We covered Richard Susskind’s speech at the ABA TechShow (click here) and we had previously covered his thoughts in our “Changing Legal Landscape” series (click here).

Today’s Legal Blog Watch reports on a trend of BigLaw being dumped for lower-priced boutiques following the lead of DuPont and adding firms with 300 or fewer lawyers to their rosters of outside counsel — saving as much as half compared with what they would pay larger Wall Street firms.

But as the Legal Blog Watch report says “No question, companies still turn to the old standbys for those bet-the-farm cases. More and more, however, they are turning to mid-sized and even small boutique firms to handle their outside work. But interestingly — and here is the part that fits squarely with Susskind’s comments — work is not being doled out on an all-or-nothing basis”.

For the full Legal Blog Watch article click here.

[For our review of Day 1, click here].

On Day 2 we tried to cover a wide range of seminars, and complete our review of the vendors.  We also networked with a number of our Chicago law firm contacts regarding the Chicago market for contract attorneys:

Adobe Vendor Track Session

Basically, this program has more than enough versatility and functionality to put, at least, 25% of the vendors present at this show out of business.  It was a fabulous presentation and we are going to work with Adobe in providing materials to Posse List members.  The materials for the presentation can be found at www.adobe.com/go/acrolaw and/or  http://blogs.adobe.com/acrolaw and The Posse List will be sent invitations for their online sessions. 

From a Different Vantage Point: In-house Legal Departments

Susskind’s presentation rang true for this session. Both speakers stated that in-house legal departments are similar to art & drama classes in high school, meaning they are underfunded and the first to get cut because they spend and not make money. Once approval is given, Legal tries to bring in as much advanced and/or symbiotic tech as possible in order to reduce external spend, recycle internal projects and show some degree of profitability to the company’s directors.  Unfortunately, it sounded like in-house departments do not truly understand what tech is really needed (a “keeping up with the Jones’” mentality) and, as a result, rely heavily on the corporate IT department for the solutions, i.e. what does a dog do once it finally catches the car it’s been chasing.  Admittedly, it’s an opportunity for e-discovery vendors to “show their stuff” via a well-crafted presentation.   For the presentation click here.   

 E-discovery Treasure Chest

 Presented by Ralph Losey (somewhat of The God in the e-discovery field) and Mary Pat Poteet (Director of Litigation Support at DLA Piper in San Diego, and a great source for IT/e-discovery).  They first walked through Ralph’s sites  (www.floridalawfirm.com & ralphlosey.wordpress.com), followed by the presentation of a cornucopia of websites.  Even to “veterans” in this business it was an eye-opener (what? sites even WE did not know about??).  Anyone new to e-discovery would have greatly benefited from this panel.  On the international side, Losey recommended http://www.trilantic.co.uk and http://www.outindex.com/oie.html which are two companies we know quite well via The Posse List (Europe) operations.  For the presentation click here. 

As for the vendors, we hit almost all the booths but tried to focus on ones that would interest The Posse List (now quite a diverse membership of lawyers, law firms, e-discovery companies, bar associations, in-house legal departments, media, etc.):

 Adobe Systems Inc.

The presenters pitch (see web links above for details) centered on Acrobat 9′s improvements from prior versions and the company’s attempt to make a pdf the universal file for any and all applications regardless of subject matter or use.  Regarding international applications, the software claims the ability to more accurately identify key words in most recognized languages.   The presenter gave us a 30 day trial of Pro Extended version and we will follow up for further information.

 CDW

 The company’s model (link here to site)  can be best described as the Walmart of re-sellers. It appears that, via a network of preferred vendors i.e. Workproducts (click here) , the cost savings they are able to provide is through the rental of needed technology and the near complete automation of the entire pre and post discovery process.

CT Summation

The representatives did not deviate from their literature nor offered any information that is not already known about their services or systems.  It appeared that they are focusing on the computer factor alone to address the challenges to the industry, both domestic and internationally. Presenter gave a limited trail of iBlaze which we will try out and report back later.

Deloitte Financial Advisory Services LLP

The pitch revolved around their “one-stop shop” and “jack of all trades” themes.  The interesting takeaway was that they try to balance the computer factor with the human factor in order to present a potential client with the best as well as cost effective option.  With respect to international work, he stated that “…we are everywhere…” and are able to address any issue no matter how complex or substantive.  When asked for greater detail, he could not go into any specifics because some of the matters are still pending.  However, we know via The Posse List (Europe) that international e-discovery work is growing and that Deloitte will have a major presence.

eMag Solutions

They appear to be a cross between Deloitte and CT Summation regarding their business model, which can be applied both domestically and internationally.  Regarding international applications, it appears that they prefer the human factor and are familiar with the structure of basic review requirements.  They are gaining a wider footprint and we will follow-up.

Rocket Matter

This was a fascinating presentation and the software appears to have the basic functionality a solo would need in a mobile office.  Most of their materials were out and the representative will be sending us copies for review.  This company warrants a closer look in order to determine whether their application has the versatility to truly operate as claimed or is simply an on-line version of a flash drive.  For a link to their web site click here.

Total Attorneys

They go the next step from Rocket Matter in that they provide a barrister-solicitor type of relationship with its attorneys.  Attorneys interested in starting a solo practice or a joint venture should review this company because it can handle all of the business logistics that are inherent with the practice of law, i.e. call center, billing system, etc., via an online environment.  For a link to their website click here.

Keynote speaker Richard Susskind “wowed the crowd” and he was usual best.  We saw him last year in London shortly after his book The End of Lawyers?: Rethinking the Nature of Legal Services was published and he continues to give a grand performance.  And his humor is as crisp as ever.

He kept to the main points of his book:

1.  Deep and rapid technological advances (of the disruptive kind) leading to major threats to various aspects of the traditional law firm business model

2.  Relentless connectivity, and the burgeoning electronic legal marketplace

3.  The “decomposition of legal tasks” into component parts that can be delegated to various sources: in-sourcing, relocating, offshoring, outsourcing, subcontracting

Susskind started with the classic Einstein & chauffeur story and stated that the themes of his presentation will be: future, market, commoditization, technology, shape and lawyers.  He prefaced his themes by stating that the hunker down strategy that is currently employed by law firms is fundamentally flawed because in 18 months it will not be business as usual due to the fact that current economic and/or market factors have permanently change the legal terrain.  Thanks to other forces, there has been an acceleration of efficiency effect that will change how our services are delivered and what a client truly finds necessary.  To help illustrate his “what customers want” point, Susskind used Black & Decker as an example (a power drill versus the hole in the wall).  The fundamental need that clients have is for our knowledge and how to turn that into value.  Firms have been profitable because of their position as a reactive tool in the marketplace even though clients are truly seeking proactive ways of dispute avoidance and risk management.  To help drive his point of that there is disconnect between a firm and a client, Susskind used an illustration of a cliff with a fence at the top and an ambulance at the bottom.   Basically, firms have been comfortable in improving the ambulance when clients have always wanted a stronger fence.  One of the ways to begin to remedy this issue is the “allowance of the impossible,” meaning a marriage of automation and innovation in the legal marketplace.

Susskind stated that there is currently a three part dilemma in the marketplace: reduce internal headcount, reduce external spend and clients want more for less.  On a side note, Susskind mentioned that there appears to be a new movement of external investment or management heading towards firms in the form of private equity and venture capitalists wanting some degree of partnership. What is fueling the dilemma is a client’s raw strategy (cutting costs and multi-sourcing to complete the task at hand) and community sharing (via a hybrid of social networking, collaborating with an online community, so to speak, to share costs and harness the power of relevant departments such as IT).  If a firm is to survive, they have to stop using a hunker down strategy and adopt a form of commoditization.

In the past, lawyers customized, or bespoke, a pleading to a particular matter or need.  Today, firms still claim that everything is customized to a particular client and fight any form of commoditization because there is no money to be made.  Susskind stated that this train of thought is incorrect and through standardization as well as various packaging of the “knowledge,” the marketplace will evolve and be in a better position to address any issue (i.e. tax law).  Overall, client work being bespoke is a romantic concept not reality and the reality is that legal work is nothing more than a bundle of twigs that can be decomposed or separated into various tasks and/or elements that can be allocated across a broad spectrum of entities (basic project management).  The client’s mentality is that changes need to be predictable, cost must be decreased and quality must be increased (via the distillation and synthesis of experts) into one simple model or package that can be recycled amongst an online community with mass collaboration.

Drawing from Ray Kurzweil’s works, as technology improves, it causes changes in any given subject matter becoming the heart of everything. Utilizing the differences between the manual and computer version of Solitaire, Susskind stated that law will be embedded into a client’s system (i.e. regulatory compliance work) and the only thing that will be left for a lawyer or firm to contribute is strategy and/or tactics.  At the rate technology is growing, this contribution will be the only component, bespoke or otherwise, a firm will be able to provide unless they take steps to build a better fence at the top of the cliff.

And he had a wealth of great quotes (“”Innovation is when you use technology to do things that were previously not possible”).  We also saw attendees Twittering like crazy and there is a wealth of comment on blogs already.  Some samples blogs and Tweets:

@Afifonlaw: Richard Susskind’s Keynote Address at ABA TECHSHOW 2009 http://tinyurl.com/cq3y4j

@jimcalloway: Richard Susskind’s Keynote Address at ABA #TECHSHOW 2009 was great! More comments on my blog http://tinyurl.com/c988bh

@johnsirman: Over the next 10 years there will be an incremental revolution (complete change) in the way legal services are delivered

@edscanlan“Innovation is when you use technology to do things that were previously not possible”

@johnsirman: Enjoyed the Susskind keynote: The “end of lawyers” is not near, there are new opps for those who innovate and work differently

@nikiblack Susskind: Suggests social network of solos could innovate and take over many areas law firms now handle

@GabeAcevedo  Susskind: the phenomenon of social networking will become what email is to lawyers now.  

And our favorite:

@StephKimbro   Thinking that the attorneys that really need to hear the ideas in Susskind’s speech are not the ones attending

      Note:  Stephanie Kimbro was awarded the Jim Keane Award for excellence in e-lawyering.  She is an attorney and owner of Kimbro Legal Services, a Virtual Law Practice in N.C.

We also covered a number of seminars, three of which were:

Security: Hardening Data in an Age of Cyber Warfare

Speakers focused on how to protect a company’s data as well as client’s information as referenced in the program guide, i.e. use of iron key usb drives.  The two main points were: one should not be asking about how to protect the system but what needs to be done from a minor and/or major failure standpoint; and, audits of external and internal activities should be done on a regular basis.   For the presentation click here.

Searching and Analysis: Are Keywords Really the Key?

The two initial problems facing the trial bar is “over promising” (i.e. discovery can be completed in a month) and “over terrifying” (i.e. the document review portion of case is going to cost $500 million dollars) the court.  This is why courts are looking to and may begin imposing substantive requirements during the meet and confer process.  There has to be a “scaling of the case” to determine what the case truly is about and how much it is actually worth, i.e. the case is worth $60,000 but the discovery cost will be $250,000.  Moreover, simply presenting a 1,000 standard and recycled search term list that generates terabytes of documents will no longer be acceptable.    

To find the true “trial” documents, the speakers mentioned that a universal method or process (i.e. TREC + Expert + Computer system) needs to be developed and properly documented throughout the course of the case in order to eliminate the false positives and/or noise generated by the basic Boolean search.  Both agreed that having a computer on autopilot may be an effective way of removing a custodian’s junk system files but a team of humans with collective as well as alternative search parameters are the way to go.  Unfortunately, the speakers did not go into greater detail.   For the presentation click here.

Review: Techniques and Technologies to Keep Costs Low

This was a presentation by Craig Ball, an attorney with a visibility and prominence in the e-discovery space.  He discussed that anecdotal evidence suggests that approximately 70% of the costs associated with e-discovery lie in attorney review.  His focus was on methods to keeping costs in line with the value of the case to the client, and discussed the effective use of contract attorneys.  We’ll expound on these themes in a later post.

Privileged & Confidential: The Private Parts of E-Discovery

The speaker provided a limited technical analysis of privacy as it applies to the Fourth amendment and how cases help shaped the law and subsequent claims of relief.   Unfortunately she did not discuss the differences between domestic and international privacy issues nor the respective effects on cases today.  This is an important area today especially for contract attorneys doing cross-border project work in the U.S., and project work in Europe.

 We also made the rounds with vendors and will add that in our Day 2 post.

The Posse List team has descended upon Chicago for the annual ABA TECHSHOW.   For us it’s an opportunity for us to meet and network with other lawyers, law firms, e-discovery companies, and legal technology professionals to obtain information on the contract attorney market (including solos and freelancers) and to see what new developments have emerged to assist the contract attorney market.

We’ll also hve the chance to speak with the keynote speaker, Professor Richard Susskind, author of  The End of Lawyers?: Rethinking the Nature of Legal Services who we profiled in an earlier post (click here).

As detailed in today’s Legal Tech Newsletter (click here) there’s no mistaking that new technologies are transforming the practice of litigation.   ABA TECHSHOW is three days of educational seesions in legal technology along with a comprehensive two-day legal technology expo.  We’ll report on as much of it as we can.