A common question we receive from prospective clients is, “Why do I have to pay a retainer?” This question often arises because many people are familiar with personal injury commercials where attorneys state, “You only pay us if we win.”
While that model works well for car accident cases, it is not applicable in the context of solar panel litigation.
Understanding The Differences
In personal injury cases, attorneys are often able to offer contingency-based arrangements. This is because insurance companies such as State Farm, Allstate, or GEICO are standing by to pay damages if the case is successful.
In those situations, if the attorney believes the case is strong, there is very little risk of not getting paid.
Solar panel cases, however, are different.
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There are no insurance companies ready to cover legal fees if we prevail.
Any payment for our legal services typically comes through negotiation or a judge’s decision, both of which carry uncertainty.
Fee Structures in Solar Panel Cases
There are several ways to structure a legal fee agreement in these types of cases:
- Hourly Rate: One option is for the client to pay an hourly rate. In commercial litigation, our minimum fee under this model is $10,000. This amount is worked off over time as the case progresses. However, this structure places 100 percent of the financial risk on the client, regardless of the case’s outcome.
- Pure Contingency: At the other end of the spectrum is a contingency model. This is a model where the client pays nothing unless we win. In this case, the attorney assumes all the financial risk. However, unlike personal injury cases, there is no guaranteed payout from an insurer. This makes this type of arrangement significantly more risky for our firm.
- Hybrid Model (Our Approach): We have developed a middle-ground approach that we believe is fair and sustainable for both parties. In our standard agreement, the client pays a $2,500 retainer up front, while we take on the remainder of the risk—up to $7,500. If we win the case and recover more than expected from the lender, we refund the retainer and retain the additional recovery as part of our compensation.
Importantly, our agreements cap the total fee a client would ever pay at $10,000. This protects our clients from runaway legal costs and allows us to invest the necessary time and resources into building a strong case.
Why This Matters
The $2,500 retainer helps us cover necessary expenses, including paying our staff and filing the case. It is essentially a breakeven amount that allows us to move the case into arbitration. From that point forward, we carry the financial risk. If we do not win, the client owes nothing further.
We have explored this structure extensively through discussions with many clients, and we believe it represents a fair balance. By asking our clients to carry 25 percent of the financial risk, we are willing to assume the remaining 75 percent. This model allows us to deliver quality legal services while continuing to stand up to the large lenders and solar companies on behalf of consumers.
If you have questions or need legal assistance, reach out to our team today.
