Retainer agreement

What it is

The retainer agreement, or fee agreement, is the engagement contract. For a plaintiff firm it typically names the client and the claim, describes what the firm will and won't handle, sets the fee and how costs are advanced and repaid, explains how liens and the settlement will be handled, and covers how the relationship can end.

The California rule

Contingency fee agreements must meet Business and Professions Code 6147: in writing, signed by both lawyer and client, a signed copy to the client, the fee rate, how costs affect the fee and the recovery, related matters not covered, and (outside medical negligence cases) a statement that the fee is negotiable and not set by law. Other agreements where fees will exceed $1,000 must be in writing under section 6148, with limited exceptions. The Rules of Professional Conduct add more: rule 1.5 bars unconscionable fees, and rule 1.4.2 requires a lawyer without professional liability insurance to tell the client so in writing. In workers' comp, the fee is set by the WCAB.

Why it matters to a plaintiff firm

The signed retainer is the moment a lead becomes a client, and speed matters: a prospective client who waits a day to sign may sign elsewhere. A clear agreement in the client's language prevents fee disputes at the end. Firms send retainers for e-signature the same day as the intake call and keep the signed copy with the case. See legal intake.