You've had your company up and going for a couple of years now. Things are doing pretty well; the firm has taken a hit in recent years, but things are solid.
Nonetheless, a few things are keeping you up at night. You wake up worried about the employee who was unhappy because he was dismissed - would he sue? Will he go work for a competitor and try to steal your clients? Worst of all, do you reveal trade secrets you don't want the competitors to know about? What about clients who dispute a valid charge - the sum is too large to write off, yet the dialogue is unpleasant? Would you like to expand your operations or replace any of your old equipment, but are unsure whether you can afford it and are afraid that the vendor would require a personal guarantee? These or similar questions keep you up at night and gnaw at you during the day. What should I do?
Call your lawyer, like the major corporations do. These large corporations use an in-house counsel. Your firm isn't as large as that, but if you've been wise, you've already put a lawyer on retainer to assist you answer the issues that keep you awake at night. When you have a lawyer on retainer (typically a monthly fee), you will not normally be charged separately for each consultation. Consider this. When you phone a lawyer or arrange a meeting with your favourite lawyer without a retainer, he will almost certainly or undoubtedly charge you for his professional services. This is where a retainer can help.
Retainers may be adjusted periodically as you and your lawyer see how your needs are being met over time. Now you understand the workings of a retainer. However, a retainer is, strictly speaking, not compensation for legal services.
A retainer is a fee paid to a lawyer in order to ensure the lawyer's availability for the client. The quantity of the retainer is usually proportionate to your demands. Once engaged, the lawyer will be at your disposal at all times, providing you and the lawyer agree on working hours and services supplied. Lawyers are assumed to be intelligent. Smarter lawyers offer you a discount when you sign a retainer agreement. Now, imagine paying ₦20,000 for each visit your lawyer makes or ₦50,000 for each professional service your lawyer does. Even if you just call your lawyer once a week or every working day to have a task completed for you, or if you pick a less expensive lawyer, you will still spend more than the minimum wage in a month. With a retainer, however, your lawyer may choose to supply his services for a monthly charge of, say, ₦80,000 - ₦100,000 for services you require on a regular basis. You may now hire him whenever you want without having to haggle over his professional prices. There's no need to be concerned about the expense of any action.
