Whenever I do a consultation with someone, I will quote a retainer for their case, if desired. But, a lot of times, people do not know what a “retainer” is when it comes to legal fees, even if they have had a lawyer before, or have talked to other lawyers. Time to learn!
Now, how does a retainer work? A retainer, in the legal world, is a sum of money that the person hiring the lawyer deposits into the lawyer’s trust account. The lawyer holds the money for the person in their trust account, and may only withdraw the funds “as fees are earned or expenses incurred.” (Rules of Professional Conduct 1.15(c)). Simply put, a lawyer cannot take money out of your retainer unless and until they have earned fees per the terms of your fee agreement, or incurred costs per the terms of your fee agreement.
Now, if your case takes a lot more time than originally anticipated by your counsel, you might get a request for an additional retainer deposit along the way, or a bill at the end of your case. Similarly, if your case takes less time than anticipated and there is money left over, you should receive a refund of those funds. Retainer work is NOT flat fee work, and the lawyer has to account for the usage of your retainer. If the attorney does not account for the usage of your retainer, or does not refund the remainder of your retainer, they are in violation of our Rules of Professional Conduct.
Things to Consider Before Hiring an Attorney on Retainer
This is where the bulk of the additional words will be. Are there specific things for the average person to consider before hiring a retainer lawyer? They can be listed out as <h3>’s below. First include a paragraph or two talking about why someone might want to hire a retainer lawyer then talk about specific things. Add 150 words.
Hiring an attorney is a very personal call. If you ever feel pressured by an attorney to hire them, that is problematic. There is a lot of assistance you can get that does not involve hiring an attorney to fully represent you. However, it might be that you would feel better being fully represented, or hiring an attorney on a limited scope basis for some part of your legal matter. If that is the case, you should absolutely proceed with hiring counsel.
Limited Scope Representation
You can hire an attorney to represent you on a limited scope basis. Now, I realize I’ve discussed that in other blog posts, but it bears mentioning again. Oftentimes people will feel good about doing part of their case (i.e. paperwork) but not another (like mediation, or a hearing). In that instance, you can oftentimes find a lawyer to represent you on a limited scope basis for one specific part of your case.
For instance, if you wanted to hire a lawyer to represent you at mediation, you could do so on a limited scope basis. The attorney would come on to set up mediation, do mediation with you, and perform any necessary follow up (or whatever the terms of your agreement were), and it would be for a smaller retainer than if they fully represented you. Then, when their specific task is completed, they are automatically done with your case. This keeps costs down but gets you the help you need in the amount you feel you need.
Full representation
Full representation is what you typically think of when you think of a lawyer – the attorney represents you on your case from start to finish (or until you fire them), and they charge a big retainer up front. Attorneys normally quote a full representation retainer based upon the case, and are reticent to quote blanket retainers. This is because every case is different, and an attorney will be able to spot factors that would make the case take more time or less time.
How do flat fee services differ from retainer services?
When you hire an attorney on a flat fee basis, you are paying one flat fee for a task. You never have to pay more, and as long as the attorney completes the task, they do not have to account for time or expenses in performing the task.
When you hire an attorney on a retainer basis, they have to perform the duties listed and account for their time in performing the duties. There are very specific ethical guidelines around attorney billing practices. Another difference with retainers is that it may cost more or less than the retainer amount. A retainer is only an up front payment on services to be performed, it is not a flat fee payment for the services.
How Fox Law Firm Can Help
I am not currently providing full representation services due to my work load, but I am providing limited scope services for specific, non-court tasks. I very commonly represent people on a limited scope basis for mediation.
When representing someone on a limited scope retainer basis, I provide retainer statements monthly to clients, or upon demand at any time. Retainer records are kept up to the moment and can be accessed at a moment’s notice. It is your money, you should be able to find out how much you have at any time.
I try to quote a retainer amount that I think will cover the legal situation that you have described to me. However, if things go differently than planned you can end up having to make another retainer deposit, or you may get a refund when the case is concluded.
I am happy to answer any questions you have about how retainers work, or about your specific legal situation. I offer a 30-minute phone consultation ($75) and will quote you a retainer amount for your case at that time!
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