What are the retainer and retainer agreement ?

A retainer is a sum of money that a client pays to a lawyer or law firm in advance of legal services being rendered. The money is typically held in a trust account and is used to cover the costs of the lawyer's time and expenses. A retainer agreement is a contract between the client and the lawyer that outlines the terms of the retainer, including the scope of the legal services to be provided, the amount of the retainer, and how any unused portion of the retainer will be refunded to the client.

Retainers are commonly used in situations where the client anticipates that they will need ongoing legal services over an extended period of time. For example, a company may retain a law firm to provide ongoing legal advice and representation on a range of issues, such as contract negotiations, employment law, and intellectual property. In such cases, the retainer agreement may be structured as an open-ended agreement, with the law firm billing the client on an hourly basis for the services provided.

Another common use of retainers is in connection with litigation. In this context, a retainer is paid to a lawyer to cover the costs of preparing and filing a lawsuit, as well as the costs of any discovery or other pre-trial proceedings. The retainer agreement will typically specify the amount of the retainer and the estimated number of hours of legal work that the retainer will cover. Obviously, due to the contested nature of litigation, unpredictability of the process as well as the level of resistance on the other side, the estimate will vary to the final amount charges and is provided as a reference point only.

In civil litigation retainers is the most common mechanism as to how clients compensate lawyers for their service. A retainer agreement in this context might include the lawyer's fees, court costs, and any other expenses related to the representation.

Retainer agreements are legally binding contracts, and clients should be sure to read and understand the terms before signing. If a client is unsure about any aspect of the agreement, they should ask their lawyer to explain it to them. Additionally, clients should keep in mind that retainers are not a guarantee of a particular outcome and that they may be responsible for additional fees if the scope of the legal services provided exceeds that outlined in the retainer agreement.