Why do attorneys charge retainers

This is especially important in work undertaken for a fixed fee, where attorneys will have an interest in limiting the scope of the engagement, while clients will have an interest in expanding the scope. Identify precisely who will work on the case, what these people will do, and at what rates. The agreement should note that subsequent staffing changes will only occur with client consent. Specify the goals of the engagement.

If the subject of a retainer agreement is litigation, the goal may be an early, favorable settlement, or victory by summary judgment. The agreement should make clear that the goals are not guaranteed. Contain an estimation of all fees necessary to undertake the engagement. In fixed fee cases, this provision should specify the terms and timing of compensation. For hourly fees, the agreement should estimate fees and identify any external factors which may increase or decrease the estimated amount.

If there is a separate budget for the case, the retainer agreement should refer to and incorporate the budget. Note that any disputes between attorney and client should be referred in the first instance to non-binding mediation or arbitration. Do not sign an agreement that extinguishes your right to go to court or to have a jury trial.

Court may sound like the last place you want to go in the event of a dispute with your lawyer, but with binding arbitration you risk having your dispute settled by a panel that is dominated by the local bar.

State that the client controls the matter and must be consulted on all major decisions going forward. The retainer is an important way that the attorney and client establish a trusting relationship. By funding a retainer, the client is indicating that they can trust that the attorney will hold their funds for them until earned, and the attorney is indicating that they trust the client to continue the financial terms of the arrangement after the initial retainer is depleted.

For further information regarding retainers or other financial terms of representation, contact Fenza Legal Services with any questions that you have.

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Jose Rivera Managing Editor Editor. Last Updated: Jun 22, Choose Your Legal Category: Family.