Retainers and Attorney's Fees
September 02, 2009
In In re: C.H.C., No. 05-09-00121-CV (Tex.
App. - Dallas July 28, 2009), the Dallas Court of
Appeals discussed whether attorney's fees had been
earned as a retainer. The critical issue is whether
the retainer was paid in advance to secure the
lawyer's services and to compensate the lawyer for
other, lost opportunities for employment. If a
retainer meets these requirements, it is a “true
retainer” and is earned upon receipt. “If a fee is
not paid to secure the lawyer's availability and to
compensate him for lost opportunities, then it is a
prepayment for services and not a true retainer.”
This lawyer's fee agreement recited, among other
things, “that one purpose of the retainer was to
compensate [the lawyer] for lost opportunities.”
Courtesy of Verner & Brumley, P.C. Dallas, Texas
Courtesy of Verner & Brumley, P.C. Dallas, Texas