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The
legal profession in the United States is not immune to the changes
revolutionizing commerce through the Internet. Industries as varied as
banking, insurance, travel, brokerage firms, and even the retailers have
been forced to change the way they do business.
The scope of these
changes should not be underestimated, for they have the potential to
manifestly transform the provision of legal services in the U.S. not only
the segment that serves the broad middle class, but large corporate
law firms that serve corporations and financial
institutions. The impact of the Internet on the practice of law has drawn
national attention by the American Bar Association (ABA), state bar
associations, the media, and at one point the venture capital
community. See for example:
http://www.elawyering.org - the ABA ELawyering web site.
Law firms are beginning
to use the Internet as a platform for delivering legal services to their
clients. Innovative law firms are learning how to add an "elawyering"
dimension to their practices, increasing client satisfaction, access to the
legal system, and law
productivity at the same time.
The
Current Market: "The Shrinking Pie" |
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Small Law Firms.
The legal services profession has never been at the leading edge of
technology adoption. There is an oversupply of attorneys in
the U.S., caused by the unregulated production of attorneys by U.S. law
schools. As a result, there is price competition which contracts law firm
profit margins.
Certain areas of personal service law, such as domestic relations, are
witnessing a dramatic increase in the number of individuals who represent
themselves by filing pro se. The increase in
pro se representation
is a direct result of the the failure of smaller law firms to respond to
the needs of consumers in terms of price, service delivery, and approach.
Self-help legal web
sites continue to proliferate at an astonishing pace, in all
substantive areas that affect the middle class.
Personal injury litigation firms are also under pressure because of
no-fault insurance. Plaintiff's litigation firms in areas such as medical
malpractice, mass torts, and shareholder derivative suits are sectors that
are still doing well, but even these practice areas are being targeted for
legislative reform.
Medium and Large Law Firms.
Law firms that primarily serve corporate
clients are also under increasing price pressure caused by a mature market
for medium and large size law firms. Consolidation or
liquidation of large law firms will
continue, and corporate legal departments will gravitate to the most
efficient law firms for routine work. Increasingly, corporate legal
departments will seek transparent relationships with the law firms that
serve them, requesting access to information on case status and billings
in real time, access to the knowledge base of law firms directly in order
to reduce duplication of legal work and legal billings, and virtual
environments for deal-making and complex litigation.
"Unbundling
Legal Services" as a New Way to Deliver Legal Services.
There is a renewed interest in the concept of "unbundling legal
services" as a way of reaching moderate income clients who are
underserved by the legal profession. The idea of delivering legal
services as discrete and limited tasks for a fixed price, instead of
by the billable hour, is certainly not new and has been practiced by
some law firms for many years. Recently,
Forrest Mosten, a
divorce mediator based in a California, has
written
a manual on how law firms can deliver unbundled legal services.
The American Bar Association has several task forces and committees
working on making recommendations to state ethical
governing bodies to revise their rules to enable further unbundling
of legal services. Several years ago a major
conference was sponsored on
this topic by various groups within the ABA.
Much of this discussion has focused on organizing a typical office
practice into discrete services, bundled into the context of an office
practice. In fact, because of its capacity to deliver
highly targeted services to a discrete group of clients, the Internet will become
the platform of choice for powering the concept of an unbundled law
practice. Because the Internet is a narrow-cast medium, it can work its
magic on the delivery of digital legal
applications, reaching just the client base that the law firm
wants to reach at the time when the client is ready to be approached. Once serviced by these digital applications, the law firm can build
the trust that leads to the wider delivery of legal services to the
same client base. For law firms that are seeking to build market share
at the expense of other law firms in competitive markets, the Internet
can provide just the leverage that the aggressive law firm needs to
expand its services to other markets, both geographic and substantive.
Epoq US, has developed a law firm-specific Internet technology platform
that supports the deliver of legal services over the Internet.
Following are the digital components of a competitive strategy that powers the next generation
of law firm web sites:
- client-centered web sites that provide the client with
their own secure and personal web space where they can manage their
legal affairs;
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web-enabled document automation tied
to law firm workflow processes;
-
rich legal content derived from the law firm's knowledge base;
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virtual environments for collaboration, communication, and
conflict resolution;
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legal information and advice engines that generate standardized answers to client's frequently asked questions and
manage the provision of further legal advice and consultation;
-
ROI
calculators to help clients make informed judgments on
whether to pursue a particular piece of litigation and/or decide which course of action to pursue.
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If you are
interested in learning more about our approach to delivering
"unbundled legal services" over the Internet through a
web-enabled law firm
site, click
here for more information about Epoq's new web service package for
solos and small law firms. We are searching for law firms that
serve consumers and small business and are interested in
incorporating web delivery of legal services as an integral part of
their law practice. Our theory is that empowerment of a group of
law firms with web-enabled digital technologies will give them a
competitive advantage and enable them to increase their market share
to the point where both the law firm can
benefit over time.
Our law firm licensing program either adds our
technologies to your
existing web site or results in the creation of a
new web site that is client-centered and web-enabled. Here are
examples of such web sites:
http://www.mdfamilylawyer.com
http://www.mdbankruptcylaw.com
http://www.dcselfhelplaw.com
For more information on our unique licensing approach, please complete our
Inquiry Form, and we will promptly contact you.
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