Should You Keep an Attorney on Retainer?

If you are like most businesses, when you have a legal problem or you sense one coming up in the future, you have to find an attorney. Maybe you call a bunch that you know or that were recommended to you. You spend time interviewing them or asking basic questions. Some may be perfect, but they may not be on the time schedule that you need. 

Sometimes it may seem like finding an attorney for every single legal issue is as difficult as dealing with the legal issue itself.

It would be really nice if you could just pick up the phone and have one ready to talk to you. Maybe it's time you considered having counsel on retainer for your business.

Our Chicago business litigation law firm at Ellis Legal explains more below.

What Does Being on Retainer Mean? 

Having an attorney on retainer generally means that you pay one lump sum (a retainer) in advance to the lawyer, even before there are any pending legal problems. So, the lawyer has been "prepaid" for what you will need him or her for in the future. 

Fee arrangements can vary—some may have a set monthly fee, an extra fee for actually going to court, or a reduced hourly fee for any work the lawyer does; others may not. 

But if you do have a larger or mid-sized business, having a lawyer on retainer can have a number of benefits.

Familiarity – The attorney that you have on retainer knows your business. He or she knows your business' past, how you do business, and the history of any legal problems. You do not have to re-explain every situation because you're always talking to a new lawyer.

Being proactive – When you are paying an attorney for every hour, it can be a disincentive to act proactively. But wouldn't it be nice to have comprehensive policies and procedures? Or to have someone you know to ask how to handle a problem before it becomes a problem?

Much like preventative medicine, an attorney on retainer can do those things for you, on your schedule. 

Responsiveness – Although an attorney on retainer may also have his or her own client base, separate from you, there is often a much better response time from attorneys to whom you have already paid a retainer. 

You always have someone to call and get almost immediate legal advice or attention if needed. You aren't just "another client calling," but rather, you are the client that retains that attorney. That can mean that your calls get answered quicker, and if you need a letter or documents drafted or sent, they get done that much quicker.

Saving money – If your company does have a lot of legal issues, you are often saving expensive hourly fees, by just having an attorney on retainer. 

Yes some retainers will still have an hourly fee involved, but some may not, for certain tasks. This is especially true if you have one kind of work that the attorney will do routinely (such as sending X number of demand letters every month, or reviewing X number of the same kind of contract every month).

Speak with a Chicago business litigation attorney at Ellis Legal at (312) 967-7629 today to see if having an attorney on retainer is right for your business.