Every single client-solicitor relationship you enter without a Letter of Engagement is a ticking time bomb waiting to go off. Issuing a Letter of Engagement at the start of every client-solicitor relationship is essential.
The Advocates and Solicitors Disciplinary Board (“ASDB”) has dealt with countless complaints where lawyers were accused of misconduct, overcharging, and exceeding agreed-upon services — all due to the lack of clear, written agreement.
At the same time, the Professional Indemnity (“PI”) Scheme also sees a trend in notifications and complaints received alleging lawyers of wrongful conduct and overpricing their services. Without written proof, it is easy to fall into this situation. A lack of clarity can affect the PI Scheme because without written evidence, insurers may find it challenging to assess and cover claims, potentially resulting in denied coverage or increased premiums.
In a client-solicitor relationship, a Letter of Engagement is crucial, as it clearly outlines:
- A client’s instructions, scope of services, responsibilities and expectations between both parties;
- The lawyer(s) having conduct of the matter; and
- Fees and disbursements.
Without a proper Letter of Engagement, the scope of a lawyer's duties may become ambiguous, leading to potential disputes over whether certain tasks were within the agreed services (and fees).
From the pattern in client grievances, it can be said that without a signed Letter of Engagement, you are dangerously exposed to:
Claims of Overstepping Boundaries
Without precise written terms and agreed work scope, clients may accuse you of unauthorised actions and may allege negligence or breach of duty, claiming that you failed to meet expectations. Without documentation of each party’s obligations, it is their word against yours, and you are likely to exhaust your options if there is a complaint or claim against you. Vague terms are an open invitation to costly complaints and claims.
Accusations of Overcharging and Hidden Fees
Clients can easily claim they were unaware and / or disagree with certain fees without a documented fee structure. Imagine being sued over fees you thought were agreed upon — without proof, you may be held accountable and could lose thousands in legal battles or refunds.
Misunderstandings that Lead to Claims and Complaints
Every verbal agreement or handshake leaves you vulnerable to costly misinterpretations. Clients may “forget” terms or misunderstand the scope of work and costs, turning into legal adversaries.
Use the Malaysian Bar’s sample Letter of Engagement contained in ELEVATE (March 2024 edition) to protect your practice and prevent disputes. This document isn’t just paperwork; it’s your shield against high-stakes risk.