You know what they say about assumptions, but in the legal profession, assumptions are something much worse. When lawyers assume they know what their clients want or need without actually verifying, it can lead to misunderstandings, which can ultimately lead to malpractice claims. We’ve emphasized the importance of clear communication and thorough understanding in every client relationship – providing tips on engagement letters and managing client expectations – but today we share a cautionary tale of just why these kinds of measures are essential.
The Case: Assumptions Lead to Client Dissatisfaction
Emily, a real estate attorney, was representing a couple in the purchase of a home. During the initial consultation, the couple expressed a desire to move quickly due to an impending job relocation. Emily, eager to please her clients, assumed they were only interested in speed and did not delve into their specific needs regarding the purchase terms.
As the transaction progressed, Emily drafted and sent the purchase agreement to her clients for review. However, she failed to clarify important terms, such as contingencies for home inspections and financing. The couple, trusting Emily’s expertise, signed the agreement without fully understanding the implications.
When issues arose during the inspection process – specifically, significant repairs needed – the couple was frustrated to find they had waived their right to negotiate repairs due to the terms of the signed agreement. They believed they had been misled, and subsequently filed a malpractice claim against Emily for not adequately addressing their needs.
What Went Wrong?
Several key issues contributed to Emily’s situation:
- She assumed her client preferences. Emily assumed she understood her clients’ priorities without confirming their specific needs and preferences.
- There was insufficient communication. There was a lack of detailed discussions about critical terms, leaving the clients unaware of their implications. Although they did sign the agreement, they were had an expectation – however unexpressed – that it met all their needs.
- There was failure to adequately document conversations. Emily did not document the consultation or follow up with a summary, which could have clarified the clients’ expectations and given them a chance to ensure there was an understanding of priorities.
How to Avoid These Mistakes
Emily’s experience serves as a valuable lesson about the importance of thorough communication and understanding of client needs. Below are strategies to help you avoid similar pitfalls.
- Ask open-ended questions. During client consultations, ask open-ended questions to gain a deeper understanding of their needs. This encourages clients to share their thoughts and concerns. For example, “What are your main priorities or goals with this transaction?” and “Are there any specific concerns you have?”
- Summarize key points. At the end of each meeting or discussion, summarize the key points to ensure clarity. This allows clients to confirm their understanding and expectations. You can say something like, “To recap, you’d like to prioritize a quick closing but also want to ensure we address any potential issues that arise during inspections.”
- Provide written follow-up documentation. Follow client discussions with written documentation outlining the main points and agreements. This can include sending an email after meetings to recap what was discussed and confirm client preferences. Initially, however, you should use an engagement letter that clearly outlines the scope of your representation, services provided and any specific agreements.
- Encourage client questions. Create an open environment where clients feel comfortable asking questions. Encourage them to voice their concerns, no matter how small. Also let clients know they can reach out anytime if they have questions or need clarification.
- Maintain consistent communication. Consider regular check-ins, where you schedule periodic updates to discuss any new developments or changes in their needs. Also be sure to respond to client communications quickly.
Conclusion
Assumptions can lead to misunderstandings and malpractice claims, making thorough communication and understanding client needs essential. By learning from Emily’s experience and implementing a few easy steps, you can not only increase client satisfaction, but help protect yourself from potential claims.
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Author
Alison has worked at OAMIC since 2008. She received her J.D. degree from the University of Oklahoma College of Law in 1985, where she was a member of Phi Delta Phi. She was a law clerk with the Oklahoma Supreme Court and the Court of Civil Appeals. Alison has also taught legal research and writing as well as appellate advocacy as an adjunct professor at Oklahoma City University. Before joining OAMIC, she worked at several law firms and served as a solo practitioner. Alison is a past-recipient of the OBA President’s Award, the Mona Salyer Lambird Spotlight Award and the Sovereignty Symposium Award.