The most common scenario when individuals choose to hire an attorney is in personal injury cases or accident cases, especially if the insurance company is being impossible to deal with and the case goes to court. 

In these types of cases, an attorney representation letter will be sent when an individual, such as Linda:

1. Decides to initiate a legal claim against another person.
2. Receives notice of a legal claim filed against them and wishes to secure representation for the court process.

No matter when the letter is sent, a legal letter of representation signals to the other party or parties that you now have legal representation. If the other party or parties involved in the case also have legal representation, then the letter lets their law firm know that you have now secured legal representation as well. 

The sooner you have secured representation and sent the legal letter of representation, the sooner you will be able to expedite any negotiations.

For example:

Mike is fired. He believes he was fired because his boss had a personal vendetta against Mike for revealing a serious liability with one of the company’s new products, which Mike’s boss designed. When Mike revealed this product liability to the CEO, Mike’s boss got into trouble and Mike was fired shortly thereafter. Mike attempts to file a claim against the company for wrongful termination, sending a letter explaining the events that transpired and the type of compensation he is pursuing. The company ignores his communication and takes no action. Based on their failure to act, Mike hires an attorney who immediately sends the company and their lawyers a legal representation letter. In the letter, the attorney explains the circumstances, what Mike is pursuing compensation, and what action the company should take. Seeing that Mike now has official legal representation, the company decides to respond to Mike and his request. Whereas they were happy to ignore his communications without an attorney, they are now willing to communicate through their lawyers.

Or: Mikes was in an accident and ended up in the hospital he loses his job, Mike now has two claims 

1. He can claim from the Road Accident Fund
2. He needs a Lawyer to immediately send the company and their lawyers a legal representation letter. In the letter, the attorney explains the circumstances and prevents the company firing him

Or: Mike has an accident at work, his injuries are severe, and will be at home for a long time. Mike’s employer fire’s him, he is now stuck at home with no income.
Mike get’s a legal representative to immediately send the company and their lawyers a legal representation letter, the attorney explains the circumstances and prevents the company from firing him.

In this example, it is clear, having an attorney, and the act of sending the legal representation letter can be effective in any negotiation as it demonstrates to the other side that you mean business.