Defining the Virtual Law Firm

Jay Fleischman, who authors the LegalPracticePro Blog, recently had a blog post where he wished "Death to the Virtual Law Firm." His problem is not with the idea of lawyers practicing law over the Internet, but that the term "virtual" is confusing because it connotes that the lawyer really isn't present. In reality, the virtual lawyer is very present as the producer of legal services, perhaps even more so than a traditional lawyer, because there is the potential for 24/7 accessibility.

He argues that this term confuses the consuming public and potential clients.

In my opinion, the idea of a "virtual law firm"  is becoming a way of describing a law firm that delivers legal services in a new and innovative way. The average consumer whose purchasing behaviour  has changed because of the proliferation of non-lawyer web sites on the Internet, such as LegalZoom, understands very well that when a law firm uses the terms, "virtual" or "online" that the firm is offering a service that is often more reasonably priced, more convenient to use, and often delivered at a faster response time than is usual.  Our market research shows that when consumers see the term "virtual law firm", that it means that a law firm is willing to offer legal services in a non-traditional way, usually  "unbundled legal services," and at a fixed price.

Sometimes a term moves into common usage with unanticipated consequences and a different meaning than its common meaning.  For law firms offering online legal services, this is a way for them to differentiate themselves from law firms that offer legal services in a traditional office setting who eschew digital methods.

It is a marketing message that is powerful, because at the present time there are very few lawyers who have learned to harness the power of the Internet to increase their productivity and keep their prices affordable. "Virtual lawyering" communicates a message to consumers that this is not your "grandparents" law firm.

I doubt that consumers think that a virtual lawyer is someone who is just an avatar in http://www.secondlife.com. At some point in the future, delivering legal services online will become common. At the present time it is not, and the online law firms, that use this moniker, are trying to differentiate themselves from from the rest of the pack. There are very few law firms reaching out to the broad middle class with affordable legal services and too few law firms using the Internet as a platform for the delivery of legal services. "Virtual law firms" represent a new category of law firm that are reaching out to a "latent" market of consumers with a new value proposition.

Because the method of delivering legal services over the Internet is shaped by technology, and the underlying technology needs to be carefully examined and evaluated in terms of whether legal services delivered online are ethically compliant, it is useful to be able to treat this activity as a separate category, at least for the purpose of discussion.

Perhaps in the future, lawyers who deliver legal services over the Internet will refer to themselves as "digital lawyers", or "Online Lawyers", and these terms will become synonyms for "virtual lawyers".  For now, the label, "Virtual law firm" and "Virtual lawyers" is a useful way of framing this emerging activity so its benefits and deficiencies can be further examined. Without precision in definition, it is easy for any lawyer who works from home, and who never sees a client face to face, and who simply uses email, to call themselves a "virtual lawyer." 

I think that the Wikipedia definitions of a "virtual law firm" and "elawyering" , are useful as a starting point for understanding this new category of law firm. The only way to advance the "state of the art" is to recognize that the Internet as a platform for the delivery of legal services is something unique that requires careful examination and assessment. That exploration doesn't get very far if we simply lump all law firms into the same category.


 

Analyzing LegalZoom's Advertising Practices

There is a blog post at For Connecticut Lawyers which analyzes LegalZoom's deceptive advertising practices that are designed to persuade consumers that purchasing legal documents from LegalZoom is the same as a service from an attorney. The post examines the hidden nature of the disclaimer notice that LegalZoom cannot give legal advice, and questions what "Put the Law on Your Side" - [ Legal Zoom's tagline] means when proclaimed by a non-lawyer, legal document preparation services organization. Since LegalZoom's staff members cannot provide legal advice  when they review a document one could ask the question:  What they really do and what justifies the relatively high cost of a LegalZoom's services? How are LegalZoom's services different from a legal form that is purchased from an on-line legal form web site such as US Legal Forms, which are available at much less cost?

eLawyering Task Force Conference Call

For those of you who are members of the eLawyering Task Force of the Law Practice Management Section of the ABA, this is reminder that there is a Task Force Conference call on January 9, 2009 at 10:00 A.M.

Our agenda includes a discussion on standards and best practices for elawyering and delivering legal services online.

Members of the American Bar Association, who wish to become members of the Task Force should contact Marc Lauritsen, Co-Chair of the Task Force at marc@capstonepractice.com directly. In order to be eligible for membership you also have to be a member of the Law Practice Management Section of the ABA. 

 

The End of Lawyers? Rethinking the Nature of Legal Services

 Richard Susskind's new book, The End of Lawyers?: Rethinking the Nature of Legal Services was just published by Oxford University Press, in the United Kingdom. I received a copy from my associates in London today, and US distribution should begin within 10 days.  For law firms thinking about the future of the legal profession, this book should be mandatory reading.

Susskind sees the legal market as “broken.” Access to justice is available only to citizens who are very poor or very rich. The cost of dispute resolution in the courts often exceeds the amount at issue. Small businesses invariably claim that mainstream legal services are beyond their budgets. And even the world's largest companies and financial institutions are seeking radically new ways of meeting their legal needs.

Susskind argues that, in this time of grave economic uncertainty, the market will no longer tolerate traditional, expensive lawyers who handcraft tasks that can be better discharged with the support of modern systems and techniques. He claims that the legal profession will be driven by two forces in the coming decade: by a market pull towards the commoditization of legal services, and by the increase of disruptive, Internet-based technologies. The threat here for lawyers is clear - their jobs may well be eroded or even displaced.

Susskind challenges the legal profession to ask what elements of their current workload could be undertaken more quickly, more cheaply, more efficiently, or to a higher quality using different and new methods of working. Susskind argues that if automation can streamline certain legal tasks and that the market will forces lawyers to adapt to the "digitization"  or they won't survive.

I am still working my way through this important book, so will have more to say in future blog posts when I finish it.

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