Risk 411

Let's start with a reminder. The people who use your firm's computers, which includes portable devices such as smart phones or computer tablets, represent a significant risk not only from things like their falling prey to a phishing scam but to intentional misuse. One effective risk management tool that can help address this concern is a well-written online activity policy that is coupled with education and enforcement.

The establishment of rules regarding personal use that address such issues as personal browsing on the Internet, the use of peer-to-peer file sharing networks, personal email accounts, file downloads, and use of social media are of particular importance. Detail ownership and privacy ramifications so that everyone in the firm...

Have you ever stopped to think about why your Internet security program updates on a fairly regular basis or why Microsoft, Apple, Adobe and other software companies release patches with similar frequency? The reason is that for all practical purposes computer security is something of a reactive defensive play. Internet security suites defend your computer or network from known and understood attacks. Once there is a new virus or other nasty program released by some cybercriminal, software and computer security companies investigate the malware and write code that will protect you from this new threat. Here is the problem. We all are potentially exposed to new and unknown attacks particularly if the computers that we're using have not been...

"Of counsel" is one of those terms that has multiple meanings. This term has traditionally been used as an honorary designation for retired partners, as a special designation for firm attorneys who are neither a partner nor an associate, and as a way to describe part-time attorneys who have created an association with a firm. In recent years, however, more attorneys seem to want to use the term solely as a way to generate additional business. After all, the increased exposure coupled with the presentation of close ties with another firm can be an effective marketing tool, right? Well perhaps, but there are risks that come into play and these risks should not be taken lightly.

What is an Of Counsel Attorney?

The "of counsel" designation...

As part of my risk consulting, I sometimes explore a firm's claims history in a group setting of attorneys. Every once and a while, one or more of the attorneys will resist this effort and question the appropriateness of the topic. With similar frequency I find myself in an open and honest discussion about what happened. The claims discussion is an interesting part of the visit process as I can learn a great deal about the inner workings of a firm based upon how the group responds. Ultimately, I am looking for an ability of the involved attorney(s) and the firm to hold themselves accountable for their actions or inactions. I am also looking to see if they have embraced the learning that can be taken from the experience and, perhaps most...

Most attorneys are more than able to effectively manage their client’s legal matters. Files are appropriately documented, substantive work progresses as expected, and resolution is reached in a timely manner. Unfortunately, competent lawyers who do good work and get a fine result can still find themselves facing a malpractice claim. Even worse, some of these claims will eventually lead to a loss payout. With this in mind, I find it curious that in my fourteen years in the malpractice insurance industry, I have never heard of a malpractice claim brought by a satisfied client. I can also share that I have personally spoken with a lawyer who did blow a statute of limitations date on a significant matter. After informing the clients of this...

Ok. I get it. How many malpractice claims are there that have been the result of a failure to write a declination letter? You know the one that says thanks but no. Truth be told, not many; but there are a few. Some are conflict problems because the creation of this letter is what normally would trigger the entering of the names of declined clients into the conflict database. When the letter isn’t written, the names can’t be entered and a conflict problem sometimes arises down the road. Others are a bit more concerning and represent the real reason why these letters should be used. Sometimes a non-client who did speak with you eventually sues you for failing to do something. They allege that you were indeed their attorney, at least as they...

Who can forget the scene in "Close Encounters of the Third Kind" when Richard Dreyfuss's character built a rather large re-creation of Devils Tower in his living room out of just about anything he could find - bricks, dirt, shrubbery, you name it. If you missed that film, trust me, it was a heck of a mess. Believe it or not, I have stood in a file room in an actual law firm where, in my mind, this mountain was re-created yet again. Files towered over my head and access to the top could only be accomplished by ladder. That file room is one I will never forget. To my relief I did learn that I was one of a select few ever allowed access, and fortunately, no clients ever knew what was hidden behind a very mundane door that they walked passed...