Drafting Errors: Small Mistakes Can Lead to Big Claims
Drafting errors are one of the most common causes of legal malpractice claims. Every year, Lawyers Mutual receives multiple claims arising from lawyers’ drafting mistakes. Some of these claims could be described as minor claims, while others result in substantial damages. A minor typographical error can just as easily result in a large claim as a minor claim. What is true of all of these situations is that most of these mistakes could have been easily avoided with simple risk management practices.
Drafting errors in legal documents encompass a broad spectrum of mistakes. Common examples include:
- Typographical Errors: Simple spelling and grammatical mistakes can alter the meaning of legal documents, leading to misunderstandings and unintended consequences.
- Ambiguities and Vagueness: Poorly defined terms and unclear language can result in disputes over the interpretation of contract provisions or other legal instruments.
- Omissions: Failing to include critical clauses, provisions, or parties can leave clients unprotected or lead to unintended liabilities.
- Incorrect Legal Citations: Misquoting statutes, regulations, or case law can undermine the legal foundation of a document.
- Inconsistent Provisions: Conflicting clauses within the same document can create confusion and legal challenges.
The repercussions of drafting errors can be substantial. Clients may face financial losses, missed opportunities, or legal penalties due to poorly drafted documents. Clients might also incur costs of reformation actions needed to reform the documents containing the mistakes.
Preventing drafting errors requires a lawyer to pay meticulous attention to detail. Read and re-read documents before they are executed. Send the documents to the client and ask the client to confirm in writing that she reviewed the documents. Consider having another lawyer in the firm or a paralegal review the documents for accuracy.
If you discover an error in a document (contract, will, trust document, security instrument, etc.), you should contact Lawyers Mutual immediately. You have a duty under your policy to report matters that might reasonably be expected to be the basis of a claim against the lawyer. Moreover, by reporting a drafting mistake early, we might be able to assist in a claims repair to correct your mistake.
Drafting errors are a significant risk factor for legal malpractice claims against lawyers. The consequences of such errors can be severe, affecting both clients and attorneys. By employing meticulous drafting practices, attorneys can minimize the risk of errors and protect both their clients' interests and their own professional integrity. In an increasingly complex legal landscape, the precision and accuracy of legal documents are more crucial than ever.
