This is the self-audit used by Texas Lawyers' Insurance Exchange. They based it in part on one used by Lawyers' Mutual Liability Insurance Company of North Carolina.
Preferred answers are in type. Texas Lawyers' advises that you think about each question carefully and write down any ideas that come to mind for improving your situation even if you check the preferred answer. For example, you may be doing something which lets you choose the preferred answer, but you may not have a system which forces you to do it every time, or you may think of other people in the office who do not do what is suggested.
I. TRAINING AND MONITORING FIRM PERSONNEL
1. Does your firm have a written policy manual which every member and employee is required to read and sign? _____ No_____
2. Does your firm have a drug, alcohol, and mental health policy designed to encourage impaired employees and their coworkers to deal with such problems, without undue fear of punitive action? _____ No_____
3. Are attorneys and staff with a history of drug, alcohol, or mental health problems monitored by at least one member of the firm in a non-threatening manner to assure they are following an appropriate rehabilitation program? _____ No_____
4. Are you and members of your firm sensitive to the following signs of possible impairment of yourself or a coworker:
a) Drug abuse _____ No_____
b) Excessive alcohol consumption _____ No_____
c) Suicidal thoughts or threats _____ No_____
d) Decrease in work quality or quantity _____ No_____
e) Family, marriage or relationship problems _____ No_____
f) Deterioration of physical appearance or health _____ No_____
5. Does your firm require all personnel to have a yearly physical? _____ No_____
6. Does your firm require personnel to schedule vacations when a certain amount of vacation time has been built up? _____ No_____
7. Do you have a firm policy against sexual conduct toward clients? _____ No_____
8. Does your firm encourage stress management and a healthy balance between work and private life for all attorneys and staff? _____ No_____
1. Does your firm confirm the status of each attorney's membership in the state bar once a year?
_____ No_____
2. Does your firm have a system for confirming that all attorneys joining the firm are licensed?
_____ No_____
3. Does your firm have a system to confirm that every attorney has paid required bar dues?
_____ No_____
4. Does your firm have procedures to confirm that when an attorney leaves the firm, retires or dies, it is clear which remaining attorney is responsible for clients handled by the departing attorney and that any substitution of counsel or similar notice in change of counsel necessary has been completed?
_____ No_____
5. Does your firm have a system for assuring each attorney's compliance with mandatory continuing legal education requirements?
_____ No_____
6. Do you or your firm have a system for keeping up to date
with:
a) Changes in substantive law in areas in which you
practice?
_____ No_____
b) Developments in legal ethics and bar discipline?
_____ No_____
c) Developments in the law of disqualification?
_____ No_____
d) Developments in the law of legal malpractice?
_____ No_____
7. Does every attorney in the firm know who can advise them on ethics questions on short notice?
_____ No_____
1. Do you have a thorough plan for the initial and ongoing training of your associates?
_____ No_____
2. Do your associates feel free to ask for your guidance, opinions, and critiques of their work?
_____ No_____
3. Do you teach your associates about the necessity for and value of integrating good risk management systems in their practices?
_____ No_____
4. Do you follow up with your associates to ensure that they have read the policy manual and have received answers to any questions they may have? _____ No_____
5. Besides the required CLE courses taken outside of the firm, do you offer your associates in-house programs conducted by partners in the firm or others regarding such topics as legal writing, effective negotiation skills, how to prepare and file a pleading, etc.?
_____ No_____
6. Do you give your associates time to do pro bono work and to participate in community and bar activities?
_____ No_____
7. Do you give your associates fair and adequate time to complete projects for you?
_____ No_____
8. Do you let your associates accompany you to court, depositions, real estate closings, and the like so they can learn from observing you or other attorneys in the firm?
_____ No_____
9. Is your billable hour requirement for associates a fair one to them and to your clients?
_____ No_____
10. Do you teach your associates, by word and example, how to work respectfully and cooperatively with staff members?
_____ No_____
11. Does your firm have procedures which train and allow associates to discuss the following problems in confidence:
a) Improper billing by partners, shareholders or associates?
_____ No_____
b) Deadlines or appointments missed by partners, shareholders, or associates?
_____ No_____
c) Other problems which can alert firm management to ongoing
problems which could lead to malpractice claims or ethical
violations?
_____ No_____
1. Have you or your firm made reasonable efforts to ensure that nonlawyer assistants' conduct is compatible with your professional obligations by:
a) Requiring them to read the Disciplinary Rules and discussing the Rules with them?
_____ No_____
b) Informing them of the importance of confidentiality and requiring them to sign a confidentiality pledge?
_____ No_____
c) Educating them how to avoid unauthorized practice of law?
_____ No_____
2. Do you take time as necessary to train your staff thoroughly at the beginning of their employment and offer them continuing education?
_____ No_____
3. Do you utilize quality control systems for checking the quality and timeliness of your assistants' work (e.g., reviewing files at random to see if proper checklists are used and files are maintained in an organized manner)?
_____ No_____
4. Have you taught your assistants the essentials of professional and courteous telephone manners and procedures?
_____ No_____
5. Do you introduce your clients to your staff and explain their important roles as members of the client's legal team?
_____ No_____
6. Would you like to work for yourself?
_____ No_____
7. Do you have regular staff meetings?
_____ No_____
8. Do you encourage staff to suggest ways to improve office
procedures?
_____ No_____
9. Do you give your staff regular reviews?
_____ No_____
10. Do you personally check both the substance and form of
all documents completed by staff, even mundane details such as
case numbers?
_____ No_____
11. Do you praise staff members for a job well done?
_____ No_____
12. Is the criticism you give staff constructive, i.e., delivered in a manner calculated to help them improve rather than to punish them?
_____ No_____
13. Does your staff know how to contact you at all times?
_____ No_____
14. Is your staff comfortable asking you questions?
_____ No_____
15. Do you help your staff handle difficult clients?
_____ No_____
16. Are you a good role model for staff when it comes to complying with firm policies and procedures?
_____ No_____
17. Does your firm have procedures which train and allow lay staff to discuss the following problems in confidence:
a. Improper billing by partners, shareholders or associates?
_____ No_____
b. Deadlines or appointments missed by partners, shareholders, or associates?
_____ No_____
c. Other problems which can alert firm management to ongoing problems which could lead to malpractice claims or ethical violations?
_____ No_____
1. Do you always use engagement letters or employment agreements, signed by clients, which state the financial terms of your employment, the scope of the work to be performed, and disclose any potential conflict of interest? _____ No_____
2. Do you send non-engagement letters or otherwise confirm in writing that you are not the attorney for any person with whom you have met or consulted, but who you believe is not your client, including the following:
a) persons whom you decline to accept as clients?
_____ No_____
b) partners or shareholders who are unrepresented when you represent a partner, shareholder, or an entity?
_____ No_____
c) unrepresented parties to a real estate closing?
_____ No_____
d) relatives of clients with whom you discuss matters relating to the representation?
_____ No_____
e) employees of an entity when you represent the entity?
_____ No_____
f) any person who is unrepresented who could conceivably believe you are representing them?
_____ No_____
3. Do you use non-engagement letters that:
a) clearly state that you have not and will not act as attorney for the person?
_____ No_____
b) Warn the person in a general way that any delay could prejudice their rights in the matter, without making a specific conclusion as to when the statute of limitations may run?
_____ No_____
c) advise the person to seek other counsel?
_____ No_____
d) Give no other legal advice to the person?
_____ No_____
4. Do you send disengagement letters to clients from whose cases you are withdrawing?
_____ No_____
5. Do you send termination letters to all clients when you have completed your services, stating:
a) no further services will be provided unless new arrangements are made (if the person is someone you would want as a client in the future)? _____ No_____
b) any additional action which the client must carry out on their own, if applicable?
_____ No_____
c) that the firm may destroy the file in the future, and that if the client wants copies of file materials, they should request them as soon as possible?
_____ No_____
6. Do you take notes of and/or confirm by letter all discussions with clients or anyone else you talk to about a matter?
_____ No_____
7. Do you confirm by letter or other writing the following critical matters:
a) numerical figures such as loan balances?
_____ No_____
b) agreements with opposing or third party counsel?
_____ No_____
c) a client's decision to act contrary to your recommendations?
_____ No_____
d) risks that the client faces and has accepted in connection with going forward with a course of action?
_____ No_____
8. Do you instruct your staff how to document their conversations with clients and others?
_____ No_____
1. Do you and your firm have policies and procedures which lead you to decline to represent the following types of clients:
a. Clients with matters outside your area of expertise?
_____ No_____
b. Clients with a history of changing attorneys?
_____ No_____
c. Clients who have procrastinated in seeking legal advice?
_____ No_____
d. Clients who are dissatisfied with your usual fee arrangements and billing procedures?
_____ No_____
e. Clients with poor credit histories, if fees are to be paid hourly and billed periodically?
_____ No_____
f. Clients with problems that cannot really be solved by a remedy available under the law?
_____ No_____
2. Do you regularly remind your staff of the importance of good client relations?
_____ No_____
3. Do you present clients with alternatives and allow them to choose appropriate courses of action where possible?
_____ No_____
4. Do you copy clients with your work product and correspondence? _____ No_____
5. Do you allow the client an opportunity, where appropriate, to assist in complying with discovery requests and in investigation of the case? _____ No_____
6. Do you or a trained member of your staff return your clients' phone calls within 24 hours, at the very least to see if the nature of the call is time sensitive?
_____ No_____
7. Do clients receive your undivided attention during conferences?
_____ No_____
8. Do your clients routinely have to wait for more than five minutes to meet with you when they have an appointment with you?
_____ No_____
9. Do you routinely ask clients if there is anything you can do to improve your services for them?
_____ No_____
10. Do you thank your clients for giving you the opportunity to serve them and for any referrals they may have sent your way?
_____ No_____
11. Do you call or write to your clients at least every three months, particularly when their cases are on hold for some reason?
_____ No_____
12. Do you explain to clients, when applicable, that they will be billed for telephone conferences with you?
_____ No_____
13. When you play "telephone tag" with a client or other person, do you document in the file the dates and times that you have attempted to return the call?
_____ No_____
1. Do you have a comprehensive conflict of interest system for discovering potential conflicts?
_____ No_____
2. Do you and your firm have procedures to prevent opening a file without obtaining basic conflict information?
_____ No_____
3. Do you check for any potential conflicts prior to receiving confidential disclosures from new clients?
_____ No_____
4. Do you share new and potential client information with all attorneys and staff on at least a weekly basis through new matter memoranda? _____ No_____
5. Does your firm have a centralized index, accessible to all attorneys and staff, of the following parties? (Note: The list below represents an ideal database for analyzing conflicts. You may meet the needs suggested by the list through the use of the new matter memoranda suggested in question 4.
a) attorneys and staff of the firm?
_____ No_____
b) business interests of attorneys and staff?
_____ No_____
c) clients? _____ No_____
d) persons declined as clients? _____ No_____
e) adverse parties? _____ No_____
f) co-plaintiffs or co-defendants? _____ No_____
g) known allies of either clients or adverse parties?
_____ No_____
h) subject matter of representation? _____ No_____
i) known relatives of anyone listed in the index?
_____ No_____
j) corporate parents or subsidiaries of entities in the index?
_____ No_____
k) trade names of entities in the index?_____ No_____
l) directors and officers of entities in the index?
_____ No_____
m) partners or known shareholders of entities in the index?
_____ No_____
n) known employees of entities in the index?
_____ No_____
o) attorneys for any party in the index?_____ No_____
6. If you detect a conflict of interest, do you always either (a) decline to take the case, or (b) notify the client of the potential conflict and explain the risks and benefits of waiver of the conflict in writing?
_____ No_____
7. Does your firm have form letters for conflict disclosures and waivers that seem to occur on a frequent basis?
_____ No_____
8. Does your firm have a mandatory review procedure for all cases proposed for acceptance in which a potential conflict of interest is detected?
_____ No_____
9. Do you or anyone in your firm engage in any of the following practices:
a. act as both an attorney and an officer or director for the same corporation?
Yes_____ _____
b. have a financial interest in a client matter?
Yes_____ _____
c. participate in a business transaction along with a client?
Yes_____ _____
d. accept stock in lieu of fees?
Yes_____ _____
e. represent adverse parties in "friendly" suits or any other kinds of suits?
Yes_____ _____
f. represent multiple parties attempting to recover funds from a fixed recovery pool such as a single bankrupt, an insurance company in receivership, or a single insurance policy?
_____ No_____
10. Do you always confirm whom you represent in writing, and inform non-clients who might believe they are your client that you do not represent them in writing?
_____ No_____
1. Do you feel that your present docket/work control system is reliable and efficient?
_____ No_____
2. Is the plan for your docket/work control system in writing?
_____ No_____
3. Has your firm appointed an employee to oversee, supervise and ensure the use of your docket/work control system?
_____ No_____
4. Do you have a centralized docket/work control system that is used by the entire firm?
_____ No_____
5. Is there a system in place for screening incoming mail for new deadlines by someone in addition to the responsible attorney?
_____ No_____
6. Does your docket/work control system assign a review date to every open file in the office, even if the matter is temporarily dormant?
_____ No_____
7. Do you and your assistants keep personal calendars in addition to the centralized calendar?
_____ No_____
8. Are deadlines distributed on a routine (daily or weekly)
basis? _____ No_____
9. Do you factor in the lead times necessary for completion of tasks?
_____ No_____
10. Do you automatically set multiple reminder dates prior to the final date that items become due?
_____ No____
11. Are all attorneys and staff trained and refreshed about the docket control system on a regular basis?
_____ No_____
12. Do you have a reliable follow-up system in place to confirm the actual completion of docketed deadlines?
_____ No_____
13. Does your docket/work control system include:
a) statute of limitations?
_____ No_____
b) all court appearances? _____ No_____
c) client and other appointments? _____ No_____
d) all administrative systems and deadlines?
_____ No_____
e) real estate closing deadlines? _____ No_____
f) all litigation deadlines? _____ No_____
g) all self-imposed, discretionary deadlines (i.e., promises made to others, promises made to you and work deadlines you have set for yourself)? _____ No_____
h) at least one docket date for every open file within your firm so that temporarily inactive files will be reviewed at least every 3 months? _____ No_____
1. Are your files organized in a logical manner that someone else in the office understands?
_____ No_____
2. Have you designated one staff member to supervise a centralized filing system?
_____ No_____
3. Do you have a file-opening procedure that includes the
following elements:
a) controls to prevent billing or work until the procedure
is followed? _____ No_____
b) a file-opening memorandum which contains all information necessary to set up the file and to follow all procedures?
_____ No_____
c) analysis of potential conflicts of interest?
_____ No_____
d) credit checks of clients? _____ No_____
e) verification that fee agreements or employment letters have been executed by the client?
_____ No_____
f) assignment of the file to an attorney?
_____ No_____
4. Does your firm have a file checkout procedure so that the location of the file is known at all times?
_____ No_____
5. Do you review every open file and contact the client at least every three months?
_____ No_____
6. Do you use a form to indicate when documents are removed from a file and who took them?
_____ No_____
7. Do you have a file closing form that indicates which attorney reviewed the file prior to closing, what file contents were returned to the client, that a termination letter was sent to the client, and a safe date for destruction of the file?
_____ No_____
8. Do you have a system in place for reviewing applicable closed files when new law could affect a closed matter, particularly if the client is someone you represent on a continuing basis?
_____ No_____
9. Do you have a firm policy regarding regular destruction of files which balances the economics of file storage with the need to preserve evidence in the event of a claim or client need?
_____ No_____
10. Have you written and implemented adequate fire prevention and disaster policies for your firm?
_____ No_____
11. Do you return all original, valuable or unique documents and items to clients as soon as possible?
_____ No_____
12. Do you keep all original, valuable or unique documents and items in fireproof cabinets or a safe?
_____ No_____
13. Are backups of all docket/work control deadlines and all computer generated work stored in a fireproof safe or at a firm-approved, off-site location?
_____ No_____
14. Are negatives and original photographs stored in separate locations?
VII. BILLING AND COLLECTION
1. At the beginning of representation, do you explain your fee and billing procedures to clients verbally and in writing?
_____ No_____
2. Do you explain to your clients, verbally and in writing, the differences between your professional fees and out-of-pocket expenditures?
_____ No_____
3. Are daily entries made by staff members into your centralized time records?
_____ No_____
4. Do you send your clients monthly bills?
_____ No_____
5. Do your bills outline the details of the work performed for the client?
_____ No_____
6. If fee or expense variations from your employment agreement are necessary, do you promptly notify your clients and request their authorization regarding those charges?
_____ No_____
7. If clients do not pay their bills due on time, do you have a reasonable in-house collections procedure to follow (e.g. call the client, send a second notice, etc.)?
_____ No_____
8. Do you explain to all clients that you would appreciate their promptly informing you of any concerns or complaints they may have regarding your fee, billing procedures or related issues?
_____ No_____
9. Do you and your firm have a policy against suing clients for unpaid fees?
_____ No_____
10. If you or your firm does sue for fees, do you:
a. Sue only if there was a written fee agreement?
_____ No_____
b. Sue only after reviewing the economy of pursuing the fees in light of lost billable time and expenses necessary to pursue the case?
_____ No_____
c. Sue only if a favorable result was obtained by the client?
_____ No_____
d. Have a disinterested attorney outside your firm review the fee case?
_____ No_____
e. Have a firm policy against asserting attorney's liens?
_____ No_____
f. Consider any other factors which may form the basis of a counterclaim by the client?
_____ No_____
11. Do your fees fairly embody the value of legal services received by your clients?
_____ No_____
1. Do you retain records of trust accounts for at least 5 years after final disposition of the underlying matter?
_____ No_____
2. Do you retain funds paid jointly to the attorney and the client and which are in dispute in a trust account, even if you think the client is wrong about the manner in which they want the funds disbursed?
_____ No_____
3. Do you obtain client consent to disbursements to you or your firm from the trust account?
_____ No_____
4. Do you at all times maintain fiduciary funds separate from firm monies?
_____ No_____
5. Do you reconcile your trust account at least monthly?
_____ No_____
6. Do you provide clients with written accountings when disbursing their funds or, if no disbursements, at least annually?
_____ No_____
7. Have you properly and thoroughly trained your staff regarding the handling, recordkeeping and accounting of trust funds?
_____ No_____
8. Do your records always indicate what funds are being disbursed, when and from which client?
_____ No_____
9. Do you closely supervise any assistants who work with
trust monies? _____ No_____
10. Do you maintain an IOLTA trust account in accordance with state bar rules for client funds that are nominal in amount or are reasonably anticipated to be held for a short period of time?
_____ No_____
11. Does your firm have a system for confirming compliance of every attorney in the firm with annual reporting requirements of IOLTA status? _____ No_____
1. Is there anything about your office sharing relationship with other attorneys that could reasonably lead a client to believe that a partnership exists?
_____ No_____
2. Do you explain to each client that you are not a partner with the attorneys with whom you are sharing space?
_____ No_____
3. Do you have a written agreement regarding the terms of your office sharing relationship with the attorneys involved?
_____ No_____
4. Does your office sharing agreement specifically prohibit any of the parties from representing that there is a partnership?
_____ No_____
5. Do you ever share fees or work on a case with another attorney sharing space with you without documenting how the fees are to be split and without specifying that this situation is an exception to the normal terms of your office sharing agreement?
Yes_____ _____
6. Does each attorney have his or her separate letterhead?
_____ No_____
7. Do all signs clearly indicate that the attorneys sharing space are separate firms?
_____ No_____
8. If one receptionist takes calls for all the attorneys who are office sharing, has he or she been properly trained in how to answer the telephone without inferring a partnership and how to answer clients' questions regarding who employs him or her?
_____ No_____
9. Have precautions been taken to guard client confidentialities from other attorneys who are not your partners and their staff?
_____ No_____
10. Do your office sharing mates carry the same amount of professional liability insurance you do?
_____ No_____
1. Do you make a to-do list of all pending projects?
_____ No_____
2. Do you update and prioritize your to-do lists at the end of each day for the day ahead?
_____ No_____
3. Do you set aside specific blocks of time to meet with clients, return phone calls, conduct research and work uninterrupted?
_____ No_____
4. Do you delegate work whenever possible?
_____ No_____
5. Do you use simple and easy to understand forms that are indexed for ease in locating when needed?
_____ No_____
6. Have you chosen equipment for your practice that, excluding the initial training time, handles your caseload in the most efficient manner? _____ No_____
7. Do you use checklists, both standardized and customized, in all areas of the law in which you practice?
_____ No_____
8. Do you prioritize the work assigned to assistants making it clear what deadlines are pertinent to each task?
_____ No_____
9. Do your assistants know where to leave urgent materials within your office for your review?
_____ No_____
10. Are you realistic when setting deadlines in terms of how much time to allow for the completion of specific projects?
_____ No_____
11. Do you use checklists for all areas of the law within which you practice?
_____ No_____
12. Do you require your staff members to utilize checklists in their procedural and administrative tasks?
_____ No_____
13. Are your checklists customized, if and as needed, for individual cases?
_____ No_____
14. By quickly reviewing the checklists, can you get an accurate update regarding the current status of the case?
_____ No_____
15. Do you review and revise all checklists at least twice each year?
_____ No_____
Copyright, Jett Hanna and Texas Lawyers' Insurance Exchange, 1993.