When you give a lawyer a retainer, it is for a specific matter or problem. You don't just give us money in case one day you need legal advice. That would be nice for us, to be given free money for nothing, but who would ever really do that?
Not all lawyers ask for retainers for all work. When we do ask for a retainer, it is for three reasons. One is that it makes the file easier to move quickly if we have money to pay for things like court fees, couriers, surveyors, searches, etc along the way. Rather than wait for the client to pay for each thing as we go, we use the retainer funds to pay the client's costs and keep things moving.
The second reason is that we want to be paid. Unlike a mechanic who can keep your car if you don't pay the bill, we can't ask a court to hold off on a judgment while we collect from our client. Once we do the work, it's out there.
The third reason is that clients really do not appreciate getting a big bill for a year's work and being expected to pay it all at once. Many of us would find it difficult to pay $5,000 or $10,000 all in one shot. When you pay a retainer, you can put down part of the money, the lawyer can start the work, and you can add to the retainer as funds become available.
The two questions I mentioned are below:
1. "It's going on one year & still no copy of the Will from the executor. Am I paying retainer for this time waiting? I want to be careful about paying for no results."
When you have a lawyer on retainer, you don't pay them to "wait". It's not like a taxi where the meter keeps running even if you're sitting still in traffic. The lawyer can only bill you for work that he or she does, and use the retainer funds to pay those bills. If they are not doing anything but waiting, then of course you are not paying them. On the other hand, if they are calling the probate court, doing searches, or corresponding with the executor's lawyer to try to find out something, then you'll pay for their time.
Law Society rules require lawyers to produce invoices for the clients and to ensure those invoices are sent out before retainer funds are used to pay the bill. Even so, you are entitled to call or email the lawyer's office at any time to ask for an accounting of your retainer funds.
2. "I have paid a retainer to a lawyer. But what's in future for the lawyer? Can he pay the rent on office? Will he go bankrupt?"
I read question #2 in the context of the COVID-19 pandemic. I can see clients worrying about lawyers going out of business just as you'd worry about lots of other businesses right now.
I can tell you that in my province, all the lawyers in private practice are still working and are still busy. Everyone has modified their ways of doing things to allow for social distancing, but we're all managing.
It sounds as if you're worried that the lawyer will go out of business and you'll lose your retainer. However, the money you give as a retainer does not go into the lawyer's bank account to be used for his general expenses. It goes into a trust account and can only be used on your behalf or to pay the bills he charges to you. We have very strict rules about use of trust funds.
It's possible that the lawyer might have financial troubles and decide to keep your money inappropriately. It does happen from time to time. But that would only happen if the lawyer never plans to practice law again because he would be disbarred. Like I said it happens, but it surely doesn't happen very often.
I hope these comments help everyone understand a little more clearly how lawyer's trust accounts work.
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