Innovation and Rules of Professional Responsibility

ABA President B. Lamm has created a new Commission on Ethics called Ethics 20/20 to review  ethics rules and regulation of the legal profession in the United States in the context of a global legal services marketplace. Hearings will be held at ABA Meetings to get input from various interests on how to reform or modify the ABA Code to enable US law firms to remain competitive in an age where Internet  technology is pervasive.

I have been invited by the Commission to testify and submit a statement at the ABA Mid-Year Meeting in Orlando, where the Commission is holding one of its first public hearings.

My statement will discuss the following topics:

  • how the rules of professional responsibility function as a deterrent to innovation;
  • issues relating to the unauthorized practice of law and the definition of "the practice of law;"
  • legal referral concepts in the age of the Internet;
  • state rules of professional responsibility that require a "physical" business office in order to practice law in that state;
  • the potential for cloud computing;
  • enabling the delivery of limited legal services online;
  • law firm ownership structure as it relates to innovation in the delivery of legal services;
  • and the eLawyering Task Force Recommended Guidelines for the Delivery of OnLine Legal Services.

I am looking for suggestions and ideas about other issues that relate to the delivery of online legal services and the rules of professional responsibility. Any ideas are welcome. Just comment on this blog.

Total Attorneys Responds to Zenas Zelotes Attack

Total Attorneys has responded to Attorney Zenas Zelotes filing of ethics complaints in 47 different jurisdictions.

The Total Attorneys response can be found here.

Total Attorneys summarizes its response as follows:

"In a nutshell, Mr. Zelotes’s 303-page complaint (including exhibits) alleges that Total Bankruptcy (and various other Total Attorneys companies) is a for-profit referral service, that the business model of the Total Attorneys marketing sites amounts to impermissible fee splitting, that our advertising is impermissible solicitation and that our advertising is misleading. The complaint is a hodge-podge of hearsay, factually inaccurate statements, and carefully selected lines from a myriad of state advisory opinions taken wholly out of context, all crafted together to paint a picture of our program that could not be ignored by state regulatory counsel."

This is a complicated issue that needs further analysis, as there are two sides to this story. Supporting documents in the Total Attorneys response which require further examination include:

Zelotes Complaint with Exhibits

Total Attorneys Response filed in Illinois

Zelotes Reply

South Carolina Ethics Opinion

Kentucky Ethics Opinion

Total Attorneys Being Sued for Violation of Legal Referral Rules

 TotalAttorneys, a so-called marketing association of attorneys that operates legal referral web sites,  such as TotalDivorce and TotalBankruptcy , is being sued in multiple jurisdictions by Attorney Zenas Zelotes, a consumer bankruptcy attorney, based in Hartford, Connecticut and Nevada, for violation of bar referral rules that exist in every state. The Connecticut Law Tribune just released a headline story about the pending Zelotes v. Chern et al .ethics investigations (wherein more than 500 bankruptcy practitioners face possible professional discipline for certain business transactions with Illinois Attorney Kevin W. Chern d/b/a Total Attorneys et al.).  The story in Monday's Connecticut Law Tribune summarizes recent findings of probable cause in Connecticut that certain attorneys doing (or having done) business with Chern committed professional misconduct.  The story (which is available on line now and which will be released in print edition on Monday) can be found by clicking on the following link: http://www.ctlawtribune.com/default.aspx .

One problem with web-based legal referral directories like the TotalAttorney directories is that the user doesn't see the qualifications of the law firm on the web site, Instead, the prospect submits information about their case which is then sent to a selected number of law firms who pay  high referral fees for the leads. The consumer is really unaware of the identity of the law firm to which they are being referred. Placement in the directory is based on the law firm's ability to pay the "marketing fee" .

Other law firm directories are more transparent and let the consumer view the attorneys profile on line which enables the prospect to make their own judgment about which law firm they want to explore a potential relationship or engagement. These more transparent directories include FindlawLawyers.comNolo.com, and AVVO. The more transparent and information robust an attorney directory is, the more consumer friendly it is.  When a consumer provides information to an on line questionnaire when the identity of the law firm is masked by the web site, the consumer is assuming more risk that the attorney really meets their needs. Caveat Emptor !!