Lawcovernotes July 2018

Establishing good processes for orderly file closure is central to running an efficient practice, managing risk and fulfilling a solicitor’s duty of care to the client. Outlined below are tips for managing file closure at the termination of a retainer and the need to manage the risks inherent in file administration. Terminating the retainer during a matter ^ ^ If you are terminating the retainer during a matter, write to the client confirming that you are terminating the retainer and no longer act for them. Provide a clear basis for not acting, refer to the court rules and fulfill your obligation concerning the filing and service of a Notice of Ceasing to Act. ^ ^ Confirm any key dates or actions to be undertaken by the client and ensure that fees are paid and a trust account statement sent to the client. Check everything has been completed in the file. Provide the client’s original paginated file to them and retain a complete copy of the file for your records. ^ ^ When you are closing the file of a client who disappears or refuses to give instructions, a letter should be sent to them clearly advising of any relevant limitation periods and the date on which they will lose their rights to claim compensation or damages. ^ ^ If you are terminating a retainer relating to, for example, a lease transaction, put in writing to the client whether or not you intend to exercise an option to renew at a future date. Do not leave the client in any doubt as to who will perform this task. ^ ^ If the matter has been transferred to another solicitor or the client has severed the retainer, outline the current status of the matter, important dates going forward (such as the date of upcoming court listings and the court timetable for the production of evidence) and other matters relevant to the client’s best interests. ^ ^ Remember, suing for payment of any outstanding fees, may prompt a negligence claim. Consider inviting the client to participate in a costs assessment as an alternative. When the matter has concluded When you have completed work on the file and resolved outstanding accounts, you should send the client a final reporting letter. The final reporting letter informs the client that the retainer is over and what, if anything, remains to be done. For example, if you were retained to obtain default judgment, a final reporting letter would confirm the result, and remind the client that they will have to take steps to collect on the judgment. Use of a file closing checklist is a good way to keep track of what has or hasn’t been done on a file. Checklists can be tailored for your practice and can be easily followed. Milica Vukancic Claims Solicitor 13.