Retainer fees act as a mutual agreement between a client and a professional to secure services and availability for the future. Retainers are separate from the hourly wages charged by lawyers. They do not ensure a favorable outcome from the settlements.
Bar associations instruct lawyers to avoid charging a retainer fee exceeding the hours required to close the case.
It is paid in advance to the lawyer before proceeding with the case in hand.
They are a part of the total expense incurred by the client during the negotiations and trials.
It ensures the client can retain the services of the lawyers beyond the initial meeting.
Clients can revoke retainers if they do not seek further legal representation from the same lawyer.
Clients could claim the balance amount in a refund unless stated “non-refundable” in the initial contract.
The payment of retainer fees is fulfilled depending on the case’s nature, whether it is one-time or continual.
Attorneys calculate the retainer amount based on specific factors –
- Billing rates are based on lawyers’ legal expertise and specialty.
- The complexity of the case.
- Loopholes and difficulties faced during the case.
- Final verdict.
- The efficiency of the entire process.
Clients can avail of multiple payment methods available to them –
1. Contingency fees –
The lawyer receives a part of the settlement amount in case the verdict is in your favor.
You can void the fees in your initial contract, but your attorney may state an amount anyway.
These charges are open to negotiation.
2. Hourly rates –
Lawyers often charge based on the hours given to the case.
Experienced lawyers have higher rates but more efficient as well.
Ensure the contract specifies the rates before entering into a deal.
3. Flat fees –
As opposed to the other payment method, lawyers may charge a lump sum amount for a one time case, like filing for bankruptcy or creating a will.
General retainers
General retainers are amounts charged for a specific duration of time and not a case.
You sign these usually when you require your lawyer for interrogations and negotiations.
It also included charges for consulting sessions you may have.
Specific retainers
Specific retainers are fees charged for a single cause or project.
It is not a favorable option as you need to retain your lawyer until the case closes.
Professional and ethical conduct
Lawyers deposit the retaining fee in a trust amount. They use the money while the case is ongoing and can return any balance to the client on closure.
The state and bar associations work together to ensure lawyers charge reasonable retainer fees against the client’s professional and ethical conduct.
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