However, unless the transfer process is managed effectively firms also run the risk of a professional liability claim. Many firms are not sufficiently aware that this risk applies to both incoming and outgoing firms. Accordingly many firms lack policies and procedures for assessing the liability risk of losing or accepting a matter. The result of this is that 'bad lawyering' or other potential causes of exposure are not identified at the time of transfer and opportunities for damage control are lost. So the message for outgoing firms is to develop a 'hand-over protocol' that addresses these issues.
Some firms have a checklist which prompts assessment of the risk.
Again, many firms have developed case acceptance protocols that prompt assessment of the risk of transferred files. Not all new business is good business and these firms are prepared to impose conditions on their clients particularly as regards fees, expectations of client co-operation etc. Also some firms are developing systems for monitoring that transferred matters receive prompt attention. All firms are joined The sad reality is that when a claim arises and a client has changed firms, all the firms involved tend to be sued and the client stands back and lets the firms fight among themselves about who is responsible. Questions of causation are often complex and argument designed to protect their firm's excess.