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Prevention Is Better Than Cure – “It Wasn’t Me!”

Let’s do it the best way!

The subject matter of better risk management continues from last issue of ‘Prevention Is Better Than Cure’ to share simple learning points to ensure that our members take pre-emptive measures to prevent legal disputes from any errors or omission made by the legal practice and/or professionals.
 
“IT WASN’T ME!!”
 
“It was handled by my clerk / legal assistance / my other partner / it’s a file handled by another branch / ex of everything above” are amongst the common phrase when faced with a liability claim.  Such defensive response can be a reaction to a potential fault, however it does not matter who had handled the file, ultimately liability falls on the sole proprietor or every partner of the firm.
 
All firms should have an effective risk management procedure implemented suited to their needs.  Even more so important than ever during the COVID-19 Pandemic with lockdowns and such, where some firms’ partners and employees are on rotation between working in office and from home.
 
 “My former legal assistant forgot to file the requisite documents in court / my clerk just kept the notice from the Inland Revenue Board in the file without notifying the lawyer in charge or myself / both my lawyer and clerk inadvertently omitted to file the requisite appeals with correct supporting documents till the time lapsed.”  These are examples of incidences appearing in some claims received so far and there are also instances where the same error/omission by the same employees over a few different clients/files.
 
All the files were handled by the partners in other branch(s)…”.  “It was a file handled by my partner in KL branch, why are they suing me / my firm?” 
 
Whether it is an error or omission or misconduct by any member of the firm, the ultimate liability falls on the falls on the sole proprietor or every partner of the firm. 
 
Let’s do it the best way – Centralized Checklist
 
Standard centralized checklist is an important must have for firms focusing on procedural transactions such as conveyancing and corporate and equally also for litigation not to miss any important court dates. 
 
The checklist should often be updated, even to the extent date/time spoken to the client or the opposing party.  It is also one of the more important tasks of the partner(s) to oversee this checklist, and when status of the file is not kept up-to-date, partner would able to spot it and react or intervene on time.  It would also help to act as a check and balance system between partners in order to fortify internal procedure against any internal or external fraud.
 
Periodic update on the files status and weekly team meeting goes a long way.  This meeting need not be long and detailed but it is important for everyone to present eg to check on important upcoming deadlines or milestones in the clients’ files.  The partners could also use this opportunity to catch up on the well-being of its employees during this pandemic and lockdown.  Boosting morality especially during such stressful period would help in a lot ways to reduce stress, and this may directly be channeled into reducing risk of errors and omissions.  
 
Constant communication amongst members of the firm is another vital key.  It is important for the team to provide constant updates on the latest developments in the clients’ files.  Keeping your clients updated on the developments of the file is also equally important eg keeping your clients ‘in the know’ is better than leaving them wondering impatiently about what may be happening with their file. 
 
Conclusion
 
In conclusion, when faced with a liability claim, it is not a single person, but the firm as a whole, would be placed under the microscope.  We must keep in mind that the aim of a good internal risk management procedure is not for fault finding, but to minimize internal risk and optimized firm’s efficacy.  Thus, the risk of liability to the firm could be reduced or at least managed.
 
This document is not intended to be taken as advice regarding any individual situation and should not be relied upon as such.  The information contained herein is based on sources we believe reliable, but we make no representation or warranty as to its accuracy.  Marsh shall have no obligation to update this publication and shall have no liability to you or any other party arising out of this publication or any matter contained herein.  Any statements concerning actuarial, tax, accounting or legal matters are based solely on our experience as insurance brokers and risk consultants and are not to be relied upon as actuarial, tax, accounting or legal advice, for which you should consult your own professional advisors.  Any modeling, analytics, or projections are subject to inherent uncertainty, and the Marsh Analysis could be materially affected if any underlying assumptions, conditions, information, or factors are inaccurate or incomplete or should change.  Marsh makes no representation or warranty concerning the application of policy wording or the financial condition or solvency of insurers or re-insurers.  Marsh makes no assurances regarding the availability, cost, or terms of insurance coverage.  Although Marsh may provide advice and recommendations, all decisions regarding the amount, type or terms of coverage are the sole responsibility of the insurance purchaser, who must decide on the specific coverage that is appropriate to its particular circumstances and financial position.  Insurance coverage is subject to the terms, conditions, and exclusions of the applicable individual policies.  Policy terms, conditions, limits, and exclusions (if any) are subject to individual underwriting review and are subject to change.