By Gina Tasoulis and Baron Alder -
Snapshot
- The seeds of many professional negligence claims are sown at the very beginning of the solicitor-client relationship
- Unclear retainers, poorly defined client relationships and unrealistic costs expectations can create disputes long before the substantive legal work begins.
- This article examines how clear engagement terms and candid conversations at the outset can help solicitors manage risk and avoid costly claims.
Lawcover sees many claims against solicitors arising from uncertainty or misunderstanding about the scope of work, who the solicitor acts for and the likely costs. These risks can often be reduced by establishing the solicitor-client relationship clearly from the outset, beginning with a well-drafted retainer.
Before accepting the retainer
The retainer process gives the solicitor an important opportunity to decide whether they should act in the matter or for the client at all. This assessment should occur before the engagement begins because, once established, a solicitor may terminate the retainer only for just cause.
Rule 4.1.3 of the Legal Profession Uniform Law Australian Solicitors’ Conduct Rules 2015 requires solicitors to act competently and diligently. This includes assessing whether they have the expertise and capacity to handle the matter. Lawcover’s 2025/26 claims analysis found that inadequate knowledge of the law accounted for 23 per cent of claims against solicitors.
