8 Tactics to Minimize Law Firm Risk of Malpractice

transcript

Presented by:

Todd C. ScottVP Risk ManagementMinnesota Lawyers Mutual Ins. Co.

Your Presenter: Todd C. Scott

• VP Risk Management• Practice Management Advisor, 20 years• MLM is a professional liability company,

exclusively serving small and midsize firms• www.mlmins.com

Basic facts about malpractice:

• Starting a law practice today: 3 malpractice claims likely in career

• Personal injury lawyers: even more• Lawsuit doesn’t always mean the

lawyer did something wrong• Best and the brightest at the lowest

point: It happens to everybody.

Where the data comes from:

• ABA Profile of Legal Malpractice Claims2008-2011

• 4 year, quadrennial study of firms and malpractice

Where the data comes from:

Avoid trouble with trust accounting

• Financial mismanagement: fastest way to ethics discipline

• Off-the shelf accounting programs can work but lack full integrations features

• Know the difference between “available funds” and “check “cleared”

• Internal controls for combating fraud include: shared responsibility, rotation of banking duties, and continuous attorney oversight

Avoid trouble with trust accounting

• Factors in theft of client funds:• Infrequent executive management

• Weak financial management

• Inadequate financial controls

• Decentralized system for payment approval

• Firms with high volume pass-through disbursements

Simplify and automate client onboarding

• It’s all about the basics: have a good system and stick to it

• Conflict checking is simple and it is your duty

• The way you are practice law is changing so your system is more important than ever

16 GB = 1,600,000 Documents

Eliminate the risk of missed deadlines

• Missed deadlines: the most difficult malpractice claims to resolve

• Personal injury: the most common claim, and the most expensive

• Good docket control goes way beyond ordinary office calendaring software

Close the communication gap

• Lawyer/client communication breakdowns: 15% of all claims

• Client communication is a regularly scheduled event

• Use every opportunity to communicate to the client – in detail

Follow real and virtual paper trails

• Organization is more important than ever before.

• Centralizing firm data: keeps firm organized and safe

• Documenting the files is crucial when clients “misremember” things

• When thinking about data: backup, backup, backup

“Nothing kills paper quicker than mold.”

Establish a routine and adapt to new technology

• What is your vision for the technology in your firm?

• When adopting new technology: plan ahead, and not all at once.

• Budgeting for technology should always include service and support

• Include the staff when choosing software

Establish a routine and adapt to new technology

• What is your vision for the technology in your firm?

• When adopting new technology: plan ahead, and not all at once.

• Budgeting for technology should always include service and support

• Include the staff when choosing software

When you grow, find the tools that fit your firm

• Legal software is not-off-the shelf. Work with the manufacturer or a certified consultant

• Scalability in software platforms will take the sting out of firm growth

• Leading edge software is a good place to be. Bleeding edge isn't.

Generate airtight documents

• How we create and save documents is changing.

• File name configurations should be intuitive and consistent.

• Forms and template creation can streamline your practice like never before.

• Cut and paste: risky and unnecessary.

Document arrives in firm

Photo copy is madeCopy is mailed to client Original goes to file

Incoming Documents

• All Incoming Documents Get Scanned Immediately

• All Outgoing Documents are Printed to PDF

• Store Digital images in Logical Files• c:\work\smith-jo\pleadPDF\150327-complaint

• c:\work\smith-jo\correspPDF\150327-TCS-AMR

• c:\work\smith-jo\pleadDOC\150327-complaint