The Virtual Law Firm: Benefits, Costs, and Ethical Pitfalls ...

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.

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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.

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The “Client Portal”

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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

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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.

http://www.nolo.com/

http://www.legalzoom.com/legal-wills/wills-pricing.html

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

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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.

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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

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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.”

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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

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Only pay for the legal services you need when you need it.

New model for delivering legal services.

DOCUMENT

AUTOMATION

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Complete?Complete?Next questionNext questionNext questionNext questionNext questionNext question

Documents that Assemble Themselves Ready for Lawyer Review

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Last Will & Testament








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culpa qui officia deserunt mollit anim id est laborum.




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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

http://www.dcdivorceonline.com/

https://www.clientspace.org/members.asp?firm=C21C8051

https://www.clientspace.org/logout.asp?firm=C21C8051

https://www.clientspace.org/support.asp?firm=C21C8051

https://www.clientspace.org/members.asp?firm=C21C8051&laction=0








http://www.dcdivorceonline.com/

https://www.clientspace.org/members.asp?firm=C21C8051

https://www.clientspace.org/logout.asp?firm=C21C8051

https://www.clientspace.org/support.asp?firm=C21C8051









https://www.clientspace.org/file.asp?m=1&id=11



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.

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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.

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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.

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• 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!

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