Legal Representation Letter Template printable pdf download

Letter 3

Example: Legal Representation Letter

(Prepared on client’s letterhead)

(Date)

(Name and address of attorney)

Dear__________:

In connection with an audit of our financial statements as of December 31, 200X and for

the year then ended, please furnish to our independent auditors (insert name and address

of auditors) the following information concerning certain contingencies involving matters

as to which you have devoted substantive attention on behalf of the Company (and any of

its subsidiaries, if applicable) in the form of legal consultation or representation. These

contingencies are regarded by us as material for this purpose if they involve claims

amounting to more than (insert materiality dollar amount), individually or in the

aggregate.

Pending or Threatened Litigation, Asserted Claims, and Assessments

Please furnish to our auditors a description and evaluation of all pending or threatened

litigation, asserted claims, and assessments. Your response should include the following:

1. The nature of each matter, including (a) the proceedings, (b) the amount of monetary

damages sought, or if no amounts are indicated, a statement to that effect, (c) the

extent to which potential damages are covered by insurance, and (d) the objectives

sought by the plaintiff other than monetary or other damages.

2. The progress of each matter to date.

3. The way we are responding or intend to respond (e.g., to contest the case vigorously

or to seek an out-of-court settlement).

4. An evaluation of the likelihood of an unfavorable outcome and an estimate, if one can

be made, of the amount or range of potential loss. If you cannot express an opinion on

the outcome of certain litigation, please so state, together with your reasons for that

position.

Unasserted Claims and Assessments (considered by us to be probable of assertion, and

that, if asserted, would have at least a reasonable possibility of an unfavorable outcome)

[The client should prepare a list describing all such material contingencies. Ordinarily,

management’s information would include (1) the nature of the matter, (2) how

management intends to respond if the claim is asserted, and (3) an evaluation of the

likelihood of an unfavorable outcome and an estimate, if one can be made, of the amount

or range of potential loss.]

Legal Representation Letter Template