#04
Hiring StageMedium Risk
The engagement contract contains no refund clause
No Refund Clause
Why It's Dangerous
A refund clause specifies the conditions under which legal fees can be refunded. Without one, it becomes very hard to recover fees already paid if the lawyer stops working on your case or you're unsatisfied with the service. This is a common trap lawyers exploit through information asymmetry.
Typical Scenario
A client signed an engagement contract with no refund clause and paid a large sum in legal fees. After litigation began, the lawyer was negligent and unprofessional. When the client sensed something was wrong and demanded a refund, it was denied because the contract contained no refund conditions.
* This scenario is illustrative, based on common patterns observed in legal disputes.
What To Do
1
Insist that a refund clause be added to the contract before signing2
Clearly specify refund percentages for cases such as no service rendered or substandard service quality3
If the lawyer refuses to include a refund clause, that alone is a warning sign4
Learn the local bar association's rules regarding refunds of legal feesHave you experienced this?