Keeping Your Closed Files Organized Until They Are Destroyed
Well, we have finally gotten to the end of the “fail-safe tips”. For the last several weeks we have talked about a comprehensive set of tips in the area of “administration” that should enable you to set up your law office in an efficient manner and operate it on a day to day basis in the highest professional level.
Remember, “administration” is the second area included in the 5 areas that make up every business in the world. We have already finished the first which is “clients or customers”. After we finish “administration”, we will move onto “getting the work done”.
The previous seventeen “fail-safe tips” that we have discussed are as follows:
1. Phone message system;
2. Prospective New Matter Reports;
3. Non-engagement letters;
4. New Matter Reports;
5. Two people signing off on each New Matter Report;
6. A new file for each client matter;
7. A separate billing file for each matter for each client;
8. “Thank you for referral” letters;
9. Tickler cards (blue cards) as a condition precedent for opening a file;
10. “Out of sight, out of mind” cards properly dated as a condition precedent for opening a file;
11. “For your information” copies of all incoming and outgoing mail to clients;
12. “For your information” copies of all incoming and outgoing mail to the responsible lawyer, assigned lawyer and the assigned legal assistant;
13. Automatic time keeping system for everything that comes in and goes out of your office on each matter;
14. Copies of outgoing correspondence in individual lawyers “reading files;”
15. Tickler card and due date system for distribution on reminder dates and due dates and a system for posting such information on a prominent bulletin board and
16. Closure letter to client at the conclusion of a matter and thank you letter to referring party at the conclusion of each client’s matter.
17. A system for closing files and removing them from the client file storage.
This week’s and the last “fail-safe tip” is a “system for closed files to be organized and retained and eventually destroyed”.
Closed files are made up of two categories; the first category is: closed files that you keep on site and the other category would be closed files you keep offsite which can also be referred to as “dead files.”
Last week we discussed how expensive it is to keep all of your closed files in office space that you rent for top dollar. If this is true, that active, inactive and closed files are expensive, than it is certain that it is true that closed files that are “dead files” are certainly expensive.
The secret to maintaining a good file system for all of your client files, is to be organized and consistent.
You need a system for opening files, maintaining file, closing files, and ultimately storing closed files and eventually destroying them.
Every engagement letter we have in our office for every client matter states that when the matter is concluded we will return to our client all of their original documents, close their file, keep it for five years and then destroy it. When the client signs the engagement letter, the client authorizes the file to be closed, stored and eventually destroyed.
We try to close every file when the matter is concluded on the clients’ behalf. We always try to send a closure letter to the client reminding them about picking up original documents, and closing, storing, and eventually destroying the clients file.
When a matter is concluded, in our office, the lawyer should ask that the file be closed or the bookkeeper can ask if the file be closed when the bill is paid in full.
When the matter is completed, the file should be pulled, and given to the responsible attorney so that, that attorney can close the file. The responsible attorney closes the file by initialing the file in the upper right-hand corner, writing the word closed, and putting the date that file is closed. In the upper center of the file the year five years out needs to be put in bold numerals. For example a file closed in 2004 would have the numeral 2009 put in bold numbers on the file.
The file can then be placed in a Bankers Box for all 2009 files and will be destroyed in that year. The files are alphabetically placed in the Bankers Box. When the box is full, it becomes 2009A. You continue to fill boxes utilizing 2009B, 2009C, etc.
As soon as a box of closed files is full, it can be moved to offsite storage.
When the files are placed in the closed file boxes, they should be put on a list on a computer indicating which closed file box they are in. With the closed files on your computer you can always tell where the closed file boxes are located and what files are in each closed file box.
When the date on the outside of the closed file box comes up, you can give directions to the entity where the boxes are being stored to destroy the box and all the files in it.
The following list of files should never be destroyed:
1. Estate Planning files;
2. Family Law files with minor children and;
3. Any file where there is an uncollected judgment.
In our office we never close a file if there is any money owed on the file, unless it is absolutely, positively uncollectible.
You can delegate the task of maintaining your file system to a staff member with clear instruction as to how the files are to be opened, maintained, closed, stored, and ultimately destroyed. Use this article as a memorandum to your staff on dealing with closed files.
Next week we are going to recap all of the “fail-safe tips” in the administrative area to be sure that you understand the overall way that all these systems fit togther. I think you will find the recap beneficial in setting up “fail-safe” administrative systems in your office that allows things to run smoother, more efficiently, and professionally.
Talk to you next week.
Jim Wirken is a civil trial attorney and the Chairman of the Board of The Wirken Law Group in Kansas City.