What is the Lawyer Retainer Fee and What is the Typical Amount in New York, NY?

A lawyer retainer fee is an amount paid by the client and received by the attorney to accept the client’s case. The retainer fee serves as an advance payment or a deposit for future legal services. The typical amount of a lawyer retainer fee depends on the complexity of the matter, the geographical location and experience of the attorney, and the anticipated amount of work in the case. In New York, the typical amount for a lawyer retainer fee can have a wide range from $4000 to as high as $50,000 (especially when litigation is involved).

The Hourly Rate

An important aspect of the retainer fee is the hourly rate. As the attorney works on the client’s case, the retainer fee is reduced by the amount charged by the attorney for his legal fees.

The hourly rate of an attorney usually depends on the geographical location, experience, and reputation of the attorney. In New York, the typical hourly rate of the attorney is around $400 to $700 per hour. However, this hourly rate can be higher if an attorney is well-known and with a reputation for that particular subject matter. In addition, highly specialized fields of law such as intellectual property, corporate law, and healthcare law may command a higher hourly rate.

As the attorney works on the case and bills the client, the attorney takes out the amount charged to the client from the retainer fee. When the retainer fee is reduced to a negligible amount, the attorney may request for the retainer fee to be replenished to its original amount in order for the attorney to continue rendering the services.

Replenishment of Retainer Fee

It is important to note that a retainer fee is not the total legal bill for a case. The retainer fee is the initial payment the lawyer will receive to accept your case and work on said matter. In fact, in New York, this retainer fee is required to be placed in a separate dedicated client trust account that is different from the attorney’s bank account that the attorney uses for his operations. This ensures that the two funds are not commingled with each other.

Once the attorney bills the client for services rendered, the attorney then takes out this amount from the retainer fee that has been placed in a dedicated client trust account. Generally, when this retainer fee is reduced to close to 0, the client needs to replenish the retainer fee in order for the attorney to continue providing legal services. If there is nothing more to be done on the matter and an amount still exists in the client trust account, this amount is refunded back to the client.

Contingency Fee

In most personal injury cases, the attorney does not work on a retainer fee but on a contingency fee arrangement. In a contingency fee arrangement, the client does not pay an upfront cost, such as the retainer fee. However, when the attorney is able to successfully recover an amount for the client, the attorney receives a contingency fee, usually around one-third (1/3) of the amount the client receives, to compensate the attorney for the risk he took on accepting a case without any guaranteed payment. This type of arrangement is only popular in personal injury and civil litigation cases, but not in probate cases.

The lawyer retainer fee is an important aspect for an attorney to accept a client’s case. As a client, it is important to know the attorney’s hourly rate to know how fast it can reduce the retainer fee. You may also ask the attorney how many hours he estimates the project can be done, but the lawyer is not bound by this estimate.

Should you need assistance in any legal matter, we at the Law Offices of Albert Goodwin are here for you. We have offices in New York, NY, Brooklyn, NY and Queens, NY. You can call us at 212-233-1233 or send us an email at [email protected].