The client care letter is the first thing you send a new client, and it sets the terms on which you will act. It does three jobs at once: it forms the contractual basis of the relationship, gives the client the information they need to make informed decisions, and protects the firm by defining scope and managing risk. Get it right and disputes about costs, scope and service become far less likely; get it wrong and you expose yourself and your firm to complaints and liability.
What this lesson covers:
- Nature, Purpose and Regulatory Basis — what a client care letter is, the three functions it serves, and the conduct rules behind it.
- Identifying the Client and Scope — pinning down who your client actually is and defining the work you have agreed to do.
- Costs Information — explaining the basis of charging, VAT, disbursements, funding options and what to do when costs rise.
- Costs in Litigation and Assessment of Bills — the loser-pays rule, the client's continuing liability, and the time limits for challenging a bill.
- Supervision, Complaints and Limiting Liability — regulatory status, complaints routes, and the limits on capping your liability.
- Conflicts, Termination and the File — handling conflicts between joint clients, ending the retainer, liens, and holding client money.