The Benefits of Having a Law Firm on Retainer

Ever hear people say that they have an attorney “on retainer?” Ever wonder if that may be a good arrangement or idea for your business? It just may have benefits that you weren’t even aware of.

What Does it Mean to Hire or Have an Attorney On Retainer?

Normally, when you get an attorney, you find, hire, and eventually pay the attorney, when and if you have any kind of actual or potential legal problem or question or need a legal task.

But many larger businesses have a regular need for legal advice—that’s not to say they get in legal trouble more often than anybody else, but rather, they just have a lot of continuing legal questions, and they may want an attorney “at the ready,” to answer questions, review documents, or send out correspondence.

When you put a firm or lawyer on retainer, you pay them in advance. You pay the retainer amount to the firm, and the firm holds it, only using it when and if you have a legal need or you need the lawyer’s time. As the lawyer works, he or she withdraws the appropriate amount from the previously-deposited retainer amount.

Quick Responses

One big benefit to having a law firm on retainer, is speed. When the attorney already has attorney fees being held for you, there is no need for the attorney to tell you what he or she costs, or to wait for payment—the money is already there. So, when you call with a problem, the attorney can get to work, immediately, on your issue.

Additionally, many firms on retainer will put you and your business as “high priority,” as you are a current client with a retainer already deposited. Of course, every attorney should put you on priority if you retain them, but being in retainer means you are always a “current client,” allowing the firm to tend to your matter immediately.

Proactive Law

Having a firm on retainer also allows you to use that firm in a proactive matter. You don’t have to wait until a problem arises—you can use your retained attorney to make sure problems don’t arise in the first place.

You can ask him or her about your prospective behavior or decisions. Having a firm on retainer encourages you to practice “preventative law,” just like preventative medicine, avoiding problems before they become problems.

The Attorney Knows You

Another good thing about having a law firm on retainer, is familiarity. You have one law firm that knows you, your business, and your business’ legal and business history. You don’t spend time getting new lawyers up to speed on things; complex matters can be handled much more quickly, as the attorney or firm already has a longstanding relationship with you.

In some cases, you may be able to negotiate better attorneys fee rates with firms on retainer, at least for more routine or less time consuming tasks, as the retained law firm has a financial interest in keeping you happy, and with the firm.

Thinking about putting an attorney or law firm on retainer? Ask us how we can help. Call our West Palm Beach business litigation attorneys at Pike & Lustig today for help and advice.

Sources:

findlaw.com/hirealawyer/attorney-fees-and-agreements/what-does-it-mean-to-have-a-lawyer-on-retainer.html

lawpay.com/about/blog/lawyer-retainers/