Summary
- Clients put attorneys on retainer by hiring them
- A client can also reserve a lawyer’s time using a retainer agreement
- Retainer agreements define the scope of the project and the fees charged
What Is a Retainer in Law?
A retainer is simply an agreement with a lawyer for representation. In other words, you “retain” a lawyer’s services by establishing the attorney-client relationship. This relationship may include a fee. However, some attorneys, such as public defenders, do not charge their clients a fee.
What Does It Mean to Have a Lawyer on Retainer?
When you retain a lawyer, they agree to handle your legal issue. Some confusion often arises because of the way the term “retainer” is used on TV and in movies. In popular culture, having attorneys on retainer means they are on call for any legal problems that arise.
While some retainer agreements reserve a lawyer’s time for on-call projects, this is not the only way to retain a lawyer. The following relationships are established by retaining a lawyer:
On-Call Basis
Some clients require immediate and on-demand access to legal assistance. However, they do not want to hire lawyers as employees. For example, a regional bank might need on-call legal services but may not have enough work to justify a full-time lawyer’s salary.
In these situations, the client may enter into a retainer agreement and pay a fixed fee every month. In exchange, the lawyer will keep their schedule flexible and open to respond to the client’s needs.
Under this relationship, the lawyer can take on a limited number of additional clients as long as they remain available when their main client needs help. The client’s fee reserves the lawyer’s time and compensates them for the work they perform.
This type of relationship is often called a “true retainer.” The fee is usually non-refundable because the lawyer must turn away other clients in case their primary client calls. Thus, the lawyer keeps the retainer fee even in months that the client sends no work.
How long is a lawyer retainer good for? A true retainer can last as long as the client and lawyer are happy with it.
Time Basis
A retainer can also “buy” an amount of time from the lawyer. In these relationships, the client may pay a lawyer retainer fee as an advance for work to be performed. For example, a lawyer might ask for a retainer fee equal to 50% of the predicted hourly fees to prepare a will.
This type of retainer benefits both the lawyer and the client. The lawyer knows they will get paid for at least part of the work they perform. The client can use the retainer to set a budget and manage costs.
The exact amount will depend on many factors, including the scope of the project and the lawyer’s hourly rate. How much does a lawyer cost per hour? The lawyer’s fee and the retainer amount could range from a few hundred dollars to several thousand, depending on the situation.
What does a lawyer retainer fee cover? It will typically cover the lawyer’s time spent on the case. Importantly, this type of retainer is usually refundable when the lawyer resolves the case faster than expected.
The ABA’s Model Rules of Professional Conduct prohibits lawyers from charging an “unreasonable fee.” If the lawyer did not earn a fee, it would be unreasonable and must be returned.
Project Basis
You can retain a lawyer for a specific project. For example, you might hire a lawyer to defend you in a criminal prosecution for aggravated DUI. The judge will typically ask you if you intend to “retain” private counsel or meet the requirements for a public defender.
Regardless of the outcome, your relationship with the lawyer will probably end at the end of the case.
Similarly, you can retain a lawyer to handle a personal injury case against a trucking company that negligently maintained its vehicles. The lawyer will file an insurance claim and, if necessary, file a truck accident lawsuit. Your relationship ends when the case ends.
The lawyer on retainer cost for this type of relationship depends on the arrangement you and your lawyer reach. Some lawyers might expect a fee advance, while others will start without any upfront charge. For example, car accident lawyer fees are usually contingent on the case outcome and only paid at the end of the case.
How to Retain a Lawyer
The attorney-client relationship exists when you seek legal advice or representation, and the lawyer accepts you as a client. You could establish this relationship orally by asking a lawyer for help and hearing a “yes.”
However, most lawyers prefer to document the relationship using a retainer agreement. This agreement outlines the services to be performed and the fees to be charged. Most states require lawyers to put contingency fees in writing.
Other fees, such as flat, hourly and true retainer fees, do not necessarily need to be written, but most lawyers will do so anyway to reduce the risk of conflict.
When to Consider Retaining an Attorney
Is it good to have a lawyer on retainer? Bear in mind that you retain a lawyer anytime you establish an attorney-client relationship. Thus, the real question is when should you enter into a true, non-refundable retainer arrangement with a lawyer?
The answer depends on your legal situation. If you rarely run into legal issues, having attorneys on retainer could waste your resources. Similarly, if you have a continuous stream of legal work, a true retainer may also be wasteful because it might be cheaper to hire a full-time lawyer.
A true retainer relationship works best when you have enough work to justify paying the non-refundable retainer fee but too little work to hire a full-time lawyer.
Contact ConsumerShield to Learn More About Hiring Attorneys on Retainer
Hiring a lawyer can provide significant advantages in your legal matters. However, only you can determine whether your needs justify having attorneys on retainer. ConsumerShield helps people and businesses understand their legal situations and find representation to assist them. Contact us for a free case review and lawyer referral.
