Favourable review?
One of the most important features of any risk management strategy is monitoring compliance on the part of the fee-earners (including partners). However, law firms are reluctant to spend much time on monitoring as it does not produce fees.
Effective file reviews are an integral part of the process. Many firms struggle to strike a balance between spending too much or not enough time on the process; problems are also encountered in deciding what the process should address.
As many claims arise out of administrative failings by solicitors, they should take several important regulatory steps. They should check:
So how often should these reviews be carried out? Each fee-earner should be reviewed every six months as a minimum.
How many files should be reviewed? Use management information reports to identify potential problems such as files that have been open for a long time, where the fee-earner appears to have an inordinate file load, or where there is evidence of a lack of time recording. It should not be necessary to review all of the fee-earner's files unless problems are identified in the initial review. Closed files should also be included in the process.
How long should it take to review a file? There needs to be a standard checklist identifying the matters to be checked. It should not take long to see whether the practice rule 15 letter has been sent or the conflict check undertaken. In some firms, the fee-earner has to show to the reviewer that the procedures have been complied with by identifying the appropriate procedures on the file.
Who carries out the review? As it is an administrative process, it does not have to be undertaken by a partner or senior fee-earner. It is not envisaged that the quality of the legal advice will be reviewed. Therefore, individuals from another department could undertake reviews.
This column was prepared by AFP Consulting, a Division of Alexander Forbes Risk Services UK
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