Risk management

Dont let your complaints become claimsComplaints need to be dealt with effectively if you want to avoid them turning into claims.Delay and ineffective communication with a client increase the threat of escalation.

An issue that could be defused can quickly become a matter of principle.Andrew worked hard for his client Harry and did more for him than for many of his other clients.

Nine months after Andrew closed the file, Harry made a complaint.

Andrew remembered the point cropping up but he was certain it had been dealt with at the time.

He put the letter to one side unacknowledged while he got the file back from storage.

Unfortunately it had been misfiled.

It took longer than expected to arrive on Andrews desk.

Then a quick scan of the papers did not produce the quick answer he had hoped for.

He put it to one side, fully intending to look at it in a couple of days.Harry rang up to find out what was going on.

Andrew did not feel able to take the call because he had not yet looked at the file.If only an acknowledgement letter had been sent out when the complaint first came in.A few more days passed.

Harry rang Andrews senior partner.

A memo arrived asking for the background.

Andrew decided to review the file over the weekend, but had not done so when he returned to the office on Monday.Harry rang again to speak to the senior partner, who was out.

He was told that his call will be returned but it was overlooked two urgent matters needed the senior partners undivided attention as soon as he got back.Then, much to Andrews relief, it all went quiet.

He put it out of his mind.Two months later, Andrew received a letter from new solicitors with an authority for the release of the file.

Being too busy to review the papers, Andrew sent it off without further examination.The new solicitors went through the file with a fine-toothed comb, knowing that if they could not find a cause of action, they probably would not get paid.

It was easy to find shortcomings: missing attendance notes, no retainer letter, no rule 15 letter, an offer to settle not communicated promptly.The lesson is that complaints can easily turn into claims.

To reduce the risk of this happening, communicate with the client clearly and without delay.Agree a complaints policy and make sure it is followed in every case.

As with claims, it is often sensible for the matter to be taken away from the fee earner concerned.

Identify the issues meeting with the complainant can be very cost effective.

Try to understand why the complaint has been made.

It can provide invaluable market research.

Are client care procedures being overlooked? Adopt a positive attitude to the complaint and learn as much from the experience as you can.Firms with high numbers of complaints tend to have more claims.

A prompt and sensitive approach to resolving complaints may prevent some of them developing into claims.l This column was prepared by the St.

Paul riskmanagement team