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General Release of claims
Unfortunately there are scenarios that may arise where your client, and you, do not see eye to eye. Just one example of this may be a client who has not paid for services. Of course you are not in business to provide services for free, but you understand that filing a suit for fees commonly leads to allegations of professional liability.
In this scenario, negotiating a reduction of fees may be in your best interest. In return for reducing your fees it is wise to require the client to sign a general release.
A general release is a legal document that acts to terminate any legal liability between the releasor (your client) and the releasee (you).
Prior to offering a release to a client please consider:
1. A release of a claim, or potential claim, should never be made without previous insurance carrier approval.
2. A release is a contractual document, and likely to be construed according to the law of the local jurisdiction. It is recommended you consult local counsel to review your final document to ensure that it is consistent with local law.
The following general release template was developed for illustrative purposes only by Ralph Picardi, Esq. of Lapping & Picardi, LLP exclusively for use by clients of North American Professional Liability Insurance Agency, LLC (NAPLIA). If you have questions please do not hesitate to contact your NAPLIA representative.
These example engagement letters are intended solely for general educational purposes. They are not intended for the purpose of providing specific legal, accounting, or other professional advice to any particular recipient or with respect to any particular jurisdiction. The author, publisher, and distributor of this document (1) make no representations, warranties, or guarantees as to its technical accuracy or compliance with any law ( federal, state, or local) or professional standard; and, (2) assume no responsibility to any recipient of this document to correct or update its contents for any reason, including changes in any law or professional standard. Before using any engagement letter in your practice, you should formally retain the counsel of an attorney knowledgeable as to the accounting industry, your practice, and the laws of any jurisdiction(s) within which you conduct your practice to ensure the document's maximum usefulness and compliance with applicable laws and professional standards.