Legal Question in Business Law in California

retainer fees

Can a design fee for interior design services based on an hourly rate for a specific number of hours be collected up front in full. A difference of opinion has arisen that only a percentage of the fee can be collected up front and the balance in increments.

Thank you for any help.


Asked on 8/18/01, 12:06 am

1 Answer from Attorneys

Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: retainer fees

Based on a quick computer search of California statutes affecting interior designers, I find nothing affecting how they may contract for their fees.

Therefore, I would draw at least a preliminary conclusion that an interior designer and his or her client are free to contract for payment of the designer's fees in any way they choose -- 100% up-front, 100% in arrears, or in instalments with any reasonable timing.

If however there is no formal contract or the contract does not specify when payment shall be made, a court would ordinarily find that there is no obligation to pay until services have been rendered. Then, the court would expect payment to be made periodically in arrears at some reasonable frequency, and in deciding what was reasonable the court would look to what was usual in the interior-decorating business as well as any unusual factors such as solvency of the client and any large lump-sum expenditures the designer made on the client's behalf, e.g. for expensive furniture.

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Answered on 8/20/01, 1:13 pm


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