Hiring an Attorney: What You Should Know Before Signing

Samantha M. Alecozay

June 5, 2026

So, Have You Hired an Attorney Yet?

You called a law firm. Maybe you filled out an online contact form. Perhaps you've already had a consultation and exchanged information about your situation. At this point, a reasonable question arises: is this attorney MY attorney now?

If not, why not? If so, when did that happen?

The answer is often more complicated than people expect.

Often (but not always), the attorney/client relationship begins after the attorney and client have an initial consultation. A GOOD attorney will clarify whether/when an attorney/client relationship exists. A GREAT attorney will do that and provide a written agreement explaining exactly what services will be provided, under what terms, and for what fee. That written agreement is commonly referred to as an engagement letter.

Engagement letters are among the most important documents clients sign during the legal process. They establish expectations, define responsibilities, and help prevent misunderstandings that can lead to frustration, surprise legal bills, or disputes later on.

Unfortunately, there is no single bright-line rule governing every attorney/client relationship. Courts, ethics boards, and legal scholars have debated these issues for decades. While the details can vary from state to state and case to case, there are some important principles every client should understand before signing an engagement letter or before assuming that a lawyer is representing them.

What is an Attorney/Client Relationship?

Generally, an attorney/client relationship is formed when an attorney and potential client (or multiple clients simultaneously in some cases) agree to a relationship for legal services. This creates a fiduciary duty to the client, meaning the attorney must act in the “best interest” of the client (“best interest” is in quotes as there are some ethical limitations). A fiduciary duty typically involves financial interest, but the concept goes beyond money. The best interest of the client isn’t just how much cash they can get out of a situation. Sometimes, it’s about an interest in a company, stopping people from committing certain acts, or even situations like child custody.

When Does the Attorney/Client Relationship Begin?

Many people assume that the attorney/client relationship begins only after a contract is signed and money changes hands. Sometimes that is true. Sometimes it is not.

The law recognizes that attorney/client relationships can arise through conduct and communications, not merely through paperwork. In certain situations, courts have found that an attorney/client relationship existed even when no engagement letter had been signed.

Texas courts, for example, have explained that the attorney/client relationship is ultimately a contractual relationship that arises from an agreement to provide legal services. That contractual agreement can sometimes be implied from the conduct of the parties. However, there must generally be evidence that both sides intended to create the relationship; one person's belief alone is not enough.

For clients, the practical lesson is simple: never assume representation exists merely because you spoke with an attorney. Likewise, do not assume that representation does not exist simply because no paperwork has been signed.

The safest approach is to obtain clear confirmation regarding whether the lawyer has agreed to represent you and, if so, exactly when that representation begins.

Even Prospective Clients Have Certain Protections

Many people are surprised to learn that lawyers may owe limited duties to individuals who never become clients.

For example, in Texas, according to the Texas Disciplinary Rules of Professional Conduct, a “prospective client” is generally someone who consults with an attorney in good faith about the possibility of forming an attorney/client relationship. Rule 1.18(a).

This means that information shared during an initial consultation can have legal consequences, even if the attorney ultimately declines the case. Depending on the circumstances, the attorney may be restricted from using certain information or from representing another party whose interests conflict with information disclosed during that consultation. Rule 1.18(b).

For clients, this underscores the importance of being thoughtful during initial consultations and understanding the law firm's intake process.

Why Clear Communication Matters

Because an attorney/client relationship can sometimes arise in unexpected ways, clear communication is essential. The legal profession has no shortage of stories involving individuals who believed an attorney was representing them while the attorney believed otherwise (e.g., a bar conversation between two strangers, where one of them happened to be an attorney). These misunderstandings can create confusion, disputes, and occasionally result in litigation.

An engagement letter helps eliminate that uncertainty by answering fundamental questions:

-         Is the attorney currently representing you?

-         When does representation begin?

-         What services will be provided?

-         What services will not be provided?

-         How will fees be charged?

-         When does representation end?

The clearer the answers, the better protected everyone is.

Who Is the Client?

This question sounds almost absurd. Surely, the client is the person paying the bill, right? Not necessarily. The issue becomes especially important in business matters.

Imagine that three business partners consult an attorney to form a limited liability company through the Texas Secretary of State. They also want ongoing services for entity operation, such as contract drafting and general corporate representation. Who is the client?

The answer may be one partner, all three partners (which comes with high risk and the likelihood of disagreements leading to conflicts), or the company itself. Each possibility creates different rights, obligations, and potential conflicts of interest.

The same issue arises when an existing company attempts to hire legal counsel. While an officer, manager, or owner may communicate with the lawyer, the attorney is being consulted to directly represent the business entity, not the individual speaking on the company's behalf. This distinction becomes critically important when disagreements arise among owners, partners, directors, or shareholders.

As a client, you should never hesitate to ask: “Who exactly are you representing in this matter?” If the answer is unclear, request clarification in writing.

What Is an Engagement Letter?

An engagement letter is the written agreement that establishes the terms of legal representation between the attorney and client.

A well-drafted engagement letter should be:

-         Clear;

-         Written in language a non-attorney can understand;

-         Consistent with applicable attorney ethical rules; and

-         Specific enough to avoid misunderstandings.

Although courts often interpret engagement letters similarly to other types of contracts, courts frequently evaluate them from the client's perspective. In other words, judges may ask whether the attorney communicated the terms clearly enough for a reasonable client to understand.

That makes engagement letters more than just legal paperwork. They are communication tools designed to ensure both sides understand the relationship.

Pay Close Attention to the Scope of Representation

One of the most important sections of any engagement letter is the scope of representation. This section explains exactly what the attorney has agreed to do. Just as importantly, it explains what the attorney has not agreed to do.

Many client disputes arise because someone assumed the attorney was handling a matter that was never included in the representation.

For example:

-         An attorney hired to form a business entity may not provide ongoing corporate counsel after formation.

-         An attorney handling a divorce may not be representing the client in an appeal unless specifically agreed.

-         An attorney drafting contracts may not be handling future litigation arising from those contracts.

Good engagement letters clearly identify these boundaries. As a client, carefully review any section describing services that are excluded from representation. If you see something important that is not covered, ask questions before signing.

Watch for the “What We Do Not Do” Section

Many engagement letters contain a section identifying services the attorney will not provide that go beyond the exclusion section. This is not necessarily a red flag. In fact, it is often a sign of a carefully drafted agreement intended to ensure everyone is on the same page.

Attorneys frequently include exclusions to prevent clients from reasonably assuming additional services are included. For example, an attorney may form your company, but not monitor annual state filings. Another attorney may draft a contract, but not oversee future compliance obligations.

The key question is whether you understand what responsibilities remain after the attorney's work is complete. A strong engagement letter will not only identify excluded services, but also explain the consequences if those tasks are not handled by someone else, such as a CPA or another type of attorney.

Understanding Attorney Fees

Most clients naturally focus on fees, and they should. The engagement letter should clearly explain:

-         How fees are calculated;

-         When payment is due;

-         Whether a retainer is required;

-         How invoices will be delivered;

-         What happens if payment is late; and

-         Whether communications, meetings, emails, or phone calls are billable.

Common fee structures include (but are not limited to):

Hourly Billing

The attorney charges based on time spent working on the matter.

Fixed Fees

The attorney charges a predetermined amount for a specific service.

Contingency Fees

The attorney receives a percentage of a recovery if the case is successful.

Different practice areas have different rules governing fee arrangements, and certain arrangements are subject to special ethical requirements. The most important thing for clients is transparency. You should understand how fees are earned, when they become due, and what expenses may be charged separately.

If anything in the fee section is unclear, ask for clarification before signing.

The Fine Print Matters More Than You Think

Many clients focus only on the scope of services and fees. That is understandable. However, some of the most important provisions are often buried in what attorneys call the “boilerplate” sections.

These provisions may address:

-         How representation may end (by termination or by natural conclusion of services upon occurrence of a certain event);

-         File retention policies;

-         Attorney withdrawal procedures;

-         Mediation procedures;

-         Arbitration requirements (if permitted);

-         Communication methods;

-         Attorney/client privilege;

-         Conflicts of interest;

-         Authority to sign certain documents on the client’s behalf; and

-         Procedures if the attorney becomes incapacitated or unavailable.

These provisions may seem routine, but they can significantly affect your rights and expectations. Read them carefully.

Final Thoughts

An engagement letter is more than a formality. It is the roadmap for your relationship with your attorney. Before signing, make sure you understand:

-         Whether the attorney/client relationship has actually begun;

-         Who the attorney represents;

-         What services are included;

-         What services are excluded;

-         How fees will be charged; and

-         What rules govern the relationship moving forward.

A quality attorney should welcome these questions, not avoid them. The best attorney/client relationships are built on clear expectations, open communication, and mutual understanding from the very beginning.

When seeking legal services from Alecozay Law Firm, PLLC, our attorneys will offer clear expectations, open communication, and, if a relationship is formed, quality legal services. If you believe your business activities could benefit from our guidance, please feel free to contact us to schedule a free consultation! You can schedule an appointment via email at joel.s@alecozaylaw.com or by phone at 210-774-2741 during standard office hours.

We look forward to hearing from you!