The perils of landing the big fish

Each firm will have its own measure of what is high value in the context of the work it does.

but wherever you place the figure it is always attractive.

The client will have plenty of money to spend on legal fees and will be willing to give time and effort to considering the legal aspects of the case.

The work may be fun to do, fee-earning targets can be met quickly and a valuable client can be brought to the firm.

But there are always risks.

The client who can afford your fees can also pursue claims against you if the relationship sours.

The client knows his own value.

You may be pushed to give the advice he wants to hear rather than the advice your legal acumen suggests.

At worst, the client can compromise the lawyer into unprofessional conduct.

Other clients may be neglected.

Core business should not be jeopardised while chasing the goose that could lay the golden egg.

So how should a firm protect itself?

- Have a clear policy on the maximum value of work which the firm will accept, linked to the level of insurance cover and the type of work; ensure all fee-earners know where that limit is.

- Such a policy might include provisions for capping liability to the level of insurance cover, but be aware that any such cap must to be reasonable, and make sure that the client knows of the cap and what it entails.

- Refuse work that exceeds the limits of your policy, even if this means turning down what appears to be a handsome fee.

It may cost you more than you can afford.

- Monitor incoming work and ensure that the management know who is carrying out high value work and the nature of the work.

- It may be appropriate to add additional levels of supervision or peer review of work, even where the work itself is not complex.

The fees earned should support this; the likelihood of errors can be reduced as can the possibility that the judgement of one lawyer could be clouded by the client's disproportionate influence.

This column was prepared by AFP Consulting, a division of Alexander Forbes Risk Services UK