Size Doesn't Matter - for Retainers

Shopping for a lawyer is not an easy task.  What questions do you ask?  Today, I'm going to tell you about some questions you should ask and what you should do about the answers.

One question that is almost always asked of a lawyer is: "How much of a retainer do you need?"

A retainer is not an estimate of what your case will cost you.  It is what your lawyer wants up front before starting to work on your case.  It is not necessarily any indication as to what your final fees will be.

There are no rules limiting lawyers on how they ask for a retainer.  Some lawyers ask for a retainer that will, in their estimate, cover all of the fees and disbursements for the whole case.  Others ask for a smaller amount and some don't ask for any retainer at all.

Whether or not I ask for a retainer depends on the type of case it is.  There are some cases (not too many) where I don?t ask for a retainer at all.  These are cases where we are certain of success and only uncertain of how much money will be obtained.  Even if we are certain of success, we may not be sure of how easy it will be to collect the judgment.  In those cases, we will probably need a retainer.

In most cases, though, I ask for a retainer that will, in my estimate, cover the fees and disbursements for the first phase of the lawsuit.

We may ask for a larger retainer if we have our doubts about the financial ability of the client to pay down the road.

So, when you hire a lawyer, you should ask about what size of initial retainer they will require.  This way, you can decide whether or not you have the financial ability to meet those initial requirements.

However, it is not appropriate to blindly compare the retainer asked by one lawyer with the retainer asked by another.  You need to know the basis for the retainer requested.  If one lawyer is figuring it will cost $3000 for the first phase, then you need to compare that with an estimate from the other lawyer

What are the hourly rates for the lawyers you are interviewing? If one is $200/hour and the other is $150/hour, does that mean that the $150/hr lawyer will be cheaper in the long run?  Maybe, but not if he spends a lot more time on the file than the other lawyer!

Should you hire a lawyer because they say that they will spend less time on the file than another lawyer?  Less time means less fees, but don?t you want your lawyer to spend the time necessary to prepare and present a good case?  Surely that is better than saving some money and losing the case.

Finding out about retainers and hourly rates in advance of hiring the lawyer is essential to avoid surprises down the road, but it is not the best way of choosing a lawyer to handle your case.