Many clients of law firms do not understand why some lawyers ask for a retainer fee (an upfront payment) before they take on a client. Such clients may attribute this request to greed on the part of the lawyer, and yet that is not the case. There are several practical reasons why this upfront payment is necessary. This article discusses some of the reasons why you should pay your lawyer a retainer fee.
Meeting Costs Associated With Your Case
Law firms incur costs such as filing fees as they handle a client's case. Those costs are met by using the money a client deposits as a retainer fee. It is therefore in your best interest to pay this fee so that your case isn't delayed just because the lawyer is having difficulties in meeting different costs associated with your case.
It Guarantees Some Payment for the Use of the Lawyer's Name
Lawyers charge a retainer fee because they know that the use of their name or expertise will have a significant bearing on the case. For instance, if a lawyer from a prominent law firm in your area writes to an insurance company that is not honoring your claim saying that the company will be sued, that insurance company will settle your claim quickly since they know the reputation of the lawyer you have hired. That retainer fee serves as payment for the use of your lawyer's name and reputation.
Compensation for Foregone Work
Lawyers must create time in order to handle your case. By agreeing to take you on, such a lawyer foregoes potential business in order to remain on standby in case he or she is needed to handle your case. It is therefore in your best interest to pay this retainer fee so that the lawyer you want to represent you commits himself or herself to your case. If you don't pay that fee, the lawyer may take on another client and by the time you need him or her it will be too late since they will have allocated their time to another case.
As you can see, a retainer fee helps you to be sure that you will have legal representation should your case go to court, and that same fee can lead to a speedy conclusion of your matter. You should therefore look at this fee positively and cooperate with the law firm so that they devote the necessary resources to your case. For more information, contact a firm such as CLP Legal.Share