Risk managementClosing the fileOne of the most important procedures in any solicitors' office is how files are closed.

Get this wrong and negligence claims could well be the result.The unhappy experience of one solicitor illustrates the point.

Jill was delighted to hear that her former client, Carol, had met the man of her dreams and was remarrying in two weeks.

Carol telephoned Jill with a request.

'I need a copy of my decree absolute to show to the Registry Office.

I can't find it anywhere', she said.

Jill was less happy when the old file was retrieved; it showed that the application for decree absolute had never been made.

The form signed by Carol was still on the file - it had never been sent to court.

The file had been put away without being reviewed.Take another example: the client is taking a lease on property with an option to purchase it at a specified date.

That date may be some way away, but failure to exercise the option within specific time limits may render it invalid.

If the clients have been clearly warned of the dates, and the importance of exercising the option within this period, then all should be well.

If not, any consequent loss may well be laid at their solicitors' door, for not having given clear and adequate advice.File-closing procedures are even more important in cases where a solicitor's retainer has not clearly come to an end.

This may be because the client has not replied to correspondence, has not given instructions or has not put the solicitor in funds.

It is dangerous to treat these matters as having been abandoned.

Have you written to the client explaining that you can no longer act for them and what the possible consequences may be? Have you reminded the client of any time limits or court orders?Establish a clear procedure for closing files and make sure fee-earners and administrative staff are aware of it and understand it.The following steps, though not exhaustive, should help solicitors firms to reduce the risk of claims.l Before a file is put away it should be checked by the fee-earner so that no important documents remain and that drafts are numbered or dated as appropriate.

l Any such documents that are on the file should either be sent to the client, or (in the case of deeds and wills) be stored separately.l The fact that important documents have been stored separately should be recorded on the file and notified to the client.

l A closing letter should be sent to the client in any event.

l This letter should set out the work that has been done, any important matters outstanding, and any relevant future dates.

l If not previously done, the client should be sent copies of any relevant court orders, searches or other documents.l The client should be told where the file will be stored and for how long.l This column was prepared by the St.

Paul risk management team