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Keep a simple rejection letter format: show appreciation, break the news, tell why, offer help, and close on a high note. Use empathy statements to show you understand a customer's feelings (i. e. I totally understand that ?, I know how frustrating it must be ?, etc.)
The decision to decline a representation is best to communicate that declination in writing. "Non-engagement letters" should clearly inform the prospective client that the law firm will not represent the prospective client in that matter and that he or she should not rely on the lawyer for any advice or legal action.
After careful consideration, I have decided that these offers would present me with an option to return to an area closer to my desired geographic area, therefore, I must decline your offer at this time. I thank you for the thoughtful consideration and the offer I received.
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.
After you left our offices yesterday, we performed a formal conflict-of-interest check and found that our firm does indeed have a conflict of interest involving your intended adversary in this case, [Name]. Unfortunately, this conflict cannot be resolved in a manner that would allow us to represent you in this matter.