Dead stock: admitting what is never going to sell
Dead stock ties up cash and space while appearing as an asset. How to identify it, the options in order of value recovered, and why holding on is the expensive choice.
A conflicts check is only as good as the register behind it. What to search, who to search for, and how to record a result you can defend years later.
A conflicts check is the search you run before accepting instructions, to find out whether acting for this client against this opponent would put the firm on both sides of something. It takes minutes when the data is in one place and it is impossible when it is not. The check itself is trivial; the register it searches is the whole job.
Names alone are not enough. A lawyer conflict check that only looks at the client name misses most real conflicts.
Most firms can describe their conflicts check accurately and still not be able to run it, because the underlying names live in a practice management system for open matters, a spreadsheet for enquiries, and nowhere at all for the conversations that went no further. One searchable register of parties with their role, matter reference and date fixes the check without changing the policy. Ettex Records is a workable shape for that: one row per party per matter, with role and status columns, searchable across closed and declined work as well as live files.
Record declined enquiries with the same rigour as accepted ones. A conflict you cannot see because the enquiry was never logged is still a conflict.
A conflict is not automatically the end of the instruction. Depending on the jurisdiction and the type of conflict, the options are informed consent from both clients, an information barrier with recorded controls, or declining. What matters for the file is that the analysis and the decision are written down at the time, with the consent itself in signed form rather than remembered as a conversation. The conflict of interest policy sets out which route is available; the conflicts check record shows you followed it.
Two adjacent procedures often get muddled with this one: client due diligence answers "may we take this client's money", and the client intake form collects the facts. The conflicts check answers a narrower question, and it is the only one of the three that can require you to turn down profitable work.
Someone other than the fee earner who wants the matter, wherever the firm is large enough to separate the two. Where it is not, the record of what was searched is the safeguard.
For as long as confidentiality duties last, which in practice means indefinitely. Closed matters are exactly where undetected conflicts hide.
No. Corporate groups, directors and guarantors produce conflicts that a plain name search never surfaces. Record related entities at intake so the search has something to find.
Dead stock ties up cash and space while appearing as an asset. How to identify it, the options in order of value recovered, and why holding on is the expensive choice.
Professional indemnity insurance responds to claims that your advice or work caused a loss. Who needs it, how claims-made cover works, and the gap that catches people who stop trading.
A freight forwarder arranges shipping but does not usually carry anything. What they take on, what remains your liability, and the documents to check before a first shipment.