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WSSFC Technology Track Session 11 Setting up and Running a Remote Virtual Office

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WSSFC Technology Track Session 11 Setting up and Running a Remote Virtual Office WSSFC Technology Track Session 11 Setting Up and Running a Remote Virtual Office Gregory J. Banchy Banchy Law Center LLC, Eau Claire Michael F. Brennan The Virtual Attorney, Grayslake, IL Link to Prezi Presentation included in this session: http://prezi.com/mer0rlsmwija/?utm_campaign=share&utm_medium=copy SETTING UP AND RUNNING A REMOTE VIRTUAL LAW OFFICE GREGORY J. BANCHY MICHAEL F. BRENNAN BANCHY LAW CENTER, LLC THE VIRTUAL ATTORNEY Introduction to virtual law practices and their use as law practice management platforms Definition Virtual Law Practice permits the attorney to interact with clients completely online through technological means. This removes the need for a brick and mortal office and the costs associated with one. The virtual law office also gives lawyers increased flexibility to work from practically anywhere at any time. Cloud computing, storage and software enable the attorney to essentially “bring the practice” on the road to anywhere with internet access. This in turn means: a) lower costs for clients; b) enhanced accessibility; c) increased flexibility; and d) high-standard legal service not otherwise seen online with businesses like Rocket Lawyer and Legal Zoom. Virtual Law Offices can be defined any number of ways depending on who you ask. While technology plays a central role in their operation, the reality is that most, if not all firms are operating, at least in some sense, “virtually”. Whether it is the use of cloud-based document storage or an SaaS (Software as a Service) accounting platform, like Intuit Quickbooks, most firms incorporate at least some measure of “Virtual” functionality into their operations. A 100% Virtual Law Office incorporates multiple virtual functions into a law firm model that enables attorneys and support staff to access essential firm functions, documents and client files at any time and from anywhere. Common characteristics Virtual Law Firms commonly possess most, if not all, of the following characteristics: Lack of a traditional office space Unbundled, Limited Scope or “a la Secure Web-based client portal with carte” legal services unique client login credentials*** Web-based phone and fax services Cloud document storage and access Document Automation SaaS Accounting, Billing, Invoicing, Virtual support services Bookkeeping, Calendaring, etc. Minimal in-person contact with Video Conferencing and real time clients document collaboration Electronic signature capabilities 1-Banchy & Brennan Benefits Virtual Law Firms offer a number of benefits to both the client and the attorney. These include: Extensive geographical reach Lean operations and operational flexibility 24 hour accessibility to files and records from anywhere with an internet connection Scheduling flexibility Minimal operational expense and low overhead which can be converted into more attractive client pricing Client flexibility to work with the attorney from their home or work during traditional or non-traditional work hours when it fits into their daily routine Draw-backs While the virtual model offers a number of benefits, it does have some limitations which must be considered when determining how the firm should be structured. Limitations of the virtual model include: Limitations on the types of services the firm can effectively provide. Public and potential client unfamiliarity with the virtual firm structure and its benefits Confusion with other “quasi-legal” companies like Rocket Lawyer and Legal Zoom Professional isolation Potentially challenging to find confidence in a virtual model if the attorney is not proficient in current technology Traditionally a high-volume model which means that marketing needs to be a primary focus Client Acquisition and Target Market Virtual Law Firms can find success by focusing on marketing to potential clients from some non- traditional target demographics. For example, a Virtual Law Office may find success by developing a marketing strategy geared towards the acquisition of: Young families and young professionals with limited flexibility to meet with attorneys during traditional business hours. Entrepreneurial types, startups, technology-themed small businesses in fields like ecommerce, app development, web design and consulting, etc. Pro Se litigants needing legal assistance in the drafting of court documents in areas like family law and divorce. Technologically fluent individuals who prefer to work through online means. 2-Banchy & Brennan How to spot ethical issues specific to virtual law offices and potential ways to mitigate such risks. Operating a Virtual Law Office can be an ethical minefield if ethical issues are not identified and procedures not put in place before problems arise. Ethical issues common to Virtual Law Offices commonly fall into one of three primary areas: 1) unbundling legal services and limited scope representation, 2) cloud computing, storage and security, and 3) the unauthorized practice of law. Unbundling and limited representation “A lawyer may limit the scope of the representation if the limitation is reasonable under the circumstances and the client gives informed consent.” SRC 20:1.2(c). ABA comment (emphasis in italics added): Although this Rule affords the lawyer and client substantial latitude to limit the representation, the limitation must be reasonable under the circumstances. If, for example, a client's objective is limited to securing general information about the law the client needs in order to handle a common and typically uncomplicated legal problem, the lawyer and client may agree that the lawyer's services will be limited to a brief telephone consultation. Such a limitation, however, would not be reasonable if the time allotted was not sufficient to yield advice upon which the client could rely. Although an agreement for a limited representation does not exempt a lawyer from the duty to provide competent representation, the limitation is a factor to be considered when determining the legal knowledge, skill, thoroughness and preparation reasonably necessary for the representation. Virtual practitioners should articulate best practices and develop standard operating procedures for determining the scope of representation and ensuring that the client understands that scope. Engagement letters should specifically set out what the attorney will and will not do for the client. Clients should be given ample opportunity to ask questions about processes and the extent of work that may be necessary in their particular case so that the client is fully informed of the tasks he or she may need to undertake outside of the attorney’s representation on the matter. o For example, a virtual lawyer preparing a will for a client must make clear that the document needs to be executed in a specific matter in order to be valid. If the attorney is not supervising or coordinating the document execution, it is good practice to put that limitation in writing, explain the limitation to the client and require the client to consent to the limitation in writing. 3-Banchy & Brennan Cloud computing, storage and security Cloud computing and data/document storage is a central component of Virtual Law Office operation. While it offers tremendous flexibility for attorneys to work from anywhere at any time, care must be taken in order to ensure that client confidentiality is upheld and security of sensitive data remains a primary concern. Some hot spots for virtual practitioners to consider and act on, as appropriate are: Cloud service user agreements. Physical and Technological Server Security. The attorney should be aware of where data is physically kept, where the provider’s servers and data storage facilities are located, the security measures the company takes to protect the data on its servers, including physical and technological security. National Server Location. Whether the servers are located within the United States. Storage of data on non-US based servers may lead to unanticipated and unwanted legal implications. Data extraction and migration rights and capabilities. Will the firm be able to easily extract data stored with the third party upon termination of the user contract? What procedures are in place to give assurances that the process is effective? Subpoena requests. Attorneys should inquire into what the company’s response to a subpoena for the production of data would be. Unauthorized Practice of Law and Conflict Checks A primary benefit of the Virtual Law Office model is that it offers solo attorneys, or small groups of attorneys, to expand their geographic reach. Through the internet, attorneys are capable of serving clients located outside of their own region. While the potential for client base growth is substantial, attorneys must be careful to ensure that they are only serving clients in areas in which they are authorized to practice law. Best practices should be developed to ensure that: Mechanisms are in place to screen potential clients located outside of areas in which the attorney(s) is licensed to provide legal services, and Systems are developed that enable the firm to run conflict checks on new clients to ensure that there is no conflict of interest "How-tos" of virtual law office operation, including tools, techniques and case studies A Virtual Law Office Case study | The Virtual Attorney The Virtual Attorney was founded in 2010 as a 100% Virtual Law Office assisting clients throughout Wisconsin, Illinois and Minnesota. 4-Banchy & Brennan Services offered The firm offers estate planning
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