Malpractice Minute: Clear Communication Necessary in Terminating or Limiting the Attorney-client Relationship

• Publication year: 2004
• Pages: 82

33 Colo.Law. 82 Colorado Lawyer 2004.

2004, August, Pg. 82. Malpractice Minute: Clear Communication Necessary in Terminating or Limiting the Attorney-Client Relationship

Vol. 33, No. 8, Pg. 82

The Colorado Lawyer
August 2004
Vol. 33, No. 8 [Page 82]

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Malpractice Minute: Clear Communication Necessary in Terminating or Limiting the Attorney-Client Relationship
by Christopher Buckman

Assumed Facts

Walter Brown owned a successful steakhouse located on Main Street in Breckenridge. His attorney, Tom Harris, was his long-time counselor and friend. Walter relied on Tom for virtually all of his legal needs. The legal advice Tom provided Walter covered assistance with the formation of his corporate entity for the steakhouse, negation of his lease advice on tax matters, assistance with legal issues arising from the restaurant operations, and estate planning for Walter's family

In 1993, Walter engaged Tom to assist in the renewal of the steakhouse's lease. The lease provided for a term of ten years, with two renewal options. The renewal options required that the tenant provide notice to the landlord six months prior to the initial lease term. Due to poor real estate market conditions, Walter's lease rate was very favorable.

The only written communication Tom provided Walter at the end of the lease transaction was a bill. Tom felt that if he provided a written termination letter at the conclusion of the lease negotiations, it would insult his relationship with the client. Also, because he was providing legal services for all of Walter's needs and had multiple open matters, it would be awkward to draft a termination agreement regarding the lease issue. Tom felt he and Walter already had the foundation for a strong attorney-client relationship.

In 2003, Walter did not provide timely notice to his landlord of his intent to renew the steakhouse's lease. At that time, the real estate market had significantly improved, and the landlord felt justified in asking rental rates twice that of both of Walter's renewal options. Walter could not afford to pay the new rate and was forced to relocate his steakhouse several blocks off of Main Street. The new location was less desirable, substantially reducing visits from his steady clients. Within one year, Walter was forced to close the steakhouse.

Due to his long-time engagement of Tom for his legal matters...