Law Mutual News 

Welcome to the latest update from Law Mutual (WA). 

A reminder that applications and payment for Insurance 2017/2018 are due by Monday, 15 May 2017. Many thanks to the firms who have already provided their applications and should now have their tax invoices. A special thanks to those that have already paid. 

After Monday, a 10% late lodgement penalty will apply. There is also the potential for delays in the Legal Practice Board being able to issue your practising certificates by 30 June as it will only do so once we have informed it of your insurance status for the upcoming year.

In this newsletter you will also find relevant articles on Common claims: procedural oversights or mistakes, New practitioner risk management skills, Use of email - what are the risks? as well as details about our upcoming risk management seminars. 

Common claims: procedural oversights or mistakes

It may surprise you to know that only a small percentage of claims we see at Law Mutual (WA) fall within the category of “failure to understand the law”.  Most often we see claims which arise because the solicitor in question made a simple error due to oversight or not having an adequate procedure to ensure time limits are recognised and met. Recent examples are:

1. Allowed the limitation period on personal injury (usually workers compensation) claim to expire.
2. Failed to remove the action from the Inactive Cases List resulting in the action being dismissed by the court for want of prosecution.
3. Neglected to refer a party to obtain independent legal advice on the terms of the Binding Financial Agreement (BFA) before it is signed.  
4. Delayed in acting on the testator’s instructions resulting in the testator dying before signing the will.
5. Failed to register interest under the Personal Property Securities Act 2009.

At Law Mutual (WA), we continually emphasise that effective procedures and processes in which staff are well trained can be effective risk management tools. However, staff must realise that the firm considers these processes are mandatory and that there will be consequences if they are not followed. Internal audit or peer review to ensure processes are being followed are also very important. 

We realise that some of these measures are not easy or practical for sole practitioners to adopt of implement. In those cases, the practitioner may want to consider if there are systems (IT) solutions that will assist or whether they should be accepting time critical work at all if their procedures are not adequate.

New practitioner risk management skills

Use of email - what are the risks?

These days, a hard-copy letter is regarded as a slow, inefficient and relatively expensive method of communication with limited use in the modern world.  Traditionally lawyers dictated letters having given consideration to the file before drafting the advice or a response.  The hard copy letter would be reviewed before mailing, often with edits to the content, discussion with colleagues or review by superiors.  

Email is seen a fast, efficient and convenient method of communication.  However, the use of email can circumvent the quality controls that have been applied to letters. 

The use of email creates an immediate response, often without checking of the file or provision of time to reflect on the content and discuss with superiors.  The expectation of the client to receive an immediate response creates the risk of sending incomplete and possibly inaccurate advice.   

There are strategies that can be implemented to reduce the risk of professional liability claims when emails are being used, including:

It is also important for practices to recognise that the use of email in legal communication requires the use of courteous, professional language. Using a salutation or the receiver’s name is one way to infuse courtesy into those quick emails. Remember to always use proper English as well as complete sentences in your business emails. Avoid emoticons, acronyms and chat jargon. Follow these guidelines to show your recipients that you respect them enough to ensure all correspondence is complete and courteous. This may appear basic to some, but important nonetheless particularly where complacency sets in. Try not to become too familiar with your client, things can ‘turn south’ at any time and those relaxed emails can come back to bite you. 

In recognising that email has an important place among today’s forms of communication and by implementing risk management strategies to mitigate the risks, legal practices can benefit from the advantages of email communication.

Get to know your Law Mutual (WA)

Sharan Gill, Claims Solicitor

Sharan began her legal career with Crown Law in Brisbane before relocating to Perth in 2008. She joined Law Mutual (WA) for a year before embarking into private practice at Jarman McKenna, working primarily in the insurance area, with a focus on professional indemnity and medical negligence claims.  Following her maternity leave, Sharan returned to Law Mutual (WA) in January 2014.  

Outside of work, Sharan enjoys interior designing, refining her culinary skills with a glass of good wine and spending time with her daughters, Saryna and Zara.

Upcoming risk management seminars

Contact Law Mutual (WA)

Street Address: Level 4, 160 St Georges Terrace, Perth WA 6000
Postal Address: PO Box Z5345, Perth WA 6831
Telephone:  (08) 9481 3111   |   Facsimile:  (08) 9481 3166
Email: info@lawmutualwa.com.au   |   Website: www.lawmutualwa.com.au