Risk management

Dont dabbleRelatively few claims against solicitors are caused by a lack of legal knowledge lawyers are generally good at knowing the law.

When claims do arise that fall into this category, it is usually because fee-earners have strayed from their familiar field.

It is then too easy to become entangled in complexity.Steve was just such a case.

An experienced conveyancer, he had just skillfully completed the assignment of a commercial lease for his client Phil, the managing director of a small company.

Phil came in to the office to complete the matter and happened to mention that he and his wife were in dispute with a builder could Steve advise him? Steves initial reaction was to suggest that Phil make an appointment to see his partner but he knew this would mean a delay of more than a week and he didnt want Phil to go elsewhere.

Besides, his partner would want to open a file and start talking about costs, whereas Phil only wanted a bit of advice on what was clearly a small claims matter.

After all, Steve had done litigation like everyone else as part of his training.

He gave Phil his opinion and they parted on very cordial terms.Phil was considerably less cordial when he rang up two weeks later.

After his conversation with Steve he had sacked the builder and employed another to finish the work.Now the first builder was demanding payment and saying he hadnt been given the opportunity to complete the job and where was the proof that he had done a bad job?Steve could understand his point of view he was sure he had not told Phil to do this.

But of course he had no proof of the advice that he had given.

There was no retainer letter and he had not even made a file note.Now he had upset Phil, who was threatening to take his business away from the firm unless Steve paid the amount owing to the first builder.Steves partner was unsympathetic he said Phil should have been referred to him or sent elsewhere.

I wouldnt try to give advice on conveyancing because I havent done it since law school.

What made you think you knew about litigation? he said.Solicitors are focused on giving advice to clients.

So it can be difficult not to do it when a client asks.

It is equally difficult to send a client elsewhere you may fear that your firm will get a reputation for being unable to cope, that you will look weak, or that the client will take all the business away.But it is important to be realistic.

Have you got the time and the expertise to deal with this matter? If not, the client would be better served by being referred either to another fee-earner within your firm or to another firm.

Clients will appreciate your honesty and you will protect your claims record.l This column was prepared by the St.

Paul risk management team