Legal Cloud Computing Association Publishes Responses to ABA, North Carolina State Bar

The Legal Cloud Computing Association (LCCA) has published responses to proposals issued by the ABA Commission on Ethics 20/20 and the North Carolina State Bar regarding the use of cloud computing within a law practice.

The Legal Cloud Computing Association ("LCCA"), formed in December 2010, is the collective voice of the leading cloud computing software providers for the legal profession, consisting of Clio (Themis Solutions, Inc.), DiaLawg, LLC, DirectLaw, Inc., NetDocuments, Nextpoint, Inc., RealPractice, Inc., Rocket Matter, LLC, and Total Attorneys, LLC.

Response to ABA Commission on Ethics 20/20

The LCCA’s letter to the ABA Commission on Ethics was issued in response to the Commission’s Initial Draft Proposals on "Technology and Confidentiality" published on May 2, 2011. The Proposals include certain modifications to the ABA Model Rules of Professional Conduct that are designed to facilitate the responsible adoption of technology that will increase the quality, and reduce the cost, of legal services.  The Proposals were issued as part of a process initiated in early in 2010 where the Commission published an Issues Paper requesting comments and feedback from the legal community.

The LCCA fully supported the Commission’s Proposals, and concluded that the Commission 's recommendations provided a reasonable framework the would enable law firms to make infomed decisions about using cloud computing resources.

Response to North Carolina State Bar Proposed 2011FEO6

The LCCA’s letter to the North Carolina State Bar pertains to Proposed Formal Ethics Opinion 2011FEO6. The Proposed FEO attempts to address the ethical issues relating to the use of Software-as-a-Service or cloud computing within a law firm environment.

While the LCCA supported the NC State Bar’s efforts to provide clarity on the use of cloud computing, the Proposed FEO as written would negatively impact a broad scope of attorneys from those who do nothing more than use a web-based email client or conduct online legal research to those that do full scale online delivery of legal services.

The onerous requirements of the Proposed FEO, detailed in full in the LCCA’s response to the NC State Bar, would force many cloud computing providers to withdraw from the NC market entirely, thus negatively impacting the technological capabilities and competitiveness of NC-based law firms.

Unlike the recommendations of the ABA Ethics 20/20 Commission, the draft North Carolina bar opinion, as it stands, is likely to have a negative impact on the use of cloud computing resources and applications by law firms in North Carolina. One result is that North Carolina's law  firms, particularly solos and small law firms would be handicapped when competing with law firms from other states.

We are hopeful that the revised opinion will be more compatible with the recommendations of the ABA Ethics 20/20 Commission.  Why is it necessary for each state bar to have their own set of guidelines in this area, when the companies that offer cloud computing services operate nationally?


North Carolina Bar Ethics Starts Inquiry into "Cloud Computing" for Law Firms

The Ethics Committee of the North Carolina Bar, in response to an inquiry from a law firm, is assessing whether a law firm can utilize "cloud-based" legal applications where client and other law firm data is stored on the Internet.  It could result in a determination that law firms in North Carolina cannot operate as "virtual law firms."

Stephanie Kimbro, the founder of one of the first North Carolina virtual law firms, and  Virtual Law Office Technology, Inc., a web-based virtual law firm services provider, and originally a North Carolina company, (now owned by TotalAttorneys, Inc., which is based in Chicago),  has written an excellent post on this topic.

 "Cloud Computing" enables solo practitioners and small law firms to provide online legal services to individuals and small business at affordable legal fees, and therefore enables them to compete effectively against non-law firm providers, such as LegalZoom, which also operates in "the cloud."

The eLawyering Task Force of the Law Practice Management Section of the American Bar Association has submitted a statement to the North Carolina Ethics Committee on the issue of the relationship of "cloud computing" to solos and small law firms. the delivery of online legal services,  and access to the legal system by individuals of moderate income.

Interested parties who wish to submit comments, should submit them to:

Alice Neece Mine
Assistant Executive Director
North Carolina Bar Association
208 Fayetteville Street Mall
PO Box 25908
Raleigh, North Carolina 27611-5908
EMAIL: 
amine@ncbar.gov