Legal solutions for innovators and other smart people

back at the office

Something for law students: theory versus practice

I just read a terrific post by Mirriam Seddiq, an American defence attorney, titled "The Law, a Love Affair of Sorts" about her love affair with the law and the difference between how law students experience legal practice and what it is like when you are actually at the front lines. It is the sort of post law students should read because law school rarely prepares students for what legal practice is like after they graduate. Seddiq writes from the perspective of a criminal defence attorney but her observations are relevant to virtually all areas of legal practice:

But, here's the part in this post where I tell you what's different about being a real lawyer and what I wish I had known in law school. Because despite the fact that I was playing lawyer in law school, reality still hit like a ton of bricks. Ready for it? Here's what was different:

The people. The responsibility for the people. Your clients. Their families. It is, sometimes, overwhelming. When you sign up for this, you sign up for a fight each and every day of your life, whatever side you are on. People, these people, they look to you. You are their soldier.

Library International Law Reading Room, 1964My first experience with commercial legal practice as a candidate attorney was very much behind the scenes preparing documents, running around town delivering and picking up documents and attending meetings with my principal. It was quite a learning curve in those first two years and that learning curve hasn't flattened out yet after over a decade out of law school in law firms. What I find now is that I am still learning more about how to practice law, develop better relationships with clients (and sometimes how those relationships can be soured) and how to run a better law firm. Oh, there is also all that law which keeps changing, especially in my area of expertise.

It is a stressful career choice and is not at all what I expected it would be when I was working my way through law school, dreaming about what it would be like to be an attorney out in the world. I probably wouldn't have been quite so arrogant straight out of law school if I had an inkling of what was coming.

Like many lawyers I have often wondered what I did to deserve the stress and angst of this profession and spent many hours in my previous firm looking for a way out of the legal profession. Leaving to start my own firm changed my perspective on legal practice. What I learned as I built up my practice is that although we, as young lawyers, need to be exposed to a broad cross-section of legal work, the ugly and the exciting, we really begin to appreciate why we chose to go to law school when we find an area of work we are passionate about. Like any profession, finding the work you are passionate about makes all the tough stuff worthwhile and your work becomes less of a job and more a part of who you are. It is even possible to look forward to getting back to the office on Monday morning!

Presenting at the 2010 Legal Faire

I am presenting at the 2010 Legal Faire being held in Sandton this morning. The Legal Faire is aimed at lawyers and that makes my presentation a little different. Instead of speaking to marketing, communications and general non-lawyers about social media trends and the law, I am going to be talking about how social media is challenging traditional legal paradigms. My topic is "Social media: Giving traditional legal paradigms the finger". Its probably a little ambitious on my part but it should be interesting to see what the response is. Here is an advance copy of my presentation slides if you are interested:

I am speaking today and tomorrow at 10:00. You'll need to register today if you want to attend, though.

A preview of our corporate photo-shoot

We decided to have some professional corporate photos taken of Shirley and me. We went straight to Jeanette Verster who is a terrific photographer and asked her to take the photos at our offices. Jeanette published a few of the photos last night and they look great. Here is one of the photos she published:

The rest of the photos she published are on her blog. We'll have more when she is finished editing the set and we'll start sharing them when we have the rest of them.

Here is a little more information about Jeanette from her blog:

I am an on-location photographer and I work mostly with natural light. I am based in Johannesburg, South Africa and will organise photoshoots on weekends, anywhere in the Gauteng area.

I do mostly family, maternity, newborn and fun shoots, but have also done a few functions, corporate portrait sessions as well as weddings.

It is definitely worthwhile to either subscribe to her blog or visit it regularly. Jeanette's photography inspires me to do better with my own and it is an absolute pleasure to work with her.

I had a little fun of my own during the shoot and took a couple photos of Jeanette taking some of Shirley's photos. They aren't nearly as good as Jeanette's photos but I thought some behind-the-scenes photos would be fun.

Early bird offer for the 2010 WTF Media Conference

Update: The April WTF Conference has just been postponed to the second half of 2010.

I am speaking at the WTF Media Conference at the Cape Town International Convention Centre which runs from 27 to 29 April 2010. The organiser, the Cape Peninsula University of Technology, has asked us (the participants) to extend an early bird offer to anyone interested in attending the conference:

Book for the WTF Media Conference before April 16 and qualify for the early bird discount offer.

Shel Israel of Naked Conversations and Twitterville is the keynote speaker. He is accompanied by more than 40 of South Africa’s most knowledgeable speakers on social media, mobile media and cloud computing. Integrate old school knowledge with new ways of doing business.

Here are some contact details and other information if you would like to take advantage of this offer:

CPUT (Cape Peninsula University of Technology)
Ms Wardah Peck
Ms Lauren Dyers
Telephone: 021 460 4284 / 021 460 9077
Facebook: www.facebook.com
Gmail: wtfmediaconf [at] gmail.com
Twitter: @WTFmediaconf
Hashtag #wtf10

I have been asked to speak about "Cyber Law" but the topic is fairly open to interpretation. I usually speak about social media and the law and my speaking time is around 20 to 25 minutes.

I am still planning my talk and I would love to get some feedback from you if you are going to attend and there is something you would like to hear me talk about?

Does your company have a social media policy?

The social Web can be a scary space for a company venturing out and adopting social media initiatives as part of their overall marketing strategies. Engaging with customers on social media platforms like Twitter and Facebook involves a loss of control over the message and the conversation.

Actually, I don't believe companies and brand owners have real control over their brands and the conversations springing up around their brands largely due to the distributed and viral nature of these platforms. What companies can attempt to do is engage with the people who are talking about them and their brands and participate in a brand and relationship building exercise.

Now this sounds like the sort of marketing speak you might expect from, well, marketing types but an awareness of these sorts of dynamics is essential if you have any hope of understanding and working with the legal issues that arise out of social media initiatives. One tool which a growing number of companies are using is a social media policy. This video interview with Adam Brown, Head Of Social Media at Coca-Cola, gives a pretty good overview of what a social media policy should address (thanks to my client who referred this video to me):

I really like Coca-Cola's approach to its social media policy. A big part of the policy is intended to establish a broad framework (in this case a set of principles and values) that governs how various stakeholders make use of social media based on their roles within the organisation. I firmly believe that educating employees and other stakeholders about the social Web and social media tools goes a long way to reducing exposure to liability.

Combine that with a clear and carefully thought out framework that caters for the multitude of regulatory and other relevant compliance considerations and you are better equipped to manage the uncertainties that remain part and parcel of social media marketing campaigns and initiatives. It is also a good idea to approach a social media policy from the right perspective as lawyers. Lawyers have a tendency to try and cover all the bases and create documents that are very specific and prescriptive. The challenge with social media policies is that their subject matter is virtually in a state of constant flux as new services emerge and new uses for existing services become popular. A policy that is too specific will quickly become irrelevant or just inappropriate.

In addition, the process of developing a social media policy should create a better awareness of what the various social media tools can help the company achieve, where the risk areas are and strategies to help manage them. A better awareness means a more informed decision making process and the comfort of have a plan to deal with issues which may pop up along the way.

Social media policies will become increasingly valuable as more businesses start using social media. Just remember that social media policies, perhaps more than any other policy document, should be reviewed regularly to ensure that they remain relevant, appropriate and effective.

The social Law Firm (otherwise known as Law Firm 2.0)

I've been a little obsessed with what a law firm should or could look like in this era of a social Web and a two-way flow of communication between providers and their clients becoming a norm. The social Web introduced the possibility of engaging a little differently with clients and I have been debating (mostly with myself - its been an interesting private conversation) what I could change in our firm to take advantage of this "social media mindset" in our day to day business.

It is pretty clear to me that the traditional legal services model is changing. At least the focus is shifting from documents back to raw expertise because that is ultimately what practicing law is about (at least in my humble experience of about a decade or so). There are a number of services popping up that sell legal documents to the person on the street for far less than what an attorney would charge to prepare them. While there is certainly still a market for more intricate documents due to the special requirements for those documents that a standard document off the shelf could never anticipate but I suspect even those documents could somehow find themselves on a shelf at CNA one day.

Short of a readily available and really effective artificial intelligence, lawyers' knowledge can't be replicated and put on a shelf just yet. Clients still need to brief attorneys to harness what is often highly specialized and carefully cultivated legal knowledge and that is where our value as a profession lies. But this isn't what I wanted to write about in this post. What I have been thinking about lately has more to do with how we work with our clients.

I made a silly decision the other day which had to do with applying aspects of our terms of appointment to a couple of our clients. I met with one of those clients soon after I sent off the email informing them about our decision. Our meeting was a regularly scheduled status meeting to discuss a number of files we are working on for his company (this client takes advantage of our retainer fee structure so its worthwhile for him to meet with us regularly to discuss developments and new work) but at the end of our discussion about ongoing work, we chatted about my email. The discussion became an invaluable feedback session where we debated a number of issues. What I realized as we debated these issues is that the decision I took was more in line with what I see as a traditional approach to client management on some level. It was ironic because my focus is on social media and a very different approach to customers by their providers.

A had a couple "a-ha" moments in the course of that meeting and it got me thinking about better ways to communicate with our clients. Another irony is that many of the lessons I learned yesterday morning were communicated to me years ago in my previous firm, albeit as advice to play a more political game with colleagues and clients to ensure their collegiality and patronage (I have a strong aversion to political games, I am far more in favour of authentic interaction with people and that is one of social media's appeals). What I realized is hardly revolutionary. Many of the ideas about client interaction go back generations to the days of small villages and marketplaces. They are also ideas which have been implemented by better lawyers than me as long as there have been lawyers and their clients. I thought I'd share some of these ideas anyway.

Image credit: 25/365 - Organization. by BLW Photography (licensed under a Creative Commons Attribution 2.0 license)

There seems to be a gulf between lawyers and their clients for the most part. Lawyers are these mystical creatures who employ strange language and machinations in an effort to achieve seemingly simple results. I often see it in the way that we lawyers speak and draft our documents and I've written about the importance of speaking plainly about what we do and the documents we create before. I think one of the reasons we perpetuate this is as a sort of defence against the unwashed masses (our clients). We raise these linguistic barriers to prevent them from trying to do what we do themselves. Lawyers also work to maintain the perception that we are vital to our clients (we are actually but not because we use complicated language - its because the world is becoming increasingly complex and regulated and you need lawyers to interpret and navigate those legal frameworks).

What is often missing is a realization that clients are not a threat but can be our best allies. As I listened to what my client was telling I realized that I was listening to a passionate evangelist for our retainer fee structure (he has often told me he doesn't understand why more clients don't take advantage of our retainer fee structure because of its cost saving alone), if not our firm and the way we do business.

Photo credit: Day 236: Attorney and client by madmolecule (licensed under a Creative Commons Attribution 2.0 license)

He also reminded me about the importance of personal contact with clients. I do much of my work remotely and it is easy to forget the tremendous value of personal contact with a client as opposed to an email. This isn't exactly a revelation, good business people all over the world and going back in time realized this and formed deep and meaningful relationships with their clients in the process.

This all got me thinking about how I can communicate better with our clients and making better decisions about our business that help build evangelists rather than focus too heavily on the business itself. I was reminded that spending more time on making sure we have happy clients will benefit our business along the way and perhaps in ways we haven't thought possible. I'd like to see that gulf between us and our clients shrink and even disappear. I want my clients to give us feedback and even tell us off when we do something to harm our relationship with them. No news is bad news for a social law firm based on meaningful relationships. It also seems to mean that face to face contact trumps phone contact which trumps email or IM contact when it comes to building and maintaining relationships.

Social media is about building relationships with customers using tools online. Running a social law firm is perhaps more about using those online tools to enhance relationships cultivated face to face, so to speak. Whatever it is, it is a work in progress and probably always will be.

Pay your lawyers, really!

I read an amusingly titled post "PAY YOUR !*?@!%! LAWYERS!!!" yesterday which touches on a topic lawyers don't often talk about: actually getting paid for services rendered. While the title of that post evoked a smirk, it hits home for the majority of lawyers who provide the best service they can, only to find that their clients either pay late or don't pay at all.

Cash money

While experiences of this phenomenon differ, I have had both experiences in my career and it is a tremendously frustrating experience. I was chatting to my partner about this yesterday and she remarked that when you walk into a store, you pay for the goods when you leave (well, you should). When you go to your doctor, you generally pay when you walk out the door or your medical aid handles that for you. I think clients forget that legal services are frequently critical to help avoid, mitigate or facilitate a greater awareness of risk. That risk can be profound and good legal advice can make a world of difference. My partner was telling me that she once met with a major client which was considering a fundamental change to its operations and she identified a solution which helped turn that business around and become more profitable.

There is this insider joke many lawyers secretly share. We often joke that when we are in a meeting with a client, advising that client, part of our awareness is watching what is going on and wondering both where all that advice is coming from and why the client is actually listening? Its easy for a client to think that the individual sitting across the table is just one person and the value of the advice being given must be judged accordingly. This is one reason why clients visiting their attorneys in larger firms are faced with expensive boardrooms and half a dozen lawyers. It is largely an attempt to impress upon the client the importance and value of the advice being given. It is also a reason why fees are often a little higher than they need be. It comes down to a perception that the advice being given is truly valuable, quite independently of the quality of the advice itself.

Besides damaging an attorney's business by not paying the attorney's fees, non-payment or late payments have a knock-on effect on other clients. The article I mentioned above contemplates the effect of discounted legal fees but the principle applies to late or non-payment of fees too:

At the end of the year, the firms figure out their revenue and profit margin and realize that they didn’t make as much as they would like, so what do they do? They raise their hourly rate. If they are going to provide discounts, they want a larger base to discount from.

The outcome of this is that now everyone is paying higher hourly rates and we are all worse off. In fact, those of us who pay our bills are subsidizing those who don’t during the year.

When attorneys are not paid for their services, it is natural to prefer clients who do pay and to prefer work which results in larger fees. This isn't how attorneys should ideally operate and law societies often have rules and guidelines that discourage attorneys from suspending or ceasing work for defaulting clients. The unfortunate reality is that attorneys rely on those fees to keep their businesses going and to earn a living. An attorney's work is not easy work and involves long hours, high stress levels and tremendous responsibility. Consider that in order to be permitted to practice as an attorney in South Africa, that attorney must be covered by professional indemnity insurance aimed at protecting trust accounts and guarding against professional negligence. Legal practice is a high stakes endeavour.

This isn't to say that all legal fees charged are fair fees and clients should negotiate with their attorneys if they feel they are not being charged a fair fee. At the same time clients often find that attorneys' trading terms become tighter and more onerous as more clients default. We have adopted a fairly strict policy of taking deposits in direct response to clients not paying our fees on time or at all, for example. This policy may deter some clients and we regret that. At the same time this measure and similar measures other attorneys adopt are designed to ensure these practices remain afloat and capable of servicing clients well.

Pay the people behind the scenes

Something else to bear in mind is that attorneys' invoices frequently include 3rd party disbursements like advocates' fees, messengers' fees and other service providers' fees. When clients don't pay their fees or pay late, this has an impact on those 3rd party providers who may find they will have to wait longer for payment for their services. This is unreasonable and something I feel quite strongly about. I know what it is like not to be paid on time and one of my values is ensuring that my service providers and staff are paid when payment is due. I often think that clients forget that when they are faced with a solo practitioner or a partner in a small firm, that there is a whole infrastructure behind that lawyer and real people who depend on their income.

So when you are next presented with an invoice for legal services (or just about any professional service, really), pay it when it is due. You are doing not just your attorney and the people behind the scenes a disservice but also yourself.

Changes at Jacobson Attorneys

Perhaps the biggest change is that Jacobson Attorneys is now a partnership. My partner is Shirley Fodor and she has joined from Tabacks where she was a director. Here is a little information about Shirley from her profile:

Shirley Fodor completed her studies (BCom, LLb LLM Public International Law (Cum Laude)) at the Rand Afrikaans University (now the University of Johannesburg) in 2000 and articled with the late Julian Solomon in commercial litigation. Upon completion of her articles she spent two years in academia at Rhodes University and the University of the Witwatersrand, lecturing in the law of contract, the law of negotiable instruments, commercial law, company law, public international law and the law of civil procedure. She joined Mervyn Taback Incorporated and Taback and Associates in 2005 where she accepted a directorship in January 2007 until she resigned in December 2009 to join Jacobson Attorneys. Shirley is additionally qualified to practice in England and Wales.

Shirley is well versed in all aspects of commercial law and has experience in various sectors of industry including the mining sector and fast moving consumer goods. She has been involved in numerous high profile mergers and acquisitions, BEE restructures, listings and is frequently called upon to provide opinions on various aspects of these transactions.

Shirley is heading up the firm's commercial department and will handle a range of commercial and corporate work from general agreements to mergers and acquisitions, corporate restructuring and listings.

Shirley is supported by Efi Bar-on who is consulting to Jacobson Attorneys. Efi is an experienced commercial attorney who did articles with me at Werksmans, worked at what was then Jowell Glynn & Marais as well as at one of the big banks in its legal department. My focus will be more on Web and digital media related matters for the most part. I have also taken on the role of senior partner in our new partnership.

We are re-positioning the firm as a focussed commercial, corporate and Web/digital media law firm and will start becoming more selective about new clients.

We have also updated our terms of appointment to increase our hourly rates and modify our retainer fee structure a little.

A quick post for our fans

You may not be aware that we have a Facebook Page for web.tech.law that updates as new posts are added to the main site. If you spend a fair amount of time on Facebook then why not become a fan?

FB Page screenshot.png

facebook_64.pngIf you have any ideas or suggestions for the Facebook Page, feel free to post them or send us a message either from Facebook or from the web.tech.law site itself. I'd certainly like to use the Page more productively and any feedback would be welcome.

You can also become a fan directly from the main site by clicking on the "Become a fan" button on the right in the sidebar.

google_64.pngIf you happen to be more of a Google or Twitter person, you can also join our Google Friend Connect community using the Friend Connect panel in the sidebar to the right. I happen to have a preference for Friend Connect and I am constantly thinking about how to integrate it better into the site. One of the advantages of Friend Connect is that you can join that part of the web.tech.law community using your Google, Twitter, OpenID and AIM credentials. It is also attractive for people who are not Facebook fans and would prefer to use their existing credentials rather than create a new account.

twitter_64.pngSpeaking of Twitter, we have a Twitter account we update from time to time. Our Twitter name/handle is @webtechlaw so feel free to follow us and check out our lists of interesting Twitter users and thinkers.

Of course you are also welcome to join the web.tech.law site as a member too. We are working on ways to add more value to our members on the site. Actually, it would probably be most helpful to integrate all our communities into the site better so any suggestions will be much appreciated.

Oops, we just did a Facebook

On Monday I posted new terms of appointment which include a new variable fee model. The update was effective immediately and made in terms of an enabling mechanism in the previous terms of appointment which allow for autonomous updates. That mechanism is important because it allows this firm to update its terms of appointment across the board without the added complexity of revisiting terms of appointment with each client, each of whom may have different requirements. Individual negotiations would lead to an overly complex array of legal frameworks for different clients and managing those frameworks would be prohibitively expensive. This is a mechanism common to virtually every business' terms and it exists for practical reasons. That being said, there is no reason why the process of updating terms of appointment (or other terms, for that matter) shouldn't take clients' feedback into account where possible.

Updating our terms of appointment the way we did was a little reminiscent of how Facebook updated its website terms of use back in February 2009. The terms were updated without specifically informing users and contained some pretty onerous terms that many users were very unhappy with. This isn't to say that our terms of appointment are equally onerous but there are certain aspects of the terms which some of our clients have raised concerns about, in particular the (now proposed) variable fee model.

I thought it would be a good idea to practice what we preach so I have set up a survey designed to elicit feedback on various aspects of our fee model and to help us design a fee model our clients will be more comfortable with. For example, I am not a fan of the typical law firm billing model which is typically based on an hourly fee but some clients prefer it. We would very much appreciate it if you could take the time to complete this survey below and give us feedback, even if you are not one of our clients. Odds are, you are someone's client and you have your own thoughts about which fee models work for you and which ones don't.

Our goal is complete our review process by the end of December and to implement an updated terms of appointment by 1 January 2010 so please submit feedback before then?