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.
What is a retainer in a lawsuit?
A retainer fee is an advance payment that a client makes to his or her lawyer before the lawyer performs any legal work for the client. Retainer fees are almost always required for cases involving a trial or a lawsuit. These amount of the retainer varies based on the type of lawsuit or case.
Can a lawyer deny the existence of a retainer agreement?
Sometimes a lawyer will deny the existence of an attorney-client relationship if there is no formal written retainer agreement. Without a written agreement you risk having no attorney and no recourse for an attorney error, even if you already paid.
How much does a lawyer charge for a retainer?
For example, the attorney may project that he will spend 10 hours, at an hourly rate of $100, amounting to a $1,000 retainer fee. If in the first month the lawyer spends four hours on the case, he will charge $400 against the $1,000 retainer fee, leaving a balance of $600.
What happens to the retainer fee after termination?
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. Therefore, clients should clarify with the attorney if they notice a “non-refundable” clause regarding retainer fees in the agreement.
When do I need to sign a retainer agreement?
Once a client has engaged an attorney to represent him or her in a case, the client is sometimes required to deposit an upfront retainer fee. The attorney should provide a retainer agreement detailing the retainer fee and how to proceed if the fee is depleted.
