The question of whether the work of a freelance attorney requires a written agreement seems obvious at first glance — “get it in writing” is the golden rule, after all. In practice it is not always that simple. There may be situations, depending on the client, project, or timetable, where getting a written freelance work agreement is not possible or necessary. If a hiring attorney is looking for last-minute emergency assistance, there may not be time to negotiate an agreement. Or the hiring attorney and freelance attorney may have an existing relationship and are comfortable working without a formal agreement.
In these situations, it still benefits both sides to set forth basic project terms in an email, at least. Ultimately, the freelance attorney is responsible for defining the business relationship and running his or her own freelance law practice.
Contents of a Written Freelance Work Agreement
A written freelance work agreement should clearly define the project terms for everyone involved, including ethical and legal considerations, as well as protect the interests of both the freelance attorney and the hiring attorney. But the written agreement does not have to be complicated or lengthy. In most cases, a simple two- or three-page agreement will suffice. The seven basic components of a freelance work agreement include:
Scope and duration of the project
Compensation
Employment relationship status
Confidentiality and preserving the attorney-client privilege
Conflict checking
Malpractice insurance coverage
Work product ownership
1. Scope and Duration of Project
The first basic component of a freelance work agreement is setting forth the parameters of the project to be completed by the freelance attorney for the hiring attorney. Most projects could be described by a word or phrase, such as “legal research,” “document review,” or “motion in limine.” But a project in a freelance work agreement should never be defined by a single word or phrase. Instead, all material or important aspects of the project should be included, such as the name of the case or client and the ultimate deadline for the project.
If the hiring attorney wants the freelance attorney to follow a specific timeline when completing pieces of a larger project, the timeline should be outlined in the freelance work agreement. If there are any major parts of the project that the freelance attorney is not going to handle, those should be noted as well. Ultimately, the freelance work agreement needs to have a thorough scope-of-project description. The more information, the better it is for both parties.
2. Compensation
The second basic component of a freelance work agreement is compensation. Freelance attorneys and hiring attorneys can work out a variety of compensation structures, such as a straight hourly rate, an hourly rate with a cap, or a flat fee per project. Billing structure is usually driven by the type of project and how the hiring attorney is billing the direct client.
In the freelance work agreement, the type of billing structure for the project should be fully outlined and detailed, including how the hiring attorney will be invoiced by the freelance attorney, the due date for payment, and how compensation will be handled in the event the work agreement is terminated prior to completion. In most cases, payment will not depend on the hiring attorney receiving funds from the direct client. The freelance attorney has no control over the direct client’s billing and payment, including no power to effectuate a collection if the direct client does not pay. Therefore, expectations regarding payment need to be clearly set forth in the freelance work agreement.
3. Employment Relationship Status
The third basic component of a freelance work agreement is defining the terms of the employment relationship between the freelance attorney and the hiring attorney, law firm, or legal entity. Under most circumstances, freelance attorneys will be independent contractors, which benefits both sides — the hiring attorney is not required to pay employment taxes or benefits, and the freelance attorney maintains control over where, when, and how the project is completed.
In order to preserve the independent contractor status and avoid potential misunderstandings, the freelance work agreement should cover the major aspects of the employment relationship, including payment of applicable taxes and payment of related business expenses. In addition, the type of legal entity should be specified for the freelance attorney (sole proprietorship or business entity) along with reference to a social security or tax ID number. If the freelance attorney expects a 1099 at year end, that should be specified as well.
4. Confidentiality and Preserving the Attorney-Client Privilege
The fourth basic component of a freelance work agreement is outlining confidentiality terms and ensuring preservation of the attorney-client privilege. Both the hiring attorney and the freelance attorney have professional obligations related to confidentiality and the attorney-client privilege, and the freelance work agreement is the most logical place to set forth related considerations and concerns.
For example, the agreement should clearly outline the confidential nature of any and all client information used by the freelance attorney. The agreement should also recognize that no attorney-client relationship will be established between the freelance attorney and the hiring attorney’s direct client. The hiring attorney is obligated to exercise its independent professional judgment and make all final decisions regarding the case and client. Upon completion of the project, the freelance attorney should agree to return all property belonging to the firm or information related to the firm’s clients.
5. Conflict Checking
The fifth basic component of a freelance work agreement is a discussion of conflict checking. Both hiring attorneys and freelance attorneys must monitor conflicts of interest related to the project. The hiring attorney needs to be mindful that the freelance attorney works on projects for multiple attorneys, law firms, and legal entities.
It is very unlikely that conflicts will be imputed if the freelance attorney is working on a single project or client file. However, to avoid the possibility of imputed conflicts, the hiring attorney should limit the freelance attorney’s access to confidential client files and to matters other than the project at hand. The agreement should discuss conflict checking and make obligations by the freelance attorney clear.
6. Malpractice Insurance Coverage
The sixth basic component of a freelance work agreement is addressing professional liability concerns. Although not required, malpractice insurance is strongly recommended for freelance attorneys. A freelance attorney should verify that the hiring attorney carries current and sufficient malpractice insurance to cover the project being worked on. However, in the event an issue arises, there exists the possibility of indemnification by the hiring attorney’s insurer if a malpractice claim is filed.
Whether or not the freelance attorney will be held liable is a separate issue, but handling the cost of defending against the malpractice claim is not something any freelance attorney should risk. In addition, carrying a malpractice insurance policy increases the reputability of a freelance attorney’s practice, showing hiring attorneys that the freelance attorney is a professional ready to do business the right way. The freelance work agreement should clearly address whether the freelance attorney has malpractice insurance coverage, and whether the hiring attorney has coverage for the project.
7. Work Product Ownership
The final basic component of a freelance work agreement is addressing the work product generated by the freelance attorney during the project. In hiring a freelance attorney to work on a component of a case or transaction, the hiring attorney is paying for the freelance attorney’s time and work product. Therefore, upon project completion, the hiring attorney owns the work product.
The hiring attorney must retain ultimate responsibility for the file and ensure the client is competently and ethically represented, even when part of the work is done by the freelance attorney. The freelance work agreement should specify that the hiring attorney has the exclusive authority to make decisions in representing the client, retains sole responsibility for the matter, and has complete discretion whether and how to use the freelance attorney’s work on the client’s behalf.
Sample Freelance Work Agreement
Here is a basic sample freelance work agreement, which should be modified to conform to any jurisdiction-specific ethical and legal rules, as well as the necessary parameters of the specific law practice and freelance project.
Freelance Legal Work Agreement
This agreement is entered into between [name of hiring law firm] (“Law Firm”) and [name of freelance attorney], the undersigned freelance attorney (“Freelance Attorney”).
Project. Freelance Attorney agrees to complete [name or title of project] on a contract project basis for Law Firm. The scope of the project includes [describe scope of work to be done on project, including name of case and deadline]. Freelance Attorney and Law Firm will routinely consult and agree on the logistics and other details of the performance of this Agreement, as needed.
Employment relationship. Freelance Attorney shall be engaged by Law Firm as an independent contractor. Freelance Attorney is not an employee of Law Firm and is therefore not entitled to any benefits afforded to employees or partners of Law Firm. As an independent contractor, Freelance Attorney will determine when, where, and how the above-referenced project will be completed. This Agreement shall not be construed to create any relationship of partnership or joint venture.Freelance Attorney operates as a [type of entity and how payment should be recorded via tax ID number or social security number]. Freelance Attorney shall be responsible for paying any applicable taxes, including income tax. Freelance Attorney shall also be responsible for paying any business expenses in the normal course of project completion; unexpected expenses will be subject to further negotiation between Freelance Attorney and Law Firm.
Conflicts of Interest. Freelance Attorney is a licensed attorney in good standing in [jurisdiction(s)]. Law Firm recognizes that Freelance Attorney enters into freelance work agreements with other attorneys, law firms, and legal entities. Freelance Attorney agrees to check for conflicts of interest and to honor professional obligations under the applicable Rules of Professional Conduct.
Malpractice Insurance. Freelance Attorney maintains professional liability insurance coverage through [name of insurer]. By signing this Agreement, Law Firm represents that it has current professional liability insurance to cover the project outlined in this Agreement.
Confidentiality. Freelance Attorney shall keep all client information confidential, including client documents disclosed by Law Firm. The parties agree that client information provided by Law Firm shall be limited to only that which is necessary to complete the work contemplated by this Agreement.
No Attorney-Client Relationship. This Agreement shall not be construed to create an attorney-client relationship between Freelance Attorney and Law Firm’s clients, or between Freelance Attorney and Law Firm. At all times, Law Firm will exercise its independent professional judgment and make all final decisions regarding its cases and clients.
Work Product. Law Firm shall own all rights to any work product generated by Freelance Attorney while completing the project described in this Agreement. Law Firm may modify any work product prepared by Freelance Attorney. Ultimately, Law Firm is responsible for supervising the work of Freelance Attorney, and for the content of pleadings or other material submitted on behalf of its clients.
Compensation. [HOURLY RATE OPTION] Freelance Attorney shall be paid for legal services rendered under this Agreement at the hourly rate of $[amount]. [FLAT RATE OPTION] Freelance Attorney shall be paid for legal services rendered under this Agreement at the flat rate of $[amount]. Freelance Attorney shall submit an invoice to Law Firm, and payment shall be made within thirty (30) days of the submission of the invoice. Freelance Attorney acknowledges and agrees that Law Firm may bill its clients for the amounts due to Freelance Attorney at whatever rate or in whatever manner it deems appropriate and consistent with its own billing practices. All payments made by the Law Firm to Freelance Attorney will immediately become property of Freelance Attorney and will not be placed in an attorney trust account.
Severability. All provisions of the Agreement are severable. The determination that any particular provision or term is illegal or unenforceable shall have no effect upon the remaining terms of the Agreement.
Assignment. Neither party may assign its duties or rights under the Agreement without prior written approval of the other party.
Modification to Agreement. Any modification of this Agreement will be governed effective only if it is in writing and signed by both parties.
Termination. Either party shall have the right to terminate this Agreement with reasonable cause, effective immediately upon giving written notice. In the event of termination, Law Firm shall pay Freelance Attorney for work done up to the point of termination.
______________________________________
Freelance Attorney
______________________________________
Law Firm
Featured image: “Businesswoman sitting at office desk signing a contract” from Shutterstock.
Get It In Writing: Freelance Attorney Work Agreement is a post from Lawyerist.com. The original content in this feed is © 2013 Lawyerist Media, LLC. This feed is provided for private use only and may not be re-published.