An attorney engagement letter is an agreement between the attorney and client regarding the terms and conditions on which the attorney or law firm will provide legal services to the client. The engagement letter generally includes the manner in which the attorney will charge the client for the legal services (hourly, contingent fee, fixed fee, with fee deposit), and the circumstances under which the attorney or client may terminate the relationship. The engagement letter will sometimes provide the process for resolving any disputes between the attorney and client (mediation, arbitration, litigation). You should carefully read the engagement letter and ask questions about any part of it you do not understand.

In Colorado, an attorney engagement letter is a formal document that outlines the agreement between an attorney and their client concerning the provision of legal services. This letter typically details the fee structure, such as whether the attorney will charge hourly, on a contingent fee basis, a fixed fee, or require a fee deposit. It also outlines the terms under which either the attorney or the client can terminate the legal relationship. Additionally, the engagement letter may specify the method for resolving disputes, which could include mediation, arbitration, or litigation. It is crucial for clients to thoroughly review the engagement letter and seek clarification on any aspect that is unclear to them. While Colorado does not have a specific statute governing attorney engagement letters, the Colorado Rules of Professional Conduct require attorneys to communicate the basis or rate of their fees and expenses to clients, preferably in writing, before or within a reasonable time after commencing representation.