Risk management

Good diary systems are not enoughMissed time limits are still a major source of claims against solicitors - so it is worth reminding practitioners of the dangers.

Jim worked for a firm that had a computerised diary system.

The practice had taken advice on risk management - as a result key dates were defined in the office manual, there was a central back-up diary which generated reminders of key dates, and all fee-earners were required to sign and return the reminders, confirming that action had been taken.

The firm also had a file review system to ensure that all staff were complying with the procedure.

So Louise, the senior partner, was understandably disappointed to receive a claim from one of Jim's personal injury clients, especially when she read the allegation that he had failed to issue proceedings within the limitation period.

'We had all the systems in place - so what went wrong?' she asked.Examination of the file revealed that Jim had followed the firm's procedures to the letter, including making of diary entries.

According to the diary, limitation would not expire for another six months.

But Jim had overlooked one crucial point - the client's accident had occurred during the course of a balloon trip.

The limitation period was two years under the Carriage by Air Act 1961, not three years as Jim had assumed.

Worse still, section 33 of the Limitation Act does not apply in these circumstances, so the client lost the opportunity to bring a claim.The moral is that no matter how good your diary, reminder and review systems, they will be ineffective if the information fed into them is inaccurate.

l Always research the law - even if you think you know it.

Are there any unusual features in this case that might lead to a different limitation period?l Double-check calculations - solicitors often count one day too many when calculating a period of time.l If you ask support staff to make a diary entry for you, check that it is correct.

It is your responsibility.

An entry in the wrong month or year may not be immediately apparent.l If you take a file over from another solicitor, do not rely on their conclusions.

Make your own checks.Beware of other pitfalls - for example, proceedings in foreign jurisdictions, which may have special or unusual limitation periods.

Injuries on board a ship are also subject to a two-year limitation period (Merchant Shipping Act 1995).

For claims under the Consumer Protection Act 1987 there is a ten-year long-stop provision, regardless of any incapacity or lack of knowledge on the part of the claimant.

Finally, don't leave things to the last minute.

Follow any applicable protocol and the Civil Procedure Rules 1998, but if proceedings are necessary then issue them well within the limitation period.l This column was prepared by the St.

Paul risk management team