A retainer in law is a fee paid upfront by the client to secure the services of an attorney. It is essentially a down payment on the future services rendered by the lawyer, and it reserves the time and expertise of the lawyer, making them accessible to the client for an agreed-upon time. The amount of the retainer fee can vary and may be a flat fee or an hourly rate. There are different types of retainers, including general retainers, security retainers, and advance payment retainers.
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General Retainer: This type of retainer is a payment made to reserve an attorney or law firms time. It is not considered a deposit for legal services or prepayment of legal services. When a client pays a general retainer, they still must pay separately for any legal services they actually need. But, the retainer guarantees the lawyer or firm will be there for the client if they require their services.
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Security Retainer: This type of retainer is a payment made for future services, but the money does not go to the lawyer until they earn the compensation. The goal of a security retainer is to ensure that funds are available to pay the lawyer and firm. When the security retainer is paid, it goes into a trust, and not to the lawyer. If the retainer drops below a certain amount, the client is required to replenish it to continue services.
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Advance Payment Retainer: This type of retainer is similar to a security retainer in that the money paid is intended to buy access to specific legal services. Unlike with a security retainer, though, this money does not necessarily have to go into a special account. Instead, the funds are simply prepayment for the legal work requested.
A retainer is an effective means of establishing trust between the attorney and client while protecting both. The client trusts the attorney to safely hold their funds until rightfully earned, and the attorney trusts the client to uphold their financial obligations should the initial retainer fee be exhausted.
