SC Lawyer, September 2006, #5. Understanding retainer fees.

• Author: By John Freeman

South Carolina Lawyer

Ethics Columns.

SC Lawyer, September 2006, #5.

Understanding retainer fees

South Carolina LawyerSeptember 2006Understanding retainer feesBy John FreemanMoney is tight these days. Adjusted for inflation, the average South Carolina wage-earner's income dropped last year. The ever-present need for legal fee charges to be fair, fully disclosed and properly recorded takes on added importance when times are not flush and bills receive extra scrutiny. This issue's ethics column presents a tune-up lesson on fees received in advance from clients.

Lawyers receive advances for different reasons. Often clients are asked to advance money to pay costs. These advances need to be deposited in the lawyer's trust account with disbursements made as expenses come in. Likewise, if the advance payment is intended to cover, in whole or in part, future payments for the lawyer's fees, the money must be deposited into the lawyer's trust account, to be disbursed as services are performed and fees are earned. This type of advance payment from a law client is sometimes called a "special...