Unbundling Legal ServicesUnbundling Legal Services

Briefing on “Unbundled Legal Briefing on “Unbundled Legal Services”Services”

Richard S. Granat, J.D.Richard S. Granat, J.D.CEO, DirectLaw, Inc.CEO, DirectLaw, Inc.

Introduction and BackgroundIntroduction and Background I Operate a I Operate a Virtual Law Firm in MDVirtual Law Firm in MD and and

DC that offers unbundled legal services DC that offers unbundled legal services over the Internet in Family Law matters.over the Internet in Family Law matters.

I am the Founder and CEO of I am the Founder and CEO of DirectLawDirectLaw, , Inc., a company that provides a virtual law Inc., a company that provides a virtual law firm platform to solos and small law firms.firm platform to solos and small law firms.

Co-Chair of the Co-Chair of the eLawyering Task ForceeLawyering Task Force of the Law Practice Management Section of the Law Practice Management Section of the American Bar Association.of the American Bar Association.

Unbundled Legal Services Unbundled Legal Services DefinedDefined

What are “unbundled legal services?”What are “unbundled legal services?”Breaking down roles of attorney into discrete Breaking down roles of attorney into discrete

tasks.tasks.Often called – “Discrete Task Representation” Often called – “Discrete Task Representation”

or “Limited Legal Services.”or “Limited Legal Services.” ““Use your lawyer only for what only your Use your lawyer only for what only your

lawyer can do.” – Woody Mostenlawyer can do.” – Woody Mosten

Some History About This Some History About This MovementMovement

The work of The work of Woody MostenWoody Mosten – “Unbundling – “Unbundling Legal Services” (LPM/ABA 2000).Legal Services” (LPM/ABA 2000).

The work of The work of Susan Talia Susan Talia in “Unbundling in “Unbundling Legal Services” in a family law practice.Legal Services” in a family law practice.

Focus is on office based practice.Focus is on office based practice.New focus is delivering unbundled legal New focus is delivering unbundled legal

services online.services online.

Why all the interest now?Why all the interest now?

New consumer attitudes towards lawyers.New consumer attitudes towards lawyers.Access to Justice Movement.Access to Justice Movement.Courts are filled with pro se litigants.Courts are filled with pro se litigants.The ascendency of the Internet is a The ascendency of the Internet is a

driving factor.driving factor.

New Generation of ConsumersNew Generation of Consumers

G.I. Generation: Born 1900-1945G.I. Generation: Born 1900-1945Baby Boomers: Born 1946-1964Baby Boomers: Born 1946-1964Gen X: Born 1965-1977Gen X: Born 1965-1977Gen Y: Born:1978-2000Gen Y: Born:1978-2000Reclassification:Reclassification:

The Internet Generation: Born: 1970-2000.The Internet Generation: Born: 1970-2000.First Waves- Coming of Age Now: 36 years First Waves- Coming of Age Now: 36 years

old. old.

http://www.flickr.com/photos/13898469@N00/3098748832/

What do consumers of legal services want?

The new “Consumer”The new “Consumer”

First Place to check for alternatives is the First Place to check for alternatives is the Net.Net.

Seek Options and Comparison ShoppingSeek Options and Comparison ShoppingTry Before They Buy.Try Before They Buy.Buy only what they need.Buy only what they need.Convenience.Convenience.Efficiency.Efficiency.

What do consumers of legal services want?

Prepared to sub optimize

Dislike hourly rates

Benefits of technology

passed to them

Certainty of cost

Not need face-to-face

A “good enough” service

Lower price

Different value proposition

Convenience and speed

To compare

The Latent Market for Legal The Latent Market for Legal ServicesServices

Consumers can’t afford lawyers; Consumers can’t afford lawyers; consumers can’t afford $125-$150 an consumers can’t afford $125-$150 an hour.hour.

Consumers afraid of lawyers. Trust issue.Consumers afraid of lawyers. Trust issue.Dislike hourly rates.Dislike hourly rates.Consumers perceive of lawyers as high Consumers perceive of lawyers as high

risk.risk.Millions of middle class consumers are Millions of middle class consumers are

turning away from using lawyers.turning away from using lawyers.

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The Range of Legal Services

Some legal problems required complex analysis and complex skills.

Other legal problems are relatively easy to resolve. If you have a headache, you take an aspirin, you don’t call a brain surgeon.

Lawyers are trained to treat every problem as if it were brain surgery.

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A Small Law Firm is a Retail Business

Many solos and small law firms are a small retail business providing services to a range of clients around legal problems that are not very complex.

Many of these clients, want a less costly and standardized approach to resolving their legal problems.

By not offering “unbundled legal services” the law firm is not meeting the needs of these clients. 1212

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Meeting Client Needs

Understanding the needs of your clients enables you to create a service mix that is responsive to a range of client needs at prices they can afford.

You don’t have to provide full scale legal services to every client who wants to use your services.

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Reality checksReality checksHow much legal work can people How much legal work can people

realistically do for themselves?realistically do for themselves?Clients might be misled.Clients might be misled.Clients might make mistakes.Clients might make mistakes.How much can technology realistically How much can technology realistically

help?help?

Conclusion:Conclusion:So Who Benefits?So Who Benefits?

Solos and small law firms who want to Solos and small law firms who want to compete against established law firms.compete against established law firms.

Clients benefit in a number of ways.Clients benefit in a number of ways.Established law firms who want to Established law firms who want to

maintain market position and market maintain market position and market share and acquire new clients.share and acquire new clients.