Topic 4

FILE AND DIARY

MANAGEMENT 1
 Outline

1 Opening a file *

2 Maintaining a file*

3 Closing a file*
4 Importance of diary system

5 Computer softwares for management

6 2
Food for thought..

 Imagine you are running a newly

established legal practice. You are
expecting clients. One day, a walk-in
client came to you for advice on
commencing a legal action. Assume,
he is your first client and you agree to
take up his case. What must you do
next?

3
Food for thought..

Two important matters that you need to

attend to are if you want to represent him:

 to formalize your appointment as his

solicitor; and
 the opening of a file to record the events
relating to the handling of his case

4
A Retainer

 Indicates the acceptance of a

brief by a lawyer/legal firm
 Known as contract of
appointment/warrant to act
 A contract between legal firm-
client

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Importance of Opening a File

 Helps to manage risk relating to non- payment of

legal fees
 Reduce situation of client's conflict of interest
 Problems relating to personal identification
 Confirm whether a client has the capacity to
enter into a contract.eg not bankrupt

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A Retainer for an individual client

 The rule of thumb – meet him or her (your client)

in person so that you can ensure that he or she is
your client
 Esp. in conveyances (S&P, loan agreements etc.)
 Ensure he signs the contract of appointment
 not an adjudged bankrupt

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A Retainer for a company client

 Conducting litigation on behalf of the

company, such as winding up action
 Must ensure that your firm is appointed by the
proper organ of the company – the board of
directors

 Request MOA and AOA from client

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 Checklists for Opening a File

Status check
 The procedures starts with contacting a potential client for first
conflict of interest check and finishes with instructions on
storage and access to active files
 Persons affected - All professional and support staff

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 Checklists for Opening a File (cont.)

Conflict of interest
However, Ruling 6.05 Rules and Rulings of the Bar Council
Malaysia – states that :
(1) A law firm may institute legal proceedings against an existing
client notwithstanding that it may be representing that client
in other –ending matters
(2) An Advocate and Solicitor who acts for a client in various
existing civil suits may also act for another party that client in
an unrelated suit, unless that
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 Checklists for Opening a File (cont.)

client can show that specific information may be used by that

Advocate and Solicitor giving rise to a conflict of interest or that
the Advocate and Solicitor holds a current retainer from that
client.

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 Procedures for Opening a File (cont.)

Policy
 To open a separate file for each new matter for new, current
and former clients

 Open a file for legal consultation ( the giving of a formal

opinion regarding the substance or procedure of the law by a
lawyer) irrespective whether court action is pursued or not

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 Procedures for Opening a File (cont.)

Responsibilities and Compliance

 Involves all lawyers and administrative staff

 adhere to the guidelines of this procedure when a client has
retained the services of the firm and the management has
decided to take up the case
 The need to appoint individuals entrusted or authorised to
open a file

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Procedures for Opening a File (cont.)

 [Named person/Role of support staff] should contact a

potential client before the first interview to perform a
conflict check procedure (eg: Internal memo)

 At the initial interview the interviewing lawyer (the lawyer)

should use a blank file prepared ahead

 The blank file should contain the file opening form

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Procedures for Opening a File (cont.)

 note any limitation periods /cause of action

 do a second conflict of interest check
 prepare a retainer agreement and forward to client for review
and signature
 Once the practice receives the signed retainer agreement and
the deposit on account of costs and disbursements then the
lawyer will give the form to the staff member responsible for
opening files

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Procedures for Opening a File (cont.)

 Before opening the file, a SEARCH should be performed by

the responsible person to identify any requirements for linking
files where more than one file is relevant to the client’s matter

 The responsible person will enter the information in all the

appropriate systems: i. file opening book ii. case management
system iii. accounting system iv. limitation date system

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Procedures for Opening a File (cont.)

 The file should be named with the client’s name, followed by a

reference and assigned file numbers (or an allocated by the
case management system unique identifier)

 The opening file form should be fastened to the paper file (or
scanned into the client electronic documents file).

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Procedures for Opening a File (cont.)

 A file cover page will be printed out and stuck on the front of
the client paper file
 The cover page should contain the client’s name, file number,
the subject matter of the file and the initials of the acting
lawyer, limitation dates or other important time frames,
and the client’s address and phone number for easy
reference.
 After that all relevant materials will be filed in the newly
opened file.

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 Procedures for Opening a File (cont.)

 The file will then be handed to the acting lawyer.

 Every paper file must have as a minimum the following
sections:
1. Court documents
2. Correspondence
3. File notes
4. Client documents [Include any regulations or legal profession rules
relevant to file opening.]

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Control of Files

 Files should remain in the file storage area at all times unless work
is carried out on the file out
 Files that are currently used should remain on the desk of the
lawyer, legal assistant or secretary doing the work
 Files should be checked in and out using a [name system for
checking files in and out]
 When work is completed, the file should be returned to the file
storage and checked in using [name system for checking files in
and out] Staff are not permitted to take files home Individual
documents

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Cont.

 Staff are not permitted to take files home

Individual documents should not be separated
from the file.
 If a document must be removed, it should be
copied and then returned to the client’s file.
 [The central file registry section may not be
relevant for firms with paperless/electronic
files.]

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Cont.

 Essential quality control A weekly/monthly report will

be produced by [Name/Role of person] which will
include all newly opened files and the status of the
conflict of interest check, client identification, client’s
capacity,retainer agreement and money requested on
account of costs. It is the lawyer’s responsibility to fill in
any identified gaps.
 Quality measure a. The file opening and control of files
process will be reviewed by the management team
annually

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Maintaining a file

 Bad files open doors for defamation suit, bad

case
 Organisation of files (2-3 days notification to
attending lawyer prior to trial/hearing)
 Keep your work area neat

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When to Close File

1. When all the work that the lawyer was retained to

complete has been completed or the lawyer has been
discharged or withdrawn
2. the client has paid the final account or the firm has written
off any balance owing on the final account
3. all undertaking and trust conditions have been fulfilled
4. Ruling 14.08 Rules and Rulings of the Bar Council
Malaysia – close files after finish work & client settled
bill

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Guidelines for disposal of files

 Conveyancing files (12 years)

 Litigation files
 general litigation (6years);
 unenforced judgment (12 years from date of
judgment)
 Probate and administration (12 years)
 Family matters (6 years)
 General matters ( 6 years)
*see Ruling 18.01 Rules and Rulings of the Bar Council
Malaysia 25
Guidelines prior to taking files
from another legal firm
 These are some matters/questions a lawyer should
ask himself when taking over a file:
 Why is the file being transferred to me?
 If the file transfer is due to another lawyer leaving, how
long do I have to ask them questions on the file before
they leave?
 What information do I need from the previous lawyer in
charge of the file?

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Guidelines prior to taking files
from another legal firm
 Does the information in the file allow me to reconstruct
the previous lawyer's actions thus far?
 Do Ihave enough time to do the work on this file?
 What stage is the file at?
 What information is in the file?
 Has the client been notified that their file has been
transferred?
 Have future actions, and deadlines, that my client and I
must take been diarised?

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Guidelines prior to taking files
from another legal firm
 What tasks remain outstanding on the file?
 Is there any imminent danger of limitation setting in?
 What are the immediate deadlines on the file?
 Have the relevant limitation, KIV, hearing and mention
dates been diarised as well as highlighted on the file?

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Guidelines prior to taking files
from another legal firm
 Have all decisions and results thus far been
documented?
 Have any documents been removed from the file? If so,
am I able to locate them?
 Are all time and billing records in order? Have they
been filed in timely fashion?

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Tutorial Exercise

Prepare:

1. A Retainer letter/Warrant to Act

2. File checklist for litigation and conveyancing

files
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