Question: What is Included in an Attorney Retainer Letter?
Most attorneys working with business clients will require a retainer. This article describes the concept of the retainer and the contents of a typical retainer letter for a client.
Answer:
A retainer is a non-refundable amount paid to an attorney for work on a specific case or legal matter. If an attorney requests a retainer, he or she should provide you with a retainer letter, explaining in detail about how the retainer works.
There is no such thing as a "typical" attorney retainer letter, but there are common features included in most retainer letters:
- The amount of the initial retainer, which is often explained as "earned when paid" (in other words, it is non-refundable)
- Billing rates charges against the retainer. These billing rates for the attorneys at the firm and for their staff members, are determined by (a) education, (b) years of experience, and (c) specialized expertise. In other words, an experienced partner would charge more than a new paralegal.
- Additional costs which may be charged, in addition to or included in the retainer, such as court costs, deposition costs, travel expenses, postage, copying, long distance phone charges, and others.
- Billing frequency and terms. Usually bills are sent out monthly, showing the costs for the previous month and the amount of retainer remaining. Additional costs, or additional retainer amounts, are usually due "upon receipt."
- What happens if you don't pay. Recourse might be a service fee (interest) on the overdue balance, your responsibility for court fees, and the imposition of a lien on the documents and property in possession of the attorney (in other words, you don't get your stuff back until you pay the attorney's bill).
