Legal Definitions - Retaining lien

A retaining lien is a legal right that allows an attorney to keep possession of a client's property, documents, or funds that they lawfully acquired during the course of their professional relationship. This right arises when the client fails to pay for the legal services rendered. The attorney can hold onto these items until the outstanding legal fees are settled, serving as a form of security for unpaid legal bills.

• Business Documents: Imagine a lawyer representing a small business in a complex contract dispute. To prepare the case, the client provides the lawyer with original business contracts, financial ledgers, and intellectual property registration certificates. After several months of work, the business owner falls significantly behind on legal payments.
  How it illustrates the term: The lawyer can assert a retaining lien on these physical documents. Since the lawyer lawfully possessed these documents because they were necessary for the legal representation, they can refuse to return them to the client until the outstanding legal fees are paid in full.
• Valuable Personal Property: Consider a client who hires an attorney to handle a dispute over a valuable antique watch. The client provides the actual watch to the attorney for safekeeping and to facilitate an expert appraisal as part of preparing the legal case. After the case concludes, the client fails to pay the final legal bill for the attorney's services.
  How it illustrates the term: The attorney can exercise a retaining lien over the antique watch. Because the attorney lawfully came into possession of the watch during the course of the legal representation, they have the right to hold onto it until the client settles the outstanding legal fees.