Your Legal Retainer: What It Is, How Billing Works and How to Make It Go Further

Whether you are buying a home, preparing a will, resolving a dispute or seeking advice for your business, understanding how legal billing works can help you plan and avoid confusion.

At RDM, billing arrangements vary depending on the services we provide. Your retainer agreement sets out the arrangements for your matter, including how fees are calculated, when payment is required and whether an advance deposit is needed.

1. We agree on the work and how you will be billed

Your retainer agreement confirms the work you are asking us to do and the terms of our relationship. Depending on the services, fees may be:

• Hourly: based on the time spent working on your matter at the applicable hourly rates.
• Standard or fixed: a set fee for a particular service or defined scope of work. The fee reflects factors such as the complexity, responsibility and value of the services, as described in your agreement.
• Tariff-based: calculated using a fee schedule applicable to the services being provided.
• Contingency: fees payable on the terms set out in a contingency fee agreement, typically calculated as a percentage of money recovered.

Some matters involve a combination of billing arrangements. Your agreement will also explain any expenses, additional charges and applicable taxes.

Please read your agreement carefully and ask us about anything that is unclear.

2. You may be asked to provide a retainer deposit

“Retainer” can refer to the lawyer-client relationship, the agreement or an advance deposit. Here, we are referring to the deposit.

For some matters, we require money to be deposited into our trust account before work begins. Those funds are available to pay for legal services and expenses as your matter progresses.

Your retainer deposit is money held toward future invoices. It is not an additional fee.

The deposit does not, by itself, establish the total cost of your matter. Any agreed fee or estimate will be addressed separately.

Not every matter requires an advance deposit. For example, fees and expenses for some transactions may be paid from funds received on completion. Your agreement will explain the payment arrangements that apply to you.

3. Your deposit is held in trust

Money deposited into trust remains your money until it is properly applied to an invoice or paid out on your behalf.

Holding funds in trust allows us to prepare for upcoming work and expenses. The amount required will depend on your matter and may change as the work progresses.

For litigation matters, maintaining sufficient funds in trust is particularly important because an unexpected application or deadline may require a prompt response.

4. We perform the work and issue an invoice

Depending on your agreement, we may issue invoices as work progresses, at agreed stages or when the work is complete.

Your invoice, also called a statement of account, may include:

• Legal fees: charges for the services provided under your billing arrangement.
• Disbursements: expenses incurred on your behalf, such as filing fees, searches, registration fees, process servers or expert reports.
• Other charges: additional charges provided for in your retainer agreement.
• Applicable taxes.

For hourly matters, billable work may include meetings, telephone calls, reviewing documents, handling correspondence, research, drafting, negotiations and court appearances. Time is recorded in six-minute increments: 0.1 of an hour is six minutes, and 0.5 is thirty minutes.

For standard, fixed, tariff-based or contingency fees, the fee is calculated according to the applicable arrangement.

5. Funds in trust are applied to your invoice

Where we hold funds in trust to pay our fees, we prepare and deliver an invoice before transferring those funds to pay it.

Your billing information will show the amount invoiced, any funds applied from trust and any remaining balance payable.

Receiving an invoice does not necessarily mean you need to pay the full amount again. Check whether funds from trust have already been applied.

For example:

Description	Amount
Funds held in trust before the invoice	$5,000
Invoice total, including expenses and taxes	$1,500
Paid from trust	$1,500
Balance owing on that invoice	$0
Funds remaining in trust	$3,500

 

In this example, the invoice has been paid in full. A further deposit may still be required for upcoming work.

If the funds available in trust do not cover the invoice, you will need to pay the outstanding balance. Where payment is being made through a transaction or another agreed arrangement, we will explain how it will be handled.

6. We may ask you to replenish your retainer

An invoice payment and a retainer top-up serve different purposes:

• An invoice payment pays for work and expenses already billed.
• A retainer top-up provides funds for upcoming work and expenses.

You may therefore receive an invoice that has been fully paid from trust and still be asked to replenish your retainer. This does not mean you are being charged twice.

The amount needed in trust may change as your matter progresses. A new stage of work, an expanded scope or a significant upcoming expense may require a further deposit.

If you have concerns about paying an invoice or providing a requested top-up, speak with us promptly so we can discuss the arrangements and any effect on upcoming work.

7. Unused trust funds are returned

Once our work is complete and outstanding fees and expenses have been dealt with, any remaining funds held in trust for you will be returned.

Can you tell me what my matter will cost?

For some services, we can provide a standard or fixed fee at the outset. For others, we may provide an estimate or agree on fees for individual stages.

Ask what a quote or estimate includes, whether expenses and taxes are additional, and what circumstances could change the amount.

Costs may change if your instructions change, additional work becomes necessary or unexpected issues arise. Litigation can be particularly difficult to predict because the work required also depends on other parties, court processes and whether a resolution can be reached.

If you are concerned about costs, let us know early. Understanding your budget and priorities helps us discuss practical options with you.

10 ways to help us work efficiently and manage your legal costs

1. Respond promptly. Timely answers help move your matter forward and avoid repeated follow-ups.
2. Group related questions and information together. One organized email is often more efficient than several separate messages. Let us know promptly about anything urgent.
3. Organize your documents. Provide complete, legible copies in the format requested, and avoid sending duplicates unless asked. Keep original documents free of added notes or highlighting; provide your comments separately.
4. Prepare a brief summary. Depending on your matter, a timeline of events, list of assets or outline of your goals can help us get started efficiently.
5. Use your own words rather than AI. A brief account of the facts and your questions is usually most helpful. AI-generated emails, summaries and research can significantly increase the material we need to sift through, adding time and cost.
6. Give us the full picture. Include information you are concerned may complicate your matter. Learning about it early helps us address it.
7. Give clear, considered instructions. Tell us your priorities, consider the advice provided and ask questions before making decisions. If your instructions change, let us know promptly.
8. Keep us informed. Share relevant developments, new documents, deadlines and changes to your contact information.
9. Contact the appropriate team member. The assistant assigned to your matter can often help with scheduling, documents and administrative questions.
10. Keep the bigger picture in mind. Consider the practical benefit of additional work alongside its cost. In a dispute, weigh settlement options against the expense, delay and uncertainty of continuing.

Questions about your invoice? Please ask.

Our goal is to provide effective legal services and clear information about the cost.

If you are unsure about an invoice entry, whether a payment is required or why we have requested a retainer top-up, please contact our team. We would rather explain it than leave you uncertain.

Learn more about hourly billing and litigation costs.

Learn more about contingency fee agreements.