The Pros And Cons of A Retainer Fee

Some personal injury lawyers charge a retainer fee. Yet others have chosen not to seek such a payment. Arguments have been made both in favor of and against the practice of charging a retainer fee.

What is a retainer fee?

It is an upfront payment made by a client to an Injury Lawyer in Hamilton. The fee gets paid when the client has chosen to hire a selected lawyer. The client must realize that all such fees are nonrefundable.

The arguments made by those that are in favor of using retainer fees

When clients hire a lawyer, their case will get settled more quickly. The retainer fee serves as an acknowledgement of that benefit. After someone has retained an Injury lawyer, he or she needs to stand ready, in case his or her help is needed. In other words, the injury lawyer’s time has become tied up. The fee’s availability provides compensation for that unwanted inconvenience.

Lawyers pay some expenses by using money from their own pocket or bank account. An upfront payment helps to provide the lawyer with some added money. Consequently, the lawyer does not need to take more than the consignment fee from the client’s compensation.

A lawyer’s efforts might include the act of arranging for testimony from an expert. Experts expect to be paid for their time. An upfront payment can make the lawyer’s task easier; it provides money for paying experts.

Lawyers have become skilled at bargaining. A client could offer to perform some service for a given injury lawyer, in exchange for the removal of a specific fee. For instance, a client might agree to go after a certain document. That would free-up some of the injury lawyer’s time.

The arguments made by those that are against retainer fees

Many of the men and women that seek the services of a personal injury lawyer have limited financial resources. The need to pay some money upfront can pose a great burden. It might cause them to search for a less expensive injury lawyer.

Only lawyers that are highly specialized, or those that have acquired an exceptional level of experience have reason to charge a retainer fee. If a client has financial needs, that fee could be lifted.

This third argument is really an extension of the first argument. Many new injury lawyers try to get clients by advertising the absence of a retainer fee. As indicated above, some clients search for the least expensive injury lawyer. Unfortunately, young and cheaper injury lawyers tend to have less knowledge and experience.

A lawyer’s lack of knowledge and experience can weaken his or her chances for winning a given case. Most clients want to hire a member of the legal profession that can help them to win their case.