Why Non-Engagement Letters Are Essential for Protecting Your Practice
A non-engagement letter is simply the reverse of an engagement letter—it formally communicates to a prospective client that you will not be representing them. While it may seem unnecessary to state the obvious, sending one can be a crucial safeguard for attorneys.
When meeting with potential clients, the goal is usually to secure representation, send an engagement letter, receive a retainer, and begin working. However, what happens when a prospective client decides not to hire you? Many attorneys move on without giving it another thought, but failing to document the lack of representation can lead to serious risks.
What Is a Non-Engagement Letter?
A non-engagement letter clarifies that no attorney-client relationship has been formed. While it may feel awkward to send, it serves as a protective measure in case the individual later claims they relied on your legal advice.
Why Sending Non-Engagement Letters Is a Smart Practice
1. The Unsuccessful Consultation
Lawyers frequently meet with individuals exploring legal representation, but not all of them will become clients. Despite this, they often share details about their case, and you may provide general impressions based on their statements. Even if you don’t believe you offered legal advice, they might perceive it differently. If they act on what they think was guidance from you and it backfires, they could file a complaint claiming you provided inadequate counsel.
A non-engagement letter helps prevent this issue by documenting that:
- A discussion took place, but no formal legal representation was established.
- Any initial thoughts shared were not legal advice.
- You will not be handling their case.
Should a dispute arise, this letter serves as clear evidence that no attorney-client relationship existed.
2. The Ongoing, Yet Unofficial Relationship
Sometimes, a prospective client expresses their intent to hire you but delays signing a retainer agreement or submitting payment. Meanwhile, they may continue seeking legal insights, creating a gray area where an implied attorney-client relationship could form.
If it becomes clear that they will not be retaining you, whether due to financial constraints or indecision, sending a non-engagement letter is essential. This prevents any misunderstanding and minimizes the risk of a complaint.
How to Draft a Non-Engagement Letter
Since it can feel awkward to document that you are not taking on a client, a good starting point is sample non-engagement letters from your state bar association or legal malpractice insurance provider. Many organizations offer templates alongside standard engagement letters.
Incorporating non-engagement letters into your regular practice ensures clarity, reduces liability risks, and protects your firm from potential disputes.
