Risk management

File closure letters

We recently looked at retainer letters and how, when starting work for a client, they could help lower the risk of a negligence claim against the practice.

This week, we will be looking at what you should be doing when work has been completed.

One way to help reduce claims of negligence is to send a letter to your client when work has been completed.

However, for such a letter to stand as proof that you have completed the work satisfactorily, it needs to incorporate many different points:

- Why has the file been closed? It could be that the work has been completed, on the other hand, it could be that a client has changed solicitors or has simply stopped instructing you.

This needs to be explained fully in the file closure letter so the client cannot claim that your firm was still instructed.

- What exactly has your firm done? Explain fully in the letter not just what work you have undertaken for the client but what the outcome of such work has been.

This way if there is any discrepancy over what you have been doing for the client, the client can come back to you immediately with their questions.

Many claims arise against solicitors when a client, 12 months after work has been completed, mistakenly decides that something else was supposed to have been done and hasn't been.

If all work undertaken is laid out in this final letter, the chance of a claim made one year later holding any sway is slim.

- What is left to do? If there are a couple of loose ends which the client needs to tie up themselves, this should be explained fully within the letter.

The letter should also give the client exact timings which need adhering to, and also an explanation of what will happen if the deadline is missed.

- Will the file now be archived? It is important to let the client know how long their file will be stored for, and what will happen to it at the end of this time.

You should also inform the client of what procedures they need to follow, and a rough estimate of how long it could take, should they wish to retrieve the file.

- Return original documents.

Make sure that, when sending this letter to your client, you enclose any original documentation they may have given to you.

- Copy the letter.

A good idea is to send two copies of the letter to clients and ask them to sign them both and send one back to you.

This way you have a record that a client has understood everything you have set out in the letter and will not run the risk of a client claiming never to have seen such a document.

While the drafting of such a letter might seem an onerous task, it does serve as a valid checklist, and could highlight any discrepancies before a file is closed.

Remember, file closure letters as detailed - if signed off by the client - will form a valid line in your defence should the firm be hit with a negligence claim.

This column was prepared by the Alexander Forbes Professions risk management team