Stuff! There's too much of it. Everywhere you look there's stuff you don't need anymore but aren't sure if you should discard. If you're an attorney, the items in question may be old client files. Largely gone are the days when overstuffed file boxes spilled out of storage rooms and blocked hallways. Still, whether files are paper or electronic, clients expect you to handle them properly, and so does the state bar.
Here are answers to some common questions about retraining and destroying law office files.
Is It Really Necessary to Have A Document Retention Policy?
Yes, and there's a purely self-serving reason for this: if a client sues you for malpractice, you'll be better able to mount a defense if you still have a copy of the file. It's prudent to hold onto files at least until the statute of limitations for legal malpractice has run -- and remember that the discovery rule might apply.
Another reason to adopt a policy on handling closed case files is because attorneys have an obligation to safeguard client materials and to take reasonable steps to return papers that a client is entitled to when the representation ends, under Model Rules of Professional Conduct 1.15(a) and 1.16(d).
There's no need to reinvent the wheel when drafting a document retention/destruction policy because samples are available online, including from the New York State Bar Association.
In a perfect world, you would contact your former clients and they would come and pick up their files. However, in the world we live in, finding a former client (especially one that still owes you money) may be difficult or impossible. Consider putting a brief paragraph about retaining and destroying files in your engagement letter to cover your bases up front.
How Long Should You Retain Client Files?
The answer is: it depends on the type of file. State bars have various rules about the minimum amount of time to keep files. The Model Rules suggest at least five years. See Model Rule 1.15(a). Many states set this requirement at six years, and some set it even further out.
However, for certain types of legal matters, you must keep the files even longer. These include, among others, issues that deal with:
- Estate planning for living clients,
- Trust funds,
- Continuing child custody or support obligations,
- Prenuptial agreements,
- Long-term contracts with continuing obligations,
- Tax matters of certain kinds, and
- Criminal matters.
In some fields such as tax and probate, there are statutes that address how long records must be kept.
In the criminal law context, bar associations often recommend hanging onto files for the life of the client, because of the possibility of habeas corpus petitions and other post-trial actions.
How Should You Dispose of the Files?
Definitely don't toss old paper files into the recycling bin! Or at least shred them first, preferably using a document destruction company that certifies confidential practices. With electronic files, ensure that the data is completely wiped out and can't be restored. Beforehand, take steps to protect yourself from any claim that you have mishandled client materials.
- Prior to destroying a client file, make sure an attorney reviews it. Is there any reason why the file should be preserved longer? Are there any original documents in the file such as contracts (those should be saved)?
- Send a letter to the client's last known address stating that the file is about to be destroyed and that the client is welcome to pick it up. Obtain a receipt for any files you return.
- Keep an organized inventory of how you handled each file (e.g., permanently deleted it, shredded it, returned it), and the date of the disposition.
On a separate point, some experts suggest reframing your thinking about destroying documents. If the storage cost is low, consider holding onto old files, on the ground that these records contain valuable information that may be useful for research, marketing or other purposes in the future.
Deciding to create a file retention and destruction policy is only the beginning. Your firm will need to prepare to implement that policy through training and allocation of resources.
You should also know that your malpractice insurance company looks favorably upon firms with file retention policies. It is well worth having a policy, just for a chance of a reduced premium!
Now Get More Business and Create More Files with FindLaw's Help
Having strong records management practices will reap benefits as your law firm grows. FindLaw's Integrated Marketing Solutions can help you create a comprehensive plan to target your market audience so that you will have a steady flow of new client files to keep your files full.