Is an attorney under any obligation to inform the client when the retainer has been exhausted?

[Mitch24]

Do attorney's have to inform their client when the retainer has been exhausted?

 

[justblue]

Do attorney's have to inform their client when the retainer has been exhausted?

What state?

 

[adjusterjack]

Do attorney's have to inform their client when the retainer has been exhausted?

Have to?

Dunno. That depends on your state's rules which you can probably find on your state bar's website.

Should? Yes, certainly, to avoid misunderstandings.

But some do and some don't.

A prudent client would ask. It's not a one way street.

 

[Zigner]

It's possible that an attorney may be required to give a periodic statement. There's no way to tell since we don't know that state (as mentioned twice above).

 

[army judge]

we don't know that state

It appears the state is known as the Keystone State, AKA, Pennsylvania.

 

[Tax Counsel]

Do attorney's have to inform their client when the retainer has been exhausted?

As a practical matter the attorney should be regularly billing the client for the work done, showing what was used from the retainer and why, and what amount is needed to replenish the retainer. If clients are kept informed they'll be more likely to continue to pay the lawyer as long as the lawyer is producing some positive results. The fastest way for a lawyer to lose a client is to make the client feel that the lawyer to be careless with the client's money or do things that will make the client think the lawyer is just milking the client for every penny the lawyer can squeeze out of the client. Good lawyers don't treat clients money recklessly. Those that do, at least in my area, will quickly garner bad reviews and see their flow of clients drop as a result. So not only is taking proper care of the client's money required under the ethics rules, it is also just good business.

 

[Mitch24]

It's possible that an attorney may be required to give a periodic statement. There's no way to tell since we don't know that state (as mentioned twice above).

Thanks. California.

 

[zddoodah]

Do attorney's have to inform their client when the retainer has been exhausted?

California.

No.

It's possible that an attorney may be required to give a periodic statement.

That is correct. The lawyer and client could agree to a different arrangement, but a standard retainer agreement would call for the lawyer to send monthly invoices, and those invoices would typically look like the following:

1/2/2024 - Emails w/ client re lawsuit - 0.3 hrs - $150.00
1/5/2024 - Telephone call w/ opposing counsel re discovery issues - 0.4 hrs - $200.00

Total charges 0.7 hrs x $500 per hour = $350.00

Retainer received - $2,000.00
Less charges this month - $<350.00>
Remaining retainer - $1,650.00​

Or, if the retainer has been exhausted, it will list "Amount due."

Absent prior agreement to the contrary, it is not the responsibility of an attorney who has received, e.g., a $5,000 retainer to keep an eye on how many hours he/she is working in a month and provide immediate notification that the retainer has been exhausted.