At Virtual Law Firm, Lawyers Will Work at Home, Earn 85% of Billings

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At Virtual Law Firm, Lawyers Will Work at Home, Earn 85% of Billings

Posted Jul 16, 2008, 08:19 am CDT
By Debra Cassens Weiss

A lawyer-entrepreneur is joining with 14 other lawyers to start a new legal venture called Virtual Law Partners.

The firm will employ lawyers who work at home, saving on overhead and costing clients less in legal fees, the Recorder reports. Craig Johnson, the lawyer who formed the Venture Law Group in 1993, told the publication that the typical large law firm business model is “a situation that can’t continue.” That business model includes high associate salaries, prestigious offices and billing rates as high as $800 an hour, he said.

His Virtual Law Partners “just seems like an idea whose time has come," he said. He hopes to employ hundreds of lawyers working from home doing all kinds of legal work for companies, except for litigation. Johnson, who will be CEO of the new firm, estimates that the average billing rate will be about $400 an hour and says lawyers will get 85 percent of what they bill. There will be no billable hour requirements.

Johnson’s prior startup law firm represented new tech companies in exchange for an equity interest, but the firm foundered after the dot-com bust and merged with Heller Ehrman in 2003.

Other legal groups that employ work-at-home lawyers include Axiom Global Inc. in New York, Outside GC in Boston and Phillips & Reiter in Houston. One Axiom lawyer said he earns about $250,000 a year but receives no bonus.

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Posted by associate - 2 months, 3 weeks, 1 day, 6 hours, 16 minutes ago

The only problem with this is the loss of institutional learning.

I know the partners and senior associates at my firm have been invaluable in teaching me the law and helping me to better serve our clients. Our firm CLE’s on new developments in our IP niche have also been helpful.

I could envision this as an alternative to partnership for senior associates, but where is the work coming from? If you’re bringing your own work, why wouldn’t you just start your own firm? What are you getting for that 15%?

If they intend to supply my work, then yeah, that’s a pretty good deal.
Posted by Solo practitioner - 2 months, 3 weeks, 20 hours, 2 minutes ago

A virtual law firm with a web-based technology is nothing new. Over the past several years solo practitioners have been opening virtual law offices with similar web-based technologies and working from home, remotely and in conjunction with existing brick & mortar law practices.

Check out other web-based virtual law practice technologies: VLOTech (Virtual Law Office Technology), DirectLaw, PA’s Making Law Easy, etc.

The question is whether the virtual attorneys want to use the technology to compete with Biglaw and work for themselves or if they want to be partners in a large web-based firm.
Posted by Texan99 - 2 months, 3 weeks, 6 hours, 17 minutes ago

I’ve been a virtual lawyer for almost ten years. I’ve been associated with a brick-and-mortar firm, but my home is distant from their nearest office, and I’m rarely there. The firm has four offices and is used to assembling virtual teams from various offices, who communicate by telephone and email and rarely gather physically. Our clients are all over the country and, similarly, are used to dealing with us by telephone and email, so that it’s not very important where each of us is physically at any particular time. My clients practically never have to pay for me to travel. Even court hearings are increasingly available by telephone.

I don’t receive as much as 85% of my billings, but the firm does most of the marketing and covers all of the overhead for insurance, clerical assistance, etc. The arrangement strikes me as generous.

There’s no reason to lose the institutional learning. Communication with one’s colleagues doesn’t require travel. A virtual practice does, however, require the firm’s commitment to first-class technology.
Posted by Deirdre - 2 months, 2 weeks, 6 days, 11 hours ago

This is such an interesting concept! I am a 2L and would love to write an article on Virtual Lawyering. If you are a past, current, or potential Virtual Lawyer and would like to share your thoughts with me, please contact me at
baski011 at umn.edu. Thanks so much for your help.
Posted by miles Zaremski - 2 months, 2 weeks, 6 days, 9 hours, 45 minutes ago

For the last 18 months, I have set up such a “virtual” practice, having once been a partner at major firms. It is amazing how much waste in terms of overhead there is with traditional forms of law practice, and it is even worse today.
Posted by Susannah - 2 months, 2 weeks, 6 days, 7 hours, 24 minutes ago

I am trying to find a legitimate work from home opportunity so I can stay home with my children and still use my JD. This article gives me hope that an opportunity is out there waiting for me.
Posted by Tim - 2 months, 2 weeks, 6 days, 5 hours, 45 minutes ago

To be honest, if you use information technology properly, you can capture a lot of institutional knowledge without needing too many in person meetings. Imagine something like an internal wikipedia for a law firm.....
Posted by Kara - 2 months, 2 weeks, 6 days, 4 hours, 51 minutes ago

Regarding comment number 6, I don’t think people should see this as an opportunity to stay home with your kids. You can’t be serious about doing your job if your kids are home the whole day. I can see it being great if you want to be there when they get home from school or make sure you can be home when they are sick so you don’t have to leave them home alone with a nurse you hire for the day, but you can’t seriously practice law from home if your kids are there all day. I know from experience as I work from home two days a week, and if my son is healthy, he is in day care. When he is home sick I hire someone to take care of him for 8 hours and it is still harder to get a full day or work done. Don’t kid yourself.
Posted by Los Angeles Partner - 2 months, 2 weeks, 6 days, 4 hours, 22 minutes ago

I have to agree with the post by associate. As a partner in a medium sized firm in Los Angeles, I have watched young associates grow to become excellent lawyers due in large part to having the ability to walk into another lawyer’s office, and discuss matters in an informal and impromptu setting. I do not see how an associate in a virtual firm has the ability to benefit from this one-on-one sharing of knowledge in such an environment. I am also concerned by the enthusiastic post by Deirdre, who as a 2L has yet to learn how lawyers actually practice law, and as part of a generation raised in front of computers, may not yet have an appreciation for the things that a computer cannot do for a lawyer. Can the virtual firm work in an environment consisting exclusively of well-trained working lawyers? Certainly, but who is going to employ and train our new law school graduates?
Posted by Northwest Associate - 2 months, 2 weeks, 6 days, 3 hours, 59 minutes ago

LA Partner is exactly right. In addition, why would firms agree to this virtual concept? Law firms would become no more than technical schools from which 4th - 7th years graduate and go out on their own to make 85% of billings. Hardly a model of succession planning.
Posted by Majdel - 2 months, 2 weeks, 6 days, 3 hours, 46 minutes ago

LA Partner,

I am concerned about your concern for those who do not start off in a traditional law firm setting.

I went solo straight out of law school. I believe I learned more by doing things on my own than I would have had I been an associate in a bigger firm.

With the internet and listservs, it’s easy to gain access to resources and other attorneys for their input.

It’s sad to see that so many attorneys still hold onto the notion that you must practice somewhere before going off on your own.
Posted by Edward Esq. - 2 months, 2 weeks, 6 days, 3 hours, 44 minutes ago

I would think that IP would be one area of the law especially suited to a virtual law office since nowadays routine practice before the U.S. Patent & Trademark Office is all online.
Posted by associate - 2 months, 2 weeks, 6 days, 3 hours, 21 minutes ago

Edward,
I can assure you that IP would be one of the worst areas to try and learn on your own outside of a firm setting. Have you ever seen the MPEP? The same should probably be true of any highly rule driven practice area. As LA partner point out, it’s exactly those little questions that you can ask others informally in a firm setting that help so much with efficiency and learning because you get through cases faster and get to see more cases with their own issues.

LA Partner, that’s exactly my point. 4-7yr associates already have the tools they need to function with minimal supervision. It’s the 1-3 year associates that need the firm structure. It’s really amazing as a 1-3 year that most of what you learn is exactly how much you don’t know. That starts to turn about the 4th year of practice in a particular specialty.
Posted by Edward Esq. - 2 months, 2 weeks, 6 days, 2 hours, 48 minutes ago

Associate and LA Partner: I stand corrected. Perhaps I should have qualified my comment by saying that IP law might be especially suited to a vitual law office for an attorney who is an established, experienced IP practitioner. Better yet, a vitual practice would seem be ideal for a retired (perhaps in-house) IP practitioner who wished to continue working on a limited basis.
Posted by Professor Arthur Miller IV - 2 months, 2 weeks, 6 days, 2 hours, 46 minutes ago

Hanging out a shingle straight out of law school and without competent mentoring is a recipe for disastor. A solo can easily establish poor writing, legal research, and lawyering skills that will have disastrous consequences for years to come. If you have no choice but to go on your own, at least have the good sense to seek out a mentor in BigLaw who has had the training so many of you young turks will need to succeed. A BigLaw training, with its emphasis on attention to detail, under the careful eye of partners and senior associates, is without a doubt the best form of legal training in this country. I implore each of you new lawyers who do not have the fortune to work at BigLaw to find a good older attorney to help you grow; you will need it! Do not be a fool and think you can learn everything you need by making needless mistakes. Put an ad on Craigslist today!
Posted by Unemployed - 2 months, 2 weeks, 6 days, 2 hours, 44 minutes ago

LA Partner, I’m glad to see that you’re so concerned about how on earth new law school graduates are going to learn anything about the law. Unfortunately, many of us never get the opportunities you describe, because partners such as yourself (I’m making a broad generalization) won’t give the time of day to the majority of new law grads seeking employment. And if you had the misfortune to graduate in the bottom half of a non-first-tier school (and that’s about two-thirds of all law grads!), you can pretty much forget about finding a job in today’s oversaturated market. Like Majdel, I’m starting to consider going solo with no legal experience whatsoever. Not because I want to, but because I have no choice. Unlike Majdel, I have no confidence that I will have the first clue what I’m doing - but I guess I can just call LA or another law firm partner and ask if they’ll give me some guidance.
Posted by Los Angeles Partner - 2 months, 2 weeks, 6 days, 2 hours, 41 minutes ago

To Majdel, in no way was my post meant to impugn the talents and abilities of many talented lawyers who successfully go out as sole practitioners immediately after passing the bar. I am a firm believer that there is no substitute for hands on experience. But you have lost sight of the fact that not all clients and legal matters are suitable for sole practitioners. There is a place in the legal community for firms, and there is a place for sole practitioners. My point is that law firms that rely upon the virtual office concept are going to adversely impact themselves in the long run because of the difficulty they will face in properly and effectively training young lawyers.
Posted by The Tax Dude™ - 2 months, 2 weeks, 6 days, 2 hours, 18 minutes ago

Virtual firms are not for everyone, but there is certainly a trend in that direction. When you consider the substantial cost of housing employee in an office environment virtual firms make economic sense. We are a virtual firm and the only purpose for a bricks and mortar setting is a mailing address and a conference room. Law libraries are really a thing of the past. Research is done online.

There are challenges to running a virtual firm. The largest challenge is learing how to manage staff and resources. As unfortunate as this sounds, there are lot of law firms (and other businesses) that still manage staff in the same manner assembly line workers were managed at the start of the Industrial Revolution. Through e-mail and WebEx meetings, our staff probably collaborates as much or more than than the traditional practice.
Posted by Virtual IP Attorney - 2 months, 2 weeks, 6 days, 2 hours, 14 minutes ago

Edward Esq. - I agree that IP is especially suited to virtual law office, but it’s less about routine practice before the PTO than automation. There’s a lot of redundant information that needs to be typed on forms, responses and routine correspondence, which can be automated. Big law firms that I’ve worked at (three in AmLaw 100) don’t want to shell out the cash for the systems that work together to do these tasks, so staff has to do it -yet the firms complains about high staff-attorney ratios and high overhead in patent prosecution. Shortsighted, from my perspective. I now have a virtual practice. I bought software for 5k that does 90% of what my secretary did at the firm and never complains or asks for overtime.
Posted by Old School - 2 months, 2 weeks, 6 days, 1 hour, 43 minutes ago

Glad to see more younger lawyers thinking outside of the box. If you want to see great examples of people working and socializing in virtual settings, check out a local Podcamp conference. They’re free and you will see just how technology is changing the way we live.
Posted by Edward Esq. - 2 months, 2 weeks, 6 days, 1 hour, 38 minutes ago

The fact that trademark examiners at the Patent and Trademark Office are permitted to work from home says something about the future of online law practice.
Posted by associate - 2 months, 2 weeks, 6 days, 1 hour, 13 minutes ago

Edward,
You don’t stand corrected. I think we’re all in agreement following your clarification.

Per your last comment, about Examiners working from home; I dare say that they are permitted to make slightly larger (and more) mistakes than practicioners are. (yes, there may be some sarcasm there.)

Majdel and Unemployed,
I have a couple of friends that got into the boat that you’re in. They found another place to get some good experience and mentoring along with LOADS of hands on training; local courts. One is a public defender, and one is a county attorney (prosecutes DUI’s and high ranking misdemeanors). This gives them hands on experience, as well as access to older mentors. They both also do fee based work. I would suggest seeing if that is available for both the experience and the guidance.

Virtual IP attorney,
Are you using a software package that does both docketing and form perparation? What is it if you don’t mind?
Posted by Been There Done T hat - 2 months, 2 weeks, 6 days, 58 minutes ago

Dear Los Angeles Partner,

Associates in large law firm practice are mostly relegated to busy mindless work for the first few years of private practice like document review and other such mind-numbing tasks.

As a renegade large law firm associate, I broke away from the model, much to many partners’ chagrin and against their wishes, brought in work and did it myself. That’s when I learned how to really be a lawyer and practice law.

While your concern is touching, it’s misplaced. Pity associates who spend 3-4 years shuffling papers from here to there and drafting legal memos no one reads.

To young lawyers, go out on your own, do your own thing. Those who have the drive to be the best at what they do will find the mentoring they need (and believe me, it’s not from a big law partner who’s trying to bill 3,000 hours per year while maintaining a client base--they don’t have time to mentor you).

As for those who think there’s a place for law firms, yeah, there is and it’s working for corporations that don’t mind bill stacking and outrageous fees. Hah.

Viva la revolution!
Posted by Will Hornsby, ABA Staff Counsel - 2 months, 2 weeks, 6 days, 24 minutes ago

The ABA Standing Committee on the Delivery of Legal Servics is holding hearings on the policies that govern e-lawyering or the delivery of legal services through the Internet. The Committee is interested in issues of professional responsibility, unauthorized practice and issues that involve the balance of access to legal services with client protections. If anyone is interested in providing the committee with information/insights, please see the details at www.abanet.org/legalservices/delivery/techhearings.html
Posted by kay sieverding - 2 months, 2 weeks, 2 days, 17 hours, 42 minutes ago

On the ABA web site today, I saw an ad for a non lawyer selling ghost writing services to lawyers. Because I don’t have a license to sell legal services to others, I cannot purchase for my own behalf the same writing and editing services a lawyer can. I find it difficult to file perfect briefs and would pay for editing services but I would probably not be allowed to purchase from him. Microsoft grammar editor will not pick up all my mistakes! I don’t think that is fair.

I think a stay at home could make $ just by editing by the page. Editing consisting of pointing out unclear passages and asking probing questions. What would be neat is if you could just pay several people to review the same important document without having to make a big commitment to them. I don’t see how ghost writing can be practicing law without a license since the public commitment isn’t there.

What I saw too in my own experience, my defendants sent me their bills and it showed them sending emails and faxes with lawyers who didn’t file notices of appearance, so isn’t that in some ways unauthorized practice? I thiink Mr.Hornsby isn’t taking the issue far enough, it’s not just “client protections”. It’s duty as “officers of the court” to be responsible. Maybe a proof reader or ghost writer could just acknowledge their role as that. The real parties pulling strings behind the scenes are the insurance companies.
Posted by Varsha Dhumale - 2 months, 2 weeks, 1 day, 14 hours, 48 minutes ago

This is Varsha and I am an attorney from Indiana. I moved to India last November and certainly would like to know how to get involved in this work.

Thanks,

Varsha Dhumale

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