NC State Bar Proposed Ethics Opinion Allows Participation

This continues to be a time of disruption and transition in the legal field. Online platforms for accessing legal services provide lawyers with marketing and administrative assistance and clients with transparency. So, what are online platforms and is it ethical for North Carolina attorneys to participate?

Following the quarterly State Bar meeting in July, North Carolina lawyers are going to get the opportunity to voice their opinion about online platforms.

In late 2016, a few members of the bar asked whether it was ethical for a lawyer to participate in an online platform for accessing legal services, in this particular case, Avvo Legal Services. Even while other state bars were declaring an ethical war with Avvo, our State Bar established a subcommittee of the Ethics Committee to study the inquiry. I don’t think it’s a stretch to say almost everyone who agreed to serve on the subcommittee was certain of their position – an opinion allowing lawyers to participate was a bad idea.

Following eight months of serious study and discussion, the subcommittee was unanimous in their decision to publish a proposed opinion that allowed lawyers to participate in such a platform. At the July 27, 2017 quarterly Ethics Committee meeting, the Ethics Committee voted to publish the opinion and seek comments from members of the bar. Look for the opinion in the upcoming issue of the State Bar Journal, as well as online at the State Bar’s website, www.ncbar.gov.

What is an Online Platform?

I typically call these online marketplaces – a website that creates a place where buyers and sellers can connect. Examples are eBay, Paypal , Airbnb and Uber. You can sell products (eBay) or provide services (Uber).

Avvo Legal Services is an online legal platform – a marketplace where attorneys and clients can meet. Avvo provides the technology that allows the lawyer to market their services for fixed-fee, limited-scope legal services. The client choses from among attorneys within the platform who have agreed to offer the services at the fixed-fee amount. When the qualifications have been met, the client pays Avvo, Avvo pays the lawyer and the lawyer pays Avvo a marketing / administrative fee.

Avvo Legal Services is separate from Avvo’s directory of lawyer profiles. Avvo was founded in 2006 as an online directory of lawyers. Avvo expanded their directory business into Avvo Legal Services in 2016. Here are some Avvo statistics:

• Avvo receives 9 million visitors per month
• There are 9.9 million searchable Q & A’s on the site
• 97% of U.S. attorneys have a profile
• Avvo has received $130+ million in funding

Challenges

There are many challenges facing lawyers today: increased cost, increased competition, business development and marketing, administrative burden, outdated delivery of services, outdated practices, information overload, generational differences, changing business model and alternative legal service providers.

I believe today’s clients will drive a revolution in the delivery of legal services. Clients are empowered with information, harder to engage, want to do-it-themselves, and are more connected and have more options than ever before. Clients will demand transparency (in pricing and process), innovative problem solving and client teams that can deliver timely results at appropriate pricing.

Clients also desire an “effortless experience”. Banks provides this via ATMs available to us 24 hours, 7 days a week. Amazon provides this via online shopping 24 hours a day from the comfort of our homes with free two –day delivery.

Market Conditions

Law school debt is at an all-time high. Depending on whether you graduate from a public versus a private law school, you may be looking at $160k-$250k in debt. According to a recent US News & World Report, UNC-Chapel Hill Law School 2016 graduates had an average debt of $95k among the 75% of their students graduating with debt.

Lawyers are also unemployed and underemployed at extremely high rates. A few years ago, there was one job for every three lawyers. My law school colleagues tell me the numbers are better today. However, many lawyers are underemployed, working jobs that do not require a J.D., working contract positions and running solo practices that barely make the rent.

I talk with experienced lawyers who are struggling. Many practices have never recovered from the Great Recession, their client base is dwindling, their practice area has been hit by tort reform or new regulations. While many of these lawyers would benefit from modernizing their law practices, they don’t know how, they are afraid of ethical and malpractice risks or they are resistant to change.

Yet many young lawyers and young practices are thriving. These lawyers tend to have one thing in common, the use of technology to run very lean law practices. Many of these firms do not employ any employees, they use virtual staff, the lawyers are “do-it-yourself-ers” and they are heavy adapters of technology.

I am in front of lawyers almost daily. I talk to many lawyers who entered law school knowing the high likelihood that they would start their own firm. While they are not afraid of entrepreneurship, they do need modern ways to allow modern clients to find them. This is why in recent years the Ethics Committee has seen inquiries from lawyers asking permission to send text advertising or to offer iPads to potential clients. These are not only “new” advertising ideas to attract potential clients, but these also offer a common means of communication with clients.

Bad Apples

Some lawyers question whether online platforms are presenting an opportunity for only the bad apples to participate. This argument assumes there is some vetting process in place when people hire a lawyer in person rather than online. I think the combined experience of Lawyers Mutual and the State Bar is that there will be lawyers who make mistakes and lawyers who will behave unethically. However, that happens whether the lawyer is hired online or whether the client goes to the local lawyer across from the courthouse. In some instances, it will be easier for the online bad apple to be exposed and the client protected because of online reviews and consumer friendly reimbursement policies.

Conclusion

My desire is not to see online legal platforms take over consumer-based or small business- serving law practices. However, I do believe we need to level the playing field for lawyers who are trying to build 21st century practices for 21st century clients.

I believe the clients who are attracted to online platforms are ordinary people in your community who would hire their local lawyer if the lawyer would do four simple things:

• educate potential clients about their legal needs
• show potential clients how you can provide solutions to those needs
• market yourself so that potential clients can find you
• present potential clients with pricing they can understand – not necessarily discount pricing but rather transparency in pricing

Most online platforms offer these benefits to their clients. My hope is that more lawyers will design their own 21st century offices. In the meantime, I am pleased with the proposed ethics opinion and I hope you will carefully study the issue and make your voice heard to the State Bar. And please, work towards building your own 21st century law firm.

Camille Stell is the Vice President of Client Services for Lawyers Mutual. Invite Lawyers Mutual to present “Building a 21st Century Law Firm” CLE for your local bar or law firm presentation. Continue this conversation by contacting Camille Stell at 800.662.8843 or camille@lawyersmutualnc.com.

Providing great client service is among the best ways to avoid bar grievances and malpractice claims. Impressing your client with your legal skills, your business savvy and high emotional intelligence is also guaranteed to encourage referrals, which is the best way to build your law practice. Here are 52 tips to wow your clients.

1. Return phone calls
2. Ask questions
3. Under-promise and over-deliver
4. Anticipate future needs
5. Help clients maneuver the system
6. Be sensitive to client needs
7. Be aware of the time you are charging clients
8. Be empathetic
9. Be transparent in communications
10. Make technology your friend
11. Be efficient
12. Be transparent in pricing
13. Ask for feedback
14. Create and share content with your client
15. Offer educational programs to your client
16. Be available
17. Advocate for your client
18. Treat your client with respect
19. Treat your staff with respect
20. Be a team player
21. Check your ego at the door
22. Be honest
23. Be authentic
24. Get personal
25. Listen to your gut
26. Apologize if something goes wrong
27. Choose clients you like
28. Fire clients when necessary
29. Be a life-long learner
30. Cultivate a team approach
31. Refresh your office space
32. Put fresh flowers in the reception area
33. Freshen your bathrooms and offer amenities like mouthwash, mints, lotion
34. Provide parking or directions for parking
35. Become an expert
36. Become a NC State Bar Specialist
37. Develop leadership skills
38. Develop a niche
39. Invest in your community
40. Invest in a charity
41. Invest in pro bono work – visit ncprobono.net
42. Update your client intake process
43. Use effective client engagement letters – visit lawyersmutualnc.com
44. Encourage referrals from your clients
45. Survey your clients
46. Take time off
47. Fill your office with positive, energetic, inspirational people
48. Develop a Board of Advisors, trusted friends and colleagues to guide you and your practice
49. Focus on one client at a time
50. Network and develop business in an authentic manner
51. Earn your client’s trust
52. Build an awesome website

Good luck as you work hard cultivating exceptional client relationships.

Camille Stell is the Vice President of Client Services for Lawyers Mutual. Continue this conversation by contacting Camille at camille@lawyersmutualnc.com or 800.662.8843.

Our May meeting will be a family picnic outing on Sunday, May 21, 2017 for the Hopper’s game at the First National Bank Field downtown.  The picnic (hamburgers, hot dogs, BBQ chicken, vegetarian item, cole slaw, baked beans, beer, tea, lemonade and water) runs from 3:30 – 5:00 p.m. The game with the Delmarva Shorebirds begins at 4:00 p.m.  The event is free to all GBA members and their families.

This event is coordinated by the Young Lawyers Section of the GBA, which will solicit financial donations for their very successful Book Buddies program.  Please help the Young Lawyers Section reach their goal of $500 (tax deductible contributions can be made to the Greensboro Bar Association Foundation, Inc., marked “YLS – Book Buddies”).

To obtain tickets for the game and picnic, please respond to the e-mail registration notice that Diane will be sending very soon. A special GBA “will call” table will be located at the east entrance (closest to the dog statutes/playground) to the ball park just prior to the picnic.

Construction of our eighth Habitat house is off to a great start.  The Student Veterans Association at UNC-G and a number of our law firms and associated entities (Brooks Pierce, District Court Judges, Federal Court Unity Committee, Nexsen Pruet, Oxner Permar, and Schell Bray) have signed up to staff complete workdays.  However, we still need volunteers.  Please access the Habitat/GBA website to review the schedule and volunteer.

With your help, this year the Greensboro Bar Association:

Amended the 18th Judicial District Bylaws, coordinating efforts with our 18H sister District so both Bylaws are now consistent and on file with the North Carolina Bar Association

Held a special meeting and submitted nominations of Jonathan Kreider, Ronald Butler, and Randall Howell to Governor McCrory for the position of District Court Judge vacated by the retirement of the Honorable Wendy Enochs

Hosted a special session of the North Carolina Court of Appeals and reception to honor Judge Enochs

Awarded the annual GBA Award for Pro Bono Service to Amanda Feder

Recognized Bob Cone as the recipient of the NC State Bar McMillan Distinguished Service Award

Awarded the Centennial Award to John Cross

Awarded two annual GBA Distinguished Service Awards, one to Judge Patrice Hinnant and one to Justice Bob Edmunds

Coordinated a trip to the U.S. Supreme Court

Raised almost $25,000 for Legal Aid

Continued donation of books at Jones Elementary

Continued staffing Potter’s House the third Sunday each month

Donated 35 pints of blood to the Red Cross

Recognized 15 members receiving Herb Falk Society awards for Pro Bono Service

Raised funding and volunteers for our eighth Habitat for Humanity House

Provided 1 hour of substance abuse and 2 hours of ethics CLE to our members

Special thanks to

Afi Johnson-Parrish for her guidance throughout the year, her service as chair of the nominating committee, and her service on the compensation committee

Eloise Hassell, Judge Bill Davis, Sarah Roane, Jeff Oleynik, Ashley Bennington, and Gwen Lewis for their service on the nominating committee

Sarah Roane and Desmond Sheridan for their service on the compensation committee

Judge Teresa Vincent and Ames Chamberlin for the creative “ice breakers” during our lunch meetings and the successful membership mix and mingle events

Gwen Lewis and Elon University School of Law for the Holiday Party

Craig Hensel and his team of volunteers for continued staffing at Potter’s House

YLS President Lisa Arthur and her team for coordinating Pro Bono CLE, the Scrubs versus Suits basketball game fund raiser for the Mustard Seed, and annual Hoppers Picnic and fund raiser for Hampton Elementary Book Buddies Program

Erin Reis, Adam Kerr and their team for the continuing successful Jones Elementary Jones Book project

Martha Peddrick, Judge Vincent, Melissa Duncan and their team for coordinating the Red Cross Blood drive

Sarah Roane, Judge Bill Davis, and Nick Bakatsias for coordinating the most successful fund raiser yet for Legal Aid

Eric Richardson and his team for coordinating the annual Herb Falk Society awards for Pro Bono service

Bob King for our upcoming Lunch & Learn CLE

Sarah Roane for coordinating a very well received (and interesting) annual CLE

Bill Cooke, Nancy Ferguson and their team for raising funds and staffing for construction of our eighth Habitat for Humanity House

Richard Gabriel for coordinating Memorial Resolutions

Eloise Hassell, Doug Henderson, and Judge Vincent on completion of 3 years of service on the GBA Board

Erwin Fuller, Eloise Hassell, and Doug Henderson for their work on the GBA awards committee

Chelsea Anderson for her service as Secretary for both the GBA and 18th Judicial District

Desmond Sheridan for his service as Treasurer for both the GBA and 18th Judicial District

Mark Gaylord and his team for continuing History and Archives interviews

Damon Duncan for keeping our social media active

Doug Tsao for his service as GBA newsletter editor

Pat Kane and Tom Carruthers for their work with the Second Chance Project

Abigail Peoples, Kim Gatling and Margaret Kantlehner for their many contributions to the board

And last but not least, Diane Lowe, our Administrator, for keeping everything together in both the GBA and 18th Judicial District.

Thanks, Ken Keller