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Archive for the ‘Virtual Law Firms’ Category

Legal Forms for the Price of a Song on iTunes?*

16 Jan

Legal forms, without the legal advice or assistance of a lawyer, continue to decline in value. As a pure digital product, a legal form follows the price curve of other digital goods eventually approaching zero.  Several new start-ups in the legal industry will accelerate this trend.

Docracy is a new legal document start-up, founded by Matt Hall and John Watkinson, that grew out of a TechCrunch Disrupt Hackathon in New York City. The idea is to provide a free depository of legal documents that meets the needs of small business and start-ups which are crowd sourced by individuals who register for the site. The concept is to provide an open source site for legal documents in the same way that GitHub is an open source site for code. The company is venture funded First Round Capital, Vaizra Seed Fund, Quotidian Ventures and Rick Webb by a group of investors who see opportunity in disrupting the legal profession. The documents are largely flat forms (MS Word or Adobe .PDF File format), with quality control provided by the "community." It’s not clear yet what the business model for this site will be. Online signing of legal documents is coming.

A second legal document start-up has emerged out of the New York City start-up web scene called Paperlex  .  Paperlex is also targeting the small business market. This site will contain standardized legal documents that can be modified within the web browser. A user will be able to store all of their documents online in their own private and secure web space, will be able to collaborate with third parties, and will have the capacity to execute/sign documents online.

Rather than crowd sourcing the legal form content, Paperlex will provide their own libraries of standard forms. Alison Anthoine, Esq., the CEO and Founder, hopes to provide an accessible legal document portal that small business can easily use with their customers and other parties at a cost that is much less that the cost of a custom document crafted by an attorney. The business model for Paperlex is a Saas subscription service provided for a low monthly fee.

DocStoc is another document repository that includes not only collections of legal documents, but collections of documents in other categories as well, such as human resource, travel, and personal finance documents. Documents are for free or can be purchased. The site is also built on crowd sourcing principles. Users can contribute documents and sell them through the site, with DocStoc taking a cut. Most documents are not automated and are provided in either MS Word or Adobe .PDF file format. However, a new feature called "custom documents" enables the user to answer an online questionnaire which generates a more customized document. The user can view the assembled document before making a decision to purchase a monthly subscription.Monthly subscriptions range from $9.95 a month to $39.95. The site claims to have 20,000,000 users.

Docstoc, Inc., was founded by Jason Nazar (bio) and Alon Shwartz (bio). The company was selected in September of 2007 to debut its product at the prestigious TechCrunch40 Conference. The platform was subsequently launched to the public in October 2007.

Docstoc is a venture backed company (Rustic Canyon) and received funding from the co-founders/investors in MySpace, LowerMyBills, Mp3.com, PriceGrabber and Baidu.

WhichDraft.com , founded by Jason and Geoff Anderman, brothers, and both attorneys, offers free contracts that can be assembled within the web browser. Legal documents can be easily shared with third parties, and you can build your  own Question and Answer templates. A nice feature enables a user the compare any two versions to see new and deleted text in the fee legal form. 

By A Legal Forms PLan frm MyLawyer.comMyLawyer.com, our  own consumer legal document portal, also offers legal document plans that are libraries of automated legal documents that when purchased in a bundle are less than the cost of a song on iTunes*.

 

 

In the nonprofit sector, LawHelp Interactive, a unit of LawHelp.org,with funding from the Legal Services Corporation, [ See Technology Initiative Grants ] has been working with a legal aid agencies nationwide to help the automate legal forms and publish them to state-wide legal form web sites which are available to any one within the state. The program is not limited to low income people. Hundreds of thousands of free legal forms are now created annually in more than 34 states. LSC has invested millions of dollars in the development of interactive legal form sites over the past 9 years.

Courts have also jumped into the free legal forms distribution game in response to the hoards of pro-se filers looking for free legal help. See for example: Online Court Assistance Program in Utah and Maryland Family Law Forms .

These free legal form web sites raise some interesting questions about the future role of the attorney and the changing nature of law practice.  What role will the lawyer play in this changing environment?  What is the impact of these relatively new sources of free or low cost legal forms on law practice, particularly the practice of solo and small law firms? Our own research provides support for the fact that solos and small law firms will continue to loose market share to these new providers.

"Unbundling" legal services by providing legal advice and legal document review for legal forms that clients secure from another source, may be a way of expanding access to the legal system, but it is also disruptive of law firm business models,  just like iTunes* was disruptive of the bundled album approach of the music industry. Value is shifting from the lawyer to the consumer and non-lawyer providers of legal forms. I can hear the sucking sound as law firm business models collapse.

Some questions to think about:

  • What risk do consumers and small business assume when they use a legal form without the advice or review of an attorney? The answer depends on the type of form, its complexity and the complexity of the transaction. If a user represents themselves in their own relatively simple name change, and their name gets changed by the court successfully,  then one can assume that self-representation worked.
     
  • But what about a Shareholder’s Agreement, where terms have to be negotiated, and the standard document doesn’t include the particular language required by the parties to reflect their intent? Should the parties now draft their own language? Should the parties simply ignore the need to include special language that reflects their intent hoping that there will be no situation in the future that will create a conflict between the shareholders because of a failure to include the language?
     
  • Who should negotiate the terms of the Agreement? The lawyer or the principal? Who would do the better job? How much shuld be charged for a successful negotiation?
     
  • How should the lawyer price services, when the client comes to the lawyer with their own standardized form and asks the lawyer to review it?
     
  • Will the lawyer refuse to serve the client, unless the client uses the lawyer’s form or document?
     
  • How important is the insurance that a lawyer provides that the document or form is valid for the purpose intended, accurate, and reflects the intent of the parties?
     
  • Lets assume that the 85% of the legal form content in many categories of documents is identical. [ This is what Kingsley Martin from KIIAC has concluded and he should know ! ] But 15% consisted of critical variable language not susceptible to easy document automation. Should the attorney charge on a fixed price for the entire project as if she drafted the entire agreement, although she only worked on several paragraphs? If the agreement fails because the variable paragraphs are incorrect for the particular case, why shouldn’t the attorney charge as if she he worked on the entire agreement?

If you have thought about these questions, and have some ideas on the impact of free legal forms on the legal industry, please share them here.

Document Automation as  DisruptuveTechnology

 

*iTunes is a trademark of Apple, Inc.

 

 

Summary Judgment – The Trap

14 Jul

 

Here’s how to avoid the summary judgment trap! 

Summary judgment can be a good thing – when it’s working for you!

It can mean the end of litigation in your favor, victory without a fight.

It can save months and even years of money-draining litigation sorrows.

But!

If your opponent files a motion for summary judgment against you, the result can be immediate defeat if you don’t apply what I teach you.

Banks and other powerful opponents do this routinely. They start with a laundry list of affidavits by which they wish the court to believe they’ve “proven” the facts of their case (inadmissible affidavits, by the way), and their lawyer points to the paperwork, files a motion for summary judgment, and insists the case has already been proven.

That is almost never the truth.

It’s a trap!

Here’s what you need to know!

Summary judgment is provided by Rule 56 Federal Rules of Civil Procedure and by state court rules in every state in our Republic. All the states follow the federal rule closely. There may be a few minor differences but, in general, the rule and the principles are identical.

Either party (plaintiff or defendant) may file the motion.

The motion must allege (and the moving party must ultimately prove) “there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law.”

Danger!

There is almost always at least some “genuine issue as to a material fact” that precludes summary judgment.

But!

If you don’t understand what is meant by “genuine issue” or “material fact”, you will lose … needlessly!

I’ve been an attorney nearly a quarter-century. I’ve read a h— of a lot of cases in those years, believe me. And, in all that reading I discovered that summary judgments are routinely set aside on appeal! That’s right. The majority of summary judgment orders are reversed on appeal.

Don’t believe me?

Go to any online legal research cite and enter the following search terms: precludes w/4 summary (i.e., search the case law in your appellate jurisdiction for the word “precludes” appearing within 4 words of “summary”).

Hit “Enter” and sit back and watch the cases fly onto your screen one-after-another. I just pulled up 151 of them here in Florida’s state appellate decisions.

Read a few dozen and you’ll see what I mean.

Don’t be trapped by summary judgment motions!

The key to winning (whether you’re the one defending or the one filing the motion) is the rule itself and preparation for appeal that’s made simple enough for an 8th grader to understand using my affordable Jurisdictionary step-by-step self-help course.

Read the rule … state or federal.

Also read the cases that explain the rule and how it is applied by the appellate courts to determine if summary judgment is proper or not.

The motion is evaluated on the following grounds: “the pleadings, depositions, answers to interrogatories, and admissions on file,together with affidavits, if any”.

So many of you don’t yet understand the power of your five (5) discovery tools and the importance of firing them off at the first opportunity in your case. By requests for admissions, requests for production, interrogatories, and a deposition or two along with a few subpoenas you can make it clear there are “genuine issues of material fact” in the record … precluding summary judgment.

The other fortress against summary judgment is built by drafting powerful pleadings (whether you’re the plaintiff or defendant). The pleadings (complaint and answer with affirmative defenses) are the first defense against losing on a summary judgment motion, because your pleadings raise the issues that you’re competing for. If you file weak pleadings (plaintiff or defendant) you offer your opponent an opportunity to charge ahead with summary judgment.

Weak pleadings followed by delayed discovery opens the door for your opponent to argue, “There are no genuine issues of material fact in the record,” and that’s all he needs to win.

My Jurisdictionary course shows you how to draft powerful pleadings in easy steps with explanations and examples of the forms most commonly used.

The courts are jammed with litigation. In most states, it can take months just to schedule a simple hearing. Most judges welcome opportunities to grant summary judgment, because it clears the case off the docket!

Beware! The judge wants to enter summary judgment. Not because you are pro se. Not because he hates you. Not because he plays golf with the lawyer on the other side. But, because he wants to clear his clogged calendar of pending cases that are backing up because of the glut of litigation that is delaying justice for good people!

You must prepare with lawsuit know-how or lose!

Solid pleadings create an impenetrable barrier to entry of summary judgment orders. They plainly state the genuine issues of material fact. If they are “verified” (as I teach in my affordable 24-hour, step-by-step Jurisdictionary self-help course they should always be) then you have built a protective wall around your case. The genuine issues of material fact are in your pleadings! Your pleadings cannot be changed by your opponent. You state your “genuine issues of material fact” in your complaint or answer and affirmative defenses, and protect yourself from summary judgment motions filed by the other side!

Prompt discovery provides an additional barrier against summary judgment rulings. When the other side cannot produce documents you’ve properly requested according to the rules, and those documents would tend to prove your case, then a “genuine issue of material fact” is established that precludes entry of summary judgment. The same can be said of requests for admissions, interrogatories, answers to deposition questions, and so forth.

And, of course, the importance of arranging in advance to have every proceeding recorded by an official court reporter and to arrange in advance for obtaining a certified transcript afterward to prove everything said or done in court cannot be overstressed! Like the Chinese Laundry operator used to say, “No ticky. No washy.” If you don’t arrange in advance for a certified transcript to be available to you after every in-court proceeding, you’ve telegraphed permission for the judge to do whatever the judge wishes to do … and that include knocking your case off his busy calendar by granting summary judgment, because without a court record the judge knows he cannot be reversed on appeal! No transcript. No appeal.

It breaks my heart to learn how many of you are beaten by summary judgment and other tactics by unscrupulous lawyers who don’t care about truth or justice or fairness or anything beyond a newer sports car and a bigger swimming pool in their backyard.

You don’t have to lose just because you’re pro se!

I receive emails every day from people who believe that lie … people who’d rather complain about their losses and blame anyone but their own unwillingness to learn. This is not the spirit that once made America great, my friends.

Learn Rule 56 (or the corresponding rule in your state court). Read a few dozen cases you can find online using the search terms given above.

Educate yourselves on something other than the insidious silver-bullet nonsense that is so prevalent on the internet these days.

People who say justice is impossible for pro se litigants are misinformed.

Justice most certainly is possible … for those who take my affordable 24-hour, step-by-step Jurisdictionary self-help course.

If you want to learn the rules at the law library and not pay for my course, that’s fine with me. But, please stop believing those who saypro se justice is impossible.

I will say this: Justice IS impossible for those who don’t yet know how to command the courts as I teach.

Finally, please know this about me and my success in court: I wasn’t born with a silver spoon in my mouth. I have never belonged to a country club. I didn’t win cases by being one of the “good old boys”. For most of my life I was common as dirt. I didn’t get my chance to go to law school until I was 39. That was 28 years ago. I won on a regular basis in spite of the odds against me because I believe in the rules of due process and, after 10 years of fumbling around in the dark, I finally learned how to use those rules effectively to control judges and get justice for my clients!

Until I was 42 years old and passed the bar exam, I had to work as hard or harder than any of you just to make ends meet! I was a ferry boat skipper. I ran fishing boats. I swung a hammer and pushed a saw and carried sheets of plywood and 2×4’s. I had a job pulling beers in a southern bar where pickled eggs, pigs feet, and boiled peanuts were the food du jour. I scraped barnacles off boat bottoms. I climbed tall radio towers to replace light bulbs. I once spent weeks inside unfinished sailboats grinding fiberglass in the Miami heat, enduring the itch of fiberglass dust mixed with sweat and occasional blood from the cuts of sharp edges of newly laid fiberglass material. At one point in my long career of unimaginables, I drove a Frosty root beer truck delivering cases of soda to country stores in the farmlands east of Tampa. I worked my way through undergraduate school at Florida State (because my family could not afford to send me to college) installing short wave radios in fire trucks and ambulances. I didn’t make enough to go to an ivy league school. For years I lived in rented one-room apartments and got about on a bicycle, because I couldn’t afford a car or gasoline. For nearly 9 years of my adult life I lived in small beat-up old sailboats, no air-conditioning, no refrigerator, no TV.

I know what most of you are going through!

I want to help you!

But, you need help yourselves and others!

I didn’t win most of my cases by sucking up to the good old boys! I won by learning how to use the rules, and you can learn, too!

We can win the war against corruption in this nation and be the example Adams and Paine and Washington intended us to be … but we must do it according to The Rules of Law and with due process, not foolish fables.

YOU DON’T HAVE TO LOSE!

Believing internet fables, even if they were true, isn’t going to help you or your family. Joining the crowd that can only complain and point fingers isn’t making things better for any of us.

The true patriots who are making things better for all of us (or, at least, trying their best to do so) are those who fight for victories over corruption using due process and the Rule of Law for which too many good men and women have already given their lives.

Let us honor those who gave their all for the sake of liberty and due process by renewing our pledge to the cause of Justice … overcoming the corruption in our courts by forcing judges to obey the rules too many have already died for!

Please don’t send me emails telling me the courts are corrupt. I know first-hand about corruption. That’s why I created Jurisdictionary in the first place. I know judges who are so corrupt they should be horse-whipped. I know lawyers who are so corrupt they don’t know how to stop lying, even when they aren’t in court.

But! I also know how to win … and you can, too!

I’d appreciate receiving some emails this week thanking me for Jurisdictionary instead of attacking me for not joining the milieu of madness that has little to offer beyond telling us what’s wrong. Most of us already know what’s wrong. What we need is for more of you to discover that the only way to deal with corruption is to overcome it!

Complaining about corruption alone does not stop it!

When corruption is in the courts, the way to win is to rub the judges’ noses in their very own rules!

Good judges will do what’s right.

BAd judges fear being reversed on appeal.

I didn’t win for a quarter-century by belonging to the “good old boys” network. I don’t belong to any fraternity or secret society. I hate the good old boys for a number of personal reasons I may write about in my autobiography someday, if anyone is interested. I hate all they stand for. I hate their abuse of people who don’t know how to fight back. I hate their cruelty. I hate their arrogance!

So I created Jurisdictionary so YOU can fight back!

The choice is yours, after all.

I cannot make you believe what I say.

You simply need to try my methods and see for yourself what the people who wrote those testimonials at the right have discovered. →

If you already have my course, urge EVERYONE to get the course and stop the courthouse corruption that is destroying our nation and putting your children’s future in peril of being utterly destroyed by the elitist agenda to rule us all by taking away our voice and our right to be heard in court on the public record!

If you don’t yet have my course, order it today and find out for yourself just how powerful you can be with just a little bit of practical lawsuit know-how!

Help us restore due process to our nation, please!

Learn how to use the rules to command justice!

Help us overcome the evil of this age!

Do it for your children!

Dr. Frederick David Graves, JD

Jurisdictionary

– – – – – – –

To win in court you must fight tooth-and-nail!

This isn’t a parlor game!

This is war!

The rules of due process are the People’s Power to control the machine we call government and get the redress for our grievances that millions died for!

My profession has hidden the rules of due process from you and from the rest of the public, so lawyers can charge exorbitant fees to do what any 8th grader can do after learning how with my affordable 24-hour, step-by-step Jurisdictionary self-help course.

Due process is your #1 right, because without it none of your other “rights” are enforceable in court!

But! To enforce your rights you need to use the rules!

The Constitution mentions due process. It doesn’t begin to explainwhat due process is or how to use it to control courts … and thereby to control judges, lawyers, giant banks, high-minded government officials, or even angry neighbors!

Can we Americans afford not to learn the rules?

Due process is the power of the people to control their government by controlling the courts!

Jurisdictionary believes it’s criminal for a government to refuse to teach its People how to use due process to enforce the People’s God-given rights! But, our leaders refuse to teach us the rules by which they control us!

Jurisdictionary also believes it’s criminal to promote legal people fables or to urge people to believe justice is impossible! Corruption is real. We know that. But those who know the rules and how to use them get justice for themselves in our courts, if their cause is just!

If you agree with us, please help us by telling others what we teach. If they don’t want to buy my course, that’s fine. Let them go to the law libraries and learn the official rules from the official books. But, PLEASE PROMOTE OUR VISION!

Until we Americans learn the RULES of due process, we cannot possibly hope to control those who hold the reins of government power … and at this critical hour we have very little time to take control of our government!

Some leaders in Congress are hell-bent to enforce laws on us that will totally remove our right to due process!

America needs to go to court!

Every last one of us simply must learn how to control the nonsense coming out of our courts today. Every last one of us must learn how to overcome crooked lawyers using the “official rules”, instead of internet mythology.

It isn’t hard to learn!

It really isn’t.

But, if we refuse to learn it will be US who’ll be to blame when America falls to the powerful elite we are allowing to rob us of our heritage and even our morality as a people.

Please help me promote due process knowledge!

Support Jurisdictionary!

Or, you can follow the advice of the internet nutcases who tell you to challenge the judge’s oath of office, or to claim your NAME IN ALL CAPITAL LETTERS isn’t you, or to insist because there’s a fringe on the courtroom flag that the court is operating under admiralty law, or some other absolute nonsense that will end up getting you destroyedand giving even more power to the ruthless lawyers and judges who steal from the poor to give to the rich and rob your children and their future of the moral framework that makes human happiness possible!

If you don’t want lawyers and judges to rule the world, learn the official rules of due process that control them!

We are running out of options!

To learn more, visit my web site: Jurisdictionary.

– – – – – – –

You may find this hard to believe, however today’s law schools don’t teach law students what it takes to win! They don’t teach how to use the rules of evidence and rules of procedure to overcome crooked lawyers and control corrupt, arrogant, high-minded judges, because it isn’t “politically correct” to tell the truth about this “profession”. But, knowing how to control judges and overcome crooked lawyers is what it’s all about!

The typical lawyer will play every dirty trick in the book, but it’s not a judge’s job to interfere. The judge is not allowed to interfere. But! You can prevent the lawyer on the other side from getting away with his or her dirty tricks once you know how to force the judge to put a stop to it using the RULES!

There’s a reason why there are more critical jokes about lawyers than all the rest of the professions combined! You cannot afford to let lawyers side-step the rules and destroy your future, your finances, and your family!

Learn how to force the judge to enforce the rules!

Know the truth that law schools refuse to teach!

Learn how to use official court rules in an effective, tactical manner that demands compliance and obtains justice for you!

Jurisdictionary will show you how in just 24 hours!

Law schools teach 3 years of theory, but many professors never practiced law, and those who have any experience in court are teaching instead of doing. Ask yourself why. A good lawyer can make several times what a tenured law professor can pull down teaching. Do the math!

This is good news for you!

In reality, perhaps a majority of lawyers don’t have a clue what they’re doing … so, once you know what the 24-hour Jurisdictionary course teaches step-by-step, you’ll actually have an advantage … becauseyou’ll know what law schools refuse to teach!

Due process isn’t difficult at all, but it is an axe fight!

Sharpen your axe with Jurisdictionary!

Nothing else works!

Even if you have thousands to pay lawyers to go to court for you, Jurisdictionary can save you money by showing you what your lawyer should be doing to earn his or her pay.

If you can’t afford a lawyer (or don’t trust them) then this affordable 24-hour step-by-step course is just what you need to protect your God-given rights from abuse.

Learn the process of due process that lawyers don’t want you to know … and stand up for your rights effectively!

And, nobody makes it easier than Jurisdictionary!

Do what Jurisdictionary teaches, and you’ll be pleasantly surprised when you find the judge is on your side!

Dr. Frederick D. Graves, JD
Toll Free: 866-Law-Easy

 

 
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The Online Bar Association Meets 04/29-05/01 in Coral Gables, Fl

26 Apr

A new international bar association was formed last year, based in Miami, Florida, called the Online Bar Association. It is an eclectic group of attorneys some based in the United States and many based internationally, who have come together around a common interest – the online delivery of legal services.

The first inaugural meeting is this weekend, April 29-May 1, 2011 at the Westin Colanade Hotel in Coral Gables, Florida.  Here is information about the meeting and the agenda.

 

LawPivot: Another Legal Advice Web Site

29 Jan

Another interesting start-up has emerged out of Silicon Valley to provide crowdsourced legal advice to other start-ups for free.

Vertical Q&A web sites seems to be the next new thing among venture capital investors. Even Facebook  rolled out this year a crowd-sourced Q&A service.

LawPivot, a legal Q&A web site founded in 2009,  hopes to fill a niche by providing legal advice to the founders of start-up and early stage high-tech companies based in California at a legal fee they can afford — FREE.   Legal advice is provided by an experienced network of high-priced business law attorneys, recruited from the top 200 hundred or so law firms, who hope to pick up new clients by entering into discussions by providing free legal advice services to start-up companies.

Free legal advice or the “free consult” has been employed by lawyers for years, pre-Internet, as a tried and true marketing strategy for acquiring new clients. Now many lawyers are beginning to offer free legal advice online from their web sites directly. See for example,  VirtualEsq.Com . By next year there will be hundreds of these free legal advice services offered directly by lawyers from their web sites as the virtual law firm movement begins to scale.

However, free legal advice from an individual law firm’s web site, is not the same thing as a vertical web site that aggregates answers from many lawyers, giving consumers a wider variety of responses to their particular situation.

Free legal advice online is not a completely new idea. FreeAdvice has been doing it for years, and consumers can get answers to their basic legal questions from sites such as AVVO, RocketLawyer, and JustAnswer. What is new, is that LawPivot provides through its network of lawyers “real” legal advice that applies to the client’s particular situation, as distinguished from merely legal information. And this advice is reputedly to be "high quality" given the stature of the lawyers recruited to the LawPivot network.

However, genuine legal advice, [as distinguished from “legal advice” that is characterized as “legal information” ],  like any legal service, has to be delivered in an ethically compliant way requiring that the client’s information be kept confidential, that an attorney/client relationship be established, and that the attorney providing the legal advice be a member of the bar within the jurisdiction  where the client is located. Presumably LawPivot is addressing these issues. The LawPivot service is presently limited to California, but the company, according to its representations, plans to expand nationwide.

Although the company recently raised $600,000 from Google Ventures, the venture capital arm of Google, after a $400,0000 round from from a group of angel investors, it will be interesting to see how or whether it survives. At this point, neither the clients are charged for legal advice, nor are the participating attorneys charged an advertising fee. So there is no revenue, and apparently no business model. However, I doubt that the investors thought they were making  charitable contributions, so there must be a business model lurking in the background somewhere?

Unfortunately, the only business model that is ethically compliant in the US, is one where the participating lawyers pay an advertising fee to play (get listed) and get exposure. Splitting legal advice fees between a law firm and a non-law firm , is a big “No, No” and an ethical prohibition that exposes the participating attorneys to bar sanctions which could lead to disbarment.   Perhaps because Google is now involved as a major backer of  LawPivot , and the company is planning to move to the GooglePlex campus start-up incubator,  "they can do no wrong.!"

Many other Western common law jurisdictions, like the United Kingdom, have abolished the division of fees, but the rules against splitting fees with non-lawyers remains sacrosanct  in the US, on the theory that splitting fees would compromise the independent judgment of the attorney. However, in the UK, lawyers are permitted to work for a profit-making company and provide legal advice directly to consumers, and no one seems to be complaining about compromised judgment. [ See: FirstAssist in the UK  for an example ].

Charging clients an administrative fee to “use” the web site, as an alternative revenue source, has been tried before in an earlier Internet era, and it failed then. [ e.g. AmeriCounsel ]. I doubt that this model will work today when consumers are expecting everything on the web to be for free.

I think it is a good sign that innovation is happening in the legal industry, and that private capital is finally looking for a way to get a return by investing in the delivery of legal services. [See: Total Attorneys Receives Multi-Million Dollar Investment ].

I would like to see companies like LawPivot thrive, but at this point I don’t see the juice.  Are advertising revenues sufficient to make this venture sustainable, or has LawPivot  figured out another legitimate source of revenue that doesn’t violate US ethical prohibitions? Only time will tell.

 

 

Venture Capital Flowing Into Legal Enterprises: Total Attorneys Receives Infusion of Capital

22 Jan

Private capital is beginning to flow into companies that are operating at the intersection of the delivery of legal services and the Internet.

Total Attorneys, a Chicago-based company,  just announced that they received a multimillion dollar investment from BIA Digital Partners, a Virginia-based venture capital firm. Total Attorneys is most known for the marketing services that it provides to law firms and the recent ethical controversy in some states surrounding the use of pay-per-click advertising on behalf of law firms. (Apparently this controversy has been resolved in favor of Total Attorneys in every state where it was considered by bar ethics committees.)

The company plans to extend its technology assisted services to law firms by expanding its virtual law firm Software as a Service offerings (SaaS).   Total Attorneys mission is to become a leading provider of elawyering Services to solos and small law firms by providing a comprehensive suite of outsourced technology services, from marketing to web-based practice management tools to a robust client portal.

The company licenses virtual law office technology to solos and small law firms as a subscription service, that now consists primarily of a robust suite of "back-office" practice management tools. The pan is to expand the service into a more comprehensive "front-office" client portal, providing a total solution to solos and small law firms.

This expansion would entitle the company to claim that it is a leading provider in the eLawyering space  and it would compete more directly with our own DirectLaw virtual law firm platform service and other web-based companies moving in the same direction.  [ See:  Legal Vendors Cloud Computing Association ] .

The concept of "technology-assisted service" is an interesting category for  the legal industry for it describes a form of outsourcing which combines both a digitally-based service combined with human service. Thus Total Attorneys also provides "virtual receptionist services", and at one point virtual support services to bankruptcy law firms. One management solution for solos and small law firms it to out source to independent specialized companies functions which can be done more effectively and at less cost than the law firm can do itself using internal resources.

It is good to see competition heating up in the eLawyering space, which has been moribund for a long period of time.  The eLawyering Task Force of the Law Practice Management Section of the ABA was created in 2000, more than a decade ago. For many  years there was not much to report in terms of the innovative delivery of on-line legal services by law firms. The last 2 years has witnessed an explosion in elawyering industry developments as lawyers adapt to change — caused by a severe recession, widespread unemployment of recent law school graduates, and the challenges created by consumers who are seeking lower-cost and "good enough" alternatives to lawyers, [such as LegalZoom.]

Competition among a variety of vendors provides choices to law firms.  Competition focuses attention on the fact that delivering legal applications as a SaaS is emerging as a new paradigm for enabling solos and small law firms to access complex Internet technologies at a fraction of the capital cost of developing these applications internally.  Private capital moving into the legal industry will create more choices for law firms, and as a consequence more choices for consumers.

Creative legal outsourcing will enable solos and small law firms to become more productive and survive in an increasingly competitive environment.

 

Applications for the James Keane Award for Excellence in eLawyering Are Still Open.

20 Jan

The eLawyering Task Force of the Law Practice Management Section of the ABA is seeking recommendations and applications for the James Keane Award for Excellence in eLawyering which is awarded annually at ABA Tech Show in Chicago ( April 11-13, 2011). This will be the fourth year that the Award has been made. Previous award winners include Stephanie Kimbro for her work in creating the virtual law firm of KimbroLaw and Lee Rosen of the The Rosen Law Firm (both coincidentally located in North Carolina).

The purpose of this Award is to give recognition to law offices that have developed legal service innovations that are delivered over the Internet. The focus of the Award is on the innovative delivery of personal legal services, with special attention given to firms and entities that serve both moderate income individuals and the broad middle class. 

The Award is technology-focused, in the sense that the Award Committee is seeking innovations that demonstrate the concept of eLawyering – which can be  further defined as the delivery of online legal services. Examples of elawyering include the development of online web advisors, expert systems, innovative uses of web-enabled document automation, on-line client collaboration systems, and on-line dispute settlement systems, to name a few examples.

Nominees may be any individual lawyer, law firm or other deliverer of legal services to individuals within the United States.

The nominee can be a large or small law firm, public or private, or a legal services agency. More than one entry may be submitted, and the Task Force encourages self-nomination. The Application deadline has been extended to March 15, 2011.

For further information and an application form see: http://tinyurl.com/48xvcfq

 

 

Will LegalZoom Become the Largest Law Firm in the US?

05 Jan

 

LegalZoom has been beta testing a concept which links its marketing capabilities to a network of law firms that offer legal services under the LegalZoom brand. With some state bar associations accusing LegalZoom of  the unauthorized practice of law,  it might makes sense for the company to seek deeper alliances with networks of attorneys who are able to offer a full and ethically compliant legal service. Solos and small law firms, leveraging off the visibility and prominence of the LegalZoom brand, could reduce their marketing costs and enable these firms to better capture consumers who are part of the “latent legal market”  on the Internet. It could be a win/win for both parties.

Unfortunately, linking the capital and management resources of profit-making organization with private law firms is almost impossible in the United States, given the regulatory framework that governs law practice. Unlike, the United Kingdom, which is in the process of deregulating the legal profession, enabling profit-making companies, from banks  and insurance companies to retail chains like Tesco,  to actually own a law firm, and/or split legal fees with a non-law firm, these practices in the US are strictly taboo.

In the US, law directories can charge a flat marketing fee for a listing, but sharing legal fees with a marketing organization can get you disbarred.

During the dot-com boom around 1999-2000, a company emerged by the name of AmeriCounsel that tried to create a hybrid organizational structure similar to the LegalZoom experiment. The company sought to enable a network of attorneys to offer legal services at a fixed and reasonable price and to mediate between the consumer and the law firm in terms of guaranteeing the quality of the legal services offered. The company failed during the dot-com bust for various reasons, including lack of financing, but on the way to failure, secured some opinions from state bar associations that blessed their model and provides a blue print for hybrid delivery systems which combine the expertise of a law firm with the marketing, management, and technological resources of a non-law firm.

One such opinion was issued by the Nassau County Bar Association New York State.

The Bar Association reasoned that the AmeriCounsel scheme was permissible because:

[S]ince AmeriCounsel does not charge attorneys any fee and since AmeriCounsel does not “recommend” or “promote” the use of any particular lawyer ’s services, it does not fall within the purview of DR 2-103(B) or (D). Rather, AmeriCounsel is a form of group advertising permitted by the Code of Professional Responsibility and by ethics opinions interpreting the Code.

In this model, AmeriCounsel provided technology and administrative services to link the client with the lawyer, but the law firm made no payment to AmeriCounsel. Instead, a separate administrative/technology fee was paid by the consumer to AmericCounsel for using the web site and gaining access to the lawyer. (This is not a practical scheme in today’s web environment, in my opinion), Moreover, AmeriCounsel did not choose the lawyer. The client was able to compare the credentials of different attorneys and choose their own lawyer. Thus no legal referral was involved, which would not be permitted in New York, as only an approved non-profit organization can make legal referrals.

In my opinion, this model, forced on AmeriCounsel, by the Rules of Professional Responsibility, is cumbersome, hard to implement, and was not economically viable for AmeriCounsel. Perhaps this was one of the causes of its failure.

Almost a decade later, companies that want to enter into this kind of hybrid relationship with lawyers, have to follow the same rule structure, as the ABA Model Rules of Professional Responsibility as the rules have not changed in any significant way. changed.  It will be interesting to see whether the ABA Ethics 20/20 Commission, which was set up just last year, will address these issues at all.

Perhaps there should be a “safe harbor” that enables organization’s like LegalZoom to experiment with new patterns of legal service delivery that could operate for a limited period of time in a specific state, like California, The experience would be evaluated carefully as a basis for rule and policy change. The evaluation would be aimed to see if client’s interests are compromised in any way, and whether the delivered legal service is less expensive, without compromising the quality of legal service.

Instead of creating legal profession regulatory policies that are based on the legal profession’s idea about what is good for the consumer, policy could be based on real experience and facts. Experimentation is good. It leads to change, and in other industries improvement of methods and approaches over a period of time.

Of course, I don’t believe that this will ever happen in the US, at least not in my professional lifetime.

 

 

Online Legal Services-A Revolution that Failed?"

06 Dec

Chrissy Burns, an Australian lawyer produced a PHD thesis in 2007, entitled ‘Online Legal Services-A Revolution that Failed?’, where she argued that Clayton Christensen’s theory of disruptive innovation does not apply to online legal knowledge products and that a "latent market" for legal services really doesn’t exist. Ms Burns is presently Director of IT and Knowledge Management at Blake  Dawson so she brings first hand knowledge to her thesis based on her  work with large law firms. In a recent review of her workby Darryl Mountain, an attorney with expertise in document automation, makes the counter-argument  that Ms Burns focus is purely on large law firms and the corporate legal market and overlooks the documented unmet legal needs of the broad middle class and the disruptive response of non-lawyer providers such as LegalZoom which has served generated over a 1,000,000 wills for consumers during the past five years. Mountain cites other evidence that there is a wide and growing latent market for legal services, that Burns has overlooked. Mountain concludes that, " The legal marketplace has continued to evolve since Burns finished writing in 2007. On the retail side of law practice, the revolution is very much alive and people are beginning to resolve legal problems solely through the use of online legal knowledge products."

Mountain also argues that Burns has defined "online legal services"  too narrowly because her definition is limited to knowledge products that solve legal problems without lawyer assistance or involvement. Such products are stand alone applications, such as "expert systems."

Mountain argues that the better model for thinking about disruptive change is to consider how Internet-based legal technology can work together with legal professionals to increase law firm productivity, maintain profit margins, or result in lower fees. Instead off stand-alone, legal  knowledge products, Mountain argues that technology-assisted legal service is likely to become the more pervasive model in the future. Mountain writes:

"The best solutions are often those that combine people and software, whether the people are lawyers, paralegals, or outsourced personnel. "

His review and Burns’ thesis are both worth reading for those who follow developments in the delivering of legal services online. 

 

What Lawyers Can Learn From LegalZoom

30 Sep

Unless you’ve been asleep for the last five years, you have probably heard of LegalZoom, the California-based, non-lawyer legal document preparation company that claims it has delivered over 1,000,000 wills to consumers, and that it is the largest incorporation company in the country.

LegalZoom is only one of hundreds of Internet-based legal form web sites that have emerged during the last 10 years and which are eating away at the market share of solos and small law firms. LegalZoom has been challenged by some state bars with the unauthorized practice of law, but hasn’t lost a case yet. They are serving thousands of customers who ordinarily would be served by solos and small law firms. They must be doing something that is in demand because they continue to grow at the expense of solos and small law firms.

LegalZoom, and non-lawyer legal form web sites like it, have a business model that consists of the following elements:

  • A legal service delivered purely over the Internet;
  • No physical offices, and thus no extensive rental costs to pass on to customers;
  • Limited services offered at a fixed price that can be easily compared with other providers including law firms;
  • The use of web-enabled document automation technology to reduce costs and increase productivity;
  • A secure customer portal where clients can execute legal tasks in their own personalized web space;
  • Access on their web site to thousands of pages of free legal information on hundreds of subjects;
  • Money-back guarantees to comfort consumers; and
  • Reliance on informed consumers to do part of the work, often called co-production, such as filing their own documents or executing their documents on their own based on provided instructions to keep costs down.

Consumers don’t seem to care that they are not dealing with a law firm. As lawyers, we know the service they are selling is risky for consumers, but for consumers it delivers a “good enough” result. LegalZoom would not be growing at this fast a rate if they weren’t offering something that consumers want and value.

How to Compete Against Legal Zoom and Other Non-Lawyer Providers

In the new, competitive environment that solos and small law firms face in the current economy, the keys to law firm survival are to expand the strategic options available by opening new client markets, reducing the cost of services, and delivering legal services in a way that distinguishes your firm from other firms in the pack. These strategic options should be mixed with more traditional approaches to differentiation such as specialization within a niche practice area.

It is time for solos and small law firms that offer personal legal services to the broad middle class to rethink their law firm business models. There are many opportunities for incorporating some of the elements of the LegalZoom business model into a more traditional law practice.

To name a few:

  • Consider offering "unbundled" limited legal services at a fixed price, both on-line and off-line;
  • Leverage a reputation in your local community and a physical office into an on-line brand that is both local to your community and extends throughout your state;
  • Add virtual law office functionality to your web site so that your clients can have the option of interacting with you on-line;
  • Figure out ways of using Internet-based technologies, such as web-enabled document automation to strip out costs from your overhead structure increasing profitability;
  • Figure out how to segment the market offering lower priced services for more routine matters in order to build trust so that when a client has amore complex problems they will turn to you for assistance;
  • Emphasize all of the advantages of using an attorney over a non-lawyer forms provider in your marketing materials and your elevator speech. Click here to see one such comparison.
  • Use web-based technologies to respond to both prospects and clients within hours rather than days.
  • Reduce the perceived risk that consumers have in retaining a lawyer by increasing transparency and structuring forms of performance guarantees.
  • Adopt project management technologies to better estimate costs and fees on more complex projects, translating that data into communications that clients understand.

The current depressed economy and its affect on the broad middle class is not going to change tomorrow. It is likely that solos and small law firms, will have to adjust to new pricing and market realities in the future as competition from non-lawyer providers of legal solutions continues to increase. Large law firms serving large corporations may be immune from these developments, at least for a few years any way, but the fact that Big Law is changing relatively slowly should not mask the rapid changes happening to solos and small law firm practitioners that serve consumers and small business.

I heard a report the other day that the volume of wills and estates practice in one state declined by 50% during the past year. I predict that this trend will continue and not reverse itself, despite any improvements in the economy.

Some commentators think that the monopoly will hold. History and the experience of other countries in deregulating the legal profession suggests otherwise.

Welcome to the "new normal."