Lawyer Retainer - What Is It? | Hillside Law Inc. Penticton (2024)

FAQs

Lawyer Retainer - What Is It? | Hillside Law Inc. Penticton? ›

A retainer agreement is a written agreement that serves as a contract between you and your lawyer. It is used to help ensure clear communication and avoid misunderstandings between you and your lawyer. If issues arise, such as a fee dispute, you can apply to have the bills reviewed by the court.

A retainer fee can be used to guarantee that the lawyer will be available to take a particular case. With this type of agreement, the client would be billed additionally for the legal work that is done.

Notably, this interpretation of a retainer payment is non-refundable to the client. It should also not be deposited into a trust account because it is the law firm's money upon receipt.

A retainer fee is an advance payment a client makes to a professional, and it is considered a down payment on the future services rendered by that professional. Regardless of occupation, the retainer fee funds the initial expenses of the working relationship.

A monthly retainer fee is paid in advance by your clients to ensure that your services will be available to them for the period covered. Clients on a monthly retainer usually pay a recurring fee, and they usually work on long-term projects with different agencies, who are available at their beck and call.

But how long is a lawyer retainer good for? Generally, a lawyer retainer is good for the duration of the legal matter for which it was paid. For example, if a client pays a retainer to handle a personal injury case, the retainer will typically cover the lawyer's fees and expenses until the case is resolved.

Perhaps the most apparent benefit of establishing a retainer agreement with an attorney is having the comfort of immediate legal advice at your fingertips. If you deal with legal issues frequently, a retainer agreement keeps a close line between you and your attorney if questions arise that require immediate attention.

A lawyer receives earned retainer fees for the services they have provided. These funds are transferred into a law firm's operating account only after they've done the work, which explains why they're called “earned” fees.

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.

General retainer: Paid to an attorney to secure their availability or for a certain amount of time. Security retainers: Deposit or lump sum fee paid in advance into a trust account. Funds are withdrawn from the account every time work is completed. Special retainers: Flat fee for a specific case or project.

How long is a retainer contract? ›

In agency-speak, a retainer agreement is an ongoing month-to-month agreement between a service provider and their client. Think of a retainer contract as a work-for-hire agreement where you complete either a set amount of work for the client on a monthly basis or commit a set number of hours to their work.

A retainer fee is the upfront cost of a service before the service has been performed. In other words, it's a form of advance payment often required by a consultant, lawyer or freelance professional. For example, a lawyer charges their client a retainer fee prior to the client using their services.

For freelance professionals or contractors, it's clear to see the benefits of retainer agreements. It improves cash flow by guaranteeing a regular, reliable stream of recurring income. It gives freelancers a clear view of their workload for the upcoming month, making it easier to schedule additional projects.

Some of the drawbacks of a retainer model are: You might end up paying more than you need, as you might not use all the hours or services that you have paid for each month. You might have to commit to a long-term contract, which can limit your options and flexibility if your business needs change.

While retainers are usually paid after the first month's work, they can also be paid upfront as a down payment and a show of good faith. That said, retainers don't always have to be on a monthly level. Based on mutual agreement, clients might pay weekly, quarterly, or annual retainers.

The purpose of retainer agreements

Where retainer agreements differ from other work contracts is that they establish long-term relationships and ongoing payment. This allows clients to lock in your services for a specified period of time and ensures a long-term client relationship and stable cash flow for your agency.

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.

Yes refunds can be given. If the attorney has not done work and where the cost is more than advised, it is appropriate to request a refund.

A retainer fee is a sum that a client pays to a consultant to secure their services. Clients usually pay these fees upfront before consulting services begin. Although many consultants require full payment before they begin working, a retainer fee can also be a small sum that clients pay to secure service.