Lawcovernotes March 2017

Only a small percentage of claims against solicitors fall within the category of “not knowing the law”. Lawcover claims files are, however, littered with claims which arose because the solicitor in question made a simple error due to oversight. Had the solicitor’s practice instituted a file review system, they should have been able to detect and correct the errors before problems occurred. Implementing file reviews may seem to add to administrative costs yet is the single most effective means by which law practices can avoid claims. Recent examples of preventable claims which have we have settled include those concerning solicitors who: ^ ^ Allowed the limitation period on a personal injury claim to expire, resulting in the insurer successfully rejecting the claim ^ ^ Mistakenly understated the purchase price on a Contract for Sale of property, with the vendor not obtaining the correct sale price ^ ^ Including the wrong dates for the exercise of an option in contract documentation, with the result that the option was unenforceable ^ ^ Failed to advise the purchaser of part of commercial premises of a potential development proposal for the premises, which ultimately saw the purchaser’s business being closed ^ ^ Neglected to ensure that the terms of a Binding Financial Agreement were consistent with the wishes of both parties such that one party had a ‘windfall’ and the other a significant loss All the above instances gave rise to a claim against the solicitor involved. In each matter, it became apparent early in the investigation that a simple error had been made. The solicitors conceded liability and Lawcover settled the claims, calling on the solicitors to meet any excess applicable under the Lawcover PII policy. With legal practices facing increasing time and financial pressures, there is an understandable tendency for solicitors to focus on the tasks of today or tomorrow and not check or review what has gone before. Solicitors need to have both electronic and human systems in place for regular checking of documentation, instructions, dates and indeed, all critical aspects of each matter. One method many firms have successfully used is peer review of files. The ‘take away’ message from this article is that legal practices neglect implementation of sound file checking procedures at their peril. Tony Reynolds Claims Solicitor This well-knownmaxim fromErasmus is not usually applied in the legal sphere but is extremely pertinent for solicitors planning to prevent claims. 7.