Instead of sending a letter of formal notice to the client, a lawyer may comply with the provisions of the subdivision (a) by entering into a written conservation agreement signed with the client before or within a reasonable period of time after the start of the representation, provided that the agreement addresses the issues described in the subdivision (b). “Same general nature.” The exception of Part 1215.2 for services of the same general nature as those previously provided and paid to the same customer is more complex. The goal is to spare lawyers the need to provide a new engagement letter (or a brand new retention agreement) for any similar case for a client who is already familiar with legal fees and billing practices and who has indicated consent to these conditions by paying a previous bill. Therefore, if a client has already paid a business at least once for a certain “type” of legal services, the lawyer does not need to give that client a new engagement letter the next time the client retains the lawyer to provide “general” services. For example, if a law firm has previously settled a credit agreement for a particular lender (and the lender has paid the lawyer`s bill), the registry is not required to submit an engagement letter for similar credit closures for that lender. If a law firm has already handled commercial disputes for a client, the registry is not required to submit a letter of commitment for the next commercial trial. In October 2001, the Counsel`s Committee recommended that the Law Society support the principle of the declaration of commitment, but proposed the following amendments: (a) the fee exemption should be increased to $5,000, (b) lawyers should be allowed to use a signed conservation agreement instead of an engagement letter; (c) engagement obligations should not be necessary for clients who have ongoing relationships. , and (d) lawyers should be allowed to submit a recommended letter after the start of a representation if circumstances made it inseable at first. I think lawyers should respect the rule because it protects them from several negative consequences.
First, courts may refuse to enforce oral fee agreements that are not included in a letter of preservation or engagement in memory, making it difficult for lawyers to collect unpaid fees. Part 1215 consists of two sections. Section 1215.1, entitled “Requirements,” has three subdivisions. Subdivision (a) imposes the use of engagement letters in all fees – and pays for cases that are not exempt, and indicates when the lawyer must send the engagement letter to the client. Subdivision (b) states that the engagement letter must describe the extent of legal services to be provided as well as the fees, fees and accounting practices of lawyers. Sub-Division (c) exempts any issue that falls within the purview of a signed written conservation agreement. Section 1215.2 exempts three categories of business: (1) issues for which legal fees should be less than USD 3,000; (2) The “same general cases” in which the client paid the legal fees; and (3) internal relations matters. Finally, the letter should describe the lawyer`s “accounting practice” for both expenses and expenses. If the lawyer charges monthly, the letter should say so. The letter should specify when late charges, if any, are incurred and at what cost. If the lawyer requests or has received a reserve obligation, the letter should specify the exact amount and whether that amount constitutes a minimum tax, “general conservation” or “special retention,” and the conditions under which counsel reimburses an undeserved portion.