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Thank you for consulting ________(Firm Name)__________ in conjunction with your _________________________. The confidence you have placed in this office by consulting us is appreciated. Regrettably, we cannot assist you in this matter due to a conflict of interest.
Send rejection letter. If taking on the client seems like too great of a risk, protect yourself by notifying the client in writing so there is no confusion about representation. Be polite but firm, and abundantly clear. Send the letter by certified mail and retain a copy for the firm's records.
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.
engagement letter informs prospective clients that the attorney will not be representing them. Lawyers prepare this type of correspondence to clarify and document the status of the relationship.