District of Columbia Engagement Letter Compliance Review

DISTRICT OF COLUMBIA ENGAGEMENT LETTER COMPLIANCE REVIEW

Reviewer and Matter Information

Part 1. Threshold Question — Is a Writing Required?

☐ Lawyer has not regularly represented this client — writing mandatory under Rule 1.5(b) covering: (i) basis or rate of fee, (ii) scope of representation, and (iii) expenses for which client will be responsible
☐ Lawyer has regularly represented this client and an understanding regarding fees has evolved — writing not strictly required by Rule 1.5(b), but recommended where there are unique aspects of the new matter or a change in arrangement
☐ Contingent fee — writing always required under Rule 1.5(c)
☐ Fee division with lawyer(s) outside the firm — writing to client always required under Rule 1.5(e)

Conclusion: ☐ Written agreement required ☐ Writing not strictly required but used as best practice

Part 2. DC Rule 1.5(a) — Reasonableness of Fee

The fee has been evaluated under the eight Rule 1.5(a) factors:

☐ Time and labor required, novelty/difficulty, skill requisite to perform the legal service properly
☐ Likelihood (if apparent to client) that acceptance will preclude other employment
☐ Fee customarily charged in the locality for similar legal services
☐ Amount involved and results obtained (where ascertainable)
☐ 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

☐ The fee is not prohibited by Rule 1.5(d) (no contingent fee in a criminal defense matter) or by other law
☐ The fee is not per se unreasonable under Rule 1.5(f)

Part 3. Required Content for Non-Contingent Engagements (Rule 1.5(b))

The written communication conveys:

☐ The basis or rate of the fee (hourly rates by timekeeper, flat fee amount, statutory fee, blended rate, or other)
☐ The scope of the lawyer's representation (matter, forum, services included, services excluded)
☐ The expenses for which the client will be responsible (categories of costs the client will bear; cost-advance policy)
☐ The communication is delivered before or within a reasonable time after commencing the representation (Rule 1.5(b))

Standard Rates Disclosed:

Part 4. Contingency Fee Agreement Requirements (Rule 1.5(c))

The contingent fee agreement is in writing and states:

☐ The method by which the fee is to be determined, including the percentage(s) that shall accrue to the lawyer in the event of:
☐ Settlement: [____]%
☐ Trial: [____]%
☐ Appeal: [____]%
☐ The litigation and other expenses to be deducted from the recovery
☐ 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)
☐ Whether the client will be liable for expenses regardless of the outcome of the matter
☐ At the conclusion of the contingent fee 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 (Rule 1.5(c))

☐ The matter is not a criminal defense representation (contingent fee prohibited by Rule 1.5(d))

Part 5. Fee Division With Lawyers Not in the Same Firm (Rule 1.5(e))

Complete this Part only if any portion of the fee will be shared with a lawyer who is not in the same firm.

☐ The division is in proportion to the services performed by each lawyer, OR
☐ Each lawyer assumes joint responsibility for the representation (with the disclosures and full Rule 5.1 responsibility that joint responsibility entails)
☐ The client has been advised in writing of:
☐ The identity of all lawyers who will participate in the representation
☐ The contemplated division of responsibility between/among the lawyers
☐ The effect of the association of lawyers outside the firm on the fee to be charged
☐ The client has given informed consent to the arrangement (Rule 1.0(e) definition met — material risks and reasonably available alternatives explained)
☐ The total fee charged to the client is reasonable under Rule 1.5(a)
☐ The fee-sharing arrangement is documented in writing and retained in the file

Part 6. DC Rule 1.15 / DC IOLTA — Trust Accounts, Advance Fees, and Flat Fees

☐ The firm maintains a DC IOLTA Account (or eligible non-IOLTA trust account) at an approved depository listed by the DC Bar Foundation
☐ The account title includes the controlling lawyer or law firm name AND the words "DC IOLTA Account" or "IOLTA Account" (or "Trust Account"/"Escrow Account" for non-IOLTA trust accounts)
☐ The DC IOLTA account bears the DC Bar Foundation's TIN (52-1109547) — not the lawyer's or firm's TIN
☐ Advances of unearned fees and unincurred costs are deposited into the trust account and treated as client property until earned/incurred (Rule 1.15(e)), UNLESS the agreement obtains the client's informed consent to a different arrangement
☐ For flat fees paid in advance:
☐ The agreement acknowledges that, under In re Mance, flat fees are unearned client property until earned
☐ If the agreement uses milestones (e.g., portion earned upon filing complaint, portion earned upon completion of discovery, balance earned upon final disposition), each milestone bears a reasonable relationship to the work to be performed
☐ If the client gives informed consent under Rule 1.15(e) for the lawyer to hold the flat fee outside the trust account, that consent is documented in writing
☐ The agreement explains how unearned fees and unincurred costs will be refunded upon termination (Rule 1.16(d))
☐ The firm maintains complete records of trust account funds and other client property and will preserve them for five (5) years after termination of the representation (Rule 1.15(a))
☐ Only a small amount of the lawyer's own funds (for bank charges) is in the trust account (Rule 1.15(f))
☐ Replenishment thresholds (if any) are clearly stated: replenish when balance falls below $[________________]

Part 7. DC Rule 1.2 — Scope of Representation (and 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/tax issues, ancillary criminal/immigration consequences)
☐ If the representation is limited in scope under Rule 1.2(c):
☐ The limitation is reasonable under the circumstances
☐ The client has given informed consent (Rule 1.0(e) — material risks and reasonably available alternatives communicated)
☐ The agreement documents the limitation in writing
☐ The agreement reflects that decisions concerning the objectives of representation rest with the client (Rule 1.2(a)) and that the lawyer will consult with the client about the means

Part 8. DC Rule 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 (Rule 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 material scope changes; revised estimate when developments make an earlier estimate substantially inaccurate, per Rule 1.5 cmt. [1])
☐ The agreement identifies preferred channels (mail, email, secure portal) and expected response times

Part 9. DC Rule 5.4 — Firms With Nonlawyer Owners (DC-Unique Disclosure)

Complete this Part only if the firm has any nonlawyer financial interest holder or managerial-authority person under DC Rule 5.4(b).

☐ The firm's organizational documents satisfy Rule 5.4(b):
☐ The entity's sole purpose is providing legal services to clients
☐ Each nonlawyer with financial interest or managerial authority performs professional services that assist the organization in providing legal services (not a passive investor — see Ethics Op. 362)
☐ Each nonlawyer has undertaken in writing to abide by the DC Rules of Professional Conduct
☐ The lawyers with financial interest or managerial authority have undertaken in writing to be responsible for the nonlawyer participants to the same extent as if they were lawyers under Rule 5.1
☐ The engagement letter discloses to the client that the firm includes one or more nonlawyer owners/managers under DC Rule 5.4(b) (recommended best practice — particularly material where another jurisdiction's clients may not be familiar with DC's unique structure)
☐ The lawyer has confirmed that no person who recommends, employs, or pays the lawyer is permitted to direct or regulate the lawyer's professional judgment in rendering legal services (Rule 5.4(c))
☐ Where the matter will involve work in a jurisdiction that does not permit nonlawyer ownership (most U.S. jurisdictions), the lawyer has considered conflicts-of-laws and unauthorized-practice issues (see ABA Formal Op. 360 and successor opinions)

Part 10. Other Required and Recommended Disclosures

☐ Conflicts of interest — agreement reflects that a conflict check has been completed and addresses procedures if a conflict later arises (Rules 1.7, 1.9, 1.10)
☐ Confidentiality — agreement acknowledges the duty under Rule 1.6 and notes statutory exceptions
☐ File retention and destruction — period stated; see DC Bar Legal Ethics Op. 283 (disposition of closed client files); records of trust property must be kept 5 years after termination (Rule 1.15(a))
☐ Withdrawal and termination — agreement summarizes the lawyer's grounds for withdrawal under Rule 1.16 and the obligation to take reasonable steps to protect the client's interests (Rule 1.16(d))
☐ Successor counsel and file release — agreement explains how the client file will be released upon request (Rule 1.16(d); D.C. Bar Legal Ethics Op. 333)
☐ Settlement authority — agreement states that decisions regarding settlement and other objectives rest with the client (Rule 1.2(a))
☐ Costs and expenses — categories of costs the client will bear are itemized
☐ Cybersecurity / electronic communication — agreement explains use of email, cloud storage, e-signature, and any associated risks (Rules 1.1, 1.6; D.C. Bar Legal Ethics Op. 371 on encrypted email; verify current guidance)
☐ Use of generative AI — agreement discloses any intended use of generative AI in the representation (Rules 1.1, 1.6; verify current DC Bar guidance)
☐ Fee disputes — agreement informs the client of the availability of the DC Bar Attorney/Client Arbitration Board (ACAB) for voluntary fee arbitration
☐ Office of Disciplinary Counsel — agreement may inform the client of the DC Bar Office of Disciplinary Counsel as the disciplinary authority (not strictly required, but commonly included)

Part 11. Signature and Delivery Verification

☐ Engagement letter signed by the attorney
☐ Engagement letter signed by the client (or authorized representative)
☐ A signed copy delivered to the client (in person, mail, email, secure portal, or e-signature platform): [________________]
☐ Signed copy retained in the matter file (paper or electronic) with date-stamped record of delivery
☐ Communication delivered before or within a reasonable time after commencement of representation (Rule 1.5(b))

Part 12. Reviewer Certification

I have reviewed the above engagement letter for compliance with the District of Columbia Rules of Professional Conduct (in particular Rules 1.2, 1.4, 1.5, 1.15, 1.16, and 5.4), D.C. Court of Appeals Rule XI, the DC Bar Foundation IOLTA requirements, and current DC Bar Office of Disciplinary Counsel and Legal Ethics 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 DC Bar No.: [________________________________]

Sources and References

• D.C. Rules of Professional Conduct (DC Bar)
• D.C. RPC 1.5 (Fees)
• D.C. RPC 1.15 (Safekeeping Property)
• D.C. RPC 5.4 (Professional Independence of a Lawyer)
• D.C. App. R. XI (Disciplinary Proceedings)
• DC Bar Foundation — DC IOLTA Rules and Information
• DC Bar Office of Disciplinary Counsel
• DC Bar Attorney/Client Arbitration Board (ACAB)
• DC Bar Legal Ethics Opinions
• In re Mance, 980 A.2d 1196 (D.C. 2009) (advance flat fees treated as unearned client property)
• Schwartz v. Chow, 867 A.2d 989 (D.C. 2005) (mandatory nature of Rule 1.5(e) requirements)