When retaining a lawyer will the amount of the retainer fee be applied to the costs incurred?

Answer 1

Usually the retainer is applied to both time charges and expenses.However, this is a matter that can be negotiated with the attorney, and should be part of the written retainer agreement.

In some states, including New York, a written retainer agreement is required in certain cases, including any in which the fees are expected to exceed $3000.00.

Contrary to the answer above, a retainer is NOT necessarily - or even usually - non refundable. In my retainer agreements, which are not atypical, it is made clear that if the matter is concluded before the retainer is expended, the balance will be returned to the client.

Answer 2

The term "retainer" is often mis-used.

Literally, it refers to a non-refundable payment that only guarantees the lawyer will be available -- like paying for an option contract.

Many attorneys will apply this toward their eventual fees, though technically they don't have to.

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EDIT: David B is absolutely correct. In common usage, a retainer is basically equivalent to a deposit.

The definition above is what the ABA and NCBEX define a retainer as -- and that definition is not commonly used in the real world.

Answer 3

When you pay a retainer, there is usually an agreement for you to sign. You need to read and be sure you understand that agreement before signing it, and before handing the lawyer the check.

The agreement should indicate if the "retainer" applies to fees and/or costs. If your attorney does not provide an agreement for you, request one before you give them a check.

In most states, there are strict regulations for the attorneys handling this money, and how it is to be recorded and reported to the Bar in different situations.

Answer 4

It depends on the skill/experience/reputation of the lawyer. A retainer is "up front" money paid to "retain" the attorney's services. A young lawyer just starting out may be willing to take a smaller retainer than an old shark. With certain kinds of cases, like product liability, car accidents, injured workers and such, the attorney may accept the case on contingency. This means he will not charge you up front, but will take a large percentage of whatever money he recovers for you.