<PAGE>
 
                                                                   EXHIBIT 10.29


                           THE GULFSTAR GROUP, INC.
                            3850 NATIONSBANK CENTER
                             700 LOUISIANA STREET
                          HOUSTON, TEXAS  77002-2731

TELEPHONE                                                       TELECOPIER
(713) 238-4900                                                  (713) 238-4999

                                April 24, 1997



CONFIDENTIAL
------------

Mr. Richard O. Looney
President
Litigation Resources of America, Inc.
650 First City Tower
1001 Fannin
Houston, Texas  77002

Dear Mr. Looney:

     The GulfStar Group, Inc. ("GulfStar") welcomes the opportunity to provide 
merger and acquisition advisory services to Litigation Resources of America, 
Inc. ("LRA" or the "Company") in its purchase of the stock, assets or business 
of companies that provide litigation support services (each such transaction 
referred to as an "Acquisition").

     Set forth below are (i) the services GulfStar will perform in the course of
this assignment, (ii) the total fees and expenses payable to GulfStar in 
exchange for those services and (iii) general terms and conditions of the 
engagement.

I.   SERVICES TO BE PROVIDED BY GULFSTAR

     During the course of the assignment, we will perform the following private 
     placement services on behalf of the Company:

     .   GulfStar will assist the Company in determining an appropriate value 
         and structure for each acquisition.

     .   We will also assist in the negotiation of the attendant letters of 
         intent and in the subsequent due diligence process.

     .   If satisfactory terms are agreed upon, GulfStar will serve as the
         Company's financial advisor throughout the process of drafting and
         negotiating the necessary definitive purchase agreements.

     .   If GulfStar is requested to provide other services (e.g. debt placement
         services, equity placement services, etc.) such assignments and fees
         will be negotiated separately on mutually agreeable terms.



<PAGE>
 
Mr. Richard O. Looney
April 24, 1997
Page 2 of 4


II.  FEE AND EXPENSE ARRANGEMENTS

     The professional fees and expense reimbursements payable to GulfStar with 
     respect to this assignment are set forth below:

     .   GulfStar shall be paid a merger and acquisition advisory fee equal to
         1.0% of the total amount of consideration paid in each Acquisition
         ("M&A Advisory Fee"). Such fee shall be payable in cash upon the
         successful completion of the Acquisition as contemplated herein. For
         purposes of calculating the M&A Advisory Fee, consideration is hereby
         understood to include cash, stock, long-term debt assumed, earnouts,
         contingent payments and seller financing.

     .   GulfStar shall be reimbursed on a periodic basis for our direct out-of-
         pocket expenses reasonably incurred in connection with this
         assignment. In connection with the foregoing, GulfStar shall furnish
         the Company written documentation of all out-of-pocket expenses that it
         has incurred together with such other information that is reasonably
         necessary to satisfy then applicable expense deduction reporting
         requirements of the Internal Revenue Service.

III. GENERAL TERMS AND CONDITIONS

     A.  DEFINITION OF LITIGATION RESOURCES OF AMERICA, INC.

         The terms "Looney" and the "Company", as employed herein, are
         understood to include Litigation Resources of America, Inc. and all of
         its subsidiaries, divisions, and affiliated companies.
         

     B.  TERMS OF ENGAGEMENT

         GulfStar will have the exclusive right, for an initial period of 180
         days following the execution date, to serve as LRA's investment banking
         representative with respect to the matters set forth herein. Upon
         expiration of 180 days, the engagement shall be automatically extended
         unless terminated in writing by either GulfStar or Looney. Further, any
         entity contacted during the course of this assignment will be deemed to
         be an interested party ("Interested Party"). The Interested Parties
         will be identified by us in writing upon the earlier of the termination
         or successful consummation of this assignment. Should this assignment
         be terminated prior to the completion of the transaction(s)
         contemplated hereby, and should the Company subsequently complete such
         transaction(s) with an Interested Party within a 12 month period


<PAGE>
 
Mr. Richard O. Looney
April 24, 1997
Page 3 of 4


         following such termination, then GulfStar shall be due full
         compensation under II with respect to the participation of any
         Interested Parties in such transaction(s).

     C.  INDEMNIFICATION

         LRA agrees to indemnify and hold GulfStar (and each of its partners,
         officers and employees) harmless against any losses, claims, damages or
         liabilities which GulfStar may be subject to in connection with
         services performed in its capacity as advisor as described in this
         engagement letter and to periodically reimburse GulfStar for any legal
         and other expenses reasonably incurred by GulfStar in connection with
         investigating or defending any action or claim in connection therewith,
         provided however, that LRA shall not be obligated under the foregoing
         indemnity agreement with respect to any loss, claim, damage or
         liability (or action in connection therewith) to the extent that a
         court of competent jurisdiction shall have determined by final judgment
         that such loss, claim, damage or liability resulted from the willful
         misfeasance or gross neglect of GulfStar, and provided further that if
         LRA assumes the defense of GulfStar then LRA shall not be obligated to
         pay any legal fees or expenses thereafter incurred by GulfStar, so long
         as there are no conflicting legal defenses or interests between LRA and
         GulfStar. LRA shall not be liable for any action settled without its
         consent. The indemnification and reimbursement provided to GulfStar
         hereunder shall be applicable whether or not negligence of GulfStar is
         alleged or proven.

     D.  LACK OF INDEPENDENT VERIFICATION

         During the course of this assignment, GulfStar may rely upon the
         opinions of experts (including, but not limited to, independent public
         accounting firms) with respect to the accuracy or certain data provided
         by LRA. GulfStar will make no effort to independently verify the
         accuracy of any expert opinions so relied upon.

     E.  CONFIDENTIALITY

         All non-public information supplied to GulfStar by LRA with respect to
         the Company will be held in strict confidence, as we understand that
         much of this information is treated as highly confidential by you and
         is not normally divulged to outside sources.

<PAGE>
 
Mr. Richard O. Looney
April 24, 1997
Page 4 of 4


     F.  AMENDMENTS

         Both parties agree that this document can be modified or amended only 
         through the written agreement of GulfStar and LRA.

     If the foregoing accurately sets forth your understanding of our agreement,
please so indicate by signing, dating and returning one of the enclosed copies 
of this letter, while retaining the other copy for your records.

     We are delighted to have the opportunity to assist you in this important 
matter and we look forward to working with you in the successful completion of 
this assignment.

                                  Sincerely,

                                  THE GULFSTAR GROUP, INC.



                                  By:  /s/ Daryl R. Swarts
                                       -----------------------------------
                                       Daryl R. Swarts
                                       Managing Director


ACCEPTED AND AGREED TO:

LITIGATION RESOURCES OF AMERICA, INC.



By:    /s/ Richard O. Looney
       -----------------------------------
       Richard O. Looney
       President

Date:  April 30, 1997
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