The Risk Manager, Winter 2015
A panel at the recent ABA Fall National Legal Malpractice Conference discussed the increasing risk of transaction malpractice claims offering this risk management advice:
- Make sure you have identified, in writing, who your client is and what the scope of the representation will be.
- Check back on these two questions often, and identify – again in writing – any changes that have occurred.
- Document what you won’t do, and who you won’t represent, as well. Don’t take on tasks or clients that are outside the scope of representation.
- Check in on conflicts frequently as new parties join the transaction or engagement.
- Don’t get involved in your client’s management, other than evaluating the business risk of proposed actions and transactions. If you do, you will be a target for liability.
Source: ABA/BNA Lawyers’ Manual on Professional Conduct, Current Reports, Vol. 30, No. 20, page 632, 9/24/14.