What is the difference between an operating retainer and a trust retainer?

CosmoLex Team

An refers to funds received from clients that are deposited into the law firm’s operating account. A refers to funds received from clients that are deposited into the attorney’s trust or escrow account.[1] In most states, a retainer paid by a client in advance for unearned fees and future costs is considered to be the client’s funds and must be … Read More

Why would I want to use an Evergreen Retainer?

CosmoLex Team

Attorneys provide services to clients “on credit” because they generally don’t bill the clients until after they’ve actually provided the services. The danger for law firms is that they will do the work, but the client will refuse to pay the bill. If the bill was for a significant amount of legal fees and costs, the client’s failure to pay … Read More

What is an evergreen retainer?

CosmoLex Team

Many law firms require clients to pay an [1] or a retainer[2] – a sum of money paid up front to be held in trust and to be used to pay invoices if the client fails to pay. As representation continues and fees climb, however, attorneys can rapidly find themselves in a situation where the client owes thousands of dollars … Read More