CLE on Virtual Law Practice for the NCBA
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Transcript of CLE on Virtual Law Practice for the NCBA
How to Operate a Virtual Law Office and Deliver Legal
Services Online
Overview – Part I
Terminology
Technology
Ethics Issues
What is virtual law practice?
A virtual law office is a professional law practice that is located online through a secure portal and is accessible to both the client and the attorney anywhere the parties may access the Internet.
Other terminology: virtual lawyering, VLO, virtual law firm, web-based or web-enabled law practice, online law practice, delivering legal services online.
eLawyering
eLawyering 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.” – Marc Lauritsen, co-chair, ABA eLawyering Task Force
What virtual law practice is not
Virtual law practice is not :
an online website that sells legal documents without attorney review, such as LegalZoom and other web-based companies selling online legal forms
a law firm website with an email “contact us for a free quote” form for prospective clients
communication by email even if sent through a law firm’s website a rented physical office that may be shared with other
professionals along with a receptionist service VPNs, extranets and other services, such as GoToPC and
LogMeIn a conglomeration of attorneys in remote locations pooling
resources and communicating over the Internet a law practice based in a virtual reality world, such as Second
Life
How Attorneys Use Virtual Law Offices
Completely Web-based Unbundled or limited legal services
Integrated into a traditional law office Unbundled and full-service
As a transition method to allow them to continue to practice law while meeting other personal and professional needs: To raise families To care for ill spouses or aging parents To ease into retirement After layoffs, to start a solo practice or work while
searching for another legal job
Traditional Firm w/Virtual Law Office
Web-based
Unbundled Legal Services
Multijurisdictional Virtual Law Firm
Is there a market for this?
During March, 2010—one month alone—an estimated 535,000 people in the US searched online seeking legal solutions through the Legal Zoom website.
E-commerce trends increasing Increase in consumers looking for Legal Zoom
and other DIY online legal services options
Serving Your Clients
● Your clients are ready. They shop, bank, conduct business, and pay their credit cards and taxes online.
● Be prepared for your future clients: the “Digital Natives”
Why is Virtual Law Practice Important?
For the Public Greater access to justice Court systems and non-profit legal aid organizations already rely on
cloud computing methods to deliver legal services online Affordable and accessible legal services for lower and moderate
income individuals Pro-se litigants Pro bono opportunities
For the Legal Profession Tech streamlines and automates the workflow allowing the attorney to
focus on practicing law Prevent malpractice through automated checks and processes Lower overhead, less office waste, eco-friendly Expanded client base, competitive advantage Better quality of life through work/life balance and flexibility
The Technology: Software as a Service (SaaS)
SaaS is one form of cloud computing. Practicing law “in the cloud.” Most traditional firms already use some form of SaaS
Lexis/Westlaw research, email, search engines, Google apps, Skype, etc.
The technology used to create and maintain the virtual law practice is handled through a secure, third-party hosted system.
Not to be compared to ASPs of the late 1990s now designed to work cooperatively in a network
environment rather than in line with the goals of PC software as it used to be
affects the way IT professionals and the industry think about their users, resources, and security
Benefits of SaaS
Security Regular data backups, geo-redundancy of servers Level of security at a Tier4 Data Center is far greater than the resources a
typical law office could afford for security of law office data. Data stored on the server is encrypted, same high level of security used by
banking and government institutions
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)
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
Streamline your practice for greater efficiency
Risk of Using Piecemeal SaaS Apps
Security LevelEncryptionSecure transmissionWho has access?
Ethics/malpractice concerns unique to attorneysConfidentialityPrivacy
Record keeping/consistency
Data return and retention policies
Offshore servers
Current SaaS Products
SaaS products designed specifically for attorneys vs. piecemeal apps.
Some Sample Legal SaaS products: AdvologixPM Clio DirectLaw LawRD Lexbe Rocket Matter VLOTech/Total Attorneys WiziLegal
Online Document Assembly & Automation
Automating document assembly for online clients
Intuitive online forms
Purchased directly by the client after attorney review or in conjunction with additional legal advice
Online Case & Client Management
Clients have access to their own online case files with limited control
Backend online law office with case and client management
Other law practice management tools
Ethics Concerns
UPL Establishing the Online Attorney/Client
Relationship Defining the Scope of Representation
Conflict of Interest Authentication of Online Client’s Identity Conflict of Laws Competency Confidentiality of Client Data
Safeguarding Client Property See North Carolina 2008 Formal Ethics Opinion 5, “Web-Based
Management of Client Records” (July 18, 2008) Online Payments
Mitigating the Risks
It is the responsibility of the attorney operating a virtual law office to do the following: Make the determination on a case by case basis:
Can I competently handle this legal matter online or does it require in-person representation?
Understand the technology and the security risks Implement daily best practices for use of the technology
Many of the risks are similar to the ethics and malpractice risks seen in a traditional law practice. However, here the risks may be decreased through the use of the checks and processes built into the technology.
Avoiding Malpractice
Conflict of interest checks Online and offline clients
Jurisdiction checks Confidentiality of Client Data – SSL, end-to-end
encryption Accepting online payments
PCI Compliance Retainers – Trust Account Rules
Calendar and Ticker System Metadata Electronic Discovery Daily Best Practices
Overview - Part II
Choosing the Structure
Startup Costs and ROI Analysis
Choosing a Technology Provider
Launching your Virtual Law Practice
Step One: Choose a structure
Decide what features of your law practice to take online. Completely web-based or integrated into a traditional law
firm structure? Working with clients?
Unbundling/limited legal services Online client base to generate additional revenue or as amenity for
existing in-person clients Document storage? Document assembly? Collaborating with other attorneys/virtual assistants? Administrative tasks?
Calendaring Case and Client Management Time and billing Invoicing Accounting
Unbundling Legal Services
Break out tasks associated with a legal matter and provide the client with only specific portions of the legal work
Clearly define for online client the nature and scope of unbundled legal services – what will and will NOT be covered
Provide comparisons/education
Step Two: Choose the Tech
Know your own comfort level with technology How quickly can you learn new technology? Can you set and abide by your own security practices
for the daily use of the tech to protect your clients (and yourself from malpractice)?
Consider the ROI of the product How much will it save in time and law office
resources, overhead? Will it help to generate additional or new client
revenue?
Step Three: Research the Provider
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 Third-party hosting Response time/customer service Confidentiality of law office data
▪ Who has access?▪ Government and civil search and seizure actions▪ Breach of confidentiality – unlimited liability for data
breaches? Infrastructure to support growth Transferring Data/Compatibility Issues Costs – Subscriptions, what is included
Start-up Basics
Select URL name Register with State Bar
Development of VLO Website Integration & customization of client portal into
website Drafting Terms and Conditions, Disclaimers, Privacy
Policy, establishing online response policies, etc. Select third-party credit card processing company for
online payments Decide how to unbundle, offer fixed fees, billable hour
or combination of billing methods Create Partnership Agreements or Fee Structures if
applicable
Obtaining Malpractice Insurance
Be prepared to educate Ask about discounts for use of technology Read through the exclusions Consider total loss based on structure of practice Firm or partnerships coverage Hardware What may not be covered
Budgeting a Virtual Law Office
Website CostHardware CostSoftware CostMinimal need for office suppliesMarketing budgetCreate a fluid business plan
Virtual Paralegals/Assistants
Keep digital records of instructions to VA
Compliance with Rule 5.3 – Management of Non-lawyer assistants
Nondisclosure and security issues
Marketing the Virtual Law Practice
Your website is your front door.▪ Design must-haves from perspective of:
▪ Complying with Professional Responsibility Rules ▪ Creating an effective Marketing Strategy
▪ Free Methods▪ Consistency of image▪ Dedication of time
Online Social Networking & Using Social Media▪ Public▪ Law-related▪ Establish a policy
Future Innovation
Features of a virtual law practice will continue to expand beyond what currently may be imagined. The core function of a virtual law practice should remain the
same - the ability to securely deliver legal services and work with clients and other legal professionals online through an online client portal.
The growth of online legal services is largely consumer-driven. The legal profession should step up to meet this need or
the public will continue to use methods that are not safe or in their best interest to acquire online legal services.
In order to stay competitive and to address the needs of
clients, most firms will need some form of virtual component in the next five to ten years.
Contact Me
Email: [email protected]
Blog: www.VirtualLawPractice.org
Book: Delivering Legal Services Online, ABA Publishing, Coming August 2010