Legal Definitions - special retainer

A special retainer is a payment made to a lawyer or law firm for a specific, defined legal service or project, rather than for ongoing general legal advice or representation. Unlike a general retainer, which might secure a lawyer's availability for various future matters, a special retainer is tied to a particular task, case, or transaction. The funds are typically held in a trust account and drawn upon as the specific legal work is performed.

• Example 1: Real Estate Transaction

  A small business owner wants to purchase a new office building. They hire a lawyer specifically to review the purchase agreement, conduct due diligence on the property title, and handle the closing process for this single real estate acquisition. The business owner pays a special retainer to the lawyer, which is exclusively for the legal work related to this particular property purchase. It does not cover any future legal needs the business might have, such as contract disputes or employment issues.

  This illustrates a special retainer because the payment is for a clearly defined, one-time legal project: the acquisition of a specific piece of property. The lawyer's engagement is limited to this particular transaction.

• Example 2: Single Lawsuit Representation

  A homeowner discovers a significant defect in their newly built house and decides to sue the builder for damages. They engage a law firm to represent them solely in this specific litigation. The homeowner pays a special retainer to the firm, which will be used to cover the legal fees and costs associated with preparing and prosecuting this single lawsuit. The retainer does not obligate the firm to represent the homeowner in any other potential legal matters, such as a future dispute with a neighbor or a will preparation.

  This demonstrates a special retainer because the funds are provided for a singular legal dispute—the lawsuit against the builder. The scope of the lawyer's work is confined to this specific case.

• Example 3: Patent Application Filing

  An inventor has developed a new medical device and wants to secure patent protection. They hire a patent attorney to conduct a patentability search and prepare and file a single patent application for this specific invention. The inventor pays a special retainer to the attorney. This payment covers only the legal services related to the search and filing of this particular patent. It does not include future services like responding to office actions from the patent office, filing international patents, or handling other intellectual property matters for the inventor.

  This is an example of a special retainer because the payment is designated for a very precise legal task: the search and filing of one specific patent application. The attorney's engagement is limited to this defined scope of work.