A Disengagement Letter is essential when professionally concluding a service relationship with a client. This document should be used when a professional or firm needs to formally end their services, whether due to project completion, conflict of interest, non-payment, or other valid reasons. The letter typically includes the termination date, reason for disengagement, status of outstanding work, and important deadlines. In the United States, proper documentation of client disengagement is often required by professional ethics rules and state regulations, making this letter a crucial risk management tool.
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1. Client Identification: Clear identification of the client and matter(s) involved, including relevant reference numbers and dates
2. Termination Statement: Clear and unambiguous statement that the professional relationship is being terminated, including the effective date
3. Outstanding Obligations: Statement regarding any pending work, payments, or obligations that need to be addressed
4. Next Steps: Clear instructions regarding the immediate next steps and transition process
5. Acknowledgment: Space for signature or acknowledgment of receipt if required
1. Reason for Disengagement: Professional explanation of why the relationship is being terminated, used when appropriate and required by professional guidelines
2. Future Deadlines Notice: Information about upcoming deadlines or statutes of limitations that could affect client's rights
3. File Retention Policy: Information about document retention policies and procedures for requesting files
4. Referral Information: Details about alternative service providers or recommendations for future representation
1. Final Invoice: Detailed billing statement for any outstanding fees or expenses
2. Matter Summary: Summary of work completed, current status, and any pending items
3. File Transfer Form: Document listing all files being returned or transferred to the client
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