LexisNexis has released its 2011 Best Practices for Government Libraries. This year’s theme is expressed in the document’s subtitle: “e-Initiatives and e-Efforts: Expanding our Horizons.” I would list the TOC but it is way too long. Granted the document is…
Posts Tagged ‘document’
Mendeley, World’s Largest Open Access Crowdsourced Research Database, Approaching 100 Million Document Uploads
06
Jul
In April of 2011, Mendeley was listed by the Telegraph as one of Europe’s Top 100 startups. Why? Because Mendeley has built the largest crowdsourced research database available under a Creative Commons license. It now has over 1 million members,…
Is LegalZoom Just a Self-Help Legal Software Company?
04
Jul
In a Fortune Magazine blog post by Roger Parloff just last week, entitled Can Software Practice Law?, writing about the class action suit against LegalZoom in Missouri for violating Missouri’s UPL statute, Parloff argues that LegalZoom is no more than a self-help legal software company, and therefore entitled to the same protections as a self-help legal software publisher. The question of whether legal software constitutes the practice of law is a controversial one. When the Texas Bar won a suit against Nolo Press on the grounds that its WillMaker program constituted the practice of law, the Texas Legislature amended the UPL statute and further defined the practice of law as follows:
Texas Code, 81.101 (c) the "practice of law" does not include the design, creation, publication, distribution, display, or sale, including publication, distribution, display, or sale by means of an Internet Web site, of written materials, books, forms, computer software, or similar products if the products clearly and conspicuously state that the products are not a substitute for the advice of an attorney. This subsection does not authorize the use of the products or similar media in violation of Chapter 83 and does not affect the applicability or enforceability of that chapter.
No other state has passed such an exemption, but there is a well-established line of cases that supports the position that the publication of information about the law, as well as self-help legal books, divorce forms with instructions, and do-it-yourself kits is not the practice of law and protected by the First Amendment of the U.S. Constitution and may be protected by state constitutions as well. See, e.g., New York County Lawyers’ Ass’n v. Dacey, 21 N.Y.2d 694, 234 N.E.2d 459 (N.Y. 1967), aff’ing on grounds in dissenting opinion, 283 N.Y.S.2d 984 (N.Y. App. 1967); Oregon State Bar v. Gilchrist, 538 P.2d 913 (Or. 1975); State Bar of Michigan v. Cramer, 249 N.W.2d 1 (Mich. 1976); The Florida Bar v. Brumbaugh, 355 So.2d 1186 (Fla. 1978); People v. Landlords Professional Services, 215 Cal. App.3d 1599, 264 Cal. Rptr. 548 (Cal. 1989).
LegalZoom takes the position that it is no more than a self-help legal publisher and seeks to fall within this classification, as Roger Parloff argues in his blog post. This is also the position that Legal Zoom takes on its Web site and in its answer to the Missouri Complaint:
From the LegalZoom Web site:
"Is LegalZoom engaged in the practice of law?"
"No. LegalZoom is the latest and natural evolution of the centuries-old legal self-help industry."
"No jurisdiction prohibits the sale of software that generates a legal document based on a customer’s unique input. LegalZoom has never been prohibited from operating in any state."
"Should consumers be concerned about LegalZoom losing this case?"
"No. If LegalZoom is found to be engaged in the unauthorized practice of law in Missouri, then every guide and legal formbook in libraries and bookstores in the state would also be engaging in the unauthorized practice of law. These days, nearly all such books are packaged with computer software that works in a similar manner to LegalZoom. Just like with a Nolo Press® book or a preprinted form, LegalZoom customers have the ability to review and consider their legal form before committing to their purchase."
It is not possible to know how LegalZoom’s document technology actually works without further evidence. However, one can state with certainty that it doesn’t work like a true Web-enabled document automation technology which generates a document instantly from data entered into an on-line questionnaire that is presented through the Web browser.
Vendors of true Web-enabled document automation solutions, such as HotDocs, Exari, DealBuilder, WhichDraft and Rapidocs (our company) have document automation technologies that generate a document instantly after the user clicks on the submit button. Because LegalZoom’s technology seems to require a separate step that is executed off-line, it does not in my opinion, fit into the category of a Web-enabled document automation technology. [ For a more extensive discussion of Web-Enabled Document Automation as a Disruptive Technology, click here to download our white paper on the subject. ]
Instead, in the LegalZoom business model, as described by LegalZoom, a data file is created, reviewed by a legal technician, and then imported into their – document assembly application utilizing some form of import mechanism. It is not clear whether the document is fully-assembled until this second step takes place, and it’s a distinction that makes a difference.
If LegalZoom were just a legal software company, it is hard to understand why it needs over 400 employees to provide services to its customers, other than the fact that these employees are conducting professional reviews and providing real service support. For these services, LegalZoom receives a substantially higher price than if they were just selling a self-help legal form. See for example on the LegalZoom Web site, the 30-point review of wills conducted by LegalZoom’s "professional legal document assistants."
These more labor intensive, personal services makes LegalZoom a "service business" and not just a "legal software publisher" entitled to the First Amendment protections that are afforded to publishers.
Andrea Riccio, a Canadian lawyer who has commented about this subject, responds to some of the arguments that LegalZoom makes in its defense:
LegalZoom’s argument: "Typically, there is no interaction between the customer and the person reviewing the file."
Riccio’s response:
“The mere fact that the employee is granted access to the customer’s response is an interaction between the employee and customer.”
LegalZoom’s argument: "If there is an inconsistency, it is NOT corrected by the employee – instead, it is brought to the attention of the customer."
Riccio’s response:
“Whether it is the customer or the LegalZooM employee that physically changes the document is irrelevant. What is important is that it is the LegalZoom employee that has identified the inconsistency. That, in my opinion, goes beyond "self-help" and is an act of legal draftsmanship.”
LegalZoom’s argument: "no employee revises or corrects any portion of the customer’s self-created document."
Riccio’s response:
“Identifying inconsistencies or errors in another person’s document is in my opinion an act of revision and correction. Who physically makes the changes is irrelevant.”
It is for these reasons that LegalZoom was required to be licensed under California law as a registered and bonded legal document assistant (see footer LegalZoom Web site).
What is a Legal Document Assistant?
A "Legal Document Assistant", as defined by the California Business & Professions Code (Section 6400 (c)) is:
"Any person who is otherwise not exempted and who provides, or assists in providing, or offers to provide, or offers to assist in providing, for compensation, any self-help service to a member of the public who is representing himself or herself in a legal matter, or who holds himself or herself out as someone who offers that service or has that authority, or a corporation, partnership, association, or other entity that employs or contracts with any person who is not otherwise exempted who, as part of his or her responsibilities, provides, or assists in providing, or offers to provide, or offers to assist in providing, for compensation, any self-help service to a member of the public who is representing himself or herself in a legal matter or holds himself or herself out as someone who offers that service or has that authority."
This California statutory scheme is based on the idea that a non-lawyer can perform clerical support functions without violating the unauthorized practice of law statute in California. Only a few states have carved out this exception by statute (e.g., California, Florida, Arizona). Missouri is not one of them.
Could LegalZoom operate in California, where it is headquartered, without being registered with the state as a Legal Document Assistant? I think not.
This is the category that LegalZoom fits into, not “self-help” software.
Otherwise, I suppose Nolo, a California-based self-help legal software publisher, and other California-based legal software publishers that sell directly to the public, would have to be licensed in California as Legal Document Assistants!!! (See generally – http://en.wikipedia.org/wiki/Legal_document_assistant, for a more extensive discussion of what a Legal Document Assistant is, and is not.)
Just to be clear, I am personally in favor of both self-help legal software and paralegal-assisted document preparation services as a way of providing access to the legal system, and personally think there should be more choices for consumers. But my personal opinions are not the issue. The issue is:
“What does the law in the different states now require, and what can we do to change it if we don’t like it?”
It is becoming clear that LegalZoom’s defense strategy in the Missouri case is to associate itself with “self-help software”. I am sure that its well-financed publicity machine is already approaching bloggers and the business press to write stories about whether “legal software” should be prohibited or regulated, when the real issue is whether and under what conditions a legal document preparation service should be regulated, or immune from regulation.
Definitions of what is “legal self-help software”, and what is not, are critical for carving out safe harbors for innovation, particularly as legal software applications that are distributed over the Internet have potential for great impact and for providing access to the legal system for those who cannot afford full service legal representation.
For example, LawHelpInteractive, a non-profit pro bono support organization, with grants from the US Legal Service Corporation, has assisted in the creation of true Web-based document assembly Web sites in many states that provides free legal forms directly to consumers that can be assembled directly on-line.
LawHelpInteractive has generated thousands of legal forms during the past few years that are instantly available and free to consumers throughout the United States. No one is arguing that these Web sites constitute the practice of law.
Because of the wider reach of the Internet, Web-enabled legal software applications are actually more of a threat to the legal profession, than desktop software, and the opportunity for over-regulation remains ever present. I would regret the day that courts prohibit the sale of self-help legal software because it is the unauthorized practice of law.
However, stronger arguments can be made for protecting from regulation the distribution of legal software applications, than there are for exempting from regulation a "service business", so I maintain that confusing one category with another is dangerous and takes us down a slippery slope.
Whether or not LegalZoom provides a valuable service; whether or not consumers have been harmed by LegalZoom; and whether or not the company provides some form of legal advice are questions of fact for the Missouri jury, and beyond the scope of this post.
The question for the U.S. District Court in Missouri is whether, as a matter of Missouri law, LegalZoom’s document preparation service business constitutes the practice of law in Missouri, under the terms of the Missouri UPL statute.
I think it does. What do you think?
Publishers Attempt to Control the International Flow of Information: Read your license renewals carefully
20
Jun
The ARL Task Force on International Interlibrary Loan and Document Delivery Practices (chaired by James Neal, University Librarian at Columbia University) published a 29-page report this month this month outlining the isolatist position that publishing houses (like Elsevier, Wiley, etc.)…
What Every Lawyer Should Know About Document Automation
18
Jun
For years some law firms, but not all, have used some form of document automation in their law offices. Ranging from an MS Word macro to long standing programs such as HotDocs, as well as automated forms distributed by legal publishers such as Willmaker by Nolo, some law offices have incorporated some form of document automation in their law practices. Document automation of legal documents that are generated in high quantity by a law firm is an indispensable process for increasing law firm productivity and maintaining profit margins in an era of intense competition.
Legal Document Creation the Old Way
The manual process of cutting and pasting clauses from a master MS Word document into a new document, is a productivity process which is fast becoming out dated. It reminds me of the time before there were automated litigation support programs, and legal assistants would duplicate a set of case documents three or four times. The next step was filling one file cabinet with a set of documents in alpha order, filling another filing cabinet with a set of documents in date order, and finally, filling another filing cabinet with a set of documents in issue or subject order to enable "fast" retrievable of relevant paper documents. It took awhile, but almost all litigation lawyers now use automated litigation support methods.. This is not true of transactional lawyers, many of whom still use out-dated methods of creating legal documents, as if each legal document were a unique novel, poem, or other work of fiction.
Barriers to Change
An obstacle to wider use of automated document assembly methods, is typically the lawyer’s insistence on crafting the words in each clause to their own satisfaction. Because most lawyer’s do not have the requisite programming skill to automate their own documents, law firms by default will opt to use their own non-automated documents, rather than risk using the legal documents automated by an independent provider, because by definition the content of the documents is "not their own." As a result, many law firms do not even use desk-top document assembly solutions when the forms are published by an independent provider or publisher, remaining stuck using more time consuming and less productive manual methods.
Typically, when a law firm does use document assembly methods, a paralegal inputs answers from a paper intake/questionnaire into a document assembly program running on a personal computer. This results in the extra time-consuming step of inputting data from the intake questionnaire to the document assembly program, but it is still more efficient than manual methods.
Web-Enabled Document Automation
Now comes, "web-enabled legal document automation" methods." Web-enabled document automation is a process whereby the intake questionnaire is presented on-line to the client through the web browser to be completed directly.
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When the client clicks the "Submit" button the document is instantly assembled, ready for the attorneys further review, analysis, revision, and customization if necessary. The result is a further leap in productivity because the client is actually doing part of the work at no cost to the lawyer, freeing the lawyer up to focus on analysis and further customization of the document.
This is what the work flow looks like when using web-enabled document automation methods:
Unfortunately, lawyers have been slow to adapt to this process as well, because of their reluctance to use legal documents drafted or automated by someone else. However in order to automate their own documents they must either acquire the skill to do the job, or commit the capital to have a skilled professional automate their documents for them. For solos and small law firms these two constraints create formidable obstacles to using more efficient methods.
Since neither condition is common within smaller law firms (programming skill, investment capital), the result is that the law firm gets stuck using older less productive methods of document creation.
Vendors that provide web-enabled document platforms include, our own Rapidocs, and Exari, Brightleaf, HotDocs, DealBuilder, and Wizilegal, to name only a few, all claim that their authoring systems are easy to use, but I have yet to see lawyers without any kind of programming skill create their own automated legal documents in any quantity. Thus, law firms become stuck in a negative loop of their own creation which reduces productivity (and profitability) :
"My legal documents are better than yours; I can’t automate them for the web because I don’t know how; thus I will be less productive and be required to charge you more because of my own inefficiency."
Competition
In the consumer space, now comes the non-lawyer providers to take advantage of the solo and small law firm’s competitive disadvantage. Research by companies like Kiiac provide support the conclusion that 85% of the language in transactional documents is actually the same. In more commoditized areas, where legal forms have been standardized, the legal form content is 100% the same in all documents. Taking advantage of this consistency of legal form content, companies like LegalZoom, Nolo, CompleteCase, SmartLegalForms, and LegacyWriter , with their superior on-line marketing and branding machines, now sell legal forms by the thousands at low cost which provide a "good enough" legal solution for consumers who would do any thing to avoid paying the higher fees to an attorney.
Its true that the consumer doesn’t get the benefit of the attorney’s legal advice and counsel, and the accountability and protection that dealing with an attorney provides, but consumers don’t seem to care.
What can be done?
The "web-based legal document automation solution" , used by non-lawyer providers, is a disruptive technology that is eating away at the core business base of the typical solo and small law firm practitioner.
What can solos and small law firms do to compete in this challenging competitive environment?
The American Bar Association’s Legal Technology Resource Center reported last year in their Annual Technology Survey that only 52.2% of solo practitioner’s don’t have a web site. Even if this number is underestimated, it is shockingly low compared with web site utilization by other industries. If you don’t even have a web site, the idea of "web-enabled document automation" is still a "light year" away.
What can be done to encourage more wide-spread use of web-enabled document automation technology by law firms, particularly solos and small law firms? A follow-up post will explore some solutions, but I am open to ideas from anyone.
How Much is Legal Advice Worth?
25
May
One of the winners of TechCrunch Disrupt Hackathon is a new, yet to be launched, legal document web site called, Docracy, The idea is that members will contribute their legal documents to an open source site so that there would be a basis for comparison between "open source" documents and the document that the member needs for their business. The theory is that by comparing documents, with the document that the member has on hand, there would be a basis for comparison, resulting in an informed decision, without the cost or benefit of legal advice.
In this model, legal advice from an attorney is worth zero. The model is designed to eliminate the attorney from the transaction.
The idea was developed by mobile app developers Matt Hall and John Watkinson ,from Larva Labs, who were faced with signing an NDA with a client and were unsure of some of the terms and concluded that the cost of legal advice was either unnecessary or prohibitive.
This is another example of the resentment that the average consumer and small business person has towards the legal profession resulting in the rise of non-lawyer legal form web sites such as LegalZoom.
Another example of an open source legal document repository is Docstoc which we have used as a research source. It is useful for us, because as lawyers we understand what we are reading. I think simply accessing raw documents as a consumer would be a daunting exercise, although I am sure that many consumers and small business use the site.
The problem with any legal document web site as a source for creating binding legal documents is that the use of a particular clause may be rooted in case law in a particular jurisdiction.
Without understanding all of the implications of using particular language in an agreement, the "non-lawyer" moves into a danger zone, because he or she has no idea what they are signing.
A better alternative is a "self-help" book from Nolo that contains both legal forms and explanations of the implications of each clause, but that often involves reading and understanding a 300 page book, which is beyond the attention span of most consumers.
Another solution is an automated document with extensive help screens that explain the implications of choosing one clause over the other.
A third alternative, is to purchase "unbundled and limited legal services" from an on-line law firm for a fixed price with legal advice bundled into the transaction. In that case you get a certain level of accountability and guarantee that the legal advice is correct for the user’s individual situation.
See for example the firms listed at DirectLaw’s legal document portal , where you can access legal forms for free, or forms bundled with legal advice for a fixed fee.
You don’t get legal advice from a legal forms web site or a LegalZoom for that matter, which can be a major limitation depending on the complexity of the document or the transaction. Without annotations that explain the significance of particular language in an agreement, the non-lawyer is stumbling around in the dark.
Nevertheless, I don’t doubt that consumers and small business will find this a popular site, despite its limitations. Caveat emptor!
Nolo Announces Law Office Concept for Members of its’ Law Firm Directory
26
Apr
Nolo, the leading self-help legal publisher in the United States, launched a Law Firm Directory several years ago. I have listed my virtual law firm in this Directory for several years and found that it yielded pretty good results for the amount of money invested as the Nolo web site is a high traffic web site that attracts consumers looking for a lower cost way of getting their legal problems resolved. Since my law firm offers "unbundled legal services for a fixed price online" it is a perfect fit for the Nolo Lawyers Directory.
Nolo recently announced their concept of the Nolo Law Office which brings even more value to a law firm listing in the Nolo Law Firm Directory. This may sound like a commercial, but it isn’t. I just wanted to share the information about this high value concept that is a great complement to law firms using not only our DirectLaw Virtual Law Firm Platform, but other law firms delivering legal services online, as well as law firms that have a more traditional office-based practice.
If you sign up for the Nolo Law Firm Directory, you also get these goodies:
- Your website is linked to Nolo’s website which can contribute toward enhancing your firm’s visibility on the Internet.
- You get priority placement on Nolo’s partner lawyer directories which include: the Justia Lawyer Directory; the LLRX Lawyer’s Directory, Cornell University Lawyer Directory, and the Oyez’s Lawyer Directory.
- Up to 15 Nolo articles are licensed free of charge which you can published to your web site. This is excellent content that, if selected carefully, can add to a law firm’s web site.
- You can access over 300 fillable Adobe .pdf forms which can be used internally in your practice. These forms are not web-enabled in the sense that they can be completed by a client using an online questionnaire, but they are very useful as an adjunct to the range of document products you can offer. For example, a law firm using the DirectLaw platform can upload a fillable .PDF to the client’s secure MyLegalAffairs web space and the form can be sold bundled with legal advice through DirectLaw’s ecommerce functionality that supports non-Rapidocs forms and documents.
- You can access 160 ebooks available for download at no additional charge. This effectively gives you an in-house law practice library for free. Almost the entire Nolo catalog is available for a free download.
- You have unlimited use of Nolo’s OnlIne Will and Living Trust Applications that can also be used internally. These applications are not client facing, like the DirectLaw web-enabled automated document applications, but they can be used effectively internally. (Nolo does offer these applications directly to consumers).
- Finally you have use of the web-based MYCASE Law Practice Management System. This gives you a law practice management system essentially for free, the same kind of system that other vendors charge $49.00 to $69.00 a month (for solos practitioners). This is a new company that has entered the SaaS law practice management industry and competes with the likes of CLIO and RocketMatter. I haven’t done a detailed comparison of MYCASE with other SaaS practice management solutions, but its certainly worth evaluating because it is free to subscribers of the Law Firm Directory.
The fees for listing in the Nolo Lawyer’s Directory vary by practice area and territory, so I would experiment to see what combination has the highest return on investment. Having access to the Nolo Law Office concept is a real bonus that gives the entire package real value for even the smallest law firm.
Legal Forms New Zealand
04
Apr
Legal forms New Zealand – legal articles, acts of parliment and resource links, Essential information for NZ legal document needs.
Keane Memorial Award for Excellence in eLawyering Goes to Orange County Legal Aid
24
Mar
The James I. Keane Memorial Award for Excellence in eLawyering for 2011 is going to the Legal Aid Society of Orange County for their Legal Genie Project, reports the eLawyering Task Force of the Law Practice Management Section of the ABA, the group that makes the Award.
James Keane was the first appointed Chair of the group, and passed away tragically from cancer six years ago.
Bob Cohen is the long time leader of Orange County Legal Aid, and provided the leadership for this Project.
This project combines the use of advanced web-enabled document automation technology to generate Chapter 7 and Chapter 13 documents, as well as California divorce pleadings. It is unique because it involves a network of lawyers who provide legal advice, document review, and other assistance to clients who use the program. The use of Internet technology makes it possible for the lawyers to be involved, and to also get paid a fee, because the entire transaction is made more efficient. The lawyers who participating get the benefit of the Legal Aid brand, and the marketing that results from promoting the project.
The Project demonstrates how a vertical branded network of attorneys, empowered by a robust technology platform, can provide legal services at an affordable fee to individuals who could not normally afford a lawyer.
This is from the Legal Genie website:
“Legal Genie is a simple, affordable and reliable online service created by Legal Aid Society of Orange County. It is designed for people who do not qualify for legal aid and cannot afford the services of an attorney. It asks simple questions and puts answers on the forms in the correct place.
"Legal Genie is different from other services because it connects you to a licensed attorney on our Lawyers Referral Service panel. The LRS attorney will give you telephone consultations, review your documents and give you legal advice. Legal Genie combines the magic of technology with the help of a professional at a price you can afford.”
The formal granting of the Award will be on April 12, 2011, at a Lunch for all of the attendees of ABA TECHSHOW in Chicago, Illinois at the Hilton Hotel.
LegalZoom is Considering an IPO
22
Mar
Apparently LegalZoom is in the early stages of planning an IPO, (going public), according to an unnamed source at VentureBeat. Employing more that 500 employees, and having raised over $45 million in venture capital over the last few years, LegalZoom is clearly the leading non-lawyer legal document preparation web site. This is a good example of a disruptive innovation in the delivery of legal solutions by a non-lawyer provider that continues to eat away at the market share of solo practitioners and small law firms.
Focusing on a market that is not served well by the legal profession, in the same way that Southwest Airlines first targeted people who traveled by bus, rather than by air because air travel was too expensive, LegalZoom is will undoubtedly figure out a way to move up the value chain, capturing even more complex business from law firms, without actually giving legal advice.
In the United States, because the definition of what constitutes the "unauthorized practice of law" is so vague. (perhaps unconstitutionally vague), it would seem that even though LegalZoom does not actually provide legal advice, it would be prohibited from assembling legal documents, even when the document assembly is purely software-driven.
The reality is that bar associations have a tough case to make against a non-lawyer provider when no actual legal advice is given. UPL statutes haven’t been truly tested on the issue of whether a non-lawyer can assemble legal documents without actually giving legal advice. In Florida, when the issue came up, there was a compromise between the bar and non-lawyer providers and non-lawyers can help a consumer complete court forms as long as no legal advice is provided. It gets murky when you move beyond courts forms, to more complex transactional documents such as a will, a living trust, or a marital separation agreement, even if the user is making the selection through a software driven questionnaire. Some UPL advocates, have argued that the selection of alternative clauses is still UPL, because a person had to "program" the clauses. There is some precedent for this position, but the State of Texas on the other hand, specifically excludes software driven document assembly from the "unauthorized practice of law., provided there there are disclaimers which state "clearly and conspicuously that the products are not the substitute for the advice of an attorney."
I think the risk portion of the prospectus will make for fascinating reading, particularly since in many states UPL is a felony. I can just visualize this language: "Investors should be aware that the company may be violating unauthorized practice of law statutes in many states, and as a result, if convicted, one or more executive officers may be required to serve time in the pokey."
In the interest of full disclosure, Epoq US, of which I am President, and which is the parent company of DirectLaw, also provides legal document preparation services over the web directly to consumers through a network of legal web sites So perhaps I should be worried as well.
