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 Vermont, as in other states, an attorney engagement letter is a critical document that outlines the formal relationship between an attorney and their client. It serves as a contract that details the scope of legal services to be provided, the fee arrangement (such as hourly rates, contingency fees, or flat fees), any required retainer deposits, and other relevant terms and conditions. The engagement letter also typically includes provisions for terminating the attorney-client relationship and may outline dispute resolution mechanisms, such as mediation, arbitration, or litigation, should disagreements arise regarding the representation or fees. Vermont's 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. Clients are encouraged to thoroughly review the engagement letter and seek clarification on any points that are unclear before signing to ensure a mutual understanding of the expectations and obligations of both parties.