Virtual law offices (VLOs) are no doubt the wave of the future. More and more lawyers are opening virtual law practices or are adding a virtual online portal to their traditional brick and mortar law office. VLOs are rapidly increasing in popularity because this type of practice offers attorneys an affordable way to set up shop that is flexible and convenient for both lawyer and client.

What is a virtual law office?

Although there is a considerable amount of debate regarding the definition of a VLO, one commonly agreed upon definition can be found at Wikipedia, where Stephanie Kimbro, this month’s featured Xemplar, is cited as the source.

Kimbro, a pioneer in the field, and author of the American Bar Association’s recently published book Virtual Law Practice: How to Deliver Legal Services Online, defines a virtual law practice as: "… one form of eLawyering. It is a secure, professional method of delivering legal services online that is accessible to the client and the attorney anywhere they may access the Internet. The use of an online client portal allows for the initiation of the attorney/client relationship through to completion and payment for legal services.”

In other words, a VLO is more than just a law firm without a physical office. Instead, it provides lawyers with the unique ability to offer clients a secure online portal for the convenient and affordable delivery of legal services.

What are the benefits of a virtual law office?

The benefits of VLOs are many. First and foremost, VLOs provide both lawyers and their clients with much sought-after flexibility. Clients are able to access their files online and review documents in their file on their own schedule, while lawyers can practice law from any location at any time of day, as long as Internet access is available.

Many virtual law offices also offer clients the benefit of lower legal fees, in part because overhead costs are lower than those of traditional brick and mortar law firms. And, because VLOs are so cost-effective, attorneys can focus their efforts on providing high quality legal services. As explained by Kimbro, VLOs allow “clients to get to know you based on your work and your interaction with them online, not on the how fancy your office is decorated or how expensive your suit is.”

While VLOs aren’t for everyone, they are well suited for many types of law practices. Generally speaking, VLOs work better for attorneys who handle transactional matters and rarely see the inside of a courtroom. In comparison, VLOs are not necessarily as good a fit for lawyers who appear in court often, such as litigators or criminal defense attorneys.

Are VLOs ethical?

Only a few jurisdictions have grappled with this issue, and as is the case with any type of new technology, the results have been mixed. Because the concept of a VLO differs greatly from the way in which law is traditionally practiced, there are legitimate concerns about maintaining client confidentiality when using an online portal to provide legal services. However, many experts predict that over time, as ethics commissions become more familiar with the technology, it will ultimately be given the green light in all jurisdictions.

An ethics opinion keeping with the expected trend of acceptance was recently issued by the Pennsylvania Bar Association Committee on Legal Ethics and Professional Responsibility. In the opinion, titled “Ethical Obligations on Maintaining a Virtual Office for the Practice of Law in Pennsylvania” (FEO 2010-200), the Committee concluded that Pennsylvania lawyers can ethically maintain a VLO, subject to conformity with the Pennsylvania Rules of Professional Conduct. In addition to permitting lawyers to operate VLOs in Pennsylvania, the Committee provided a number of useful guidelines for attorneys seeking to operate VLOs.

In comparison, in the Spring of 2010, the New Jersey Ethics Committee issued what many believe will prove to be a minority view. In Opinion ACPE 718/CAA 41, the Committee concluded that the specific type of VLO addressed in the opinion did not meet the state’s bona fide office requirement. However, this opinion has limited application since the “virtual office” at issue in the New Jersey opinion was one in which lawyers shared a physical office in a “time-share” agreement—not your typical VLO.

At this early stage, contradictory conclusions from ethics committees are to be expected, since VLOs are a relatively new phenomena. However, as ethics committees become more comfortable with the concept, iron out the wrinkles and provide more uniform definitions and guidelines, this type of law practice will soon become commonplace.

VLOs: the wave of the future

VLOs offer lawyers a flexible, efficient and affordable way to provide legal services. As the economic downturn drags on and lawyers seek out innovative and affordable ways to expand their practices, the prevalence of VLOs will increase drastically over the next few years.

Mark my words: VLOs are the next generation of lawyering. It’s not a matter of whether most lawyers will embrace this new technology; it’s simply a question of when.