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Writer's pictureRenu Gera

Lawyer Retainers: Definition, Purpose, and Ethics

Coach Renu - 11/8/2023



As a post-divorce Empowerment Coach I often face a question from my clients about Lawyer asking for retainers. So here's what I know.


A lawyer retainer is a fee paid to a lawyer in advance for legal services to be provided in the future. This payment serves multiple purposes and is governed by ethical considerations within the legal profession.


Definition: A retainer agreement is a contract between a client and a lawyer outlining the legal services to be provided and the associated fees. The client pays a retainer fee upfront, which the lawyer holds in a special account and deducts fees from as work is done. This arrangement ensures the lawyer's availability to the client and establishes a professional relationship.


Purpose:

  1. Securing Legal Services: Clients pay a retainer to secure the lawyer's services, ensuring the lawyer's availability for their case or legal matter.

  2. Financial Security: Retainers provide financial security for lawyers, guaranteeing payment for their services and expertise.

  3. Conflict of Interest: By retaining a lawyer, clients prevent the lawyer from representing opposing parties in the same case, avoiding conflicts of interest.

  4. Case Preparation: The retainer allows lawyers to initiate legal research, gather evidence, and prepare for legal proceedings promptly.

Ethics: Ethical considerations play a crucial role in lawyer retainers:

  1. Reasonable Fees: Lawyers must charge reasonable fees for their services. The retainer amount should be proportionate to the expected work and complexity of the case.

  2. Transparency: Lawyers must clearly outline the services covered by the retainer and any additional charges that might apply. Transparent communication is essential to maintain trust with the client.

  3. Refunds: If the agreed-upon services are not fully rendered, lawyers are generally obligated to refund any unused portion of the retainer fee to the client.

  4. Confidentiality: Lawyers must maintain client confidentiality, especially concerning financial matters related to retainers.

  5. Conflict Disclosure: Lawyers should disclose any potential conflicts of interest before entering into a retainer agreement to ensure informed client consent.

  6. Client Understanding: Lawyers have a duty to ensure that clients understand the terms of the retainer agreement, including the scope of services, fees, and any potential outcomes.

In summary, lawyer retainers are a fundamental aspect of legal practice, providing both clients and lawyers with security and clarity. Upholding ethical standards is essential to maintain the integrity of the lawyer-client relationship and the legal profession as a whole.

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