If an attorney suggests or has advertised a flat fee, be sure you understand exactly what that fee will and will not cover. The flat fee might not include expenses such as filing fees. A retainer fee is an advance payment on the hourly rate for a specific case. The lawyer puts the retainer in a special account and deducts from that account the cost of services as they accrue. During the course of legal representation, clients should review periodic billing statements reflecting amounts deducted from the retainer.
Most retainers are non-refundable unless deemed unreasonable by a court.
If you decide to drop a case that your lawyer has worked on before the retainer has been exhausted, you may forfeit the remainder. In certain types of cases, attorneys work on a contingent fee basis. Contingent fee arrangements are typical for plaintiff's counsel in automobile and accident litigation, medical malpractice, and other personal injury cases, as well as in debt collection cases. Courts set limits on the contingency fees a lawyer can receive from personal injury suits. Of course, lawyers and clients are free to negotiate contingency fees less than the standard one-third.