When risk managers audit a law practice for the risk of legal malpractice, they look first at the files to see if every file contains an executed engagement/retainer letter or fee contract. This one document is one of the most reliable indicators of whether a law practice has in place systems that can effectively reduce the risks of malpractice claims in a modern-day law practice.
Simply stated, every open matter at a law firm should have either an executed engagement/retainer letter or fee contract. This includes new matters for existing clients, or additional clients for existing matters.
