Understanding Your Paralegal Retainer Agreement
Before a paralegal starts work, you should have a clear agreement about what they will do, what it will cost and how the relationship works. A good retainer protects both sides and prevents misunderstandings later.
- A retainer should say what service is included, and what is not.
- It should set out the fee in plain terms: fixed, hourly or otherwise, plus HST and disbursements.
- It should explain how money you pay in advance is held and applied.
- You can ask questions before signing, and you should keep a copy.
What it should cover
- The matter and the services: for example, a defence in Small Claims Court through to trial, or a single hearing.
- What is outside the agreement, such as an appeal, enforcement of a judgment or a separate related matter.
- Who will do the work, and how you will be kept informed.
- What you have to do: provide documents, respond promptly and tell the truth.
Fees and costs
- The fee: a fixed amount for the stage or matter, an hourly rate, a retainer deposit applied to time, or another structure explained clearly.
- HST, which applies on top of professional fees.
- Disbursements: filing fees, service costs, copies, expert reports and similar out-of-pocket items, and whether you pay them up front.
- When invoices are sent and when they are due, and any interest on unpaid accounts.
- What happens to the fee if the matter settles early or you end the retainer.
Money held for you
Money paid in advance for fees and disbursements that has not yet been earned should be held in a trust account and only withdrawn as the agreement allows. Ask for accounts that show what was received and spent.
Questions worth asking
- What exactly will you do for me, and what will you not do?
- What is the total I should expect to pay, and what could make it go up?
- Who will I speak to, and how quickly do you reply?
- What is the realistic range of results, and what are the risks?
- How do I end the agreement, and what would I owe if I do?
If something goes wrong
Raise concerns in writing and ask for the account to be explained. If you are not satisfied you can make a complaint to the Law Society of Ontario, and in some cases ask for an account to be reviewed. Keep your agreement, invoices and messages together.
Common questions
Is an oral agreement enough?
A written agreement is the safer choice for both sides, and you should insist on one for anything beyond a very short job.
Can I change paralegals mid-case?
Yes. You can end the retainer and hire someone else. You may owe fees for work done, and the new representative will need to take over your file.
This guide is general information for people in Ontario, not legal advice. Rules, forms and deadlines change, and every situation is different. Check the current rule or speak to a licensed legal professional before you act.
Not sure where you stand? A licensed paralegal can look at your documents and tell you your options.
Book a Free Consultation
PIPEDA-compliant