why are attorney retainers not refunded

by Fritz Brekke 10 min read

A true retainer is earned upon receipt (and is therefore non-refundable) because it takes the attorney out of the marketplace and precludes him or her from undertaking other legal work (e.g., work that may be in conflict with that client).Mar 30, 2016

3 attorney answers

A lawyer does not have to refund a true retainer. If it was a retainer paid by you as a deposit for future fees, the lawyer is entitled to keep the funds up to the amount that he earned. Read the retainer agreement to determine which type of retainer you paid and the extent of the fees chargeable.

Michael J. Szklasz

You can reach out to the Attorney Consumer Assistance Program, part of the state agency that regulates attorneys, and run it by them: http://www.massbbo.org/Who_We_Are_OBC_ACAP#ACAP

John Espinosa

Retainers are usually refundable if the client changes his mind about wanting the representation. However, the attorney may deduct his hourly fee for any work done. If the attorney is keeping your retainer, he has to give you a statement showing how he earned it. What does your fee agreement say?

What is a Legal Retainer Agreement?

A legal retainer agreement serves as a work-for-hire contract between the attorney and the client. The contract explains a period of work within which the attorney (s) will charge at a determined rate per hour. The work period may be defined or undefined.

How Retainers for Lawyers Work

The lawyer retainer is basically an agreement between you and the lawyer that you would like to reserve a certain amount of the lawyer’s time. This time could be used for a specific issue or, in the case of a business, it might provide you with quick access to the attorney’s time.

Why Do Lawyers Use Retainers?

Compensation. The retainer is a form of compensation for use of the attorney’s reputation. In the event that the name association could resolve the matter quickly, it’s in your best interest to have the attorney available for a letter, email, or telephone call.

Are Retainers Refunded by Lawyers?

That depends on the wording in your legal retainer agreement. It also depends on the nature of the agreed-upon billing.

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How much do attorneys keep for retainer?

Many attorneys will simply keep the entire $3,000 of your retainer fee. Thus, the difference of the $250 per hour or $2,000 for 8 hours leaves a balance of $1,000 not used on your behalf and not returned to you.

Do attorneys charge unreasonable fees?

But, it is often said attorneys charge an unreasonable amount for their services. Of course some do. However, if you understand the ways attorneys handle their fees, you can select an attorney who best suits your idea of fair dealing and you can often get an outstanding representation for a fair and reasonable fee.

suev5 Law Topic Starter New Member

In 2007 I paid an attorney $20,000 to represent me in a criminal matter because I received a call from a law enforcement official who said that I was being investigated for a criminal act. Nothing ever became of it. I recently found out that the threat came from a "law enforcement friend" of someone who wanted to scare me.

jharris352 New Member

He certainly can do a flat fee, but he needs to do a retainer agreement. Threaten a bar complaint on the issue and he is likely to get a bit more reasonable. Many times though, a retainer is half earned upon payment.

What to do if a lawyer won't talk to you?

The lawyer may be entitled to keep some money for the consultation, but he should refund any money not "earned" by time spent. If he will not talk to you, and if he will not itemize his time, then the next step is to file a grievance. Report Abuse. Report Abuse.

What is a true retainer?

Since you had no written contract the attorney will say you paid him a true retainer, which is a fee paid strictly to keep him available in case something happens, and is not an advance against future work. If it was the latter, at least part of it would be refundable.

What to do if a person does not return a claim?

to have proof of delivery, that if he does not return it in 5 days, you are reporting him to the State Bar. If he does not respond, report him. The State Bar has a victim fund that you can apply for relief. They actually pay out claims.

Is a non-refundable retainer reasonable?

However, the non-refundable retainer must be reasonable. There was some time spent with the attorney giving advice obviously. A reasonable non refundable retainer can probably exceed the attorney's normal hourly rate for whatever time the attorney spent actually spent giving advice, etc.

Can a lawyer keep a retainer in PA?

All Attorney Fee Agreements in PA must be in writing to be legal. Also, a lawyer is not permitted to keep a retainer for no work performed. You should call your local bar association for a referral for handling your fee dispute.

Do attorneys have to be paid for time spent with you?

It depends on the retainer agreement. You did not mention the amount either. The attorney has to be paid for at least the time he spent with you and on the case.

Can an attorney take money from a retainer?

The attorney is allowed to take money from the retainer for the time he worked on your case. It is my hope that you signed an Agreement or received some type of documentation from the attorney outlining your relationship and how much he would be paid for his services. Report Abuse. Report Abuse.

What Is a Retainer Agreement With A Lawyer?

The word “retainer” can have different meanings depending on the setting. A physician may use the term to describe an agreement with an HMO whereby he agrees to provide care at no charge until annual benefits are exhausted; after that, the HMO will be responsible for reimbursing the physician at a pre-negotiated rate.

What to Consider Before Hiring an Attorney on Retainer?

If you are interested in hiring an attorney on retainer, stop thinking about your legal situation.

How does the Retainer Agreement Work?

Though there is no single framework, “how does the retainer agreement work?” It typically goes on like a party or a contract that pays some dollars every month. In exchange for locking those hours, the client will pay advance dollars so that the retained attorney may start the legal services with full interest.

Benefits of Retainer Agreements

From the contractor’s view, a retained agreement is a guaranteed income. Many lawyers and freelancers work at retaining agreements, which means a lot of retained and guaranteed income based on your working hours.

Types of Professional Services Retainer Agreements

A retainer agreement may be of two kinds according to its usage and procedure:

What is a Retainer Fee?

Retainer fees are done according to attorneys’ services for the clients. Does it depend on how much time a retainer is spending for the client? It may be as low as $500 or as high as $5000 or more.

How to Negotiate a Retainer Agreement?

Negotiating a retainer for an agreement is a tough and time-consuming task as both sides should implement rules. Committing to what has been negotiated at the beginning of the agreement is another issue. Let’s deal with value; how can we understand this: