Connecticut Engagement Letter Compliance Review

CONNECTICUT ENGAGEMENT LETTER COMPLIANCE REVIEW

Reviewer and Matter Information

Part 1. Threshold Question — Is a Written Fee Communication Required?

☐ Contingency fee agreement — writing signed by the client is mandatory under Conn. RPC 1.5(c) (no dollar threshold)
☐ Non-contingency engagement (hourly, flat, hybrid) — writing strongly preferred under Conn. RPC 1.5(b); the basis or rate must be communicated within a reasonable time (commentary: no more than 10 days after commencement)
☐ The client is a regularly represented client charged on the same basis or rate (Conn. RPC 1.5(b) exception) — confirm in matter file
☐ Personal injury, wrongful death, or property damage matter — Conn. Gen. Stat. § 52-251c applies and the contract must comply with all applicable provisions of the Conn. Rules of Professional Conduct

Conclusion: ☐ Written fee agreement required (and provided) ☐ Oral arrangement permitted under § 1.5(b) exception (document basis) ☐ Contingency — written signed agreement obtained

Part 2. Contingency Fee Agreement — Conn. RPC 1.5(c) Requirements

The agreement is in writing and:

☐ Signed by the client (Conn. RPC 1.5(c) — signature of client is mandatory)
☐ States 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: [____]%
☐ Appeal: [____]%
☐ States litigation and other expenses to be deducted from the recovery
☐ States whether such expenses are to be deducted before or after the contingent fee is calculated:
☐ Percentage applied before deduction of costs (gross recovery)
☐ Percentage applied after deduction of costs (net recovery)
☐ Clearly notifies the client of any expenses for which the client will be liable whether or not the client is the prevailing party
☐ Provides that, upon conclusion of the matter, the lawyer will 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 copy of the signed agreement is delivered to the client

Part 3. Conn. Gen. Stat. § 52-251c — Statutory Sliding Scale Cap (PI, Wrongful Death, Property Damage)

Complete this Part only if the matter is personal injury, wrongful death, or property damage.

3.1 Statutory Schedule (Conn. Gen. Stat. § 52-251c(b))

The contingency fee does not exceed the following percentages of damages awarded and received by the claimant (or settlement amount received):

☐ The agreement reproduces the statutory schedule verbatim (or by clear reference)
☐ The agreement states that this fee is the exclusive method of payment of the attorney by the claimant under § 52-251c(b)
☐ The percentage is applied to the damages awarded and received or the settlement amount received (not to gross recovery before satisfaction of liens unless the agreement specifies)

3.2 Optional Waiver of the § 52-251c(b) Schedule (§ 52-251c(c)–(e))

Complete this section only if the lawyer seeks to charge a fee in excess of the statutory cap.

☐ The matter is substantially complex, unique, or different from other PI/wrongful death/property damage matters — document basis:
☐ Involves complex factual medical or legal issues
☐ Involves serious permanent personal injury or death
☐ Is likely to require extensive investigation and discovery (multiple depositions)
☐ Requires independent expert witness testimony (expert who has not participated in claimant's care or any official investigation)
☐ Prior to the client signing the waiver agreement, the attorney has:
☐ Explained the percentage limitations of § 52-251c(b) and the reasons the attorney is unable to abide by those limitations
☐ Advised the client of the right to seek representation by another attorney willing to abide by the statutory schedule
☐ Allowed the client a sufficient period of time to review the proposed waiver agreement and seek other representation if desired
☐ The waiver agreement:
☐ Is in writing
☐ Sets forth in full the fee schedule of § 52-251c(b)
☐ Contains the following statement, printed in boldface type at least 12 points in size, in substantially this form:

"I UNDERSTAND THAT THE FEE SCHEDULE SET FORTH IN SECTION 52-251c OF THE CONNECTICUT GENERAL STATUTES LIMITS THE AMOUNT OF ATTORNEY'S FEES PAYABLE BY A CLAIMANT AND THAT THE STATUTE WAS INTENDED TO INCREASE THE PORTION OF THE JUDGMENT OR SETTLEMENT THAT WAS ACTUALLY RECEIVED BY A CLAIMANT. NOTWITHSTANDING THAT THE LEGISLATIVE INTENT IN ENACTING THAT FEE SCHEDULE WAS TO CONFER A BENEFIT ON A CLAIMANT LIKE MYSELF, I KNOWINGLY AND VOLUNTARILY WAIVE THAT FEE SCHEDULE IN THIS CLAIM OR CIVIL ACTION."
☐ Is signed and acknowledged by the claimant before a notary public or other person authorized to take acknowledgments

Part 4. Non-Contingency Fee Communication — Conn. RPC 1.5(b)

The written fee communication contains, at minimum:

☐ The scope of the representation
☐ The basis or rate of the fee
☐ The expenses for which the client will be responsible
☐ Delivered to the client before or within a reasonable time after commencing representation (commentary: no more than 10 days)
☐ Any changes in the basis or rate of fees or expenses will be communicated to the client in writing before the fees or expenses are billed at the higher rate
☐ If fees are to be shared with a lawyer not in the same firm, that information is in the fee letter (see Part 7)

Standard Rates Disclosed:

Recommended additional terms (good business practice, not required by Rule 1.5):

☐ How and when bills will be sent
☐ Payment terms, discounts, and interest on arrears
☐ Liability for fees and costs of collection
☐ Withdrawal for unpaid bills (consistent with Conn. RPC 1.16)
☐ Dispute resolution mechanism (mediation/arbitration) for fee disputes

Part 5. Conn. RPC 1.5(a) — Reasonableness Factors

The fee is reasonable in light of the following Conn. RPC 1.5(a) factors (and documented as such):

☐ Time and labor required; novelty and difficulty of the questions; skill required
☐ Likelihood (if apparent to the client) that acceptance will preclude other employment
☐ Fee customarily charged in the locality for similar legal services
☐ Amount involved and the results obtained
☐ Time limitations imposed by the client or by the circumstances
☐ Nature and length of the professional relationship with the client
☐ Experience, reputation, and ability of the lawyer(s) performing the services
☐ Whether the fee is fixed or contingent

Part 6. Conn. RPC 1.5(d) — Prohibited Contingent Fees

The agreement does not contain any fee arrangement that is prohibited under Conn. RPC 1.5(d):

☐ No contingent fee in a domestic relations matter where payment or amount is contingent upon securing a divorce, the amount of alimony or support, or property settlement in lieu thereof
☐ No contingent fee for representing a defendant in a criminal case

Part 7. Conn. RPC 1.5(e) — Fee Division Between Lawyers Not in the Same Firm

Complete this Part only if fees will be divided with a lawyer not in the same firm.

☐ The client has been advised in writing of the compensation-sharing agreement and the participation of all lawyers/firms involved
☐ The client does not object to the arrangement (signature or written confirmation strongly recommended)
☐ The total fee is reasonable
☐ The referring attorney reasonably believes the receiving attorney is competent to handle the matter (Conn. RPC 1.1 incorporation)
☐ For contingent-fee matters: the fee-division terms are disclosed in the same writing signed by the client that satisfies Conn. RPC 1.5(c)
☐ For referrals to lawyers in jurisdictions that prohibit pure referral fees: arrangement structured consistent with CBA Informal Op. 20-02 (e.g., separate fee for services actually rendered)

Part 8. Conn. RPC 1.15 / Practice Book §§ 2-27, 2-28 — Trust Accounts and IOLTA

☐ Advance fees and unearned funds are deposited into the firm's client trust account (separate from the firm's operating account)
☐ The trust account is held at a financial institution physically located in Connecticut unless the client or third person has consented otherwise (Conn. RPC 1.15(b))
☐ The institution is eligible (Connecticut Bar Foundation list — IOLTA rate parity)
☐ The institution is approved (Statewide Grievance Committee — overdraft notification agreement)
☐ The IOLTA account number(s) and bank name(s) are reported as part of attorney registration (Practice Book § 2-27(d))
☐ Trust account records are maintained per Conn. RPC 1.15(i) and preserved for 7 years after the date of the last transaction performed on behalf of the client
☐ For mortgage loan proceeds, the account is established under the IOTA program (Conn. Gen. Stat. § 51-81c)
☐ The engagement letter explains how unearned fees will be refunded upon termination (Conn. RPC 1.16(d))
☐ If a flat fee is charged, the agreement clarifies whether the fee is earned upon receipt or held in trust until earned, and discloses the client's right to a refund of any unearned portion

Part 9. Conn. RPC 1.2 — Scope of Representation (Including Limited Scope)

☐ The scope of representation is described with reasonable specificity (matter, court/forum, services included)
☐ Services expressly excluded are listed (e.g., appeals, collection of judgment, related regulatory or tax issues)
☐ If the representation is limited in scope under Conn. RPC 1.2(c):
☐ The limitation is reasonable under the circumstances
☐ The client has given informed consent, confirmed in writing
☐ If the matter involves a court appearance, the firm has procedures for compliance with applicable Practice Book filing requirements regarding limited appearances (Practice Book § 3-8 et seq.)

Part 10. Conn. RPC 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 changes to the fee or scope will be communicated (e.g., advance written notice of rate increases, signed amendment for scope changes)
☐ The agreement identifies preferred channels (mail, email, secure portal) and expected response times

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 (Conn. RPC 1.7, 1.9, 1.10)
☐ Confidentiality — agreement acknowledges the duty under Conn. RPC 1.6
☐ File retention and destruction — period stated (Conn. RPC 1.15(i) requires 7-year trust account record retention; general client files commonly retained per firm policy of 6+ years)
☐ Withdrawal and termination — agreement summarizes attorney's right to withdraw under Conn. RPC 1.16 and obligation to take reasonable steps to protect the client's interests
☐ Successor counsel / file release — agreement explains how the client file will be released upon request
☐ Costs and expenses — categories of costs the client will bear are itemized, and the cost-advance policy is stated
☐ Settlement authority — agreement states that decisions regarding settlement and other objectives of representation rest with the client (Conn. RPC 1.2(a))
☐ Discipline contact information — optional disclosure that fee or conduct disputes may be raised with the Statewide Grievance Committee or the Office of Chief Disciplinary Counsel

Part 12. Signature and Delivery Verification

☐ For contingent-fee matters: engagement letter signed by the client (mandatory under Conn. RPC 1.5(c))
☐ Engagement letter signed by the attorney (good practice; not required for non-contingent matters)
☐ A copy of the agreement 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 § 52-251c waiver agreements: notarization is verified and the notarized original is retained

Part 13. Reviewer Certification

I have reviewed the above engagement letter for compliance with Conn. RPC 1.2, 1.4, 1.5, 1.15, and 1.16; Conn. Gen. Stat. §§ 52-251c and 51-81c; Conn. Practice Book §§ 2-27 and 2-28; and current Statewide Grievance Committee 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 Juris No.: [________________________________]

Sources and References

• Connecticut Practice Book (current edition) — includes Rules of Professional Conduct
• Conn. Gen. Stat. § 52-251c (Limitation on attorney contingency fees)
• Conn. Gen. Stat. § 51-81c (IOLTA / IOTA)
• Connecticut Bar Foundation — IOLTA / IOTA Overview and Eligible Financial Institutions
• Statewide Grievance Committee — Trust Accounts and Random Audits FAQ
• Office of Chief Disciplinary Counsel
• Connecticut Bar Association — Informal Op. 20-02 (out-of-state referral fees)