Retainer: A Comprehensive Guide to Legal Fees and Their Importance

Definition & Meaning

A retainer is a fee paid to an attorney to secure their services for legal counsel. This fee indicates the client's commitment and ensures that the attorney is available to handle their case. Retainers can be categorized into two types: unearned and earned. An unearned retainer is a prepayment that the attorney holds until they provide legal services, while an earned retainer is immediately available to the attorney upon payment. Retainers are a traditional billing method and differ from other fee structures like hourly rates or contingent fees.

Table of content

Legal Use & context

Retainers are commonly used in various legal fields, including criminal defense, family law, and civil litigation. They help ensure that an attorney is dedicated to a client's case, often requiring the attorney to decline other potential clients with conflicting interests. Users can manage retainer agreements through legal forms available on platforms like US Legal Forms, which offer templates drafted by experienced attorneys.

Key legal elements

Real-world examples

Here are a couple of examples of abatement:

Example 1: A client pays an unearned retainer of $5,000 to a criminal defense attorney. As the attorney works on the case, they bill against this retainer until it is exhausted.

Example 2: A business hires a lawyer for ongoing legal support and pays a monthly earned retainer of $1,000, which the attorney can use immediately for any services provided.

State-by-state differences

Examples of state differences (not exhaustive):

State	Retainer Practices
California	Retainers must be placed in a trust account until earned.
New York	Attorneys must provide a written retainer agreement outlining fees.
Texas	Retainers can be either refundable or non-refundable based on the agreement.

This is not a complete list. State laws vary, and users should consult local rules for specific guidance.

Comparison with related terms

Term	Description
Contingent Fee	A fee based on a percentage of the client's recovery, not a prepayment.
Hourly Fee	Charges based on the actual time spent working on a case.
Flat Rate Fee	A fixed amount charged for completing a specific legal service.

Common misunderstandings

What to do if this term applies to you

If you are considering hiring an attorney and a retainer is involved, review the retainer agreement carefully. Ensure you understand the terms, including whether the retainer is refundable and how it will be billed. For assistance, explore US Legal Forms for templates that can help you draft or review your retainer agreement. If your situation is complex, consulting a legal professional is advisable.

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Quick facts

Typical retainer fees range from $1,000 to $10,000, depending on the case.
Retainers are commonly used in criminal, family, and civil law.
Retainers can be earned or unearned, affecting how funds are accessed.
Legal representation may require ongoing retainer payments for long-term cases.