Who wants a happy client?

Client satisfaction is essential for one’s business.  Most problems can be avoided by giving clear information to the client at the beginning and keeping them up to date as the work progresses.

All solicitors have to remember that, as we are now in the service industry.  The point is all the more important when you realise that a satisfied client is likely to come back and, perhaps more importantly, will tell his or her friends of the good service that was provided.  Recent research has shown that in two thirds of cases client loss is due to dissatisfaction with the level of client care that is being experienced, rather than flawed legal advice, a better deal from a competitor, or moving to another location or job (Axiom January 1999).

Consumer research carried out on behalf of the Law Society of Scotland has shown that 89% of clients were satisfied or very satisfied with the level of service received.  Where dissatisfaction was expressed the main reason for this was lack of communication.

Much of the problem can be resolved by clear information being given to the client at the very beginning.  That is why the Society has for some time advocated the use of terms of engagement letters, sometimes referred to as terms of business letters.  An example can be found in the Better Client Care Practice Management Guidance Manual.  There are some bodies, including the Ombudsman, who take the view that all ills will be resolved by the compulsory use of terms of business letters.  I do not share that view, although I readily concede that many problems will go away if clients are kept properly informed on the main factors, as they see it, affecting their case.

Of course clients are interested in the outcome.  They are also, perhaps more so, interested in how much it is going to cost and, to a certain extent, how long it is all going to take.  It is also only right and proper that if they have got a problem with the way things are going, and want to raise a concern, they should be encouraged to do so at the earliest opportunity.

The Society’s experience of dealing with complainers over the years is that many complaints would not have been raised if the solicitor had listened to the client early on, or if somebody else within the firm had been prepared to listen or have a look at the problem.  That is the reason for the Society encouraging all firms to appoint a Client Relations Partner.  If a problem can be resolved there is still the probability that the client will return.  Once the complaint is made to the Society, solicitors rightly or wrongly often feel that the battle lines will have been drawn and the clients will most certainly not return when it gets to that stage.  For a solicitor entering the complaints investigation procedure it can be time consuming and the cost of the time spent cannot be recovered.

The whole purpose of a terms of business letter at the beginning of a piece of business therefore is to set out the fundamentals.  These are:

1. What is the work that you are instructed to do?

2.  Who is going to do it?

3.  How much is it likely to cost? and

4.  Who should the client get in touch with if there is a problem?

It is of course possible in a standard business letter to introduce many other topics.  Some firms like to refer to quality standards, other firms, particularly when dealing with legal aid work, like to point out that nothing can be done until legal aid has been granted.  In actions of personal injury it is often necessary to spell out the consequences of the Compensation Recovery regulations.  These, however, are all options which might be tailored to individual cases.  The basic information, however, should be spelled out in each and every case.  It is a question of trying to ensure effective communication with the client on all relevant issues.

Clearly there will be exceptions.  There will be the extremely urgent piece of business which is over and done with very quickly.  In those cases it is not really feasible, practicable or necessary to send out a letter saying what is to be done and who is going to do it, because by the time the letter arrived it would all have happened anyway.

Give clients the basic information and many subsequent problems will not arise.  That is the message.  I am firmly of the view that if it is followed you will have happy clients and, perhaps more importantly, protection against complaints of an inadequate professional service.

The Society is renewing its encouragement to solicitors to recognise the benefits of adopting the sensible practice of using terms of engagement letters.  Indeed, the absence of such a letter will likely, on a complaint being made, put an onus on the solicitor to show how the relevant information was provided if the complaint in question turns on one of the points normally covered by such a letter.  Of course, the overall burden of proof still lies with the complainer, to prove the complaint rather on the balance of probabilities.  What weight is to be attached to the absence of a terms of business letter in any particular complaint is something for the Client Relations Committee dealing with the complaint.  However, good practice would suggest that writing to the client in the early stages setting out the basics will be sufficient, firstly, to keep matters in order, secondly, to keep the client happy, and thirdly, to act as protection against certain types of complaint.

A simple style of engagement letter follows.  I urge all solicitors to adapt it for their own use and watch out for the benefits.

Grant McCulloch is Managing Partner of Drummond Miller WS, and a past President of the Law Society of Scotland.

Dear Sir,

I refer to our meeting today when you instructed me to proceed with investigations regarding your accident.  There are a few matters which we discussed, but would, I think, be helpful to bring to your attention.I will be dealing with your case myself, although on occasion I will be assisted by my assistant Mr Jones.  I will undertake the necessary investigations into the cause of your accident, to establish if there is someone responsible for it, and thereafter try to negotiate a settlement on your behalf.  I will report regularly to you on developments as they arise.

As you know, my charges will be based upon the Law Society General Table of fees which allows for an hourly time rate to be charged, and specific charges for letters and the like.  At the present time my hourly charge-out rate is £90 per hour, and that of my assistant is £60 per hour.  As agreed, I will send you an invoice at the end of every three months indicating the amount of work I have done on your behalf, and what outlays have been paid by me, on your behalf, to other persons.  As you know, if you are successful in your case I may be able to recover some expenses from the other side, so the final costs cannot be known at this stage.  In the event that you have any dissatisfaction in respect of the work that has been done for you’ then please raise it with me at the earliest opportunity in the hope that it can be resolved.  If, however, you wish to take the matter further then feel free to contact Mr Smith at this office, as he is the partner responsible for client relations.

I hope this sets out the position.  Please do not hesitate to contact me if you have any matter of concern.  I shall be in touch as matters unfold.

With kind regards.

Yours sincerely