the virtual law firm: benefits, costs, and ethical pitfalls
DESCRIPTION
TRANSCRIPT
The Virtual Law Firm: Benefits, Costs, and
Ethical Pitfalls to Avoid
William S. Boyd School of LawUniversity of Nevada, Las Vegas
Defining the Virtual Law Firm
What is a Virtual Law Firm?
A “virtual law firm” or “virtual law office” is characterized by access by the firm’s clients to a password protected and secure web space where both the attorney and client may interact and legal services are consumed by the client.
More specifically it can be defined as having a secure client portal that is accessible from the law firm’s web site.
33
What is eLawyering? elawyering can be defined as:
“[E- Lawyering is] all the ways in which lawyers can do their work using the Web and associated technologies. These include new ways to communicate and collaborate with clients, prospective clients and other lawyers, produce documents, settle disputes and manage legal knowledge. Think of a lawyering verb—interview, investigate, counsel, draft, advocate, analyze, negotiate, manage and so forth—and there are corresponding electronic tools and techniques.”
eLawyering or virtual lawyering requires that a client be able to log in to a secure web space with a user name and password where they can access the firm’s legal services.
44
The “Client Portal”
55
What a “virtual law firm” is not! A law firm without a physical office, sometimes called a
“virtual law firm.” A law firm that uses web-based back-office practice
management tools and applications is not a “virtual law firm.” Many attorneys are now also taking a portion of their
practices online by using SaaS to handle some, but not all, practice management functions.
Other attorneys are adding a virtual law firm portal to their existing traditional law practice to work with in-person clients online as well as add new online clients.
By our definition, virtual lawyering and elawyering are one and the same and they always involve the actual delivery of legal services over the Web. 66
77
Legal Services Over the Legal Services Over the InternetInternet
A “virtual law firm” enables clients to:A “virtual law firm” enables clients to:Assemble legal documents over the web;Assemble legal documents over the web;Purchase legal advice online by telephone or Purchase legal advice online by telephone or
email;email;Store their legal documents online;Store their legal documents online;Collaborate with their attorneys online through Collaborate with their attorneys online through
threaded discussions which are archived.threaded discussions which are archived.Access legal information, web advisors, and Access legal information, web advisors, and
intelligent calculators.intelligent calculators.
Latent Market for Legal Services
50% of middle income households in the US have at least one legal problem per year
Only 20% seek legal assistance from attorneys.
26% do nothing at all.
Increasing percentage of consumers seek alternatives to lawyers such as self-help.E.g., Nolo and LegalZoom
Potentially huge market waiting to be tapped in the US for personal consumer legal services.
Target Client Market: The Under-Served US Market.
According to varying estimates by the U.S. Bureau of Economic Analysis and the U.S. Bureau of Labor Statistics, American consumers spend approximately $90 billion annually on personal legal services.
Our estimate for the latent legal services market adds another $45 billion to the potential market.
The United States represents, by far, the largest market for legal services in the world, amounting to $220 billion in 2008, according to the U.S. Census Bureau.
Size of the market for legal services
What consumers spend now $90 billion
Estimated value of under-served consumers or “latent” market
$45 billion
Total market $135 billion
10
New Market Opportunities
Internet-based markets and opportunities: The “latent” market for legal services.
Younger clients can be served by a different Internet-based offering.
Alternative to LegalZoom and Nolo - just a legal form. No office consultation. Telephone/email. Meeting to
execute documents.
1111
Recent Study
56% of consumers would prefer to deal with a law firm on-line.
47% of consumers surveyed said they would choose a law firm based on whether they had an online legal services component.
Sample based on 2, 500 interviews in the UK
1212
Benefits of a Virtual Law Firm
Capture new clients who are part of the “latent market for legal services” who don’t use lawyers;
Deliver “limited legal services” on-line.Capture web-savvy clients who are
members of the “connected generation” who expect to relate to their lawyers “on-line.”
1313
More Benefits
Security and regular data backups of law office data Time saving
No in-house software installation Access to data anywhere the attorney may securely access the Internet Regular software updates and new features added without disturbing the
workflow (and typically at no extra cost) Streamline & automate functions of your practice for greater efficiency
Economic Lower overhead costs Less expensive than paying for software, storage, and server hardware and
having to run it internally with or without hiring an IT professional for the office
Expand client base across jurisdiction Clients appreciate the convenience, efficiency and feeling “in control” over
the status of their legal matters Eco-friendly Better work/life balance 1414
On-Line Legal Service Applications
Web-enabled document automation Web Advisors – e.g. Chapter 13 Calculator. Legal Advice Online Legal Document Review Court Coaching for Pro Se Clients Ability to provide pro bono services online Collaboration and Communication Searchable and linkable legal library for
clients1515
Unbundled Legal Services
Legal Services ala Carte
1616
Only pay for the legal services you need when you need it.
New model for delivering legal services.
DOCUMENT
AUTOMATION
18
Complete?Complete?Next questionNext questionNext questionNext questionNext questionNext question
Documents that Assemble Themselves Ready for Lawyer Review
18
Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum.
Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.
Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed
do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur.
Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum.
Last Will & Testament
Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum.
Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum.
Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum.
Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum.
Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum.
Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum.
Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum.
Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur.
Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur.
Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur.
Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in
culpa qui officia deserunt mollit anim id est laborum.
Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum.
Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum.
Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum.
Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.
Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum.
Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur.
Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur.
Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum.
You don't just ‘fill out’ an automated document – you create it.
The answers you enter create a custom legal document, built from a library of state-specific and relevant legal text, that is tailored to client’s specific facts.
Start Finish
Example of a Client Portal
Practice Management Applications Jurisdiction check to avoid UPL Conflicts of Interest Checking Online Engagement of Atty/Client Relationship Case Calendar & Events Document Archiving Law & Research Libraries Billing and Invoices Management On-Line Bill Payment by Credit Card – IOLTA
and Trust Accounting Compliance Contact Management – Clients and Referral
Databases 2020
Ethical Issues
The ethical issues are the same whether you are practicing law online or offline.
2121
Ethical Issues UPL in other Jurisdictions
Advertising Rules Issues unique to multi-jurisdictional virtual law firms
Establishing the Online Attorney/Client Relationship Clickwrap Agreements and other methods
Defining the Scope of Representation Unbundling Legal Services/Limited Legal Services Providing Competent Limited Representation
Conflict of interest checks Verifying the Client’s Identity Online Confidentiality of Client Data Accepting online payments
Trust accounting and IOLTA compliance 2222
SaaS Provider Selection What to look for in a SaaS Provider
Understand the hosting company’s policies & how they may impact your law practice.
Data return and retention policies Backups
Are there export features and/or offline versions of the software (if you need these)?
Server locations and geo-redundancy Response time/customer service Confidentiality/access to law office data
Conduct a Needs and ROI Analysis.
2323
Costs of a Virtual Law Office
Front End Web Site- Hosting and DesignClient Portal
Vendor pricing ranges from $49.00 to $299.00 a month depending on complexity.
Web-Based Practice Management Solutions.Approximately $49.00 per attorney per month.
2424
• Differentiation• Remarkable• Client experience
BUILDING A
STRONG BRANDONLINE
OF BRANDING YOUR PRACTICE ONLINE
BENEFITS
• Stand out
• Satisfy current clients
• Acquire new clients
• Save time & money
POWER OF
WINNING LAW FIRMS WILL HAVE A
STRONG BRAND & USE THE
ONLINE TECHNOLOGY
Don’t be a Turkey!
2828