Practice Management
This treasure trove of guidance, practical tips and valuable insights, provides everything a lawyer needs to organise and run an efficient, profitable and enjoyable legal practice.
The detailed commentary contains a wealth of knowledge on most aspects of legal practice, including:
- ethics;
- the solicitor/client relationship;
- the employer/employee relationship;
- matter management tools;
- risk management issues;
- client communications;
- costs disclosure and billing;
- employment including recruitment, training and retention; and
- financial management.
This publication can help firms make money – and reduce the stress levels of all team members.
The practice management guide is an excellent starting point for those interested in creating a strategic business plan for a new or existing law firm.
Also included is our comprehensive Legal Practice Health Check Tool, which allows a firm to readily assess its current performance and set goals for future development.
The related Reference Manual 101 Staff Handbook contains most of the policies and procedures a small law firm will need. Adopt these policies completely or use them as a framework to establish your own.
Subscribe to this amazing resource today and take control of your legal practice’s future!
Recent updates can be viewed at Obiter - News & Updates, via the link above.
Guides in this publication
MATTER PLAN
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“ Commentaries ”
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“ In the legal profession the term ‘costs’ refers to the fees and other expenses a solicitor charges a client for their professional services and other payments that arise out of the provision of legal services, including disbursements such as court fees. Costs are one of the most heavily regulated ... ”
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“ Nature of disclosure1 Timing of disclosure2 ”
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“ Costs disclosure is not required in relation to certain clients, described in the legislation as ‘sophisticated clients’ or ‘government or commercial clients’ as defined by the relevant legislation to include clients such as lawyers, law firms, public companies, liquidators and government entities. ... ”
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“ Cost agreements are not always required although clearly as between the practitioner and their client there will be disclosure but without the need for formal compliance with the regulation. The limits are: ”
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“ In NSW & VIC there is a standard costs disclosure for fees under $3,000 which is included in the precedents. If the total legal costs in a matter (excluding GST and disbursements) are not likely to exceed $3,000 (the higher threshold), a law practice may, instead of making a disclosure under ... ”
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“ Knowing that clients are disinclined to read, sign and return cost agreements, the letter sending them usually provides that unless heard to the contrary the practice will assume agreement. There will almost always be a later opportunity to have the agreement signed. Of course, many practitioners ... ”
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“ Costs are remuneration for professional work when acting in the capacity of a barrister or solicitor. Payments to a practitioner for work which is not professional work, are not costs. Disbursements are payments made, or liabilities incurred in the course of practice and which the practitioner is ... ”
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“ Firms are required to provide an estimate of the total of costs, excluding GST and disbursements, and information on the impact of any significant change to these costs. A law practice must take all reasonable steps to satisfy itself that the client has understood and consented to the proposed ... ”
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“ What is a disbursement Disbursements are payments made, or liabilities incurred in the course of practice, and which the practitioner is bound to pay whether put in funds by the client or not; or payments which, by established custom and practice of the profession, the practitioner is bound to pay. ... ”
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“ A lawyer may request money on account of fees be paid into a trust account before the commencement of work. This is particularly so in criminal and other court matters where the inclination to pay may wane with an unwanted outcome. The funds may cover legal fees as well as disbursements and the ... ”
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“ The costs agreement will set out the billing cycle. Commonly a regular monthly billing cycle is adopted covering work undertaken during the previous month. ”
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“ A lump sum invoice is one which sets out a recital describing the legal service provided and a total amount. An itemised invoice is one which sets out in detail each of the legal services provided, the date they were provided, and the cost for each service. An itemised invoice allows for an invoice ... ”
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“ A law practice cannot charge for the time spent in preparing an invoice. A law practice cannot charge for the time spent in preparing an itemised invoice for a client who has already received a lump sum invoice. ”
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“ All bills should be accompanied by a written statement setting out the avenues that are open to the client in the event of a dispute and any time limits that apply to the taking of such action. Under the uniform law in NSW and VIC each bill or covering letter must be signed by a principal of the ... ”
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“ In 1991 the Australian Competition and Consumer Commission released guidelines to assist businesses in the withdrawal on one and two cent pieces. In the purchase of goods or services for cash, businesses were advised to round the final payment: ”
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“ – When to charge and how to charge Goods and Services Tax (GST) is a broad-based tax of 10% applied to most goods and services, including legal services. Businesses are required to register for GST if their turnover exceeds the $75,000 threshold. If turnover is less than $75,000 than registration ... ”
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“ Reducing fees can create good will but needs to be handled with care as some take offence to the implication that they cannot afford to pay for the work they have retained. It is also a hard won reality that comes from experience that people are inclined not to value any advice given for free. ”
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“ Credit terms are quite common and need to be clearly documented and administered. ”
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“ Notification of rights is a requirement in all states and is found in all example invoice precedents. If the client has not been advised of their rights in a costs agreement, then practitioners must advise the client of their rights at the time of issuing the invoice. ”
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“ Monthly accounting for work in progress is recommended in order to achieve target lockup days. If debtors are not followed up promptly cash flow reduces making it imperative to adopt a debtor’s policy for effective debtor control. All overdue accounts must be followed up promptly and repeatedly. ”
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“ When a retainer is terminated before completion, a practitioner may claim costs for the work done to the date of termination on a quantum meruit basis if: The client terminates the entire retainer; ”
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“ When there are costs owing to the practitioner from the client, the lawyer may retain possession of the client’s documents which are legitimately in the practitioner’s possession. However, the Australian Solicitors’ Rules specify that when a practitioner claims to exercise a lien for unpaid legal ... ”
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“ If a practitioner has an equitable charge over the client’s property incorporated into the costs agreement, ordinarily the practitioner could exercise that power in seeking payment of costs. However, general charges such as a charge over ‘all my estate, rights, title and interest in and to any real ... ”
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“ Sound financial management is absolutely critical to the success of the law practice. There is a high correlation between practices with poor financial management and increased probability of experiencing professional negligence claims. The link is clear. Principals, who do not manage their ... ”
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“ Methods of payment include: Credit card; ”
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“ All By Lawyers cost agreements include the following authority to transfer money to pay their invoices: Trust money ”
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“ Lawcover recommends that practitioners use the costs assessment scheme to recover costs. Instituting proceedings against a disgruntled client who refuses to pay an outstanding bill exposes practitioners to the risk of a cross-claim in negligence being filed. The advantage of the cost assessment ... ”
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“ The following outline of costs assessment was written for NSW but the procedure is similar in the other states. This publication will be expanded to cover cost assessment in the other states in due course. In the interim refer to the relevant State Supreme Court. NSW Procedure ”
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“ A client may be entitled to complain to the Legal Services Commissioner about a costs dispute. If the complaint is made after the law practice or client has already applied for assessment of such costs, the assessment will ordinarily be stayed until the complaint has been determined. Similarly, if ... ”
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“ Practical issues relating to remote signing of documents such as agreements, deeds, affidavits, wills and powers of attorney by companies and individuals. Remote signing of documents has become an important issue for practitioners and their clients due to the coronavirus pandemic. Face-to-face ... ”
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“ Sharing documents with clients and colleagues via LawConnect from your LEAP matter eliminates the issue of email security and provides more functionality. Send or receive large files ”
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“ Company execution It is arguable whether a company can execute a document electronically under s 127 of the Corporations Act 2001. ”
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“ FIRB approval All foreign buyers now require Foreign Investment Review Board approval. Thresholds for all property classes have been reduced to $0. All contracts entered into with foreign buyers after 29 March 2020 will need to include an appropriate FIRB approval condition. A condition can be ... ”
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“ The ongoing response to coronavirus means that emergency measures are rapidly being introduced to modify the usual procedures. The website of each court should be referred to. Courts are making particular arrangements for matters to be dealt with on the papers, such as bail variations, guilty ... ”
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“ Employers have legal obligations to ensure the health and safety of their employees and contractors and also to ensure that the health and safety of members of the public is not put at risk from the conduct of their business or undertaking. This includes managing the risk of exposure to and spread ... ”
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“ The federal government has made temporary changes to insolvency laws under the Coronavirus Economic Response Package Omnibus Act 2020 aimed at relieving current economic pressures on individuals and companies. The Act commenced on 25 March 2020. ”
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“ For COVID-19 updates and information see the Family Court or the Federal Circuit Court. Virtual hearings ”
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“ The courts in each state have implemented changes to reduce the risk of the spread of coronavirus. It is important to check the relevant court website for detailed information. ”
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“ The courts in all states have announced a suite of changes to processes and procedures in response to coronavirus. It is important to check the relevant court website for detailed information. Wills ”
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“ Costs 101 Trusted and useful sites by area of law ”
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“ The fact that practice management and business skills is a mandatory part of the annual continuing professional development requirement for Australian legal practitioners points to the perceived need to improve the profession’s management training. The introduction of the mandatory practice ... ”
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“ Principals of small law firms wear many hats. They may be a sole practitioner, in which case the hats are all piled on top of each other, or they may be partners in a partnership or co-directors in an incorporated legal practice, in which case the hats can be shared around a bit. But there are ... ”
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“ Policies and procedures The foundation for management of the business of a legal practice is to have policies and procedures which record and effectively automate the firm’s operations. ”
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“ The importance of managerial controls cannot be overstated. They provide the basis of profitable and low stress practice. Profit is not necessarily related to size or location or how busy a firm may be. Research shows that busy firms are often poor profit performers due to poor managerial ... ”
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“ Privacy Act requirements The Privacy Act 1988 (Cth) provides for mandatory reporting of eligible data breaches. These requirements apply to data held by ‘an Australian privacy principles entity’, or a credit reporting body, or a tax file number recipient. ”
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“ File notes File notes are a critical item in terms of risk management. Without effective file notes the file is incomplete and the practice is exposed. File notes must record what happens on a matter, what instructions are received, what advice is given, what actions are taken. They represent ... ”
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“ Firm documents Documents including letters, precedents and pleadings need to be standardised for consistency and to save the effort involved in constant re-invention. ”
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“ Research by the Centre for Work + Life at the University of South Australia has concluded that the cost of being a bad place to work outweighs the cost of paying above average wages and providing excellent conditions including training opportunities and flexible work practices. Unhappy employees ... ”
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“ Staff costs are the biggest overhead for any law firm, so recruitment must be given due priority and adequate resources. It is false economy to save money on recruitment if that means costing the business time and money later by reason of internal disharmony, poorly performing team members, poor ... ”
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