How Good Solos Suffer When the Greedy Sell Out for $125 A Pop

Back in July, I denounced three Cincinnati, Ohio lawyers who shamelessly served as a front for a foreclosure solutions scam.  The lawyers never met with clients (who were going to lose their homes!) or did any work on their behalf; they merely signed their name to canned pleadings prepared by a so-called foreclosure solutions company for $125 a case (later upped to a whopping $150).

Turns out, though, these lawyers did much more than simply sacrifice their own law licenses (they were suspended, though honestly, at least two deserved disbarment) for a $125 a pop.  No - sadly, lawyers like these and others of their ilk sold out the overwhelming majority of ethical solo and small firm lawyers who capably and zealously represent clients in foreclosure and loan modification proceedings.

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Thank You, Justice Scalia for Remembering Who Pays (the Client!) for the Vanity Footnote

If you're a solo or small firm lawyer who litigates against biglaw, you're probably familiar with the vanity footnote -- that smug, yet entirely superfluous annotation to legislative history, obscure law review article, treatise or string citation included in many large firm briefs.  Though intended to corroborate a case cited in the text or flaunt just how smart the brief's authors are, the vanity footnote gilds the lily, mucking up an elegantly persuasive argument with TMI.  Even worse, vanity footnotes compel a response, and thus force lawyers to engage in additional and unnecessary research on the client's dime.

But now, those of us who represent clients on tight budgets have an advocate on our side in the form of Justice Scalia.  Concurring with the majority in Milavitz, Gallop & Milavetz v. US, Scalia took his colleagues to task for a vanity footnote of their own regarding the legislative history of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005.  From Scalia's  concurrence:

The Court acknowledges that nothing can be gained by this superfluous citation (it admits the footnote is “unnecessary in light of the statute's unambiguous language,” ante, at 6, n. 3).  But much can be lost.  Our cases have said that legislative history is irrelevant when the statutory text is clear....The footnote advises conscientious attorneys that this is not true, and that they must spend time and their clients' treasure combing the annals of legislative history in all cases:  To buttress their case where the statutory text is unambiguously in their favor; and to attack an unambiguous text that is against them.  If legislative history is relevant to confirm that a clear text means what it says, it is presumably relevant to show that an apparently clear text does not mean what it seems to say.  Even for those who believe in the legal fiction that committee reports reflect congressional intent, footnote 3 is a bridge too far.

Though in this economy, many clients are struggling with legal fees, it's solos' and small firms' consumer and budget oriented clients are are disproportionately burdened by the costs of responding to vanity footnotes.  Premium services like WestlawNext are ideally suited for tracking down the kind of secondary information contained in vanity footnotes, but as I've noted along with my colleague Lisa Solomon, WestlawNext doesn't come cheap for solo and small firms. 

So from solos everywhere on behalf of our clients --  thank you, Justice Scalia for remembering that when lawyers or judges make easy law hard, we make things harder for our clients.

Note:  In response to the reader comment below, of course I read Millavitz and I'm familiar with the problems you cite.  My point here wasn't to get into the merits, but simply discuss a piece of dicta to highlight a problem when solos litigate against large firms in any practice area. 

But since you raised a substantive point, here are my thoughts.  The way I see it, the BAPCPA provisions that classify attorneys as debt relief agencies and impose restrictions on their ability to counsel clients (which was at the crux of this case) are clear and in the absence of ambiguity, reference to legislative history is not required.  In fact, here, the reference to the legislative history simply amplified the point that Congress regarded bankruptcy attorneys as scoundrels and enacted BAPCPA in response.  Do you really want that as part of Supreme Court precedent?

I agree, completely that BAPCPA makes life difficult for solo and small firm lawyers and their clients.  But if that's the case, Congress needs to change the law, not the Court.  Given that the decision was unanimous, it seems that the Court agreed that the law was clear as well.

Sale of a Law Practice, Interview With Ed Poll & Lawyers at Midlife

Searching for fodder for blog posts, I came across this advertisement posted by a soon to be 70 year old retiring lawyer who is seeking buyers for his law practice located in Syracuse, in Hamilton County, Kansas.  According to the ad there are only two other lawyers in the County, thus allowing for a County-wide practice.  And with the firm located just sixteen miles from the Colorado border, with reciprocity between the two jurisdictions, expansion into a second state is a possibility as well.   Finally, the firm uses practice management tools like Amicus, HotDocs and QuickBooks, which allows for automatic document production and scheduling and includes a database with a list of 4000 contacts. 

Though a young lawyer taking over this practice might want to consider moving to a cloud based system which is the wave of the future, at least the attorney selling the practice has invested sufficiently in technology to enable a seamless transfer and provide a new owner with the means to hit the ground running.  Often, when I travel on speaking engagements, I am struck by how many long practicing lawyers have not taken the time to invest in technology, and still run practices heavily dependent upon support staff and paper.  When these lawyers retire, what will they have to pass on?

To find an answer, I spoke to the preeminent authority on selling a law practice - Ed Poll of LawBiz Management, publisher of the Law Biz Blog and author of many, many books on law practice, most recently, Growing Your Practice in Tough Times Ed graciously answered my questions on law firm succession, selling a practice, what lawyers can do to position themselves for retirement and how younger lawyers may be able to position themselves to take over retiring lawyers' practices.  Ed also has some of his own videos on this topic
here  and here.

Finally, if you're not yet ready for retirement and thinking about your future plans, check out Lawyers at Midlife by Michael Long, John Clyde and Pat Funk, published by DecisionBooks (which also published Solo by Choice).  Lawyers at Midlife helps lawyers decide whether and when to retire, how to make the transition to the next stage and closing a practice.  The book contains extensive practical advice interspersed with personal commentary by the authors and other lawyers.

Big Ways for Small Firms to Grow Now

A few weeks back, I posted about several innovative business models that might work for small law firms.  Along those lines, yesterday's online issue of  Time Magazine offers eight quick and decidedly twenty-first century tricks to grow a business in a down economy.  I've focused on two below.

Outsource: Outsourcing is a theme that I've covered here at MyShingle several times (such as discussing use of virtual assistants and outsourcing as the new leverage) as well as in Solo by Choice.  My friend Lisa Solomon of Legal Research and Writing Pro has been at the forefront of this movement.  Through outsourcing, a solo or small firm can acquire a far more experienced lawyer (like Lisa) or support staffer than it could otherwise afford on a full time basis.  That's because you outsource only when you have the work and therefore, you can match hours spent on extra help with increased billable matters.  The Time article discusses outsourcing in the context of software development, but it holds equally true for small firms.

Another interesting outsourcing idea mentioned is teaming up with universities to work with graduate and research students.  From the article:

This [team effort between a private company and university] is truly a collaborative effort," Hines points out. "The school loves the opportunity to give students real-world commercial experience, and if the scientists there come up with a patentable technology, I have the option to license it.

With so many law students eager for real world experience, maybe law schools would be willing to back a similar arrangement.  I could certainly do a lot with a team of students working for me at no cost but experience and mentorship - couldn't you?

LicensingTime discusses the licensing option as a way for small businesses to generate revenue without giving up large hunks of equity to venture capitalists.  Small firms can do the same.  Perhaps a small firm in a highly specialized area could license content to larger firms for use in materials for clients.  But the licensing model can work for lawyers in any practice area through of counsel arrangements.  After all, of counsel agreements resemble licensing agreements in that of counsel lawyers essentially "license" expertise to another firm for a set amount of time.

I noted one irony in the Time article, here.  It quotes Andrew Sherman, a partner at Jones Day on what small business can do to grow.  Sherman's advice is right on point; he says:


Now is the time business owners have to become bootstrappers and reinvent all their strategies — from how they finance their business to how they market and sell.

It's only unfortunate that Sherman's biglaw colleagues have yet to take his advice.

Note:  I've been thinking a lot about new business models myself, particularly as my own practice has been fairly busy these days.  I'm hoping to give a talk on one of my ideas at the Ignite Law event that Matt Homann is organizing for TechShow, and if my proposal is accepted (or not), I'll eventually share it here. 

By the way, feel free to chime in -- what are you doing to grow these days?

To Win the Hearts and Minds of Consumers, Lawyers Need to Sell, Not Sue

To date, we lawyers haven't been able to effectively sell the public on the idea that document preparation services like Legal Zoom are a poor substitute for the services of a lawyer.  So, being lawyers, we've done the next best thing to selling:  suing.  Last month, a Missouri law firm filed a class action lawsuit against LegalZoom on behalf of three LegalZoom customers, alleging that LegalZoom violate Missouri's unauthorized practice of law statute.  Likewise, several months back, the North Carolina Bar challenged LegalZoom for unauthorized practice of law. 

What's interesting about both actions is that neither cites specific incidents of harm to consumers, such as an individual winding up personally liable for business dealings because of an improperly formed corporation or LLC.  Or a widowed spouse losing an inheritance to her deceased husband's ex, because LegalZoom botched the will.  In fact, in Estate of George Mounts v. Barrett, a Missouri Court of Appeals case from 2000 on UPL (note - I found it on GoogleLegal, haven't shepardized it), a concurring judge expressed surprise at the relatively few complaints raised over unauthorized practice:

Even so, it appears to this writer there is an alarming increase in the unauthorized practice of law especially in the area of real estate law. Inexplicably, there does not appear to be a prevalence of complaints about this trend (if it is a trend)

So why the crackdown if apparently, there isn't any problem?

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Solo Blogosphere Round Up

1.  Lisa Solomon takes on Westlaw - It shouldn't take a detective to figure out the answer to one single question:  How much will WestlawNext cost?  Yet, apparently, it does and so my friend, Lisa Solomon of Legal Research and Writing pro has been investigating.  Lisa hasn't yet figured out the price, but she's figured out something else: WestlawNext isn't interested in the solo market.

2. Got a Bar Complaint? Get Tannebaum.  Brian Tannebaum of MyLawLicense has another great e-book out, I Got a Bar Complaint which you can download by clicking on the URL.  Probably a good idea to read the ebook before you even get a complaint.

3. Newbie Solo Shows That Skills Training is Overrated: There's a terrific solo success story here  that's been making the rounds on a bunch of blogs, about newbie lawyer and solo Wajahat Ali's first case: fending off a foreclosure action for two terrified clients, already scammed once by another foreclosure attorney.  Ali's training for the case?  He crammed for the case using Nolo books (disclosure: Nolo is a sponsor of MyShingle) and Internet research. Who says you need to learn skills in law school? 

4.  A Pair of Marketing LessonsI have two new posts up at the Legal Marketing BlawgThree Es of Cold Emails and A Word About Logos.

5. Small law attorney Jim Reed of Ziff Law does some undercover work on a recent e-mail scam that's nabbed several lawyers.  As an added bonus, Reed offers two suggestions to avoid getting duped: (1) don't disburse funds til a check clears and (2) remember, if it sounds too good to be true, it usually is. H/T New York Personal Injury Attorney Blog.
 

Guest Post: State Bar Regulations on Lawyer Advertising

 

The following is a guest post by Kelly Spradley, VP of Marketing and Sales at Impirus Legal Websites.

Florida is not looking too sunny for lawyers today. The Florida Bar recently announced that Florida attorneys must put website testimonials, laudatory statements, and past results behind a disclaimer page. Many Florida lawyers currently have testimonials directly cited on their websites, even though the rule went into effect on 1/1/2010. The testimonials will need to be concealed behind a disclaimer page, but it is not clear as to how rapidly it needs to be done. Although Florida lawyers will need to comply with the new rules, they do not have to submit their websites for review. 

This is in contrast to Texas where websites do have to be submitted to the State Bar for review. A criminal defense law firm in Houston was recently reprimanded for not submitting its website for review. Lindeman, Alvarado & Frye’s website contained images which were not appropriate for a criminal defense firm. The firm has since removed the images, and paid a $300 fee to the Texas Advertising Review Committee for a belated review.

 

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A Million Dollar Website

California mega law firm, Morrison Foerster is MoFo, and this (above) is its website. 

Understandably, the site might confuse you since mofo has more widely recognized, colloquial meanings.  But Morrison Foerster ranks first in search for "mofo."

The Mofo website cost one million to build, claims Above the Law.  Was it worth it?  Above the Law trashes the site in a  hilarious review but I have to admit that the clean design and originality of site (as well as the little graphics and puzzles - see ATL review for details) wowed me at first.  Until I realized that my opinion of the site really doesn't matter; it's what clients think that counts.

So what would a client think about the MoFo site? 

Well, for starters, some clients might not even be able to read it.  After asking around on one of my listserves, seems that many people can't read white on black (which is how the interior of the site is designed) and skip over any site with that kind of text.  Others couldn't experience the full effect of the MoFo site (which is flash based) since they've disabled flash from their browsers.  Spending a million dollars on a site that a large percentage of prospective, or more importantly existing clients can't read or otherwise fully appreciate doesn't come across as particularly client friendly.

Nor does the site provide much in the way of resources for clients, or an opportunity to gain insight into how the firm's lawyers write or think.  The firm doesn't have any blogs, and the resources - newsletters, client alerts and the like (accessible through the "resources link" on the toolbar), but all are in PDF format.  Thus, users must go to the trouble of opening a document to find content instead of being able to access it on the screen or through an RSS feed.

Admittedly many clients might find the MoFo site innovative or distinctive and therefore assume that MoFo practices law with similar flair and creativity -- which was presumably the site's intent.  But if clients discover the million dollar price tag, they'd think twice.  It doesn't take much creativity to design a fancy website or handle a complicated legal matter on a million dollar budget.  The real test of creativity is what a firm can accomplish when clients don't have unlimited dollars to burn.

Would You Work on Spec? Why Should Your Logo Designer?

Back in my last year of law school, one of my friends who was still looking for permanent employment responded to an ad seeking a new associate for a three person law firm.  The firm's managing partner contacted my friend and they had a nice chat.  The partner said that my friend was definitely in contention for the position but to make a final decision, my friend would need to submit a five page memo on a question that the partner described (something under New York CPLR as I remember). Desperate for employment and believing that this would clinch the deal, my friend drafted the memo and sent it in.  And then he waited.  And waited.  And waited. 

Eventually, my friend called the partner who informed him that the firm decided not to hire anyone at that time.  Thereafter, my friend and I joked that the memo assignment must have been some kind of a scam to get free work, and we wondered if the firm had a racket going -- routinely posting similar ads to generate a steady supply of slave labor. 

Fast forward two decades, and the type of spec work scam that my friend and I derided back in law school now abounds, rebranded as crowdsourcing.  And it's all the rage for logo design at sites like Crowdspring or 99 Designs, which are sometimes recommended as an inexpensive way for new solos to acquire a logo.

Generally, contest sites work like this.  Users can create a contest for a new logo by listing a design project and a prize amount (recommended amounts are $100 to $600).  Once the contest is posted, designers submit concepts, after which users have an opportunity to offer feedback or request additional modifications.  At the end of the designated contest period, the user must select a winner and award the prize money.   The theory is that even those designers who don't win (and therefore don't get paid) accrue benefits from their uncompensated labor, such as increased exposure and feedback on their designs. 

But are logo contests really crowd sourcing - or simply a slick way to get free work?  Serious design professionals like Jacob Cass say that logo contests aren't crowd sourcing, but rather, spec work.  Spec work is any job "for which the client expects a finished product before agreeing to pay," while crowdsourcing is way to generate feedback or opinions of an already completed piece of work:

Crowdsourcing: “Vote for our new logo, we will use the one you all like the most!” This means the logos have already been designed (and hopefully not via spec).

Spec or Free Pitching: “We need a logo, someone design one for us and we will pick the one we like.”

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Solo Marketing Makeovers: What's Your Advice?

This month's ABA Journal features a piece on the results of marketing makeovers provided to three solos brave enough to bare their practices for all to see.  The article summarizes the advice given by two marketing experts to three different solos and follows up six months later to see how they're doing.

I had mixed impressions about the article.  On the one hand, I felt that it offered a realistic view of some of the challenges of solo practice.  All of the lawyers depicted have been practicing solo for five years or more, are highly qualified and love what they do.  Yet, they still struggle to keep abreast of the rolling hills and valleys that comprise the terrain of solo practice.   It's a very realistic view, and one that's often overlooked with so much emphasis on get rich quick schemes, and I'm glad that the article exposed it.  Still, on the upside, these solos are still in business with the future looking bright, in spite of a few bumps in the road (low overhead and agility make for good shock absorbers) whereas several big firms collapsed or downsized substantially.

So while I liked some of the realism of the piece, nevertheless, much of the advice offered to the solos seemed awfully old fashioned.  The marketers did not suggest to any of the three solos that they incorporate social media, Google ads, video or other Web 2.0 and Internet trends that are so common.  (The sole exception came in the form of a recommendation to one of the solos who is fluent in Spanish, to offer a bi-lingual version of her blog (which I thought was a great idea).  Instead, most of advice focused on old school activities like building and reinforcing referral networks and following up religiously after networking events or seminars.  In fact, one of the marketers advised a cash-strapped criminal defense solo hurting for business to take out ads in the Yellow Pages or perhaps a church bulletin.  To me, a Yellow Pages ad seems like a waste of money - not only is circulation way down (when's the last time you consulted the Yellow Pages for any service provider?), but unless you can afford a full page ad, you're likely not to be noticed.  If you're going to throw down money on ads (which I don't really advise any), it would be better spent on Google ads or even some of the emerging social media ads rather than the Yellow Pages. 

On the positive side, the article emphasized the tried and true measures that have always been effective.  These include time management and measuring results to eliminate efforts that are time intensive but don't produce revenue, seeking out referral sources and cultivating those that have been helpful, keeping up to date with substantive law and considering one's legacy as an inspiration to stay on task with marketing.

What do you think of the advice given in the article?  Can lawyers promote their practices without social media at all?  And what suggestions might you have for the lawyers profiled?