Delivering unbundled legal services 2012

Delivering “Unbundled Legal Services” Over the Internet: Best

Practices

Richard S. GranatCo-Chair, eLawyering Task Force,

LPM/American Bar AssociationPresident, DirectLaw, Inc.

Overview

Part One: Introduction to Unbundling Legal Services

Part Two: Ethical Considerations Part Three: Best PracticesPart Four: Use of Technology to Deliver

Unbundled Legal ServicesConclusion: Unbundling and the Future of

Legal Services

Part One

Introduction to Unbundled Legal Services

What are unbundled legal services? The DIY client The market for unbundled services ABA Model Rule 1.2 (c) ABA Formal Opinion 07-446

What are unbundled legal services? Unbundling legal services are a form of delivering

legal services where the lawyer breaks down the tasks associated with a legal matter and only provides representation to the client pertaining to a portion of their legal needs.

The client accepts the responsibility for doing the footwork for the remainder of their legal matter until it is completed.

Also termed limited scope representation (LSR) or discrete task representation.

Wikipedia Definition

Wikipedia now defines “unbundled legal services” as “a method of legal services in the United States in which an attorney and client agree to limit the scope of the attorney’s involvement in a law suit or other legal action, leaving responsibility to those other aspects of the case to the client.” See http://en.wikipedia.org/wiki/Unbundled_legal_services

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Legal Services a la Carte

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Is there a market for unbundled services?

We live in a DIY society. Consumers understands that when a product or

service has a DIY component, it tends to be more affordable. This is seen as an acceptable tradeoff for doing a little or a lot of the footwork.

In the current economy, many lower to moderate income individuals are more than willing to do the extra work to save money on their legal needs.

Online legal service companies, such as LegalZoom, have educated consumers about DIY legal services.

Economic Benefits

Expands the market for legal services as price is reduced.

Enables the lawyer to develop a relationship around a limited task which can lead to a larger engagement latter.

Reduces “friction” and “risk” in selecting and working with an attorney.

Generates legal fee revenue where there maybe none.

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Benefits of Unbundling

For the public: Greater access to the legal system for individuals of

lower to moderate means. Lessens burden on court system handling pro se

litigants without guidance

For the professional: Attorneys may provide an alternative form of legal

services to a different client base Tap into the latent market for unbundled , online legal

services

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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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Why consumers choose unbundled services

They like to control their legal matter and are the DIY-personality.

They cannot afford to pay for full legal representation.They want the flexibility and convenience that

unbundling may give them.They would benefit from alternative fee arrangements,

such as the fixed fees and value billing that can accompany unbundled services.

They are less intimidated and more comfortable using the Internet to communicate and accomplish their business needs rather than making an appointment at a traditional law office.

They live in remote areas or for other reasons do not have the means to travel to a larger city to visit a physical law office.

Un-Bundling as a Response: Reducing Friction

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Sample Unbundled Services

Ghostwriting Drafting pleadings, briefs, declarations or orders Document review Conducting legal research Negotiating Making limited appearances Advising on court procedures and courtroom behavior Coaching on strategy or role playing Preparing exhibits Organizing discovery materials Drafting contracts and agreements Providing legal guidance or opinions Providing direction to resources such as local and state rules “Collaborative lawyering”

Part Two:

Ethical Considerations Competent Representation (Rule 1.1) Limiting the Scope (Rule 1.2 (c)) Ghostwriting Pleadings (ABA Formal Opinion 07-446

(2007) Ethical considerations in operating a virtual law office

are beyond the scope of this program.

Ethics: Ground Rules

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Model Rule 1.2 (c)Revised in 2002, the ABA Model Rule 1.2(c)

entitled “Scope of Representation” provides:

(c) A lawyer may limit the scope of the representation if the limitation is reasonable under the circumstances and the client gives informed consent.”

This rule has been either adopted or modified by

forty-one states since its addition to the model rules.

ABA Formal Opinion 07-446

In 2007, the ABA published Formal Opinion 07-446 which permits ghostwriting. This opinion states that an attorney could provide limited assistance to a pro se litigant by helping them prepare written materials without disclosing their involvement in the preparation to the court.

The ABA Model Rule does not require that the lawyer reveal that he or she has provided assistance to the pro se litigant.

Competent Representation Model Rule 1.1 states that clients must be provided

with “competent” representation The attorney must decide if the limited scope

representation is “reasonable” as required by Model Rule 1.2(c).

The meaning of “reasonable” can be derived from a number of court cases where the court found : limited scope representation to be acceptable when the

client’s rights and interests were not harmed from the practice and

when the attorney was not committing any ethics violations from his or her limited representation of the client’s matter

Limiting the Scope

Model Rule 1.2 (c)

The client needs to understand the nature of the limited scope representation from the beginning of the attorney/client relationship.

Limited scope engagement agreements

Summary

Check state bar rules and local opinions.Defining What is reasonable Under the

Circumstances.Clarifying Scope of Representation and

Written Consent.Rejection letters in writing.Letter Ending the Client Relationship.Still check for Conflicts of Interest.

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Part Three: Best Practices

Making the decision to unbundleLimited Scope Engagement AgreementsEducating Your ClientTermination of Limited Scope Arrangement

Design Techniques

Analyze legal projects into their component tasks.

Sometimes you can bundle by issue.

A task becomes a project that you can price separately.

The legal service should be a stand-alone project or process that you candraw a boundary around so that the service is limited.

Examples from an “Unbundled, Virtual” Family Law Practice

→ Service of process on an unknown spouse. → Drafting of a QDRO Order → Forms Bundled with Legal Advice for a Fixed Price

Can this Case be Unbundled? The complexity of the matter: How much litigation is involved or is it

a more clear-cut case? Has the client worked with another attorney before on the matter before seeking out limited scope assistance?

The client’s personality: Will this client be able to handle the remainder of the case following the firm’s instructions and guidance? Does the client have the necessary education-level to complete the task?

Would it be in the client’s best interests in this particular circumstance if the representation were consistent from start to finish? For example, in a complex child custody matter or a criminal defense case, the client’s best interests would most likely be served through continuous and consistent representation rather than unbundling.

Does the client take instruction well? Is the client going to be comfortable communicating with the firm

using the methods that the firm has set up for limited scope cases, such as a virtual law office or web conferencing rather than in-person office visits?

Will the client consent to the limited representation?

Educating the Client Checklists and detailed instructionsKeep Digital Records of your Interactions

with the Client

Limited Scope AgreementsProvide client with a handout listing steps involved in the process of the case. Compare the full service representation to the limited scope services that the client will be receiving from the attorney. Make sure the client is aware of the risks that may be involved in their case by not choosing full-service representation and help them to do a risk/benefit analysis for this decision. List exactly what services will not be provided to the client as well as listing their responsibilities.

Avoids misunderstandings or false expectations

Termination of the RepresentationSend the client an email letter or other

communication confirming that the limited engagement has come to an end

This lets the client know that this is the end of the services that they paid for

Part Four

Use of Technology to Deliver Unbundled Legal Services On-Line vs. In-Office Practice Document Automation and Assembly Virtual Law Firms Using technology to streamline the unbundling

process and prevent malpractice

Online vs. Offline PracticeOnline:

Clients have access to their own online case files with limited control

Online case and client management tool Document Assembly and Automation Must follow best practices for online delivery as well

as unbundling

Offline: Lends itself to unbundling in more practice areas and

litigation-based unbundling Process of unbundling cannot be as streamlined or

automated

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The Power of On-Line Service

Digital technology is a powerful dis-aggregator, enabling consumers to pick and choose what they want, and how and where they want it.

Example is the music industry and how digital technology changed the value proposition for music.

iTunes “Unbundled” music for all of us.

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The Leverage of an On-Line Service

Online: Powerful disaggregator enabling consumers to pick and

choose what they want, and how and where they want it.

A good example is the music industry and how Apple changed the value proposition by reducing the need to purchase albums. Most consumers purchase individual tracks.

You can increase your reach to web-savvy clients throughout a state.

You can use target marketing more effectively on the Internet. You can advertise on Google for a single unbundled service.

Document Assembly & AutomationGood example of increasing leverage by

automating a service and delivering it over the web. Once automated, the service can be delivered over a wide area.

Lends itself to delegation to a paralegal for more routine aspects increasing leverage.

Automating document assembly for online clientsIntuitive online formsPurchased directly by the client after attorney

review or in conjunction with additional legal advice

Last Will & Testament

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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.

FINISH

Automated Document Assembly

Next question

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Customer journey

Web delivery

Sophisticated process to deliver law over the web

Telephone Advice can be added.

Each document can be reviewed and approved by the lawyer in charge.

Price is based on value add as distinguished from time spent which can be very little.

Businessmax movie

Intelligent Calculators

Examples

Child Support Calculators

Bankruptcy Calculator

Bankruptcy Debt Calculators

Alimony Calculators

Alimony Recapture Calculator

Spousal Support Calculator

What is a virtual law firm?

A virtual law firm is a professional law practice that is located online through a secure client 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.Username:

Password:

LOGIN

Case Studies

LegalZoom –not a law firm – http://www.legalzoom.com

Family Law Practice –http://www.mdfamilylawyer.com

Wills and Estates Practice –http://www.granatwills.com

See other examples at: http://www.mylawyer.com

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Future of Unbundling in Legal Services

Fixed priced legal services delivered online will become a dominant pattern.

Movement from passive law firm web sites to interactive virtual law firms. Almost all solos and small law firms will have some form of a “client portal” in the next five years.

Law firms delivering personal legal services to individuals will increase “unbundled” legal service offerings.

Pressured by change in consumer behavior and competitors like LegalZoom.

The Book to Buy

Limited Scope Legal Services: Unbundling and the Self-Help Client by Stephanie Kimbro published by ABA/LPM, March 2012.

Other Resources

ABA Unbundling Resource Centerhttp://www.abanet.org/legalservices/delivery/delunbund.html

ABA Standing Committee on the Delivery of Legal Services white paper, “An Analysis of Rules That Enable Lawyers to Serve Pro Se Litigants,” http://www.abanet.org/legalservices/delivery/downloads/prose_white_paper.pdf

ABA’s Section of Litigation, Handbook on Limited Scope Assistance, a Report of the Modest Means Task Force (2003) http://www.abanet.org/litigation/taskforces/modest/report.pdf

ABA ELawyering Task Forcehttp://www.elawyering.com

Contact Information

Richard GranatPresident, DirectLaw, Inc.Founder, Granat Legal Services at MDFamilyLawyer.com

Elawyering Blog: [email protected]

Twitter: @rgranatFacebook: http://www.facebook.com/richard.granat

Delivering unbundled legal services 2012

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