Jun 13 2026
Estate Planning Q&A Series What happens if I accidentally signed an engagement agreement with the wrong law firm for a power of attorney? NC

What happens if I accidentally signed an engagement agreement with the wrong law firm for a power of attorney? - North Carolina

Short Answer

In North Carolina, accidentally signing an engagement agreement with the wrong law firm usually does not stop the proper power of attorney from being prepared by the intended law firm. The client can normally end the first attorney-client relationship in writing and ask for a refund of any unearned fee, but the first firm may be allowed to charge for work already performed under the agreement. The power of attorney itself is a separate document and must be signed by the principal with the required formalities.

Understanding the Problem

In North Carolina, the issue is whether an individual who signed and paid a different law firm while arranging a power of attorney for a relative is locked into that firm or can stop that representation and move forward with the intended attorney. The key actor is the person who actually became the client under the engagement agreement, while the key legal act is the relative’s creation of the power of attorney. Timing matters because the confusion should be corrected before more legal work is performed, before a signing meeting occurs, or before anyone relies on a power of attorney document.

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Apply the Law

An engagement agreement is the contract that sets the scope of the legal work, the fee arrangement, and who the attorney represents. Signing that agreement may start an attorney-client relationship with that firm, but it does not itself create a power of attorney for the relative. A North Carolina power of attorney generally depends on the principal’s capacity, intent, signature, and proper notarization or witnessing, depending on the type of document.

The main forum is usually not a court. The practical step is written notice to the first law firm ending the engagement, asking the firm to stop work, requesting an itemized accounting, and requesting return of any unearned funds and client papers. If a financial power of attorney will be used for real estate, the Register of Deeds becomes important because North Carolina requires recording before an agent uses the power of attorney to transfer real property.

Key Requirements

  • Identify the client: Determine whether the engagement agreement says the client is the individual arranging the appointment, the relative who needs the power of attorney, or both. The person with client authority controls whether to end that representation.
  • End the first engagement clearly: Send a short written notice stating that the firm should stop work on the power of attorney matter and should confirm any refund or remaining balance.
  • Preserve the principal’s authority: The relative who is granting the power of attorney must have the ability to understand the document and must sign or properly direct someone to sign under North Carolina law.
  • Do not confuse the engagement with the POA: Signing a legal services agreement with a law firm does not appoint an agent under a power of attorney. The separate POA document controls that appointment.
  • Coordinate before duplicate work occurs: If two firms are working on the same POA, delay, extra fees, conflicting drafts, and confidentiality issues can arise.

What the Statutes Say

Analysis

Apply the Rule to the Facts: The individual became confused after receiving documents and making a payment to a different law firm, so the first step is to identify who signed the engagement agreement and who the agreement names as the client. If the engagement was signed by the wrong person or for the wrong firm, that does not create the relative’s power of attorney. The relative still must decide, while capable, whether to sign a financial or health care power of attorney, and the document must meet North Carolina signing rules.

If the first firm has not done meaningful work, the requested refund may be straightforward. If the first firm already opened the matter, held conferences, reviewed information, or drafted documents, it may claim payment for reasonable work already completed under the agreement. A new attorney can still help sort out hiring a different lawyer for a power of attorney and avoiding duplicate or inconsistent documents.

Process & Timing

  1. Who files: Usually no one files anything in court. Where: Send written notice directly to the first law firm. What: A short termination email or letter, a request to stop work, a request for an itemized accounting, and a request for return of any unearned funds and client papers. When: Send it as soon as the mistake is discovered, ideally before any signing meeting or further drafting.
  2. Confirm representation: The intended law firm should confirm who the client is, who may attend the meeting, and whether the relative has capacity to discuss and sign a power of attorney. If a family member wants to sign paperwork for someone else, the attorney should review authority carefully; this issue is discussed further in signing engagement paperwork for a relative.
  3. Prepare and sign the correct document: The attorney prepares the financial power of attorney, health care power of attorney, or both. The principal signs with the required notary and witness formalities. If the power of attorney will be used for a real estate transfer, record it with the appropriate county Register of Deeds before the agent signs the real estate document.

Exceptions & Pitfalls

  • The relative may be the true client: If the power of attorney is for a relative, the attorney may need to speak with the relative directly and privately to confirm wishes, capacity, and freedom from pressure.
  • The wrong person may have signed: A family member generally cannot create a power of attorney for another adult unless the principal properly signs or directs the signing under North Carolina law. For background on the estate planning steps, see setting up a power of attorney.
  • Fees may not be fully refundable: A payment made up front may be refundable only to the extent it was not earned. The engagement agreement and the work already done matter.
  • Two firms may create inconsistent drafts: If one firm drafts a financial power of attorney and another drafts a health care power of attorney without coordination, the documents may not match the principal’s full plan.
  • Confidentiality still matters: Information already shared with the first firm may remain protected, but the new attorney should know enough about the prior engagement to check for conflicts and avoid duplicate work.
  • Real estate use adds a recording step: If the agent will sign a deed or other real property document, failure to record the power of attorney with the Register of Deeds at the right time can cause practical problems.

Conclusion

Accidentally signing an engagement agreement with the wrong law firm for a North Carolina power of attorney usually creates a fee and representation issue, not a valid power of attorney by itself. The client can generally end that representation, request an accounting, and ask for return of unearned funds. The key next step is to send written termination to the first law firm immediately, before more work is performed or any power of attorney signing occurs.

Talk to a Estate Planning Attorney

If you're dealing with a mistaken engagement agreement while trying to arrange a North Carolina power of attorney, our firm has experienced attorneys who can help you understand your options and timelines. Call us today at 919-341-7055.

Disclaimer: This article provides general information about North Carolina law based on the single question stated above. It is not legal advice for your specific situation and does not create an attorney-client relationship. Laws, procedures, and local practice can change and may vary by county. If you have a deadline, act promptly and speak with a licensed North Carolina attorney.