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One of the best ways to approach this is to send an email to the inquiring client without delay. Thank them for the consideration and let them know the reasons for not being able to work with them. Be polite but direct.
Communicate your decision in writing as soon as you decide to refuse their case. You should also recommend the potential client visit another lawyer who can assist them with their case. A written letter serves as a factual record that you turned down the potential client's case and explains the reason for the decision.
Every time you want to decline to represent a prospective client, you should use a non-engagement letter. Otherwise, you risk the possibility that the prospective client could mistakenly think you're their attorney on a matter.
?Sincerely? is one often used by lawyers. When writing to someone without referring to them by name (e.g. ?Dear Sir or Madam?), the convention in the US is to sign off with ?Yours truly? (or something similar) and the convention in the UK is to sign off with ?Yours faithfully? (or something similar).
[Date] [Name and Address of Client] Dear [Client's Name]: This letter will confirm our understanding that effective [DATE] this firm will no longer represent you in connection with [LEGAL MATTER]. I urge you to promptly retain other counsel to represent you in this matter.
Lead with the main purpose of your letter and then explain the reasons for your question or request. Be specific when referencing relevant information including names, dates and places. The more information you include, the better your attorney will be able to assist you.
The lawyer should send a disengagement letter to establish that the relationship is no longer continuing, and to refer the client to another lawyer. In the disengagement letter, the lawyer should warn the client of applicable time limitations, deadlines, and uncompleted investigation or casework.
Every time you want to decline to represent a prospective client, you should use a non-engagement letter. Otherwise, you risk the possibility that the prospective client could mistakenly think you're their attorney on a matter.