

Texas Note on Flat Fees (TDRPC Rule 1.14): Under Texas law, advance fees (including flat fees paid before services are rendered) must be deposited into the client trust account until earned, unless the fee is clearly designated as a "true retainer" for the attorney's availability. Once a flat fee is earned through the rendition of services, it may be withdrawn from the trust account. A flat fee agreement should clearly specify when the fee is deemed earned. Texas Ethics Opinion 611 addresses the treatment of advance fee payments.

• ☐ Flat fee is earned upon completion of services (held in trust until earned)
• ☐ Flat fee is a true retainer for availability — earned upon receipt
• ☐ Flat fee is earned in stages as described in the payment schedule above

☐ Option C: Contingency Fee (Written Agreement REQUIRED by Rule 1.04(d))

TEXAS CONTINGENCY FEE REQUIREMENTS (TDRPC Rule 1.04(d)): A fee may be contingent on the outcome of a matter for which the services are rendered, except in a matter in which a contingent fee is prohibited by paragraph (e) (domestic relations and criminal defense matters). A contingent fee agreement must be in writing and signed by the client. The agreement must state:
- The method by which the fee is to be determined
- The percentage(s) that accrue to the lawyer in the event of settlement, trial, or appeal (if differentiated)
- Litigation and other expenses to be deducted from the recovery
- Whether expenses are deducted before or after the contingent fee is calculated

• 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: [________]%

Texas Closing Statement Requirement (Rule 1.04(d)): Upon conclusion of a contingent fee matter, the lawyer shall provide the client with a written statement describing the outcome of the matter and, if there is a recovery, showing the remittance to the client and the method of its determination.

• 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

Texas Note — No Statutory Fee Cap: Unlike some states, Texas does not impose a statutory cap on contingency fee percentages for personal injury or medical malpractice cases. However, a contingency fee that is unconscionable (Rule 1.04(a)) is still prohibited.

☐ 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 Texas law) will be assessed on balances overdue more than [____] days.

Texas Usury Note: Texas Finance Code Chapter 302 governs maximum interest rates. The general maximum rate for written contracts is 18% per annum (Tex. Fin. Code § 302.001). The "indicated rate ceiling" is the weekly ceiling published by the Texas Office of Consumer Credit Commissioner. Criminal usury applies to rates exceeding twice the applicable ceiling.

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 IOLTA trust account in accordance with Texas Disciplinary Rules of Professional Conduct Rule 1.14.
• 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 Texas TDRPC Rule 1.15.

3.3 Texas Trust Account / IOLTA Information

Texas IOLTA Requirement (TDRPC Rule 1.14): A lawyer shall hold funds and other property belonging in whole or in part to clients or third persons in a separate trust account maintained in the state where the lawyer's office is situated (or elsewhere with consent). Client funds that are nominal in amount or held for a short period must be deposited into an Interest on Lawyers' Trust Account (IOLTA) at an eligible financial institution. The Texas Access to Justice Foundation (TAJF) administers the IOLTA program, and interest from IOLTA accounts supports civil legal aid.

Record-Keeping: Complete records of trust account funds must be kept and preserved for a period of five years after termination of the representation. Monthly reconciliation of trust accounts is required.

Overdraft Notification: Eligible financial institutions participating in the IOLTA program must agree to provide overdraft notification to the State Bar of Texas.

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 Texas TDRPC Rule 1.15(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 fees (Texas may require mediation in certain cases)
• ☐ Arbitration fees
• ☐ Process server fees
• ☐ E-filing fees
• ☐ Other: [________________________________]

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

Texas Attorney's Fee Recovery Note: Under Texas Civil Practice and Remedies Code Chapter 38, a person may recover reasonable attorney's fees in addition to the amount of a valid claim for certain causes of action (breach of contract, etc.). This provision may affect cost recovery expectations in your case.

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 Texas TDRPC Rule 1.15(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

Texas Note (TDRPC Rule 1.03): A lawyer shall keep a client reasonably informed about the status of a matter and promptly comply with reasonable requests for information. A lawyer shall explain a matter to the extent reasonably necessary to permit the client to make informed decisions regarding the representation. When a lawyer has not regularly represented the client, the basis or rate of the fee shall be communicated to the client, preferably in writing, before or within a reasonable time after commencing the representation.

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 under Texas TDRPC Rule 1.05 (Confidentiality of Information), there is a risk of interception by third parties. By consenting to electronic communication, Client acknowledges and accepts this risk.

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. Under Texas TDRPC Rule 1.02(a)(4), a client has the absolute right to discharge a lawyer at any time, with or without cause. 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 Texas Disciplinary Rules of Professional Conduct Rule 1.15, including but not limited to situations where:

• ☐ Client fails to pay fees or costs when due and has been given reasonable warning
• ☐ Client fails to cooperate or follow reasonable advice
• ☐ Continued representation would result in a violation of the Disciplinary Rules
• ☐ Client engages in conduct that renders representation unreasonably difficult
• ☐ Withdrawal can be accomplished without material adverse effect on the client's interests
• ☐ Other good cause exists under Rule 1.15(b)

Texas Note (Rule 1.15(c)): When ordered to do so by a tribunal, a lawyer shall continue representation even if good cause for terminating the representation exists. Withdrawal in pending litigation is subject to court approval under Texas Rule of Civil Procedure 10.

7.3 File Return

Upon termination, the firm will promptly return client documents and property upon request. Under Texas TDRPC Rule 1.15(d), the attorney must surrender papers and property to which the client is entitled, refund any advance payments of fee that have not been earned, and take other actions reasonably necessary to protect 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 Texas TDRPC Rules 1.06 (Conflict of Interest: General Rule) and 1.09 (Conflict of Interest: Former Client).

8.2 Waiver of Conflict (if applicable)

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

Client provides informed consent to the conflict after full disclosure: ☐ Yes ☐ No

Texas Note (TDRPC Rule 1.06): In Texas, a lawyer must obtain consent after full disclosure of the existence, nature, implications, and possible adverse consequences of the common representation and the advantages involved. The consent should be confirmed in writing.

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:

• ☐ Client-Attorney Assistance Program (CAAP) — a confidential statewide dispute resolution service of the State Bar of Texas (1-800-932-1900)
• ☐ Mediation through [________________________________] or a qualified neutral mediator
• ☐ Binding arbitration under the Texas General Arbitration Act (Tex. Civ. Prac. & Rem. Code Chapter 171)
• ☐ Litigation in the courts of the State of Texas

Texas Fee Dispute Note: The State Bar of Texas does not have a mandatory fee arbitration program. However, the Client-Attorney Assistance Program (CAAP) provides a free, confidential service to help resolve minor disagreements between attorneys and clients. If CAAP cannot resolve the dispute, the client may file a grievance with the Office of Chief Disciplinary Counsel, though the State Bar cannot order fee refunds or reductions. The Client Security Fund of the State Bar of Texas may reimburse clients for losses caused by dishonest conduct of their attorneys.

9.2 Limitation of Liability

Texas Note: Under Texas TDRPC Rule 1.08(g), a lawyer shall not make an agreement prospectively limiting the lawyer's liability to a client for malpractice unless permitted by law and 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 Texas and the Texas Disciplinary Rules of Professional Conduct. Any disputes arising from this agreement shall be resolved in the state or federal courts located in [________________________________] County, Texas, 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 been informed of the Client-Attorney Assistance Program (CAAP) for fee disputes
• ☐ Client has received a copy of this executed agreement

Attorney Signature

Attorney Name: [________________________________]
Signature: ______________________________________
Date: [__/__/____]
State Bar of Texas 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)
• ☐ Contingency Fee Agreement per TDRPC Rule 1.04(d) (if applicable)
• ☐ Closing Statement Template for Contingency Fee Matters (if applicable)
• ☐ Conflict Waiver (if applicable)
• ☐ Trust Account / IOLTA Disclosure
• ☐ Privacy and Electronic Communication Policy
• ☐ Client Intake Questionnaire
• ☐ Authorization for Release of Information
• ☐ CAAP Information Sheet
• ☐ Other: [________________________________]

Sources and References

• Texas Disciplinary Rules of Professional Conduct (Effective March 7, 2025) — https://www.texasbar.com/tdrpc/
• TDRPC Rule 1.04 (Fees) — https://www.legalethicstexas.com/resources/rules/texas-disciplinary-rules-of-professional-conduct/fees/
• TDRPC Rule 1.14 (Safekeeping Property) — https://www.law.uh.edu/libraries/ethics/trpc/1.14.html
• Texas Center for Legal Ethics — https://www.legalethicstexas.com/
• State Bar of Texas — Trust Accounts Guide — https://www.texasbar.com/Content/NavigationMenu/ForLawyers/ResourceGuides1/TrustAccounts/default.htm
• State Bar of Texas — Resolving Fee Disagreements — https://www.texasbar.com/Content/NavigationMenu/ForThePublic/ProblemswithanAttorney/ResolvingFeeDisagreements/default.htm
• State Bar of Texas — Client-Attorney Assistance Program (CAAP) — https://www.texasbar.com/Content/NavigationMenu/ForThePublic/ProblemswithanAttorney/CAAP/default.htm
• State Bar of Texas — Client Security Fund — https://www.texasbar.com/AM/Template.cfm?Section=Free_Legal_Information2&Template=/CM/ContentDisplay.cfm&ContentID=34079
• Texas Access to Justice Foundation (IOLTA) — https://www.teajf.org/attorneys/lawyer's-guide.aspx
• Texas Finance Code Chapter 302 (Interest) — https://statutes.capitol.texas.gov/Docs/FI/htm/FI.302.htm
• McGinnis Lochridge — Fee Agreements and Engagement Letters in Texas — https://www.mcginnislaw.com/media/blogpost/15293_Fee_Agreements_and_Engagement_Letters_Soltero__FINAL--Oct_25_2017_..pdf

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 Texas before use.