A panel at the recent ABA Fall National Legal Malpractice Conference discussed the increasing risk of transaction malpractice claims offering this risk management advice:

1. Make sure you have identified, in writing, who your client is and what the scope of the representation will be.
2. Check back on these two questions often, and identify – again in writing – any changes that have occurred.
3. Document what you won’t do, and who you won’t represent, as well. Don’t take on tasks or clients that are outside the scope of representation.
4. Check in on conflicts frequently as new parties join the transaction or engagement.
5. Don’t get involved in your client’s management, other than evaluating the business risk of proposed actions and transactions. If you do, you will be a target for liability.

Source: ABA/BNA Lawyers’ Manual on Professional Conduct, Current Reports, Vol. 30, No. 20, page 632, 9/24/14.