Category Archives: Foreign LPO companies

What’s in a name? “Growing enthusiasm for contract lawyers” but minimal interest in “outsourcing”


By Melody A. Kramer, Esq.

A significant percentage of law firms with 50+ lawyers “expressed a growing enthusiasm for contract lawyers” according to a Weil Altman survey but still are cool towards “outsourcing.”  According to their 2010 Law Firms In Transition report, in 2009, 39% of law firms reported “using contract lawyers,” a number increased to 53% for 2010.  However, the same report cites “less than 10% of firms outsourced or offshored legal work” in 2009 or 2010.  Nowhere does the article explain what the survey respondents meant by “contract lawyers” or “outsourcing.”

“Outsourcing” refers to having non-employees perform functions for your business.  Thus, if a law firm seeks out “contract lawyers” via an employment agency or a self-employed freelance lawyer to perform work for them, they are “outsourcing” work. 

“Outsourcing” is not synonymous with “offshoring” in which persons outside of the country’s territorial borders are performing work for U.S. law firms.

This continued confusion about the nature of outsourcing, contract attorneys working for employment agencies, and freelance attorneys working for themselves still pervades the legal profession, hampering meaningful discussions and actions.  For additional explanation, see the response to a Call for Comments by the ABA on Outsourcing provided by the National Association of Freelance Legal Professionals and freelance attorney Lisa Solomon.

Independent U.S. Contract Lawyer Takes On Foreign LPO: Round 2


by Lisa Solomon, republished with permission from Legal Research & Writing Pro

Last fall, I wrote about the risks that lawyers take when they outsource work to foreign legal process outsourcing companies. The primary risk I focused on wasn’t the possibility that the foreign provider might violate confidentiality or conflict of interest rules: it was the risk that the LPO company would produce substandard work. My last post on this subject was prompted, in part, by the abysmally poor grammar used in a particular LPO company’s marketing piece. As I explained in comments to that post, I think the quality of a company’s marketing materials is a good predictor of the quality of its work product. Last Friday, another marketing piece, by another foreign LPO company, brought this issue to the forefront once again:

foreign LPO Legal Outsourcing Handbook

This tweet promoted The Legal Outsourcing Handbook from LegalEase Solutions. Ever curious, I downloaded the Handbook and started to read.I was immediately struck by the “quality” of the writing. From the first paragraph (and, as I was to find out) to the last, the Handbook is rife with grammatical and usage errors; a few typos are thrown in for good measure. These errors alone would be sufficient to disqualify LegalEase from consideration by any sole practitioner or small firm looking to outsource: the last thing that a busy solo or small firm lawyer wants to deal with when outsourcing substantive legal work is having to practically rewrite a brief to get it signature-ready. But more serious still are the Handbook’s substantive errors.

The Handbook describes ABA Formal Op. 08-451 (Lawyer’s Obligations When Outsourcing Legal and Nonlegal Support Services) as “the first opinion issued by the ABA regarding legal outsourcing.” However, while Op. 08-451 is the first ABA ethics opinion that discusses offshore legal outsourcing, it isn’t the ABA’s first opinion concerning outsourcing.

In fact, Op. 08-451 itself discusses the ABA’s two earlier opinions concerning outsourcing: Formal Op. 00-420 (Surcharge to Client for Use of a Contract Lawyer) and Formal Op. 88-356 (Temporary Lawyers [the ABA acknowledges in Op. 08-451 that engaging the services of a temporary lawyer is "a form of outsourcing"]). Although the ABA’s ethics opinions are not binding in any state, they are widely cited in relevant opinions issued by state ethics authorities and some influential local bar associations (such as the New York City Bar Association). One would expect an LPO company like LegalEase to have a better understanding of these opinions, upon which the very viability of its business model rests.

There’s more. As every 1L knows, if you’re going to cite a case or statute in a brief, it’s important to make sure that the case or statute is still good law. In its discussion of its conflict checking systems, LegalEase quotes N.Y. Code of Professional Responsibility DR 5-105(e) (actually, it mis-cites the section as “DR 5 – 105(E), New York Lawyers Code of Ethical Responsibility”). New York abandoned the Code in favor of a modified version of the Model Rules 13 months ago.

When I tweeted about my initial response to the Handbook a few days ago, Russell Smith, the Chairman and President of the self-described “high-end” LPO company SDD Global Solutions Pvt. Ltd. quickly came to the defense of the foreign LPO industry:

With friends like this, the foreign LPO industry hardly needs enemies, does it? After all, wouldn’t it be fair to assume that LegalEase—which uses onshore (i.e., U.S.-based) lawyers to “manage and oversee every project, while the offshore staff performs the bulk of the work”—is also a “high-end” LPO company?

If you’re intent on squeezing every last penny of profit out of the outsourcing equation, you may be willing to spend the time to re-write poorly-written briefs, or to submit lightly-edited versions of those same briefs to the courts, in the hope that the judges before whom you practice aren’t sticklers for good writing. But are you willing to re-do the research, too, or run the risk that the brief you submit overlooks significant cases or statutes. or cites bad law? At what point does the extra work you have to do, or the extra risk you have to take, as a result of sending legal work offshore outweigh the benefit you obtain by maximizing the spread between what you pay to outsource the work and what you bill your client for that work?

There’s no question that you’ll most likely make less profit if you work with a freelance lawyer who lives, is admitted to practice in, and works in the United States than if you hire a foreign LPO company. But there’s more to outsourcing than dollars and cents: foreign LPOs may offer a better price, but onshore freelance lawyers offer solos and small firms better value.

About Lisa Solomon 

Lisa Solomon was one of the first lawyers to recognize and take advantage of the technological advances that make outsourcing legal research and writing services practical and profitable for law firms of all sizes. Through Lisa Solomon, Esq. Legal Research & Writing (www.QuestionOfLaw.net), she assists attorneys with all their legal research and writing needs, including preparing and arguing appeals and drafting substantive motions and trial memoranda. Through Legal Research & Writing Pro (www.LegalResearchandWritingPro.com), she shows other lawyers how to start and run successful practices as freelance attorneys and teaches lawyers in all practice areas how to write more persuasive briefs.

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