Keynote on Future of Legal Services Delivery

Virtual Law Practice and the Online Delivery of
Legal Services

presented by
Stephanie Kimbro
Attorney, Kimbro Legal Services
Technology Consultant, Total Attorneys

Canadian Discipline Administrators Conference
November 3, 2011

Overview
 Part One: How do virtual law firm operate?

 Part Two: Forms of Virtual Law Practice, Canadian
Case Studies

 Part Three: Ethical Issues and how these are being
addressed

 Part Four: Future of Online Delivery

 Q&A

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.

 Virtual lawyering vs. the “untethered” lawyer

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Virtual law practice is not exclusively…
 an online website that sells legal documents without attorney
review, such as LegalZoom or Corporation Centre

 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, client extranets and other services, such as GoToPC and LogMeIn
 Ex. Aird & Berlis LLP in Toronto
 a conglomeration of attorneys in remote locations pooling resources and
communicating over the Internet
 Ex. Valkyrie Law Group
 a law practice based in a virtual reality world, such as Second Life

How it Operates
 Origin of the term “cloud computing”
 Computer Security Division of the National Institute of
Standards and Technology (NIST):
"Cloud computing is a model for
enabling convenient, on-demand
network access to a shared pool of
configurable computing resources
that can be rapidly provisioned &
released with minimal management
effort or service provider interaction.”

 What is a Data Center?

Software as a Service (SaaS)
 SaaS is one form of cloud computing.
 The technology used to create and maintain the virtual law
practice is handled through a secure, third-party hosted
system.

 Practicing law “in the cloud.”

 Most traditional firms already use some form of SaaS

Most traditional firms already rely on SaaS

Examples: Lexis/Westlaw research, email, search engines, Google
apps, Skype, etc. Even the firm’s voice mail.

Why 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
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

Part Two: Virtual Law Practice

Virtual Law Practice Structures
Unbundling Legal Services
Doc Assembly/Automation
Practice Management
Client portals & methods of communicating
Case studies

There is a growing
online market for
legal services.

 Online companies such as Legal Zoom, when
available for specific areas of law, are being turned
to by the public and individuals who may otherwise
have consulted with a lawyer.
In July 2011 - one month alone - an
estimated 434,000 people in the US
searched online seeking legal solutions
through the Legal Zoom website.

Customer service has changed.

THEN All law firms must make CUSTOMER
SERVICE a part of delivering quality
legal services.

NOW

Good Customer Service =
Communicating and being accessible using methods that
are currently embraced and relied upon by clients.
They are used to using social media with friends and family online.

The public conducts
the following tasks online:

Shop
Sell
Bank
Invest
Trade
Pay Taxes
E-file
Obtain degrees
Work

Be ready for the
“Digital Natives”

Benefits of Virtual Practice
 For the Public
 Greater access to justice
o 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

Benefits
 For the Legal Professional
 Technology streamlines the workflow, improving
efficiency
 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

How Attorneys Use Virtual Law Offices
 Completely Web-based
 Unbundled or limited legal services

 Integrated into a traditional law office
 Unbundled and full-service

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
 Limited Scope Engagement Agreement

 Provide comparisons/education for the
client to make an informed judgment

 Law Society of Upper Canada:
 September 2011 Convocation approved
amendments to the Rules of Professional
Conduct to provide guidance on unbundling

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

Practice Management Applications

 Case calendar
 Conflict of Interest checking
 Jurisdiction check to avoid UPL
 Document archiving
 Billing and invoice management
 Online bill payment by credit card
 Case and client management
 Contact management
 Libraries: Files, Forms, Legal Research

Keynote on Future of Legal Services Delivery

Traditional Firm w/Virtual Law Office

Virtual Law Office - Home Office

Part Three: Ethical Issues
 Choosing the Technology and Researching the
Provider

The Attorney’s Daily Use of
the Technology to Deliver
Legal Services Online

Due Diligence & Reasonable Care
 LS of Upper Canada: 2.03 (1) “*a+ lawyer at all times
shall hold in strict confidence all information
concerning the business and affairs of the client
…shall not divulge any such information unless
expressly or impliedly authorized by the client or
required by law to do so.”
 LSBC: 3-68(3) “reasonable security arrangements
against all risks of loss, destruction and unauthorized
access, use or disclosure.”
 Conduct due diligence in researching both the
provider and the technology application.

Research the SaaS Provider & Review the SLA
Confidentiality of law office data
 Who has access?
 Oversight and Auditing
 Government and civil search and seizure
actions
oUS Patriot Act & EU Data Protection
Directive
 Breach of confidentiality – unlimited liability
for data breaches?

Research the SaaS Provider & Review the SLA
 Data return and retention policies
 Transferring Data/Compatibility Issues
 Backups
 Export features and/or offline versions of the software
 Third-party hosting
 Server locations and geo-redundancy
 Response time/customer service and tech support
 Infrastructure to support growth
 Costs – Subscriptions, what is included
 History of the company
 Financial history or funding of company
 Current user reviews
 Membership in LCCA and/or ILTSO compliant
 Legal vs. Public SaaS

For Guidance
 The Law Society of British Columbia’s Cloud
Computing Working Group Report (July 15, 2011)
 ILTSO Standards (April 2011)
 Proposed NC FEO 6 (2011)
 PA FEO 2010-200 (2010)
 ABA eLawyering Task Force Guidelines (2011)
 Legal Cloud Computing Association (LCCA)

Ethics Considerations
 UPL
 Multijurisdictional virtual law firms
 By unlicensed individuals
 Establishing the Online Attorney/Client Relationship
 Duties To Prospective Client
 Avoid Misleading
 Defining the Scope of Online Representation
 Nature of the use of the technology and unbundling
 Conflict of Interest
 Conflict of Laws
 Choice of Law

ABA Ethics Commission 20/20
 Proposal on Model Rule 5.5 (UPL) and Foreign Lawyers
(September 2011)
 intended to help lawyers determine when their “non-
physical” presence might be classified as “systematic and
continuous”
“…a lawyer may direct electronic or other forms of communications to
potential clients in this jurisdiction and consequently establish a
substantial practice representing clients…, but without a physical presence
here. At some point, such a virtual presence in this jurisdiction may
become systematic and continuous within the meaning of Rule 5.5(b)(1).”

 Concluded: “precision in this area is not possible”, virtual should
be treated the same as traditional under 5.5, and “lawyers who
have such [virtual] practices can offer legal services efficiently
and effectively and can improve access to justice.”

Ethics Considerations (cont)
 Authentication of Online Client’s Identity
 Competency
 Confidentiality of Client Data
 Safeguarding Client Property
 Online storage and retention of client data
 Using Internet Tools to Build an Online Client Base
 Advertising rules related to marketing a virtual law office
 Online Payments
 Accounting and compliance

Minimize Risk
 It is the responsibility of the virtual attorney to:
 Make the determination on a case by case basis:
o 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

Part Four: Future of Online Delivery

 Movement from passive law firm web sites to
interactive virtual law firms.

 Pressured by change in consumer behavior and
competitors like LegalZoom and branded networks.

 WatsonJD, FairOutcomes.com & applications of AI

Other Forms of Online Legal Service Delivery

 Web Calculators
 Web Advisors
 Legal Q&A sites
 Legal Crowdsourcing
 Online dispute resolution (ODR)
 Collaborating with branded networks to deliver
unbundled services online

Future innovations in the delivery of
legal services will include more applications to
allow the public
to directly interact
with their attorney online.

For Regulators:
 How will you guide and educate
members on:
• unbundling
• online delivery methods
• security concerns
• practicing ethically in a rapidly changing legal marketplace

Other Resources
 ABA ELawyering Task Force
http://www.elawyering.com

 ABA Unbundling Resource Center
http://www.abanet.org/legalservices/delivery/delunbund.html

 Lawyers’ Professional Indemnity Company Submissions on Unbundled
Legal Services (December 3, 2010)

 International Legal Technology Standards Organization www.iltso.org

 Virtual Law Practice: How to Deliver Legal Services
Online, Kimbro, (ABA/LPM book) http://www.virtuallawpractice.org

 Serving the DIY Client, Kimbro, forthcoming ABA/LPM (2012)

Contact
Stephanie Kimbro – slk@kimbrolaw.com
Attorney, Kimbro Legal Services
Technology Consultant, Total Attorneys

 Virtual Law Practice Blog: www.virtuallawpractice.org
 Kimbro Legal Services: www.kimbrolaw.com
 Total Attorneys: www.totalattorneys.com

Keynote on Future of Legal Services Delivery

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