To every client I counsel and in every lecture I give, I try to emphasize the importance of using a written retainer agreement or retainer letter in connection with every representation undertaken. The reason: it is the simplest and most effective means by which attorneys can support their legal fees, avoid misunderstandings with clients, and defend themselves from certain grievances and malpractice actions.
As all lawyers should be aware, if you hold escrow, you do so at your own peril. A simple mistake that results in a returned escrow check automatically results in a notice to the Lawyers’ Fund for Client Protection and a referral to the appropriate Grievance Committee. The Grievance Committee will open a complaint, audit your account, and examine your office banking records for the six months prior to the issuance of the check. This is extremely time-consuming and can reveal small errors that could become big problems.