How to Operate a Virtual Law Office and Deliver Legal

Services Online

Overview – Part I

Terminology

Technology

Ethics Issues

What is virtual law practice?

A virtual law office is a professional law practice that is located online through a secure portal and is accessible to both the client and the attorney anywhere the parties may access the Internet.

Other terminology: virtual lawyering, VLO, virtual law firm, web-based or web-enabled law practice, online law practice, delivering legal services online.

eLawyering

eLawyering is “all the ways in which lawyers can do their work using the Web and associated technologies. These include new ways to communicate and collaborate with clients, prospective clients and other lawyers, produce documents, settle disputes and manage legal knowledge. Think of a lawyering verb – interview, investigate, counsel, draft, advocate, analyze, negotiate, manage and so forth – and there are corresponding electronic tools and techniques.” – Marc Lauritsen, co-chair, ABA eLawyering Task Force

What virtual law practice is not

Virtual law practice is not :

an online website that sells legal documents without attorney review, such as LegalZoom and other web-based companies selling online legal forms

a law firm website with an email “contact us for a free quote” form for prospective clients

communication by email even if sent through a law firm’s website a rented physical office that may be shared with other

professionals along with a receptionist service VPNs, extranets and other services, such as GoToPC and

LogMeIn a conglomeration of attorneys in remote locations pooling

resources and communicating over the Internet a law practice based in a virtual reality world, such as Second

Life

How Attorneys Use Virtual Law Offices

Completely Web-based Unbundled or limited legal services

Integrated into a traditional law office Unbundled and full-service

As a transition method to allow them to continue to practice law while meeting other personal and professional needs: To raise families To care for ill spouses or aging parents To ease into retirement After layoffs, to start a solo practice or work while

searching for another legal job

Traditional Firm w/Virtual Law Office

Web-based

Unbundled Legal Services

Multijurisdictional Virtual Law Firm

Is there a market for this?

During March, 2010—one month alone—an estimated 535,000 people in the US searched online seeking legal solutions through the Legal Zoom website.

E-commerce trends increasing Increase in consumers looking for Legal Zoom

and other DIY online legal services options

Serving Your Clients

● Your clients are ready. They shop, bank, conduct business, and pay their credit cards and taxes online.

● Be prepared for your future clients: the “Digital Natives”

Why is Virtual Law Practice Important?

For the Public Greater access to justice Court systems and non-profit legal aid organizations already rely on

cloud computing methods to deliver legal services online Affordable and accessible legal services for lower and moderate

income individuals Pro-se litigants Pro bono opportunities

For the Legal Profession Tech streamlines and automates the workflow allowing the attorney to

focus on practicing law Prevent malpractice through automated checks and processes Lower overhead, less office waste, eco-friendly Expanded client base, competitive advantage Better quality of life through work/life balance and flexibility

The Technology: Software as a Service (SaaS)

SaaS is one form of cloud computing. Practicing law “in the cloud.” Most traditional firms already use some form of SaaS

Lexis/Westlaw research, email, search engines, Google apps, Skype, etc.

The technology used to create and maintain the virtual law practice is handled through a secure, third-party hosted system.

Not to be compared to ASPs of the late 1990s now designed to work cooperatively in a network

environment rather than in line with the goals of PC software as it used to be

affects the way IT professionals and the industry think about their users, resources, and security

Benefits of SaaS

Security Regular data backups, geo-redundancy of servers Level of security at a Tier4 Data Center is far greater than the resources a

typical law office could afford for security of law office data. Data stored on the server is encrypted, same high level of security used by

banking and government institutions

Time saving No in-house software installation Access to data anywhere the attorney may securely access the Internet Regular software updates and new features added without disturbing the

workflow (and typically at no extra cost)

Economic Lower overhead costs Less expensive than paying for software, storage, and server hardware and

having to run it internally with or without hiring an IT professional for the office

Streamline your practice for greater efficiency

Risk of Using Piecemeal SaaS Apps

Security LevelEncryptionSecure transmissionWho has access?

Ethics/malpractice concerns unique to attorneysConfidentialityPrivacy

Record keeping/consistency

Data return and retention policies

Offshore servers

Current SaaS Products

SaaS products designed specifically for attorneys vs. piecemeal apps.

Some Sample Legal SaaS products: AdvologixPM Clio DirectLaw LawRD Lexbe Rocket Matter VLOTech/Total Attorneys WiziLegal

Online Document Assembly & Automation

Automating document assembly for online clients

Intuitive online forms

Purchased directly by the client after attorney review or in conjunction with additional legal advice

Online Case & Client Management

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

Backend online law office with case and client management

Other law practice management tools

Ethics Concerns

UPL Establishing the Online Attorney/Client

Relationship Defining the Scope of Representation

Conflict of Interest Authentication of Online Client’s Identity Conflict of Laws Competency Confidentiality of Client Data

Safeguarding Client Property See North Carolina 2008 Formal Ethics Opinion 5, “Web-Based

Management of Client Records” (July 18, 2008) Online Payments

Mitigating the Risks

It is the responsibility of the attorney operating a virtual law office to do the following: Make the determination on a case by case basis:

Can I competently handle this legal matter online or does it require in-person representation?

Understand the technology and the security risks Implement daily best practices for use of the technology

Many of the risks are similar to the ethics and malpractice risks seen in a traditional law practice. However, here the risks may be decreased through the use of the checks and processes built into the technology.

Avoiding Malpractice

Conflict of interest checks Online and offline clients

Jurisdiction checks Confidentiality of Client Data – SSL, end-to-end

encryption Accepting online payments

PCI Compliance Retainers – Trust Account Rules

Calendar and Ticker System Metadata Electronic Discovery Daily Best Practices

Overview - Part II

Choosing the Structure

Startup Costs and ROI Analysis

Choosing a Technology Provider

Launching your Virtual Law Practice

Step One: Choose a structure

Decide what features of your law practice to take online. Completely web-based or integrated into a traditional law

firm structure? Working with clients?

Unbundling/limited legal services Online client base to generate additional revenue or as amenity for

existing in-person clients Document storage? Document assembly? Collaborating with other attorneys/virtual assistants? Administrative tasks?

Calendaring Case and Client Management Time and billing Invoicing Accounting

Unbundling Legal Services

Break out tasks associated with a legal matter and provide the client with only specific portions of the legal work

Clearly define for online client the nature and scope of unbundled legal services – what will and will NOT be covered

Provide comparisons/education

Step Two: Choose the Tech

Know your own comfort level with technology How quickly can you learn new technology? Can you set and abide by your own security practices

for the daily use of the tech to protect your clients (and yourself from malpractice)?

Consider the ROI of the product How much will it save in time and law office

resources, overhead? Will it help to generate additional or new client

revenue?

Step Three: Research the Provider

Data return and retention policies Backups

▪ Are there export features and/or offline versions of the software (if you need these)?

Server locations and geo-redundancy Third-party hosting Response time/customer service Confidentiality of law office data

▪ Who has access?▪ Government and civil search and seizure actions▪ Breach of confidentiality – unlimited liability for data

breaches? Infrastructure to support growth Transferring Data/Compatibility Issues Costs – Subscriptions, what is included

Start-up Basics

Select URL name Register with State Bar

Development of VLO Website Integration & customization of client portal into

website Drafting Terms and Conditions, Disclaimers, Privacy

Policy, establishing online response policies, etc. Select third-party credit card processing company for

online payments Decide how to unbundle, offer fixed fees, billable hour

or combination of billing methods Create Partnership Agreements or Fee Structures if

applicable

Obtaining Malpractice Insurance

Be prepared to educate Ask about discounts for use of technology Read through the exclusions Consider total loss based on structure of practice Firm or partnerships coverage Hardware What may not be covered

Budgeting a Virtual Law Office

Website CostHardware CostSoftware CostMinimal need for office suppliesMarketing budgetCreate a fluid business plan

Virtual Paralegals/Assistants

Keep digital records of instructions to VA

Compliance with Rule 5.3 – Management of Non-lawyer assistants

Nondisclosure and security issues

Marketing the Virtual Law Practice

Your website is your front door.▪ Design must-haves from perspective of:

▪ Complying with Professional Responsibility Rules ▪ Creating an effective Marketing Strategy

▪ Free Methods▪ Consistency of image▪ Dedication of time

Online Social Networking & Using Social Media▪ Public▪ Law-related▪ Establish a policy

Future Innovation

Features of a virtual law practice will continue to expand beyond what currently may be imagined. The core function of a virtual law practice should remain the

same - the ability to securely deliver legal services and work with clients and other legal professionals online through an online client portal.

The growth of online legal services is largely consumer-driven. The legal profession should step up to meet this need or

the public will continue to use methods that are not safe or in their best interest to acquire online legal services.

In order to stay competitive and to address the needs of

clients, most firms will need some form of virtual component in the next five to ten years.

Contact Me

Email: slk@kimbrolaw.com

Blog: www.VirtualLawPractice.org

Book: Delivering Legal Services Online, ABA Publishing, Coming August 2010