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Four Ways Law Practice Management Software Helps Prevent Legal Malpractice Claims

By | Feb.09.18 | Case Management, Ethics, Legal Technology, Product Spotlight, Small Law Firm

Legal Malpractice Claims

Since 2009, the number of legal malpractice suits has escalated along with the costs to defend them, according to annual surveys by Ames & Gogh, an insurance broker. They say:

  • Insurers have paid claims of $50 million or more in 2016.
  • Malpractice claims are most commonly triggered by conflicts of interest and cybersecurity issues.
  • Business transactions result in the most claims, which tend to center around improper preparation, filing and/or document transmission.

If you want to do everything possible to ensure you’re never among the firms accused of malpractice, take advantage of law practice management software, advises Nerino Petro, technology co-editor for the ABA “GP|Solo Magazine” and CEO of a legal consulting firm.

“Properly implemented, law practice management can help reduce malpractice exposure by significantly reducing opportunities for human error, and that’s huge,” he says.

Some of the many ways a law practice management system can help protect you from a malpractice claim include:

1. Catching Conflicts of Interest

Top law practice management software brings the highest level of diligence to conflict checking by searching your entire database, including notes, files, text documents, images that have undergone optical character recognition scanning, and emails. It then can run a report of results.

This is a vast improvement over typical conflict-checking methods, says Petro.

“These can range from a lawyer poking his head out of his office and yelling, ‘Anyone ever represent Joe Goglioni?’ to circulating a list of names throughout the firm to running names through a time-and-billing system,” he explains. “If there’s no response or nothing shows up, they assume they’ve done a conflict check. It’s no wonder malpractice claims for conflict checks are increasing.”

2. Keeping Track of Deadlines

“If you have never woken up in the middle of the night, panicking that you might have blown a statute of limitations date, you’re in the wrong field,” declares Nerino, “because that should be something that keeps you up at night.”

Law practice management software can help you ensure you never miss a deadline (and sleep much easier) by:

  • Automatically calculating court deadlines to eliminate human error — like overlooking holidays, weekends, and rule changes — that can happen too easily when deadlines are calculated manually.
  • Automatically update you if rule sets have changed. The most trusted practice management systems employ attorney editors who continuously monitor rule sets across the entire U.S. judicial system. If a rule changes, you will be automatically notified so every deadline in your case can be updated to reflect it.
  • Alert you of tasks to complete to meet the court deadline. If the court deadline shifts, your task deadlines will, too.

3. Providing Thorough Documentation

Practice management software acts as a repository for all of your matter information. It details every action you take and when you take them to move your matters forward.

This came in handy for Cynthia Sharp, Esq., when she owned a law firm (she is now an attorney coach). She recalls when a client’s daughter accused her of not “doing anything” with her mother’s case for two years. Because of her law practice management system, Sharp was able to counter this assertion with 200 time-stamped actions she had taken to move the matter forward.

“I would have never been as convincing if I didn’t have the technology that helped us track precisely what we did on behalf of her mother,” says Sharp.

In addition to meticulously documenting actions taken on a matter, the best law practice management tools document communication through secure client portals. A built-in client portal allows you to securely exchange documents and messages with clients while recording and time stamping the actions taken regarding the communication.

“If a client insists that they never got a response to an issue, you’ll be able to pull up the communication and point to the date your response was sent, if they opened it, and how they replied,” notes Petro.

4. Mitigating Cybersecurity Issues

Malpractice insurers have seen an uptick in malpractice claims related to hackers. This shouldn’t be surprising considering that the latest ABA Legal Technology Survey
Report reveals that most law firms with fewer than 10 attorneys don’t take any action to encrypt their emails or files. This makes small law firms an appealing target, says Petro, because the information they’re responsible for — whether that’s details of a merger or simply social security numbers — is valuable. That’s why he believes a cybersecurity needs to be a top, if not the number one, priority for law firms.

The easiest way to make sure your law firm is up to speed with the latest and best cybersecurity is by taking advantage of law practice management software, which provides industry-leading security that would be too costly for small law firms to obtain on their own. This includes:

  • The same cybersecurity as the world’s leading financial organizations, including SOC 2 compliance and certification.
  • Encryption for emails and data while in transit and storage.
  • Daily data back up on multiple servers, in discrete locations, with 24/7 physical security and cybersecurity protection.

“Law practice management tools can help you efficiently meet your obligations under the rules of professional conduct,” says Petro. “From keeping your client’s information confidential to providing detailed documentation of activities, time and billing, and communication, you’ll have the data you need to mitigate the situations that cause lawsuits. It’s no wonder many insurers provide discounts to firms that have a law practice management subscription.”

Find out how easy it is to rest easier knowing that your firm is doing everything possible to avoid the human error behind malpractice claims. Take advantage of a two-week free trial of Firm Central that includes all of the features discussed in this article. (We know lawyers get busy, so if you forget to notify us in a couple of weeks that you’re not interested — don’t worry. You won’t automatically be rolled into a subscription.)

And, if at the end of the two weeks you’re wondering how you lived without it, you’ll be relieved to know that subscriptions are affordable — about the same as a basic cell phone or cable bill.

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