Practice Professionalism and Profitability Presented by Lawrence Atkinson Slide 1 Lawrence Atkinson...

Practice Professionalism and Profitability

Presented byLawrence Atkinson

Slide 1

Lawrence Atkinson Practice Management Services

Practice Professionalism and Profitability Slide 2

High-profile lawyer banned from practice


Example One

The Solicitor

wilfully breached s.255 and 264 of LPA 2004;

wilfully breached s.264 LPA 2004;

misappropriated funds;

falsely witnessed documentation;

made false entries to trust account records;

breached s.262 LPA 2004;

misled the Investigator;

misled the Law Society;

acted without instructions;

Slide 4

Examples of Disciplinary Actions Against Solicitors in NSW



Example One (continued)

The Solicitor

made a false document titled "Trust Account

Reconciliation";

attempted to misappropriate funds;

prepared a false tax invoice;

breached undertakings that he provided to the

OLSC;

breached Section 660 LPA 2004;


Example One (continued)

The Solicitor

acted unethically by holding out to the solicitor for

an opposing party that he was his client's legal

representative at a time when he had been

suspended from practice;

without reasonable excuse, the Solicitor failed to

communicate with the OLSC with respect to 2

distinct complaints.



The Ten Commandme

nts

Slide 7


Negligence

Communication

Delay

Liens/file transfers

Cost disclosure/billing practices/terminationof retainer

Slide 9

Ten areas to be addressed to demonstrate compliance with

"Appropriate Management Systems“


Conflict of interests

Records management

Undertakings

Supervision of practice and staff

Trust account regulations

Slide 10

Ten areas to be addressed to demonstrate compliance with

"Appropriate Management Systems“


How regularly do you consider and review workloads, supervision, methods of file review, and communication with clients? (Negligence)

How regularly do you meet with the (Partners/Principals) to review the performance of the practice? (Or, in the case of sole practitioner practices, how regularly are meetings held with staff?)(Negligence)

How confident are you that all fee earners have a good grasp of issues involved in running a practice and serving clients? (Negligence)

How confident are you that legal services are always delivered at a consistently high standard? (Negligence)


How confident are you that clients are always informed in writing of the steps involved in their matter? (Communication)

Can you guarantee that your retainer is described precisely in writing to the client and includes a statement of what the practice will do and what the practice will not do?(Communication)

Can you show that the likely time frame involved in each matter, and the likely cost, is disclosed in writing to each client? (Communication)


How confident are you that your firm complies with the requirements of the Legal Professions Act 2004, Legal Profession Regulations, Professional Conduct and Practice Rules and other statutory/taxation obligations? (Supervision of Practice and Staff)

Do you use established new client engagement procedures including universal use of approved retainer/costs agreements? (Cost disclosure, billing practices and termination of retainer)

How confident are you that your files contain complete records of all aspects of the client’s matters? (Delay)


Can you guarantee that critical dates are recorded, monitored and complied with?(Delay)

Do you have standardised procedures for collecting client data, opening new files and recording that data within your firm’s accounting and practice management systems?(Cost disclosure, billing practices and termination of retainer)

Can you provide evidence that all comments and complaints by clients are dealt with promptly and, where possible, by someone else in the practice other than the person complained about? (Communication)


How confident are you that your client are regularly kept informed at each stage of their matters and are provided with periodic billing? (Delay)

How confident are you that the accounting systems established for your:

a) General/other accounts;

b) Trust moneys account;

c) Controlled Moneys account; and

d) Transit Moneys register

are compliant? (Trust Accounts)


In it’s simplest form, a Productivity Report measures:

• Time billed in hours per week/month or per annum;

• Time recorded in dollars per month and per annum;

• Budgeted time in dollar terms (ytd);

• Billings in dollar terms per month and per annum;

• Budgeted billings in dollar terms (ytd); and

• Work in Progress (in dollar terms);

by fee earner.


Profitability

Slide 17

Are you a bank or a law firm?

What are you doing about managing your debtors?

How often do you work on your WIP/debtors report?

What is your Credit Management Policy?


Credit Management Policy

A good policy should state:

• Length of time you are prepared to have client as a debtor (suggest no more than 60 days).

• How quickly debt chased once it becomes overdue.

• How strongly debt chased once it becomes overdue.

• Who is responsible for, and when, terms of payment under your firm’s retainer are discussed with clients.


Credit Management Policy

Slide 19

PLUS:

What the Debt Collection procedure is, including

timetable and actions applicable at certain stages

of the procedure (e.g. timing for Letter of

Demand, Statement of Claim etc.)

Practice Professionalism and Profitability Presented by Lawrence Atkinson Slide 1 Lawrence Atkinson...

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