2010 ABA Legal Technology Survey Report on E-Lawyering: Questionable Data

Volume IV of the recently released 2010 ABA Legal Technology Survey Report is devoted to Web and Communication Technology. A section on E-Lawyering reports that 14% of Respondents over all, and 19% of solo practitioners, report that they have a virtual law office or virtual law practice. This question in the survey that deals with with the question of whether a law firm has a 
"virtual law practice" was framed in terms of whether the attorney primarily interacts with clients using Internet-based software and other electronic communications software.

In my opinion, these self-reported responses from attorneys are not meaningful and are much too high to be accurate. The reported numbers are not useful in understanding where the legal profession is in terms of adopting the concept of a "virtual law practice." The reality is that the adoption rate is much lower.

The ABA Law Practice Management Section's eLawyering Task Force (disclosure: I am Co-Chair of the eLawyering Task Force),  defines a "virtual law practice" as one that offers to its clients a secure client portal, as part of the law firm's web site, where the client can log in with a user name and password, and interact with their attorney, as well as consume other online legal services. A virtual law practice is more than simply communicating with clients by email and never meeting with clients face-to-face. In order to have a "virtual law practice" by our definition,  you have to have a web site and a portion of that web site has to be dedicated as a secure portal for clients. Without this distinction, many law firms can claim that they are "virtual law firms" simply because they use email extensively, as the ABA Study seems to imply, giving the impression that integration of Internet technologies as part of their legal service delivery system is much higher than it actually is.

For example, in another question, the survey participants were asked whether the firm has a web site. The solo practitioner group responded that only 52.1% had a web site, but this is the same group that responded that 19% has a "virtual law practice."  By our definition, if you don't have a web site you don't have a "virtual law practice." The only explanation for the discrepancy in these numbers is that the question of " Do you have a virtual law practice?" was phrased so broadly that more law firms where included in the category than should be.

Another question that was asked to determine what kinds of online legal services were offered by the firm was: "Does your law firm offer online document preparation?" 11.4% of solo firms reported that they did. Again this number doesn't make any sense. There were 149 respondents in the Solo category. Only 52.1% actually had a web site, or 77 firms had a web site from which online document preparation could be offered. 11.4% would suggest that only approximately 8 law firms could offer this service. Not only is this number too small to make any meaningful projections in terms of the total number of solo practitioners in the US (more than 400,000), but it is also likely to be misleading. Here's why:

The technological options for offering online document assembly for solo practitioners are very limited. One option is to provide fillable Adobe . pdf forms. But you can't easily use a fillable Adobe .pdf to create a text document such as a Will or a Shareholder's Agreement. The major document assembly vendors such as HotDocs, DealBuilder, and Exari have systems that support online document assembly but the price for licensing these systems is much too expensive for the average solo practitioner. Wizilegal, a new entrant to the field, provides a new low cost web-enabled document assembly solution, but our market information suggest that they have only a small number of users. (Disclosure: DIrectLaw, which sponsors this blog, is one of the few web-enabled document assembly solutions that is offered at a price that a solo practitioner can afford.)

In short, the question about the use of online document assembly should have been phrased much more narrowly, with a field in the questionnaire that would require that the law firm indicate what platform is being used to support online document assembly, and whether it is a third party vendor, or whether the programming was done in-house. My sense is that if the question were asked properly, the number of law firms offering online document assembly would be much lower than actually reported.

Finally, 3% of respondents report that their firms offer expert system on their web sites (compared with 1% in the 2009 survey), including 7% of the large firm respondents. Based on our surveys of law firms from solos to large law firms, this percentage seems very high to me. It is very rare that I come across a law firm web site that actually offers an "expert system" for use by its clients, and I review or check out literally thousands of law firm web sites a year.  Most lawyers don't even know what an "expert system" is! I would like to see a more precise question, where the respondent is required to name the kind of "expert system" they are offering and the url of the web site where it is offered, so that a reviewer could more closely examine what the law firm represents they are doing is in fact the case.

I think that it is commendable that the ABA Legal Technology Resource Center now has a separate section of its annual report just on web and communication technology. The platform for the delivery of legal services is gradually shifting from traditional face-to-face office practice to the Web, but my sense is that the the pace of adaptation is much slower than is being officially reported. This is understandable in a profession that views its core identity as one where clients are dealt with primarily face-to-face. 

On the other hand, our own research on consumer preferences suggests that more than half of consumers would like their law firm to have an online virtual component. Thus, the legal profession continues to lag behind what other service industries offer to their clients and customers online.

 

 

Free Version of DirectLaw Now Available

As many of you know who have been following this blog, DirectLaw is a client portal that enables a law firm to offer online legal services. It is not designed as a cloud-based practice management system, such as timekeeping and billing which we view as "back-office" functions, although DirectLaw still incorporates many practice management features. The purpose of the client portal concept is to enable the law firm to work with a client online, rather than just by telephone and face-to-face, and in ways that are powerful than simply using email.

This week, we launched a Free Version of DirectLaw.  We call it "free" because there is no monthly subscription charge, but there is a $99.00 set-up fee to cover our costs in activating a new account.

This is a fully operational platform that includes all of the virtual law platform features except web-enabled document automation and our state specific libraries of legal forms and documents.

Here is what you can do with the "DirectLaw Free Version":
 

  • Legal Advice by Phone, E-mail and Web Cam.  Sell any or all of these services on a flat fee basis.  You set the pricing.
  • Legal Document Review.  Offer review services and provide advice for existing documents or forms.  Example:  "I purchased a will from LegalZoom.com, and need an attorney to review it."  You quote a fee based on the complexity of work.
  • Legal & Court Coaching.  Another legal advice service you can offer on a flat fee basis.
  • Online Collaboration Features.  Share and store documents.  Communicate with clients online.  Secure, archived and accessible 24/7.  Works great for existing/traditional clients, as well online clients.
  • Calendaring.  Publish important, upcoming dates/events.  Includes an automatic reminder feature.
  • Legal Resources.  Publish client-relevant legal information/links.  Information is accessible via the "client space".
  • Attorney Dashboard.  Manage all client-related data; communications; selection/pricing of legal services, etc.
  • MyAccount. Stores client contact information.  Information is downloadable to Excel spreadsheet format.
  • Integrated Credit Card Processing.  Accept online credit card payment for online legal services.
  • Legal Invoicing.   Bill clients via the "client space".  Easy, convenient way to offer online credit card payment of legal invoices.  Works great with existing/traditional clients and for online clients where work beyond the scope of limited services is necessary.
  • Rapidocs Solo, our Rapidocs document authoring system, is also included, so you see if you can automate your own documents.

The DirectLaw Free Version is to be distinguished from the Free Trial, which is not a fully operational version and is simply a "sandbox" which lets you play around with the DirectLaw features. You can convert from the Free Trial to the DirectLaw Free Version at any  time, and you can upgrade from the DirectLaw Free Version to Levels I, II, and III at any time. Click here to see the differences between the three levels of service and the different levels of pricing.

We decided to introduce the concept of a Free Version with the idea of accelerating the adoption of virtual law firm concepts by solos and small law firms. Our marketing data, based on analyzing Google Key Word popularity in this market space, such as "virtual law firm," "online legal services", and "virtual law firm,"  shows a relatively low hit rate compared to other trends in the law firm technology market space. We will provide more details of this analysis in a later post. What it says to me is that the number of lawyers, particularly solos and small law firm lawyers, who are simply just interested in learning more about the"virtual law firm" concept is a very low percentage of the total addressable market. This is typical of the way in which the legal profession adapts to new technology - - very slowly. Thus we think the concept of a "Free Version" of DirectLaw can be an important learning tool for lawyers who are interested in moving their law practices onto the Internet. By making this proposition a "no-cost" experiment, law firms can witness first hand how operating on the Internet can enhance their law practice and increase law firm productivity.

The Kre8tive Law Group Launches First DirectLaw Virtual Law Firm in Canada

The Kre8tive Law Group, managed by Solicitor Andrea Riccio in Calgary, Alberta, has become Canada's first virtual law firm using DirectLaw's virtual law firm platform. The firm offers "unbundled legal services" to both individual and small business clients.

Clients can:

  • buy completed legal documents together with legal advice
  • pay for legal advice at a fixed price
  • communicate with a lawyer on a secure basis
  • upload documents received from other parties for our review
  • archive copies of their completed documents

Solicitor Riccio said that he thought that it was important to provide a virtual law firm presence for web savvy clients and clients who wanted to work with their law firm over the Internet.  Riccio said that "our fixed price approach is appealing to clients who want to be able to control their legal expenses."

Kre8tive Law Group was founded in 1994. Andrea was admitted to the Ontario Bar in 1990 and practiced for a Bay Street firm in Toronto, Canada, working primarily on commercial real estate transactions, eventually becoming a partner of the firm. He was called to the Alberta Bar in 1994 and gained extensive experience in a broad range of corporate and commercial matters through his association with a local Calgary firm. His belief that "better people make better lawyers" led him to found Riccio Law. He also provides pro bono legal services to numerous non-profit organizations including the Italian-Canadian community at a local, regional and national level. He previously served as a national director of the National Congress of Italian-Canadians Foundation and President of the Calgary Italian Club.

New DirectLaw Virtual Law Firm Features Released

It has been a very busy summer at DirectLaw. We are constantly adding features to our DirectLaw Virtual Law Firm Platform. Sometimes new features are suggested by our growing network of DirectLaw law firms; often one of our staff gets a good idea and we push it out to the Platform to see what kind of response we get from consumers and our client law firms. The nature of a SaaS (Software as a Service) offering, like DirectLaw, is that we can can modify and enhance the platform at any time and all law firms in the network benefit immediately. Our clients don't  have to wait until "the next quarterly software release."

Here are some of the recently features that have been added to the DirectLaw Virtual Law Firm Platform:

June 17, 2009 - New virtual law firm platform for consumer bankruptcy attorneys released. Click here for more information.

July 13, 2009 DirectLaw Workspace™. brings the benefits of web-enabled document automation for clients who are not online by enabling law firms to use our web-enabled document automation system for regular office-based clients.  

July 29, 2009 - A new "collaboration" function that enables law firms to communicate and collaborate securely with their clients over the Internet. Click here for screenshot.

August 5, 2009 - We installed a new "billing" function that enables law firms to bill clients online for traditional legal services and supports online bill payment by clients through their MyLegalAffairs page. Click here for screenshot.

August 20, 2009 - Today we released a new user friendly design for the Legal Services Page ,  which is now available to all law firms in the DirectLaw network of law firms. Each legal service offered by the law firm now appears on a separate tab, with detailed explanations of the scope of the legal service. Legal services offered by the law firm can be added or deleted and the fees charged increased or decreased at any time by the individual law firm using the Attorney Dashboard - the Administrative area that the law firm uses to manage their virtual law firm platform.