Current State of the Online Legal Services Industry
Consumers now have choices, but they better know what they’re getting into
By: Jeffrey A. Rattikin
Rattikin & Rattikin, L.L.P.
September 21, 2009
In the mind of many consumers, the legal services industry has been slow to join the party when it comes to the delivery of internet-based consumer services. In this age of instant online information and availability, consumers have come to expect that they can obtain virtually any good or service at the click of a mouse. However, lawyers across the nation, saddled with decades of tradition and a healthy respect for ethical obligations and privacy issues, have for the most part resorted to traditional means of providing legal services to their clients.
But as consumers have become increasingly confident in the effectiveness of securing goods and services online, the legal industry has been forced to increase its online visibility, and viability, in order to meet their clients’ expectations. Several different categories of online legal sites have emerged, finally bringing consumers direct access over the internet to legal products and services. However, a misunderstanding of, or sheer indifference to, the very real distinctions and nuances of each category of service could spell real trouble for an unsuspecting consumer.
As of this writing, most online legal sites fall within one of five broad categories:
1. Online Legal Form Libraries. In the last few years, a number of online legal form libraries have emerged, whose forms are available for direct download and use by the consumer. Such sites typically offer blank form templates for use around the country, basically an online version of the self-help legal books and forms available for years at bookstores and office supply retailers. For a presumably attractive price, usually less than $50 per document, consumers can avoid the perceived high cost, delay and intimidation of lawyer assistance by obtaining forms and filling in the blanks themselves. However, the difficulties and dangers associated with attempting to solve sometimes complex legal issues without a full understanding of the transaction at hand could pose significant risk to the consumer. If a transaction is incorrectly or incompletely documented, the consumer may be faced with an extremely expensive process of untangling a botched or unenforceable transaction. The fact is that most consumers seeking to obtain online legal services probably do not have a full understanding of the legal documents needed to effectively address their situation. With no proper legal assistance at their disposal, a consumer is left on their own to guess as to the documents to use, the proper way to complete and execute the documents, and the follow up steps (filing of record, etc.) necessary to ensure the enforceability of the transaction. While possibly saving some money by utilizing these online form libraries, the consumer is often left lacking a comprehensive solution to their needs. In its place are inaccurate, incomplete and unenforceable agreements that can further muddy the consumer’s legal situation.
2. Computer-Generated Document Providers. One of the most significant developments in the field of online legal services has been the advent of the availability of computer-generated legal products developed for use without attorney involvement. This category of service is similar to the legal form library sites, but instead of blank form templates, the computerized document sites provide consumers with a somewhat customized agreement with all blanks filled in, based on the information provided by the consumer through an online questionnaire. Just like the legal form libraries, most computerized document sites force a consumer to make their own determination as to which documents they may need in a given situation, without any input from a lawyer. These sites justify their legality by claiming that they are not practicing law; rather, they are merely providing forms, with the added convenience of filling in the blanks for the consumer based on the consumer’s own input. Some sites offer “technicians” who may be available for online questions, but these computer technicians have no legal training, are not overseen by real attorneys and can only address website functioning questions, rather than questions of law. The “technicians” are typically based in a call center out of state and sometimes even out of the country. They have no ability to offer, and are in fact prohibited from offering, competent advice and answers to questions involving the legal intricacies of all 50 states in which these sites attempt to market. Again, a consumer uninformed as to the specific nuances of the law in their own state may subject themselves to a significant and adverse result due to the unenforceability of their attempted solution. Lastly, although a few of these sites claim to be associated with and supported by law firms, it is clear that the named law firm does not and cannot render legal advice to the consumer, and they certainly lack adequate knowledge of the technicalities of the law in all 50 states.
3. Virtual Law Firms. A very disturbing new form of online legal services has recently been introduced, an enhanced offshoot of the computer-generated document sites. Being dubbed as “Virtual Law Firms”, these services are typically no more than backroom computerized form generators, producing legal documents generated by computer based on the consumer’s own input on online questionnaires. Under this model, these enhanced form generators actively court actual attorneys to put up a website and offer online legal documents for their clients. From the consumer’s perspective, it appears that they are obtaining actual legal services provided by the attorney whose website is accessed. In actuality, the lawyer owning the website is providing no input, counsel, advice or services at all. Their website is merely a virtual portal to a computerized form generator, who has agreed to provide forms to the attorney’s clients as part of a subscription agreement. The form generator, who may be based out of state or out of country, provides 100% of the communication, document assembly, security, storage, backup and other functions, all under the website banner of the attorney. The leader in this emerging market even advertises to prospective attorneys that they can earn legal fees while they sleep The consumer, however, is left with the daunting task of deciding what forms they may need to effectively address a legal concern. While the virtual attorney sleeps, the consumer can only rely on the assistance of an out of state or offshore computer “technician,” who must provide customer service for legal needs in 50 different states, all with their own rules, regulations, and nuances. The idea of a Virtual Law Firm, with no direct input or interaction between a licensed attorney and their client, is at the very least disturbing, potentially deceptive to the consumer and most certainly skirts on the ethical obligations of attorneys to zealously represent their clients. A wise consumer would be encouraged to peel back a few layers of the online law firm to unveil the true nature and source of the product or service being purchased.
4. Virtual Paralegals. A few sites have sprung up which advocate the use of “personal legal services” performed online by a virtual paralegal, who offers to prepare basic documents without attorney supervision. The very evident risk in relying on a non-licensed, part-time provider with no attorney oversight and no malpractice insurance clearly would suggest that a wise consumer think twice about utilizing such service for their legal needs. In many states, this type of service will most probably not pass legal muster when challenged as the practice of law without a license.
5. E-Lawyering. While the terms associated with online legal services are still evolving, as is the industry itself, the concept of real lawyers providing actual legal services for clients utilizing an online web interface is being loosely referred to as e-lawyering. Even in this category, there are many different levels of implementation; however, the element that binds these services together is that an attorney, licensed to practice law in the state in which the services are to be performed, is providing actual legal services to the client, utilizing all of his or her experience, skill and analysis in zealously representing the interests of the client.
At its most basic, an e-lawyer platform consists of a static website, acting as a digital brochure and providing clients with information about the firm. Sometimes, the firm is savvy enough to include articles and updates on legal topics of interest to its clients.
A few lawyers have taken the static website one step further, by attracting clients through online communities, blogs, and social media portals such as LinkedIn, Twitter, Facebook and LexBlog. By providing news, information and opinions to the public through these new online channels, the e-lawyer can increase the visibility, client-awareness and perceived expertise of his or her practice.
However, the state of the art in e-lawyering combines the elements of all of the categories listed above. A lawyer who most successfully integrates the power of the internet in fully representing the interests of his or her client will have a significant advantage over traditional firms and other online efforts as the online legal services industry continues to evolve. By utilizing a web interface platform, the e-lawyer provides its clients with all the benefits, convenience, and efficiencies which arise from e-commerce applications, while at the same time crafting a customized solution to the clients’ needs.
There are just a handful of lawyers across the nation who have fully integrated e-lawyer principles into their practice. Perhaps the best example of using the power of the internet to provide online legal services to consumers can be found at www.TexasLegalDocs.com, a site offering Texans across the state the ability to obtain top-quality, Texas-specific legal documents, drafted by some of the most trusted and respected attorneys in the State, all from the comfort of their own home. By communicating, ordering, reviewing, receiving and paying for legal documents completely online, TLD clients avoid time-consuming, intimidating and costly law office visits, retainer fees, consultation fees and the like. They do, however, receive comprehensive legal documents specifically drawn by award-winning attorneys to meet the specific facts and needs of the transaction at hand. In ordering documents from TLD, the clients’ online experience is enhanced by an abundance of helpful hints and information at their fingertips, in the form of videos, tutorials, live online help, definitions, explanations, glossaries and concise online instructions. The wide variety of available information provides the client with a full understanding of the nature of the transaction, and the confidence that the deal is being handled completely and correctly. Moreover, clients are especially thrilled to learn that the cost of obtaining actual legal representation through TLD is less than half that charged by traditional law firms, and much less than most, if not all, of the non-lawyer online document providers who saddle unwary customers with generic “one-size fits all” multistate forms.
More than just a document site, www.TexasLegalDocs.com enhances its level of expertise by providing Texas consumers with a one-stop hub of information related to Texas real estate. Not only will the consumer have access to custom comprehensive solutions to their legal needs, but they will also be able to view the latest in Texas real estate trends through online blogs of topical interest, newsfeeds from around the state, and an Ask-A-Lawyer portal whereby a consumer can obtain some general information about a specific legal topic. Consumers can also participate in the discussion, as a full online community allows like-minded Texans with an interest in Texas’ most prized asset, that being real estate ownership, to discuss and share their experiences. And to be sure the firm stays on the cutting edge of information technology, consumers can monitor and communicate with the firm through all aspects of social media, including Twitter, Facebook and LinkedIn, to name a few.
Online legal services continue to evolve, but it appears that for Texans, at least, the future of legal representation is indeed a mouse click away.
