what is a retainer lawyer fee

Key Takeaways:

• A retainer fee is a payment made to a professional, often a lawyer, by a client for future services. 1
• Retainer fees do not guarantee an outcome or final product.
• Portions of retainer fees can be refunded if services end up costing less than originally planned.

Full Answer

What to expect when you hire an attorney on retainer?

What to Expect When You Hire a Lawyer

• Guidelines to Keep in Mind When Hiring a Lawyer. Brian: Always be aware of the agreement you entered into. ...
• Red Flags. Shant: At the end of the case, with large settlements or verdicts, often the client’s net recover can be put into a “structure” or an annuity, which can ...
• A Few Final Thoughts. ...

Can a lawyer charge you without a retainer?

Can a lawyer charge you without a retainer? A lawyer doesn’t have to charge a retainer fee but most lawyers will. Your lawyer is providing you with a service, and the only way the lawyer can be sure that he or she will be paid is to require their clients to pay a lump sum amount in advance.

Is it worth having a lawyer on retainer?

Possibly the biggest advantage of having an attorney on retainer is the fact that paying an attorney a monthly retainer fee entitles you to priority service when it comes to obtaining legal advice or having documents drawn up. Being at the front of the queue means your legal work will be performed more efficiently and with less hassle.

How to pay for the retainer fee for my attorney?

• Go to the Banking menu at the top.
• Select Enter Credit Card Charges.
• Pick the credit card you used for this payment.
• Enter the vendor’s name in the PURCHASED FROM field.
• Fill in the amount and post it to the current asset account for prepayments.
• Hit Save & Close.

Why do lawyers want a retainer?

Retainers are most useful for businesses that need constant or semi-recurring legal work but do not have enough money to hire a lawyer full-time. This could include services like ensuring regulatory compliance, document review, or representing the business in employment or contract disputes.

Is a retainer fee refundable?

Most frequently, the client agrees to a security or an advanced payment retainer where payment for services is drawn from the monies held in trust. Here's the kicker—only the true retainer is non-refundable. Unearned funds from either a security or advanced payment retainer must be refunded at the end of the work.

Is it good to have a lawyer on retainer?

If you are a business person, it makes sense to have a lawyer on retainer. Retaining a business attorney from the very start can save valuable time, energy and money in order to help avoid litigation. Retaining an attorney from the beginning can help you focus on your business and not on legal questions.

How long is a lawyer retainer good for?

A lawyer cannot claim the retainer fee until they have completed work and provided an invoice to the client. The retainer is still the possession of the client until used for legitimate expenses as detailed in the retainer agreement. The amount in the trust account will not expire.

What is the purpose of a retainer fee?

A retainer fee is an amount of money paid upfront to secure the services of a consultant, freelancer, lawyer, or other professional. A retainer fee is most commonly paid to individual third parties that have been engaged by the payer to perform a specific action on their behalf.

Is a retainer fee a deposit?

In a definitive sense, a retainer is a fee that is paid in advance in order to hold services (ie. a wedding or event date). While a deposit may also reserve a date, it is returned when the services have been completed. A retainer is by default non-refundable and is not returned.

How does a retainer work?

Being on retainer means that you're "on-call" for a specified number of hours each week or month. The client agrees to pay you for these hours, whether he gives you work or not. Usually, service providers offer clients a reduced hourly rate for the security offered by being on retainer.

Will a lawyer take a losing case?

If your case isn't winnable, no lawyer will want to waste your time, or the court's time, pursuing legal action. However, if you have a case where the facts and evidence are in question, but the damages you could recover are high, an attorney with extensive experience in cases like yours might take the case.

What Are The Benefits of retainers?

A client may choose to pay using a retainer fee in order to demonstrate that they are serious about their case and wish to retain the lawyer’s serv...

Are There Other Types of Fees?

While retainer fees are the more traditional way of paying for legal services, another common type of payment is called a contingency fee.This type...

What Are Unearned and Earned Retainer Fees?

"Unearned" retainer fees refers to the money that is placed in the retainer account before the lawyer has earned them. This would be the “allowance...

What Is A Retainer Fee Dispute?

The most common dispute is with “leftover’ funds. This occurs when attorneys fail to return the leftover funds in a timely manner, or the relations...

Why do you pay retainer fees?

Also, the retainer fee aims to protect the attorney from unforeseen circumstances in the future that can prevent clients from meeting their obligations.

How often do lawyers get paid for retained fees?

The earned retainer fee is paid every month until the case is closed. Sometimes, the lawyer may be paid according to the milestones he has completed, for example, 25% after the pre-trial process, 60% after the hearing, and 100% when the case is determined and closed.

What is an unearned retainer fee?

An unearned retainer fee refers to the amount of money deposited in a retainer account before the commencement of work. The amount serves as a guarantee by the client to pay the attorney upon completion of the agreed work. The attorney cannot claim the retainer fee until he has completed the work and invoiced the client.

What happens after retainer fee is depleted?

After the retainer fee is depleted, the attorney may bill the client in several ways. The first option is to enter into a contingency fee agreement with the client. A contingency fee agreement provides that the lawyer does not get paid unless he wins the case. If the case ends in favor of the client, the attorney takes a percentage ...

What is retainer in legal?

The retainer is usually a fixed amount that the client commits to pay the attorney on a monthly basis in exchange for the opportunity to engage him in the future when legal issues come up.

Why is the fee deposited in a different account than the receiver's account?

Once the payer and receiver have agreed on the work to be performed, the fee is sometimes deposited in a different account than the account of the receiver to ensure that the funds are not used for other purposes.

Can you claim retainer fee after contract is terminated?

Once the agreement is terminated, the client may claim the balance of the retainer fee after paying the attorney an amount equivalent to the number of hours worked.

What is retainer agreement?

A retainer is a fee paid to a person (usually a lawyer) before any services have been performed. Most lawyers require a retainer agreement, which is also known as a “work for hire” contract. This document typically includes the type of work the attorney is doing for the client, all associated fees, and the general rights ...

Where is retainer money placed?

Usually, the money from a retainer fee is placed in a separate account from the lawyer’s personal funds. This ensures that the lawyer will not use the money for their own purposes before services are actually rendered. Additionally, all expenses and hours worked are entered with descriptions and provided to the client.

Can a lawyer touch unearned money?

The lawyer is not entitled to touch this money until they have documented “earned” fees that include logged hours, materials, or additional overcost fees. A well written retainer fee agreement will be clear about how unearned and earned monies are defined.

What is a Legal Retainer Agreement?

A legal retainer agreement serves as a work-for-hire contract between the attorney and the client. The contract explains a period of work within which the attorney (s) will charge at a determined rate per hour. The work period may be defined or undefined.

How Retainers for Lawyers Work

The lawyer retainer is basically an agreement between you and the lawyer that you would like to reserve a certain amount of the lawyer’s time. This time could be used for a specific issue or, in the case of a business, it might provide you with quick access to the attorney’s time.

Why Do Lawyers Use Retainers?

Compensation. The retainer is a form of compensation for use of the attorney’s reputation. In the event that the name association could resolve the matter quickly, it’s in your best interest to have the attorney available for a letter, email, or telephone call.

Are Retainers Refunded by Lawyers?

That depends on the wording in your legal retainer agreement. It also depends on the nature of the agreed-upon billing.

Get Help with a Legal Project

Post a project in ContractsCounsel’s marketplace to get fee proposals from lawyers in our network. All lawyers are vetted by our team and peer-reviewed by our customers for you to explore before hiring.

Meet some of our Lawyers

Miami-based duly licensed attorney and customs broker with significant experience in various types of supply chain business agreements, as well as experience in entertainment law.

What is retainer fee?

A retainer fee is a payment made to a professional, often a lawyer, by a client for future services. Retainer fees do not guarantee an outcome or final product. Portions of retainer fees can be refunded if services end up costing less than originally planned.

When are retainer fees earned?

Retainer fees are earned once services have been fully rendered. In the example above, the retainer is considered unearned until the court case is closed and finalized. These unearned fees do not belong to the person performing the tasks, in this case, the lawyer until work actually begins.

What is an unearned retainer fee?

An unearned retainer fee refers to the initial payment of money that is held in a retainer account prior to any services being provided. Retainer fees are earned once services have been fully rendered.

Why do attorneys charge retainer fees?

For example, once a lawyer has been officially retained, your case may be more likely to settle because you can leverage the attorney’s reputation and expertise . Additionally, an attorney can receive compensation for making himself or herself available and foregoing other opportunities in order to represent you. Retainer fees provide somewhat of a guarantee that the attorney will be compensated for his or her services. The attorney can work on your case and subtract his or her time from the retainer fee.

What is retainer fee?

Retainer fees are down-payments on an attorney’s services. Having a retainer fee in place allows an attorney to feel confident that he or she will be paid for his or her legal services.

What are legal costs?

Legal costs are other expenses like filing fees, costs to copy papers, expert witness fees and postage that attorneys incur from handling the client’s case. Legal fees and costs both may be deducted from your retainer fee. However, check your retainer agreement to be certain how these funds will be allocated. ...

What happens if you don't pay retainer?

If your case does not require the entire retainer, the remaining portion of the retainer will likely be returned to you. However, a retainer is essentially an upfront payment, so it is not meant to cover the entire cost of a case.

When is a retainer fee required?

A retainer fee is typically requested at the beginning of legal representation. An attorney may communicate that he or she does not agree to take the case until this fee has been paid in full. However, in other cases, a second or multiple retainer fee may be charged. For example, if you first believed that your criminal case would be able ...

Can an attorney receive compensation for his or her services?

Additionally, an attorney can receive compensation for making himself or herself available and foregoing other opportunities in order to represent you. Retainer fees provide somewhat of a guarantee that the attorney will be compensated for his or her services. The attorney can work on your case and subtract his or her time from the retainer fee.

Can you charge legal fees as part of retainer agreement?

However, check your retainer agreement to be certain how these funds will be allocated. Legal costs may be charged as they are incurred and submitted to you as part of your monthly legal bill, or attorneys may advance these costs as they are incurred and then ask for reimbursement at a later date.

What is retainer fee?

A lawyer retainer fee refers to money paid to a lawyer in a lump sum to secure his or her legal services. The retainer fee covers legal fees and the cost of legal action taken on the client’s behalf. You will generally be asked to pay the retainer cost at the time you hire a lawyer. You can think of it as an advance payment for ...

What is a lawyer on retainer?

According to the American Bar Association, a lawyer on retainer refers to legal services that are paid regularly for access to any legal advice or services that arise: “By paying a retainer, a client receives routine consultations and general legal advice whenever needed.”.

What is an hourly fee for a lawyer?

Hourly rate – The lawyer is paid for legal work done on an hourly basis. In other words, for each hour of work done by your lawyer, you pay an agreed upon hourly rate for his or her services. Flat fee – A price agreed upon upfront that will cover all of the legal work to be done by your lawyer.

What is important to know before working with a lawyer?

Before agreeing to work with a lawyer, it is important to have him or her explain the fee structure, and how and why it is subject to change, in full. While cases may take an unexpected turn, lawyers can usually provide you with a fair estimate of the length of time they will need to spend on the case.

Is attorney retainer fee hourly?

It is important to note that a lawyer’s hourly fee is a big determinant of the attorney retainer fee. Therefore, understanding the lawyer’s hourly rate is usually the first step in determing what the retainer fee for the lawyer will be.

Do lawyers bill for retainer?

Most lawyers bill periodically for the services they have provided to date. If the case is not yet closed and the retainer is running low, your lawyer may ask you for additional money to top up the retainer. In addition to the retainer fee for your lawyer, you will likely also be asked to sign a retainer agreement.

Do retainer fees include expception?

“You get what you pay for” is a common phrase that can be applied to many aspects of life, and attorney retainer fees are no expception. According to Criminal Defense Lawyer:

What Is a Retainer Fee for an Attorney?

A retainer fee for a lawyer is a form of prepayment for future services. The payment structure is common in various industries but is prevalent in the legal world because it tends to build a strong, ongoing relationship between attorney and client.

How Does a Retainer Fee Work for an Attorney

Retainers are meant as a down payment for future legal services. In some ways, it serves as a way for the client to name and connect with their attorney, building a relationship and allowing both parties to familiarize each other with any potential legal issues regarding a specific topic.

Do I Need a Lawyer on Retainer?

Most individuals do not need a lawyer on retainer. However, many businesses benefit from having ready access to legal services to handle employment issues, copyright disputes, assist with acquisitions, and other common business needs.