The recently reported case of a firm which took on a probate matter with no experience in this area serves as a pertinent reminder that we are best sticking with what we know best or at least ensuring that we undertake thorough training and have adequate support from others experienced in the new area before deciding to branch out.
One of the interesting facts about the case is how far down the line the firm got with the probate matter which they misguidedly took on and how badly they got it wrong. This included failing to carry out due diligence on any client, failing to identify that the estate had debts of £6,000 before estate monies were distributed to beneficiaries and failing to clarify who were the correct beneficiaries in the first place.
The firm had form on this front as they were also found to have taken on a commercial matter with no prior experience, for which again no due diligence had been carried out, nor had they confirmed their client’s identity.
Not only were the fee earners inexperienced in the areas of law relating to the work assigned to them, but also the supervisor (who being the compliance officer, should really have known better) lacked the necessary experience to oversee the matters competently. Unsurprisingly, no file reviews were carried out and whilst this may have effectively led to a ‘blind leading the blind’ scenario, it is a further example of poor file management and a lack of an effective risk management strategy, not to mention failure to comply with regulatory requirements.
How should you manage cases to minimise risk?
As we highlight in the File and Case Management Procedures document within our law firm Policies and Precedents library, several of the key principles of risk management are:
- Manage the work you take on – if you are too busy, or lack the necessary expertise, it is best to turn work away or ask someone else to take it on.
- Allocate work effectively – if you are responsible for allocating work, you must ensure it goes to those who can do it effectively.
- Supervise and support others – delegation is not abdication. When you delegate work to others who work under your direction, you must supervise. When others need your help, provide it.
- Review your files – It is easy for a file to be overlooked, especially if the matter is difficult or uncongenial. Prioritise your work and address important issues before they become a problem.
Think of it from the client's perspective, whilst you may think you are doing them a favour in taking the case on, it is much more likely that they would prefer you to be honest and politely decline, rather than cause them a long list of headaches in the future and ensure they are unlikely to give you any more repeat business.
What may initially be thought to be a win-win situation may soon descend into a dire situation for all if the correct risk management strategy is not followed from the outset.
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