Business, Legal & Accounting Glossary
A retainer is a payment made in advance of receiving a service. A retainer acts as a down payment, ensuring delivery of service and payment for providing a service. Frequently, a lawyer, consultant or counsellor will request a retainer in order to secure their services. A lawyer is often referred to as being placed “on retainer.” As a lawyer works on a case, he/she will bill time against the retainer. Expenses such as travel time and phone calls are not considered part of a retainer and are usually billed separately. A retainer is often a part or percentage of a total contractual sum. A retainer period refers to a pre-determined period of time in which services will be provided. A retainer is also referred to as a deposit, advance payment or advance.
n. the advance payment to an attorney for services to be performed, intended to insure that the lawyer will represent the client and that the lawyer will be paid at least that amount. Commonly in matters which will involve extensive work there will be a retainer agreement signed by the attorney and client. Further payments for services can be expected as the time spent on the legal matter increases. Most lawyers do not want to be owed money and wish to be paid either in advance or promptly as the work is performed. One reason for the retainer, and the problem a lawyer faces, is that he/she does not want to abandon a client, but at the same time does not want to be stuck with extensive unpaid fees.
A retainer is the advance payment of fees and the costs to hire a lawyer before the lawyer agrees to proceed with the case. Attorneys are not cheap and you need to understand the full cost before signing a legal agreement. An attorney should be willing to fully explain their fees and billing practices. Common fee agreements include an hourly rate, flat fees, retainers and contingency fee agreements.
A retainer fee can be required in advance based on the hourly rate for a specific case. Generally, the retainer fee is deposited into an account, and the cost of services is deducted as they accrue. If you have established a retainer account you should review this account periodically and verify amounts are deducted properly. Consider, retainers are non-refundable unless labelled “unreasonable” by a court. Under some conditions, if you fire your lawyer you may forfeit the remainder of the retainer fee. If you need to hire a personal injury lawyer most personal injury lawyers work on a contingency fee basis and do not require a retainer.
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This glossary post was last updated: 30th April, 2020 | 0 Views.