Notes
Outline
New Challenges for the Legal Profession
The Internet & The Practice of Law
by Jerry Lawson
http://www.netlawtools.com
Auto Sales Over Net?
GM & Ford have begun preparations to sell cars to consumers directly over the Internet. The biggest obstacle? Most states have laws that give licensed local dealerships a monopoly on new car sales.
Before beginning the meat of the presentation, two questions to ponder:
How likely is it that GM and Ford will be selling cars over the Internet 10 years from now?
Why is this relevant to the legal profession?
Ethics Page: James McCauley, Virginia State Bar
Legal Ethics Page: Peter Krakaur
Lawyer Advertising Opinion A-0110
Challenges to the Profession
  New Ways To Deliver Legal Services
  New Competition for Lawyers
The LawStreet.com Web Site
USLaw.com
Americounsel.com (Arthur Miller site)
TheLaw.com (Ed Koch site)
Divorcelaw.com
Desktop Lawyer (Sophisticated Document Assembly on the Web)
The Texas Attempt
Nolo Press
Quicken Family Lawyer (Parsons Technology)
“Harvard Law Professor Arthur Miller gives you answers to some of the most commonly asked legal questions.”  Interactive CD features Prof. Miller.
Link to FreeAdvice.com
Link to LegalWise Online (Online legal library)
Estate Planner
The Texas Result
U.S. District Court Judge Barefoot Sanders ruled that “Quicken Family Lawyer” constituted the unauthorized practice of law.
The Texas legislature promptly amended the definition of unauthorized practice of law so that it excludes legal advice delivered by computerized means.
Unfriendly Environment For Lawyers
“Hands Off The Net” Attitude Prevails In Both Major Political Parties
Net Alternatives Have Appeal
Lower Cost
More Convenience
The Kicker – Quality
For many consumers and for many types of problems, web-based delivery will be not just cheaper, but better.
 Public Dislike of Lawyers
Anti-Lawyer Jokes
Political Attacks
Auto Sales Over Net?
Ten Years From Now?
Five years? One year? How about now? Ford has already started such sales in at least one state, despite a local statute.
Why are GM & Ford likely to succeed?
Local statutes arguably violate Commerce Clause
More important: Consumer demand for choices, convenience and lower cost.
Lesson for the Legal Profession
Don’t count on the continued existence of a state-granted monopoly on the sale of legal services to prevent the arrival of new types of competitors for lawyers.
For example, Arizona already has a very narrowly defined definition of unauthorized practice.
What other factors are behind this change in the landscape?
New Drivers of Change
Consumer Drivers
Better educated  & willing to try self-help
Willingness to shop around looking for value
Little law firm loyalty
Desire for different fee structures
Dislike of hourly rates
Alternative fee structures -- e.g., Priceline
Consumer Drivers, Part II
Consumers Willing to Sub-Optimize
Compare using Net for medical diagnosis
Coming ubiquity of Net access
A Wired World
Net Appliances, Convergence (Web TV, Sony Playstation), etc.
Even refrigerators & cars will be on the Net
Shift of Power To Consumers
Consumers will first visit a legal web when they have a legal problem
Consumers will see if they can get an answer for free
Or a legal document at low cost
Buy discrete legal advice or legal service when required.
Help in finding a lawyer at your price point. - informed decision-making
New Legal Product Delivery
Legal Information About Common Subjects
Frequently Asked Questions Data Base
Search Engines
Diagnostic Analysis
Document Assembly Services
Automatic Calculators - e.g. child support
New Business Models
Digital Solutions
Infomediary Models
Auction Models
Reverse Auctions
New Types of Legal Insurance
Alternative Dispute Settlement On-Line
Electronic Filing - Productivity Solutions
Solos & Small Law Firms
Highly fragmented
Under-capitalized
Low level use of  technology
Mainly word processing and billing
Not truly web-enabled
One-to-one relationship model
Limited “reach”
Limited “leverage”
Solutions?
Maybe.
ABA Tech 2000 Task Force
Lawyers Serving Society
Through Technology
Mission Statement
The mission of the Tech 2000 Committee is to assist attorneys and the organized bar to identify and use technology to meet the needs of moderate income individuals and families.
Dual Purposes
Help Consumers
Help Solos/Small Firms Meet New Challenges
“Latent Market for Legal Services”
Consumer Behavior Trends
50% of moderate income households in the US have at least one legal problem per year
Only 20% seek legal assistance
26% do nothing
Alternatives such as self-help
Recommendations in Three Areas
Ethics and Rules
Technology and Standards
Lawyer Competency
Ethics & Rules Recommendations
Rule Modification
The ABA should fund an entity to review existing ethics rules to identify those that impede the use of Internet technology to deliver legal services to low and moderate income Americans, and, on an accelerated basis, to submit appropriate recommend-ations, consistent with the core values of the profession, to the appropriate rule-making authorities.
Rule Interpretation
The President of the ABA should designate an appropriate entity to engage state rule making and rule enforcement authorities so that interpretations and enforcement do not needlessly inhibit innovation.  To that end, convene a multistate (virtual and live) conference of state bar ethics policy makers and disciplinary officers, NOBC, NCBP to encourage Internet delivery of legal services and information.
Safe Harbor Rules
The President of the ABA should designate an appropriate entity to facilitate the immediate creation of Safe Harbor rules to facilitate technical and practice innovation, while protecting consumers, lawyers and providers.
Technology and Standards
Collaboration
The President of the ABA should delegate to an appropriate entity the responsibility to develop collaborative relationships between non-profit organizations and entities engaged in electronic commerce and services, with a particular focus on those engaged in the delivery of legal services over the Internet.
Standard (XML)
The President of the ABA should designate an appropriate entity to play an active role in developing and sponsoring the Legal XML Standard. In that role, the ABA will encourage the use of the Standard among its members, private industry, courts, and government agencies. The ABA will adopt this Standard for all ABA publications.
Low Cost Tools
To improve law practice efficiency and enable lawyers to provide better legal services, the President of the ABA should designate an appropriate entity to facilitate private sector development of low-cost, comprehensive Internet practice tools for lawyers. These tools should be especially targeted at small and solo practitioners.
Lawyer Competency
Stamp of Approval
The President of the ABA should delegate to an appropriate entity the responsibility to establish  standards and policies for e-law sites and provide ABA stamp of approval for e-law sites. Such standards should include, but not limited to, privacy standards, disclosures, disclaimers, confidentiality, due diligence, security, consumer information, and consistency of business models with professional norms.
Technological Competency
The President of the ABA should designate an appropriate entity to revise the MacCrate Report’s Statement of Fundamental Lawyering Skills and Values, to reflect new technological advances and interdisciplinary developments as standards of lawyer competency.
The Tech 2000 Web Site (www.elawyering.org)
Related ABA Initiatives
Chaos Dot Com
Met on April 15, San Francisco
Ethics 2000
Draft Model Rule Revisions Posted March 23, 1999