Pssst!!!! Got a Contract With Your Lawyer? Be Sure You Understand It!

Has Your Lawyer Given You a Contract or Retainer Agreement?  Check it before you wreck it!

Hello and happy holidays from Alisa Levin at Levin Law, Ltd.!  I had an interesting thing happen recently and it reminded me that sometimes clients may not fully understand how to hire an attorney, what it means to the lawyer, and what they are traditionally paying for.  So, in many cases, when an attorney is hired, they will prepare a contract or even a letter that is given to the client and the client is expected to sign it. Those terms, within that document, form at least some (if not all) of the basic terms between the lawyer and the client.  Here, I'd like to review, certain terms commonly found in a retainer agreement, and what they traditionally mean.

Rate:  Lawyers by and large, charge hourly.  As such, a "rate" that is offered to a client in most cases is an hourly rate.  The retainer agreement should specify, how the lawyer charges, and whether or not the increments are tenths of an hour, quarter hour, half hour increments, or minimum hourly rates.  One thing however, that a retainer is used for, and the client must understand, is that a retainer is not a flat fee.  Once the retainer is used, then the lawyer will charge hourly for all work performed.  That usually means, all emails, calls, meetings, court appearances, drafting, reviewing the file, researching or talking about the file, is billable.

Also, be sure you understand that credit card payments taken by the lawyer, if they are agreed to in the retainer, are lawful and appropriate, and your card will be charged pursuant to the retainer contract.  Be sure you get that.  It's illegal to dispute a credit card charge that was authorized, and competent lawyers are sure to get that signature up front allowing those charges.  Be sure you get that.

Retainer agreements come in all shapes and sizes, but there is no need to rush your signature - even highly pressing matters can wait a day.  It would be no excuse for you to fail to read it and then claim an agreement is unfair, so be sure you read everything and know and understand the terms.  Lawyers draft the documents, so they can definitely explain them.

I use a retainer for all litigation matters in my practice, and I have to reference that language at least every few files when clients go rogue and pretend they don't understand the deal.  But in reality, both parties should understand the deal long before the bill comes.  You don't?  Well, read your contract.

Got questions?  See us at www.levinlawltd.com for more!

Alisa