Alaska Engagement Letter Compliance Review

ALASKA ENGAGEMENT LETTER COMPLIANCE REVIEW

Reviewer and Matter Information

Part 1. Threshold — Form of Fee Communication (ARPC 1.5(b))

☐ Scope of representation has been communicated to the client
☐ Basis or rate of fee has been communicated to the client
☐ Expenses for which the client will be responsible have been communicated to the client
☐ Communication was made before or within a reasonable time after commencing the representation
☐ Communication is in writing (best practice) — ☐ Yes ☐ No (document basis for oral disclosure):
[____________________________________________________________]
☐ If this is a regularly represented client on the same basis or rate previously communicated, that prior basis is documented in the file
☐ Any change in the basis or rate (e.g., rate increase, new timekeeper rates) will be communicated to the client in advance, in writing

Part 2. ARPC 1.5(c) — Contingency Fee Agreements (Mandatory Written)

The agreement is in writing and:

☐ Signed by the client (and signed by the attorney as best practice)
☐ States the contingency fee rate the client and attorney have agreed upon: [____]%
☐ States the method by which the fee is to be determined, including the percentage at each stage:

☐ States litigation and other expenses to be deducted from the recovery
☐ States whether expenses are deducted before or after the contingent fee is calculated:
☐ Before (net recovery method)
☐ After (gross recovery method)
☐ Clearly notifies the client of any expenses for which the client will be liable whether or not the client is the prevailing party
☐ Includes a statement addressing the client's potential liability for the prevailing party's costs, attorney's fees, and other expenses under Alaska Civil Rule 82 / Rule 79 (the Alaska Comment to Rule 1.5 suggests language substantially as follows: "Under the law, you may have to pay some or all of the costs, fees and expenses of your opponents in your case if you don't win your case or if you reject an offer that turns out to be better than your results at trial.")
☐ Provides that upon conclusion of the matter, the attorney will provide a written statement of outcome, and if there is a recovery, showing the remittance to the client and the method of its determination (ARPC 1.5(c))
☐ A signed copy of the agreement was provided to the client

Part 3. ARPC 1.5(d) — Prohibited Contingency Arrangements

The agreement does not provide for a contingency fee in any of the following matters:

☐ A domestic relations matter, the payment or amount of which is contingent upon the securing of a divorce, or upon the amount of alimony, support, or property settlement in lieu thereof (ARPC 1.5(d)(1))
☐ Representation of a defendant in a criminal case (ARPC 1.5(d)(2))

Conclusion: ☐ No prohibited contingency arrangement is present ☐ Issue identified — revise before signing

Part 4. ARPC 1.5(a) — Reasonableness Factors

The fee was evaluated against each of the following ARPC 1.5(a) factors, and the file documents the analysis:

☐ The time and labor required, the novelty and difficulty of the questions involved, and the skill requisite to perform the legal service properly
☐ The likelihood that the acceptance of the particular employment will preclude other employment by the lawyer (Alaska deletes the "if apparent to the client" qualifier)
☐ The fee customarily charged in the locality for similar legal services
☐ The amount involved and the results obtained
☐ The time limitations imposed by the client or by the circumstances
☐ The nature and length of the professional relationship with the client
☐ The experience, reputation, and ability of the lawyer or lawyers performing the services
☐ Whether the fee is fixed or contingent

☐ The fee is neither unreasonable nor an unreasonable amount for expenses

Part 5. ARPC 1.5(e) — Fee Division Between Lawyers Not in the Same Firm

A division of a fee between lawyers not in the same firm is permitted only if all three of the following are satisfied:

☐ The division is in proportion to the contribution of each firm, OR, by written agreement with the client, each firm assumes joint responsibility for the representation
☐ The client agrees to the participation of each firm, including the share each firm will receive, AND that participation is confirmed to the client in writing
☐ The total fee is reasonable under ARPC 1.5(a)
☐ The referring lawyer reasonably believes the receiving lawyer is competent to handle the matter (Comment to ARPC 1.5; ARPC 1.1)

Documentation:

Part 6. ARPC 1.15 — Safekeeping Property and Trust Account Compliance

☐ Advance fees not yet earned will be deposited into the client trust account (IOLTA or, where appropriate, a separate non-IOLTA interest-bearing trust account for the client's benefit)
☐ Earned fees are withdrawn from trust promptly and transferred to the operating account; the agreement explains the firm's earned-fee withdrawal procedure
☐ The trust account is held at a financial institution that has signed the Alaska Bar Association Overdraft Notification Agreement under Bar Rule 15.1
☐ The lawyer has signed and filed the Waiver of Confidentiality with Bar Counsel (Bar Rule 15.1)
☐ The account is clearly labeled as a "Trust" or "Escrow" account (Bar Rule 15.1)
☐ IOLTA-eligible funds (nominal/short-term) are deposited into a pooled IOLTA account with interest payable to the Alaska Bar Foundation
☐ Non-IOLTA-eligible funds (large or long-term enough to earn net interest for the client) are placed in a separate interest-bearing account for the benefit of the specific client
☐ The agreement explains how unearned fees will be refunded upon termination (ARPC 1.16(d))
☐ The agreement addresses the firm's trust accounting records retention (minimum 5 years after termination of representation, ARPC 1.15)
☐ Replenishment threshold (if any) is clearly stated: replenish when balance falls below $[________________]
☐ For true retainers (paid to secure the lawyer's availability), the agreement labels the payment as such and explains that it is earned on receipt; otherwise, advance fees are treated as client funds and deposited to trust until earned
☐ The firm's monthly three-way reconciliation procedure (book balance ↔ bank statement ↔ sum of client ledgers) is documented

Part 7. ARPC 1.2 — Scope of Representation and Allocation of Authority

☐ The scope of representation is described with reasonable specificity (matter, forum, services included)
☐ Services expressly excluded are listed (e.g., appeals, collection of judgment, related regulatory or tax issues, immigration consequences of criminal pleas)
☐ Decisions reserved to the client are identified (objectives of representation; in a criminal matter, the plea, jury vs. bench trial, and testifying)
☐ If the representation is limited in scope under ARPC 1.2(c):
☐ The limitation is reasonable under the circumstances
☐ The client has given informed consent
☐ The agreement documents the limitation in writing
☐ Any required notice of limited appearance in court has been planned for
☐ The agreement states that the lawyer will not counsel or assist the client in conduct the lawyer knows is criminal or fraudulent (ARPC 1.2(d))

Part 8. ARPC 1.4 — Communication

☐ The agreement identifies the primary contact attorney and a back-up contact
☐ The agreement describes how the firm will keep the client reasonably informed about the status of the matter
☐ The agreement explains how material developments and decisions to be made by the client will be communicated (ARPC 1.4(a))
☐ The agreement explains how material changes to the fee or scope will be communicated (advance written notice of rate increases; signed amendment for scope changes per ARPC 1.5(b))
☐ The agreement identifies preferred channels (mail, email, secure portal) and expected response times
☐ The agreement notes the lawyer's duty to explain matters to the extent reasonably necessary to permit the client to make informed decisions (ARPC 1.4(b))

Part 9. ARPC 1.16 — Declining or Terminating Representation

☐ The agreement summarizes circumstances under which the attorney may withdraw (ARPC 1.16(b))
☐ The agreement summarizes circumstances under which the attorney must withdraw (ARPC 1.16(a))
☐ The agreement explains the lawyer's obligation to take reasonable steps to protect the client's interests upon termination (ARPC 1.16(d))
☐ The agreement explains the refund of unearned fees and return of the client file upon termination
☐ The agreement addresses the firm's file retention and destruction policy (consistent with ARPC 1.15's 5-year record-retention floor for trust account records, and the firm's policy for other matter documents)

Part 10. Costs, Expenses, and Alaska-Specific Fee Risk

☐ Categories of costs the client will bear are itemized (filing fees, deposition transcripts, expert witnesses, travel, etc.)
☐ The cost-advance policy is stated (who advances costs; whether the firm seeks reimbursement of advanced costs at the end of the matter)
☐ For litigation matters in Alaska state court, the agreement explains the client's potential exposure under Alaska Civil Rule 82 (prevailing-party attorney's fees), Civil Rule 79 (costs), and Civil Rule 68 (offer of judgment fee/cost shifting)
☐ For federal court matters, applicable federal fee-shifting statutes are summarized as relevant
☐ The agreement addresses how third-party liens (medical, subrogation, Medicare/Medicaid) will be handled out of any recovery (contingency matters)

Part 11. Other Required and Recommended Disclosures

☐ Conflicts of interest — agreement discloses that a conflict check has been completed and addresses procedures if a conflict later arises (ARPC 1.7, 1.10); any required informed consent confirmed in writing
☐ Confidentiality — agreement acknowledges the duty under ARPC 1.6 and identifies any contemplated third-party disclosures (co-counsel, vendors, cloud services)
☐ Professional liability insurance — disclosure of whether the firm maintains professional liability insurance (Alaska requires annual disclosure to the Bar; many firms also disclose to clients as best practice)
☐ Settlement authority — agreement states that decisions regarding settlement and other objectives rest with the client (ARPC 1.2(a))
☐ Use of generative AI — agreement discloses any intended use of generative AI in the representation and the firm's supervision policy (ARPC 1.1 competence, ARPC 1.6 confidentiality, ARPC 5.3 supervision of nonlawyer assistance)
☐ Cybersecurity / electronic communication — agreement explains use of email, cloud storage, e-signature, and any associated risks; client consent obtained where appropriate
☐ Successor counsel / file release — agreement explains how the client file will be released upon request (ARPC 1.16(d))
☐ Dispute resolution / fee disputes — agreement notifies the client of the Alaska Bar Association's fee arbitration program (where applicable) and any contractual ADR provisions; the agreement does not require advance waiver of disciplinary remedies

Part 12. Signature and Delivery Verification

☐ Engagement letter signed by the attorney
☐ Engagement letter signed by the client (or authorized representative) — mandatory for contingency under ARPC 1.5(c)
☐ A signed copy delivered to the client
☐ Method of delivery documented: ☐ In person ☐ Mail ☐ Email ☐ Secure portal ☐ E-signature platform: [________________]
☐ Signed copy retained in the matter file (paper or electronic) with date-stamped record of delivery
☐ For contingency matters, calendar entry created to provide the ARPC 1.5(c) written statement of outcome and remittance upon conclusion of the matter

Part 13. Reviewer Certification

I have reviewed the above engagement letter for compliance with the Alaska Rules of Professional Conduct (including ARPC 1.5, 1.15, 1.2, 1.4, and 1.16), the Alaska Bar Rules (including Bar Rule 15.1 trust account requirements and Bar Rule 15 grounds for discipline), and current Alaska Bar Association guidance, and certify the following:

☐ All applicable items are checked, OR
☐ Deficiencies have been identified and a remediation plan is documented below

Deficiencies / Remediation Notes:

[____________________________________________________________]

[____________________________________________________________]

[____________________________________________________________]

Reviewer Signature: ________________________________ Date: [__/__/____]

Reviewer Printed Name and Alaska Bar No.: [________________________________]

Sources and References

• Alaska Rules of Professional Conduct (Alaska Court System)
• Alaska Bar Rules (Alaska Court System)
• Alaska Bar Association — Interest on Lawyers Trust Accounts (IOLTA)
• Alaska Bar Rule 15.1 — Maintenance of Trust Funds (SCO 1706)
• Important Requirements in New Alaska Bar Rule 15.1 (Alaska Bar Association)
• Alaska Bar Association — Overdraft Notification Agreement
• Alaska Bar Association — Waiver of Confidentiality (Bar Rule 15.1)
• SCO 1392 — Amendment to Comment to Alaska Rule of Professional Conduct 1.5
• Alaska Bar Foundation (IOLTA program administration)
• Alaska Court System — Supreme Court Orders (SCO Library)