A 30 Minute Malpractice Checkup

Most of us see the value in visiting our doctor and dentist at least once a year for a basic checkup. We want to be proactive about our physical and dental health. Similarly, companies often ask outside consultants to come in and look at company and employee performance to determine whether there are matters or problems that need to be addressed. Companies might also do their own internal audits. Law firms can do this by using Lawyers Mutual’s 30 Minute Malpractice Checkup Guide.

The Guide is easy to use and doesn’t take a lot of time. It is designed to help you assess your potential exposure to malpractice by offering 100 yes/no questions. The questions inquire into 10 areas that might impact a firm’s risk.

1. Ethics: Do you regularly consult the Rules of Professional Conduct? Do you have systems in place to protect client confidentiality? Do you stay current with the latest ethics opinions? Malpractice claims often result from a failure to follow the Rules of Professional Conduct.
2. Office Management: Basic office management practices can impact the risk of a malpractice claim. Are your employees trained in proper procedures for handling client matters? Do you have technology practices and procedures that minimize risk? Do you have an office personnel manual?
3. Case Management: Do you have systems for opening and managing case files? Do you use client intake forms? Do you have written policies for file retention, storage, and destruction? Good file management can reduce the risk of malpractice.
4. Calendar Control: Do you have a strong calendar system? Are all employees trained on the system? Does your system include tickler dates? Missed deadlines are the most common source of malpractice claims.
5. Conflicts of Interest: Do you have a consistent and reliable system for checking conflicts before accepting representation? Are all employees trained on the conflict rules? Conflicts of interest can change an ordinary negligence claim into a claim for constructive fraud and fraud.
6. Time and Billing: Do you bill clients on a regular basis with itemized statements clearly setting forth the work done on the file? Are you familiar with the State Bar fee dispute resolution procedures? Fee disputes with clients often lead to malpractice claims.
7. Trust Accounts: Do you have a copy of the State Bar’s Trust Account Handbook? Do you follow the reconciliation procedures and disbursement requirements? Mismanagement of client funds can lead to malpractice claims and more serious issues for lawyers.
8. Client Relations: Do you have client communication policies for timely responding to client inquiries? Do you regularly use client engagement, nonengagement, and disengagement letters and agreements? A good engagement agreement clearly defining the scope of representation is one of the most effective ways to avoid a malpractice claim.
9. Continuing Education: Are you current on CLE requirements? Do you do in-house training for employees? Targeted CLE education is essential to stay on top of substantive practice areas as well as ethics issues.
10. Self-Care: Do you have a healthy work-life balance? Are you struggling with burnout, anxiety, depression, or alcohol abuse? Are you familiar with the services offered by the North Carolina Lawyers Assistance Program? Mental health and substance abuse issues can lead to malpractice claims if they are not addressed.

After you take the test, review your results and create a list of action items for areas that need improvement. Not only will this result in a reduction of risk, but it will also create a healthier work environment for you and everyone else in the firm.