Additions to this year's Engagement Letters

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#1
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Has anyone included language in their engagement letter that limits the damages to a client for that engagement to a multiple of the annual fee?
 

#2
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Northern MI and Coastal SC
My lawyer included this under arbitration provisions and governing law. No idea if it would hold up in court but he figured it was worth it to help muddy up the waters--that is always the ultimate goal. This applies to each engagement letter and one is required for most services.

(e) Loss Limitation. Firm shall not be liable to Client for any amount greater than the sum of fees
paid to Firm, plus penalties and interest incurred by Client as a result of Firm’s negligence in
rendering services.
 

#3
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My concern was whether a provision like that could be considered unreasonable enough to void the entire engagement letter.
 

#4
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Northern MI and Coastal SC
Depends on state. In my state, one clause cannot void the entire contract--only what is deemed unreasonable would be struck down. Again, my lawyer added it after inquired about proper language, so that's all I can rely on.
 


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