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As some semblance of normalcy returns to a legal industry forever changed, many law firm leaders are making long-term plans for their physical office spaces. In addition to traditional considerations about cost and location, safety considerations and potential business disruptions have been added to their long list of concerns.
At the height of pandemic shutdowns, virtual work became a widespread necessity, leaving thousands of expensive law offices empty. Many firm leaders began to question the value and role of the physical office space, choosing to either move to a 100% virtual business model, downsize considerably, or reconfigure the utilization of their spaces.
Law firms nationwide are redefining the traditional law office and here are some trends evolving out of these changes:
In a virtual law firm setting, attorneys and staff perform all client and administrative services within a cloud-computing virtual environment. Tech tools, such as legal practice management software and conferencing platforms, allow firms to operate from any location without the need for a physical office.
While the virtual office has been a reality for many solo attorneys for more than a decade, more small and medium-sized firms are now moving in this direction for a variety of reasons:
Even with so many benefits, virtual office arrangements raise serious concerns about ethical compliance, client confidentiality, and the supervision of law firm staff members. In making this change, law firms must maximize their use of technology to effectively meet these demands.
The explosive growth of virtual work arrangements has sparked conversations about the necessity of physical office spaces. Within an industry where large office buildings and prestigious addresses equate to status, law firm leaders began questioning whether a reduction in their real estate footprint could offset financial challenges brought on by the pandemic.
Even some of the nation’s largest law firms have considerably downsized their office space, doing away with expansive libraries, large corner offices, and expensive downtown views. These previous law firm norms are being replaced with standard-sized offices for all firm members regardless of seniority and the reduction of common spaces. Trendy collaboration areas and floating workspaces that entered the law firm environment in recent decades are becoming a thing of the past.
Hoteling is another office space management option garnering attention among law firms. Under these arrangements, instead of having assigned offices and workspaces, firm members schedule their use of shared workspaces such as desks, cubicles, and offices ahead of time. This technique essentially takes the finer points of residential hotels and applies them to an office setting for the benefits of a flexible workplace.
Some of the advantages associated with hoteling include:
While these tactics may result in some level of financial savings, serious questions have been raised about the long-term effects of downsizing efforts on the culture and cohesion of a legal practice. Particularly within a large firm, collaboration plays a major role in meeting client expectations, so firm administrators must weigh the potential loss of camaraderie that may result from these office decisions.
Flexibility has evolved from being an added bonus to an absolute necessity. As law firms redefine the physical law office, they do so with an eye towards the future and the potential for another business interruption in the months or years ahead. The pandemic has made it painfully clear that law firms need systems that allow for quick pivoting to meet unexpected circumstances.
Firms are accomplishing this goal in a number of ways, each requiring its own level of elasticity. A one-size-fits-all model does not exist because every firm has its own dynamics. Employee satisfaction, specific practice area needs, client expectations, technology, and policies all play a role in how firm leaders and administrators incorporate flexibility into their office planning.
Risk assessment is a standard aspect of practicing law, but that term has taken on a whole new meaning as a vital component of office decision-making. Leaders must assess potential hazards within the office and implement strategies to address them. That includes adding safety measures, such as more frequent cleanings and space dividers, to the office environment.
This also means evaluating the needs of individual firm members, especially those who are more vulnerable to illness due to age or underlying conditions. Within a flexible work environment, firms may allow these members to continue virtual work or implement other social distancing policies within the physical office.
Flexibility at your law firm should also include the ability to quickly pivot in the event of another shutdown or some other interrupting occurrence. This includes ensuring that the right technology is in place to support virtual law firm operations and that your employees are adequately trained in what steps to take should another interruption occur.
Law office flexibility will require some experimentation as leaders struggle to adapt to evolving needs. Data analysis regarding space usage and employee feedback should be an ongoing part of the process.
Now, more than ever, it is important to be adaptable in all aspects of your business, including financially and operationally. The right legal technology tools can support virtual and hybrid work while ensuring both productivity and client confidentiality.
A successful attorney-client relationship begins with the client intake process. Not only does it formally introduce the client to the firm’s procedures and requirements, but it also helps firms identify potential issues that could cause delays during representation.
A lot of firms operate with unsystematic onboarding procedures that vary from one client to the next, and these bad habits can thwart successful client relationships.
Improving the client onboarding process requires both efficiency and simplicity.
With the right tools and the following tips, law firms can create a client onboarding experience that is quicker and hassle-free.
With a pre-screening process, law firms evaluate potential matters to identify any issues before the onboarding process even begins, saving valuable time and resources.
This can be accomplished in a number of ways, including:
Organization is key to simplifying the onboarding process, so you need a standardized system that repeats the same general procedures for each client’s onboarding experience.
This may involve such tools as:
While some clients may prefer to meet in person, others do not have the time or ability to come into the office for an intake meeting. Remote onboarding capabilities provide clients with the convenience and accessibility that they appreciate, demonstrating a commitment to client service and respect for your clients’ time.
You benefit from remote onboarding capabilities by starting the client relationship on a positive and efficient note. For example, when coming into the office for an intake meeting, a client may forget to bring important information that is needed for their case. However, when meeting remotely, they can participate from a location where they have access to all relevant documents and records, effectively avoiding potential delays in the initiation of representation.
No attorney wants to start their representation of a client by missing the first court appearance, but that is exactly what can happen as a result of inadequacies in the client intake process.
That is why calendaring should be a regular part of your onboarding process. When clients come in with court dates or deadlines already in place, those should be immediately added to the firm calendar to ensure that they are not missed while all onboarding forms are reviewed.
Law firms need a practice management system that allows them to store all onboarding and client information in a centralized location that helps keep track of both new and existing clients.
These platforms help ensure that nothing falls through the cracks between onboarding and initiation of work. Consider the following:
Efficient client intake begins and ends with the systems and tools that law firms implement. The right legal practice management software can prove instrumental to handling this important start to legal representation, thereby enhancing clients’ experience at your firm.
Attracting new clients is critical to maintaining a successful law firm, but there must also be a coordinated effort to maximize the client service experience once representation begins. Yesterday’s level of customer service is no longer enough to meet the expectations of today’s legal clients. They expect innovation, convenience, and consistent communication.
With a client-centered strategy, you can work to deliver the level of value and quality that meets client needs. This starts from the initial consultation and continues even after representation ends.
Let’s discuss some strategies that law firms can implement to create a client-focused environment where all clients feel valued.
As the first substantive communication between firm and client, the intake process is a perfect opportunity to solidify a client-centered approach to legal services. This begins with gaining a clear understanding of the client’s needs and expectations, which can be done by asking the following questions:
The answers to these questions reveal a lot about a client’s journey, while also providing insight into enriching their experience. Once this information is gathered, firms are able to assist clients with managing their expectations.
Intake is the perfect time to establish clear guidelines for client communication, including acceptable methods and what frequency of communications clients should expect. Some law firms choose to provide this information as part of a welcome packet that includes communication guidelines, firm information, and data specific to their legal matter.
The intake process should also establish the firm’s commitment to the truth. Clients need and deserve honest assessments about their legal matters, even if it is not what they want to hear.
Transparency builds trust and strengthens the client relationship, which is essential in a client-centered practice. By establishing clear and reasonable expectations from the start of representation, law firms lay the foundation for a successful client relationship.
Another strategy for improving the client intake process is to eliminate tedious repetition and inefficiencies. Legal practice management software helps with streamlining procedures such as client intake and CRM automation. With a faster intake process, casework can start as soon as possible.
Law firms should also insert calendaring into the intake process by immediately adding all pending court dates or events to the schedule. This prevents missed deadlines or appearances, which is a major impediment to a client-centered approach.
Client service should also be evident in a firm’s rate and fee setting, which does not necessarily mean offering the lowest prices in the industry.
Yes, being competitive with other law practices is important, but you also need to be careful about undervaluing your services. Potential clients want top-notch skills and expertise when seeking legal counsel, and many are willing to pay more for those services. So, law firms need to set prices that are fair and in line with the level of service that their clients receive.
Payment options are also an important aspect of pricing. Alternative fee structures, like flat fees and unbundled legal services, have become increasingly popular within the legal industry over the past decade. Clients prefer these options because they allow for a more transparent fee agreement sans unexpected fees and costs.
Firms should also consider the client experience when determining what types of payment methods to accept. Today’s clients want the ability to pay their legal fees electronically with credit cards and/or ACH transfers. They appreciate the ease and convenience of these payment options, along with the extra layer of security that they offer.
Communication is key in a client-centered law practice. The busy nature of a law firm atmosphere can negatively impact client communications when calls and messages go unanswered, so law firms need a system for ensuring timely responses to client inquiries. Even without an immediate solution, a quick response can calm concerns and strengthen the client relationship.
In establishing a communication plan, law firms should consider the following:
Legal matters can be mentally and emotionally draining for clients. By committing to regular communications and outreach, a law firm can provide much-needed support while strengthening the client relationship.
Adequate communication also extends to written communications. To make sure that clients get the most out of all correspondence they receive, law firms should avoid unnecessary legal jargon and use plain, easy-to-understand language instead. You can also improve the readability of their writings by using shorter sentences and avoiding lengthy paragraphs. Consider using techniques such as headings, subheadings, and bulleted lists.
The client-centered approach does not end after representation. To be truly dedicated to a high-quality experience, law firms need to honestly assess their performance and make improvements where appropriate. Feedback is a great way to accomplish this task, and the following are some ways that you can secure it:
Once the feedback is collected, law firms should take steps to act on it. If clients were not happy with some aspect of their representation, firms should implement strategies to address change.
Information gathered from positive responses is useful to reinforce the procedures that make clients feel valued.
Client satisfaction should be an ongoing goal for law firms as they craft a client-centered experience. This starts with asking what clients need and ends with an honest evaluation of whether or not those needs are being met.
By implementing these strategies, law firms add a considerable amount of value to their client service, resulting in happy customers and repeat business. Happy clients also mean potential referral sources for a law firm, helping you grow your business and bring in more revenue.
Every month, firm administrators, attorneys, and billing professionals sit down to handle one of the most dreaded law firm responsibilities: legal billing. It’s not that they don’t appreciate the value of invoicing; they just hate how tedious it is!
From managing the entire process to tracking down time records from timekeepers, legal billing tasks can hamper a law firm’s potential for billable hours and profitability if not handled in an efficient manner.
The following are some tips for bringing a law firm closer to a more structured and simplified legal billing process:
To streamline their legal billing procedures, law firms should start with a simplified time tracking process. The entire billing process begins with documenting tasks completed for clients. When these records are inaccurate or inadequate, it makes invoicing more difficult to complete. Firm staff members must then spend time chasing time tracking records, throwing off the entire process.
A structured billing process starts the moment a timekeeper completes a billable task. A comprehensive legal time tracking system makes this happen in a variety of ways. This allows timekeepers to track time at any point using whatever method they prefer. For example, when working in the office, an attorney may want to record time as they save documents in Word or send emails in Outlook. With a complete time tracking platform, time can be entered within applications your firm is already using - like Word and Outlook.
Mobile application time tracking helps enter time with speed and accuracy. With this tool, timekeepers can conveniently log time on a mobile phone or other portable devices when completing tasks away from the office. This type of legal billing tool has become invaluable in an environment where attorneys are increasingly working remotely.
To simplify the billing process, firms should move their invoicing procedures to a paperless process. Electronic billing (e-billing) software is the most effective way of simplifying the billing process, making creating, presenting, and collecting client invoices more efficient. Not only do these options financially benefit your firm, but they also improve client relations by minimizing errors and inconsistencies.
For a legal practice, the time between the completion of a task and the collection of a client payment is crucial. Payment time directly affects a law firm’s cash flow, which is necessary for handling office overhead costs. Inadequate cash flow is a common problem for law firms, so it is important to track this metric and work to shorten the time frame.
Firms need simplified billing systems in place that help transform payment times from months into weeks. E-billing is an effective tool for getting this done. It helps address bottlenecks that slow down the process by offering the following features:
Clients are more inclined to make quicker payments when provided with more channels to do so. The majority of modern households utilize online payment methods to conduct business. Consumers want and expect convenience when choosing where to spend their dollars, and that extends to legal services. By offering a variety of convenient payment methods, law firms incentivize their clients to pay invoices in a more timely and complete manner.
Historically, attorneys have been hesitant about the acceptance of credit card payments. They view paper checks and cash as adequate payment methods for services rendered simply because those methods have always been utilized. But this “good enough” mentality can work against law firms by making the payment process more challenging to navigate for clients.
Implementing a credit card payment processing system is critical to simplify legal billing and here are a couple of reasons why:
To maximize the acceptance of credit card payments, law firms also need to offer an integrated option for clients to make payments right from their computer or smartphone. Clients appreciate convenience and ease, so firms need tools like client portals that facilitate these quick payments.
Law firms can simplify their legal billing process, and even expand their client base, by implementing the acceptance of credit card payments. But remember, credit card payments are just a portion of this simplification. E-billing and simple time tracking combined with multiple payment options are sure to make your billing easier for internal and external clients alike.
Attorneys often view succession planning as solely applicable to retirement, but disruptive events can occur at any time, forcing a law firm transition. While some of these occurrences can be forecasted, others come with no warning at all. A sudden illness or disability can leave a firm leader unable to manage the regular legal operations of the practice, which makes succession planning a priority within a law firm’s business strategy. Without it, firms and clients can suffer significant setbacks as they deal with the uncertainty of the firm’s future.
These risks are particularly heavy for solo and small law firms. Many of these practices operate without succession plans and have no continuity plan should a disruption occur. These situations leave firm members struggling to handle disgruntled clients or aggressive creditors in the midst of disorganized transition.
While many states do not require law firm succession planning and offer no specific guidance, there are useful considerations and tips law firms can use to craft a comprehensive succession plan.
Depending on the goals of the practice leader or leaders, law firm transitions can take a variety of forms. Whether considering retirement or preparing for an unforeseen disruption, attorneys need a clear understanding of what they hope to achieve, so they know the best direction to take. They should ask themselves whether they want to remain somewhat active in the firm or completely move away from all firm operations. Attorneys must also decide whether they want the firm to continue after the transition or if dissolution is more appealing.
The answers to these types of questions help firm leaders make effective decisions about which of the following transitions they hope to achieve:
Firm Dissolution - For attorneys who do not want to invest additional money or make an effort to transfer their firm to another attorney, closure can be an attractive option. But closing a firm is no easy feat. Attorneys must create a plan that addresses their ethical obligation to leave all clients in the best position to secure alternate legal representation. This includes providing access to all necessary files, documents, and relevant data. Attorneys who prefer to sell their firms also need to obtain professional valuations to maximize profits while following all ABA rules related to the sale.
Partnering with Another Firm – This transitional option is often used by attorneys who prefer a slower movement away from the firm. Instead of walking away, the attorney chooses to form a partnership with another attorney or firm. As part of the merger, the attorney helps navigate a more gradual and smooth transition. This type of transition theoretically allows the attorney to lessen the inconvenience felt by firm clients. The time frame for these partner agreements can vary greatly depending on the terms of the agreement.
Choosing a Successor – Attorneys that hope to maintain the basic structure of their firm with a new leader at the helm may decide to choose their own successor. This option may allow the attorney a significant amount of time to groom the attorney who will lead the firm in the future.
Every law firm succession plan differs depending on the desires of the attorney and the specific details of the law firm. But the following are some components typically included within succession plans:
Clients are the backbone of any law firm, so a comprehensive succession plan must include strategies to maintain excellent client service to address client needs during and after transition. This includes providing written instructions on how and where client data is stored, along with the necessary credentials for access.
Client notification should also be part of the plan. For firms remaining intact after transition, giving clients plenty of notice makes it less likely that they will seek representation from another firm out of frustration. For firms that are dissolving, attorneys should give clients as much time as possible to make alternative arrangements at a different firm if necessary.
A succession plan should include a compensation structure addressing how the transitioning attorney (or the attorney’s estate) will be compensated going forward. For instance, if the practice is being sold, the attorney should have the firm valued to ensure a fair purchase price. If the plan is to transition clients to a new partner, the attorney may need to maintain some client files and data. When this is the case, attorneys should be compensated appropriately for their time and effort.
When the need for transition arises, those involved will need access to all relevant business records, including:
Documents like a will and power of attorney should also be included within the succession plan, along with detailed instructions for your family or estate executor. Family members are often named as estate executors, so it is important that at least one trusted family member has access to any estate planning documents related to the firm’s transition.
Once a succession plan has been created, attorneys should make sure to store it in a highly secure manner. The sensitive nature of the included data can be detrimental in the possession of the wrong person. Be extremely careful about your chosen method of storage, as well as anyone you choose to provide with access in case a disruption occurs.
Crafting a succession plan can feel like an overwhelming task, but attorneys should do it to protect their law firms and clients. No one knows when a crisis will occur, so it is important to be as prepared as possible. For law firms with a large number of retirement-age attorneys, it is even more critical to maintain a comprehensive succession plan.
Legal technology can play a major part in crafting a succession plan. It can be a time-consuming process, but legal technology can help attorneys save time by quickly providing necessary data. Legal practice management software keeps the firm’s various business components in one centralized location, which can make a transition easier and efficient to navigate. With a few clicks of the mouse, transitioning law firm members can access reporting pertaining to matter progress, invoice status, revenue, accounts receivable, and more.
Taking the time to solidify your firm’s succession plan is a daunting task, but is one that is critical to both your firm’s future and the happiness of your clients. If you’re not sure where to begin, start by compiling the below information in a secure location. A legal document management system can help keep this sensitive information from getting into the wrong hands, while also serving as the source of truth as future generations of lawyers need to access client data to keep the firm running smoothly.
Family and domestic relations law firm administrators often deal with three major challenges when handling their practice management duties – client relations, varied billing arrangements, and compliant trust accounting. If handled incorrectly, each of these important components can cause major headaches.
Busy family law firms need legal practice management software that helps navigate each of these challenges with the following features:
Domestic law clients are often going through some of the most stressful times of their lives. They may be dealing with the pain of a divorce, the financial challenges of a broken family, or the fear of losing custody of a child. When they seek out a law firm for assistance, these emotional situations can show up in the form of high expectations and limited patience.
All law firms need to maintain a high level of client service, but family law attorneys often feel an even greater responsibility to provide a premium client experience. This important goal can be met in several ways:
Family law firms need effective communication strategies to keep clients satisfied with the level of service being provided. Administrators should implement a proactive communication style where the firm initiates and maintains dialogue throughout the lifecycle of the matter. This keeps clients informed and comforted by the knowledge that work is being completed on their behalf.
Some of the tools that family law practitioners can use to implement this strategy include a client portal where clients can log into their personalized account any time of the day or night to view correspondence, see task deadlines, receive firm messages, and review billing information.
An effective calendaring system also helps family law firms support positive client experiences. With comprehensive calendaring, firm members can keep ahead of pending deadlines and court appearances, while also keeping clients informed about important dates.
It is not unusual for a busy family law practice to have multiple deadlines, events, and reminders on the calendar every day. They need a practice management system that provides administrators with a bird’s eye view of the entire firm, along with giving individual attorneys and teams calendaring information tailored to their specific caseloads. From discovery deadlines to mediation appointments, missing a deadline or court appearance can be detrimental to the attorney-client relationship, so domestic relations lawyers must have tools to always stay on top of their calendars.
Family law clients often wait until the very last minute to secure legal services. So, they may walk in the door for the intake appointment with a pendente lite or child support hearing already scheduled. Family law firms can address this challenge with legal practice management features that automate the intake processes. Automated workflows and conflict checks can streamline the process so representation can begin expeditiously.
Along with criminal defense practices, domestic relations law firms have been at the forefront of introducing alternative billing arrangements into the legal industry. Many of these firms have been offering flat fee uncontested divorces for years. While these alternative arrangements may simplify some matters, they may not be appropriate for all family cases. This creates a situation where family law firms may need to utilize multiple billing types within their caseloads. For that reason, firms need legal practice management and billing systems that can handle various billing arrangements with the following tools:
With a seamless invoicing process, family law firms can quickly prepare, generate, and deliver bills to clients regardless of their billing arrangement. Whether the matter is being billed on an hourly basis, as a fixed fee, or as a project, the firm’s billing software must have the capacity to leverage the invoicing process quickly and easily with minimal input from law firm staff. Once the billing method has been applied to the matter, the system should automatically use it in the generation of all invoices.
Whether working on a flat fee matter or using the traditional billable hour, family law attorneys need the tools to efficiently track time spent on a matter. For hourly billing, timekeeping data forms the basis of the invoice and how the law firm gets paid. Without tracked time, there is no compensation. For fixed-fee arrangements, timekeeping gives law firms a better sense of how hours are being spent by firm professionals.
Within a legal practice, wasted time equates to lost revenue. With time tracking data, family law firm administrators can review how time is being spent and make adjustments to improve efficiency, productivity, and profitability.
Effective timekeeping tools also add value to family law attorneys as they work away from the office. With cloud-based timekeeping software, they can accurately record their tasks whether they are in a courthouse, conducting a home visit, or attending a client mediation. Some practice management software options even offer automated time capture features that automatically track the amount of time spent on client calls, including those made from a cell phone.
As stated earlier, while many family law firms utilize flat fee arrangements for simpler matters, they may still use the billable hour for more complex cases. This is typically done through a retainer agreement, where the client remits an amount of money for the firm to hold in trust. As work is completed on the matter, the firm transfers money from that trust account to another firm account.
A lot of rules and regulations exist around the management and usage of trust accounts, so family law administrators need practice management software that promotes compliance and takes the pressure off firm members.
Family law firms need integrated accounting tools that help them maintain compliance with the rules of their respective state bars. Even a single mistake can lead to trouble that could have been avoided with the right practice management software.
Efficient billing systems automatically track client funds as they are moved from one account to another. They also provide firms with the capability to manage and report on multiple client IOLTA bank accounts. With comprehensive legal accounting tools, family law firms can maintain all their accounts in one platform for secure and accurate management.
The ability to run up-to-date and accurate financial reports is also necessary for compliant law firm trust accounting. Some jurisdictions require detailed reporting for individual trust accounts. In addition, should a disagreement or discrepancy arise, the ability to quickly provide a detailed report can mean the difference between clearing up the issue and making a bigger problem for the firm. With financial reporting capabilities, domestic relations law firm administrators can keep a consistent and accurate view of all the firm’s financial data.
Family law clients have a lot on their plates as they try to care for their families and traverse the waters of domestic relations law. Family law firms can alleviate some of their worries by implementing legal practice management tools that promote excellent client service, streamline various billing arrangements, and promote accurate trust accounting.
Centerbase, a legal practice management software company that provides mid-sized law firms with a cloud-based platform to streamline legal operations, has acquired Family Law Software, the leading workflow software for family law legal practices.
Used by thousands of family law professionals, Family Law Software automates financial forms and calculations related to divorce proceedings. With this acquisition, Centerbase expands its already robust practice management, billing, and accounting product to better serve the complex workflow of family practice attorneys.
“Our aim has always been to provide mid-size law firms with a completely configurable tool they can use to streamline operations, touching on everything from billing and accounting to timekeeping, document management, client communication and reporting,” says John Forbes, CEO and Founder of Centerbase.
“Currently, 40% of our customers have a family law practice, so we are acutely aware of the demands and complexities of the practice. Because of this, we know Family Law Software is the perfect complement and enhancement to Centerbase. It enables us to deliver more value to our combined client base of 5,000.”
Family Law Software was created in 1996 by Wendell Smith and Dan Caine, founders who also developed the income tax software purchased by H&R Block in 1993 that is still used by millions today.
“When we started Family Law Software, we wanted to combine our tax knowledge and software skills to build a platform that could simplify the family law case management workflow,” says Family Law Software President and Co-Founder Dan Caine. “For almost 25 years, we have expanded and refined that product, and we now offer robust planning and negotiation tools, as well as the financial documents family lawyers need. Now with Centerbase, we will be able to expand the footprint of who we serve, which, for a mission-based company like ours, is the ultimate measure of success.”
This acquisition comes at a time of accelerated growth for Centerbase. Following a banner year in 2020 and continued momentum year-to-date, Centerbase has invested heavily in its core product while exploring feature and practice area specific integrations.
“As part of our initiative to modernize the Firm’s infrastructure, we teamed up with Centerbase in 2019 and Family Law Software in 2020,” says Paul Kanjorski of Sessums Black Caballero Ficarrotta Family Law PA. Kanjorski continued, “We’re over a year on both platforms, and I can say that Centerbase and Family Law Software have helped us gain efficiency, capture more billable hours, and reach new levels of profitability. Most importantly, we were able to continue to service our clients at a high level despite the massive challenges of the last 18 months.”
This announcement follows Centerbase’s recent growth equity investment from Mainsail Partners and underpins the company’s commitment to aggressive growth and strategic expansion.
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About Centerbase
Centerbase is a cloud-based legal operations system that empowers midsize law firms to run their practice with confidence. It’s a highly scalable and configurable system that liberates legal teams from manual work by automating routine tasks and connecting them in a single collaborative work space. Boasting a comprehensive feature set of billing, accounting, and practice management tools plus the ability to offer full-history data migrations, Centerbase has become the go-to solution for midsize law firms. For more visit centerbase.com.
About Family Law Software
Family Law Software is the leading workflow software for divorce professionals. Thousands of divorce professionals and individuals facing divorce use Family Law Software to automate financial forms and calculations related to divorce proceedings. With FLS, clients may calculate and negotiate child and spousal support payments based on state-specific rules and tax rates; complete robust scenario planning; divide assets; and conduct financial projections. For more information, visit familylawsoftware.com.
When law firms are impacted by a cyber attack, they must take immediate steps to address the data breach and minimize its impact. While these tasks generally occur in the days following an event, the most effective response requires the existence of an incident response plan before an attack occurs. By contemplating the potential impact of these disruptive events ahead of time and crafting a plan, law firms can be better prepared to respond.
Read on for a checklist of steps that law firm attorneys and administrators alike can take to appropriately respond to a data breach:
According to the ABA’s most recent Legal Technology Survey Report, only about a third of respondents have an incident response plan in place. Yet, the ABA notes that incident response plans are critical to law firm operations, providing firms with a roadmap of steps to take when a data breach occurs. These plans require a significant amount of preparation, but the effort is worth its benefit should a breach occur.
There are numerous models for law firms to follow when crafting their own incident responses, but every plan should include these general provisions:
Formal Opinion 483 of the ABA Standing Committee on Ethics and Professional Responsibility states that “when a breach of protected client information is either suspected or detected, Rule 1.1 requires that the lawyer act reasonably and promptly to stop the breach and mitigate damage resulting from the breach.”
Stopping the breach may entail a number of different steps, including:
Once the breach has been stopped, firms need to take “all reasonable efforts” to restore operations and resume client services.
Then, firms should next take steps to determine how the data breach occurred, which may require the assistance of a tech expert. Attorneys and administrators should ask probing questions, such as:
The information and evidence gathered can be used to ensure that the current breach has been effectively stopped, while also helping to identify what steps can be taken to prevent future attacks. An analysis of the lost or accessed data also promotes honest and transparent disclosure of the breach to clients and other impacted parties.
After the problem has been identified, firms must move quickly to address it. Affected systems need to be secured and vulnerabilities removed. The appropriate tasks depend on the nature of the breach. For example:
When identifying impacted parties, firms should analyze the type of data that was compromised. Did the data loss include the last name of a person along with at least the first initial of the first name? Did it include social security numbers or tax ID numbers? Were financial accounts, credit card data, drivers license numbers, or medical information compromised? If any of these details were stolen, then the impacted person or business should be notified.
Under most state ethics rules, attorneys generally have a duty to notify impacted clients of cyber incidents, particularly when the breach compromises confidential information or impairs the law firm’s ability to provide legal services. Though notification to former clients is not specifically addressed in many jurisdictions, law firms may still have a duty to notify them if their data was impacted.
But the duty to inform also extends from general state laws concerning data breaches. For instance, a breach of clients’ personal health records may fall under the Health Breach Notification Rule, which could require notification to the Fair-Trade Commission (FTC) as well as the media. This type of breach may also trigger notification requirements under the Health Insurance Portability and Accountability Act (HIPAA).
Firms need to comply with all federal, state, and local laws in notifying impacted individuals and businesses. States differ in the amount of time given to provide notification, but most typically set a 60-day limitation.
Details typically included within notifications include:
It is also useful for law firm attorneys or administrators to consult with any law enforcement working on the case to ensure that the information provided does not hinder the investigation.
The FTC offers the following advice for businesses when notifying impacted parties:
A cybersecurity data breach is not over once the initial disruption is addressed. These incidents have lasting effects and law firms can continuously support impacted parties by taking the following steps:
According to the American Bar Association, 25% of all U.S. law firms have experienced at least one data breach. In other words: the risk to client confidentiality is at an all-time high.
Increased reliance on remote working arrangements, along with ever-evolving cyber threats, has resulted in an extra level of urgency for law firms to protect sensitive client data. Virtual work arrangements create various opportunities for breaches, while cyber attackers constantly seek to hack law firm security measures.
Additionally, law practices have been increasingly subjected to client data breaches caused by user errors and socially engineered attacks involving ransomware. They have been targeted by hackers that view the legal industry as an easy target based on the tendency of law firms to use outdated technologies and easily breached systems. When these breaches occur, sensitive client data can end up in the wrong hands. Clients are forced to deal with the ramifications of their information being used for nefarious reasons, while law firms must contend with potential lawsuits, ethical consequences, damaged reputations, and the loss of profitable business relationships.
The hesitancy of the legal community to embrace innovative technology has added to this vulnerability because most law firms lack both the necessary technology and strategies to deal with looming threats. Even those that have made some efforts often use platforms that are outdated and highly susceptible to data breaches. Threats constantly evolve with greater sophistication. Without a strategy for promoting client confidentiality, law firms leave their client data unprotected.
Lack of technology is no longer a valid excuse for client data breaches. Changes to the ABA Model Rules speak directly to the importance of technology.
ABA Model Rule 1.1: Competence, Comment [8] states, “To maintain the requisite knowledge and skill, a lawyer should keep abreast of changes in the law and its practice including the benefits and risks associated with relevant technology, engage in continuing study and education, and comply with all continuing legal education requirements to which the lawyer is subject.”
In addition, ABA Model Rule 1.6: Confidentiality states, “(c) A lawyer shall make reasonable efforts to prevent the inadvertent or unauthorized disclosure of, or unauthorized access to, information relating to the representation of a client.”
Client data breaches not only lead to financial consequences for law firms, but can also result in detrimental ethical challenges.
As law firms work to protect client confidentiality, they can implement strategies to guard against data breaches that originate both internally and externally. The following are some simple, but effective, steps:
The biggest vulnerability faced by any law firm, regardless of size, is employee error. Security experts estimate that more than one-third of business data breaches result from some form of employee negligence, error, or intentional act. These actions typically include phishing scams, loss of hardware, abuse of access privileges, or simple security mistakes. Law firms must identify and address these poor behaviors to effectively lessen opportunities for client data breaches.
An aware and proficient team makes the best weapon against client data breaches. Every member of firm personnel, from partner to receptionist, must understand and respect the vital importance of client confidentiality and protecting client data. Firms should provide mandatory training that promotes the highest levels of awareness and diligence. Without employee involvement, internal vulnerabilities and threats may not be identified, which can ultimately result in employees becoming the channels through which breaches occur.
Data encryption provides an effective technology tool for protecting sensitive data. Once encrypted, data becomes indecipherable should it wind up in the wrong hands due to loss or theft. The viewer must utilize the correct encryption key to unscramble the encrypted gibberish back into legible text.
Law firm encryption typically occurs in a couple of ways. Encryption in transit protects data as it is sent electronically within the firm or externally. This is commonly referred to as end-to-end encryption. Encryption at rest refers to the encryption of data that is stored on hard drives, laptops, or mobile devices.
But even with its high level of protection, many law firms fail to use encryption methods. According to some legal ethics experts, ABA Model Rule 1.6 classifies encryption failures as potential breaches of ethical duty should the data warrant special precautions. This risk seemingly requires law firms to evaluate whether each client matter necessitates encryption and take appropriate measures. Failing to do so could result in ethical violations.
Tech providers consistently create new strategies for preventing system breaches, but these tactics only work when the systems and software are updated on a regularly scheduled basis. This includes VPN, antivirus, anti-spyware, and spam filters.
Unfortunately, far too many law firms implement new technologies and then fail to keep them fully updated. Without consistent updates, these tools may become vulnerable to ever-changing cyber threats. Outdated systems place client data at risk and may even open law firms up to liability should a breach occur. Law firms need systems in place to ensure that necessary system updates occur.
Third-party law firm vendors can also place client confidentiality at risk if they fail to follow strict security standards. These parties can create a weak link in the chain of client data that they are entrusted with during the course of business.
When choosing to work with a vendor, law firms need to closely evaluate the vendor’s security protocols. They may also include specific security requirements within the controlling contract and ensure that the vendor’s insurance policy adequately covers any breaches that may occur.
Legal tech companies routinely use cloud-based storage for their technologies. When managed correctly, these platforms offer great benefits to legal practices. But without proper security protocols in place, cloud storage becomes extremely vulnerable to cyber-attacks. Therefore, law firms need to ensure that cloud-based service providers maintain their networks with technical competence and top-notch security features.
Law firms cannot ignore the role of document safety in the promotion of client confidentiality. With document management systems in place, firms benefit from multi-level security that limits access to reading, deleting, or editing sensitive documents both internally and externally.
These resources can also help firms quickly identify breaches by creating a detailed trail of everything related to a document's life cycle. Firms have access to specific information regarding who made changes and when. They can also review information about document transmission and downloads. These types of security checks protect client confidentiality and provide clients with the assurance that their information is being handled effectively.
The transfer of documents creates the biggest risk of breach. The transmittal of a document to the wrong recipient is a mistake that cannot be undone. If that document contains sensitive or confidential information, the law firm has created a substantial risk should the data be used against the firm or one of its clients. Email is largely considered the fastest and easiest method of sending documents to colleagues and clients, but it is also one of the biggest security risks a law firm can take. This highlights the importance of viable alternatives for sending secure client communications. With tools like client portals and secure document transmission systems, law firms are not forced to rely on risky email transmissions. The credentials of all recipients can be confirmed to ensure client confidentiality and prevent documents from ending up in the wrong hands.
[vc_row type="in_container" full_screen_row_position="middle" column_margin="default" scene_position="center" text_color="dark" text_align="left" overlay_strength="0.3" shape_divider_position="bottom" bg_image_animation="none"][vc_column column_padding="no-extra-padding" column_padding_position="all" background_color_opacity="1" background_hover_color_opacity="1" column_link_target="_self" column_shadow="none" column_border_radius="none" width="1/1" tablet_width_inherit="default" tablet_text_alignment="default" phone_text_alignment="default" overlay_strength="0.3" column_border_width="none" column_border_style="solid" bg_image_animation="none"][vc_column_text]Over the past couple of years, it has been exciting to see Centerbase grow so quickly. As CEO and Founder, I can tell you—it wasn’t always like this. The core ideas that evolved into Centerbase date back to 2003, and the journey from where we began to where we are now has been a long one.
Now, we find ourselves at an exciting moment in Centerbase history. Today, we announced a growth equity investment from Mainsail Partners, a growth equity firm that invests in bootstrapped software companies just like ours. I'm excited to see the potential this represents for our future: our customers, our employees, and our product.
I've been an entrepreneur for as long as I can remember. As a kid, I vividly remember going door-to-door selling plant seeds to anyone who would give me the time of day. I was born into a family of entrepreneurs and from that day on, I never looked back.
In 2014, I started Centerbase. From the beginning, we were laser-focused on developing a great product. As for picking a single vertical focus, that lesson came more slowly. However, it soon became clear that we had the opportunity to truly improve the lives of legal professionals and revolutionize the way they manage their firms.
2015 was the real turning point. We hired more staff, brought on more developers, we truly went all-in. That year we dedicated our efforts to building out a customizable platform. We met with dozens of law firms with the goal of trying to understand what their needs were and how we could possibly solve them. What we managed to do was take the best methodologies, practices, and efficiencies we found present in big law firms and discovered a way we could affordably package them up for mid-sized firms to capitalize on. We saw time and again that lawyers hated tracking time and we knew if we could automate that process, we could add tremendous value. Our agility and hunger to continue driving value even led us to launch a native accounting system. (In retrospect, that project was way over our heads, but we managed to complete it in just seven months.)
With that, we had a product that was truly a full system of records for law firms.
The 2017 ABA Tech Show was the first time we went “live” with Centerbase. By the second day, there was a line at our booth—not of law firms, but of legal consultants who were sick of selling legacy legal management products. Their enthusiasm was proof that our decade of research had paid off. We were on to something! We were offering the legal world something it had never seen before: a cloud-based, configurable management system that could revolutionize the way they practiced law.
The next three years were a time of torrid growth.
The growth was exciting, but it also made us realize how much work there was to be done. It wasn’t long before I started to notice that the resources I was long relying on were starting to hold us back. Our implementation team was at capacity; our product and marketing teams were asking for UX/UI specialists and content managers; our developers needed more resources to maintain our pace of innovation. Put simply, we were growing faster than we could keep up with.
I mentioned we've always had good timing at Centerbase. We launched our product just as the legal industry was ready to migrate away from on-premise, legacy technologies. We specialized in mid-sized law firms and discovered just how underserved that market was. Then, just before the pandemic, we launched two of our most innovative product features yet: Automated Time Tracking, which records and then converts any time spent texting and calling clients into billable time entries, and Electronic Pre-Bill Approval, which allows attorneys to review and edit paperless pre-bills without having to print and circulate stacks of paper. With the advent of the “new normal” working remotely became essential and attorneys were especially excited about these features.
In spring of 2021, another incredible opportunity presented itself. I have always been against the idea of outside investment because I've been so bullish on the potential of our team achieving greatness on our own. And I still believe that. However, when your great team starts to indicate they could be even greater with more resources, you start to wonder what that would look like. And that’s when I got a call from Mainsail Partners.
We had talked with several different growth equity firms over the years, but Mainsail Partners always stood out to me because of their reputation for preserving the “core” of the companies they partner with. Our company started small and grew organically, which has been fulfilling. I didn’t want to lose that connection to our success and with Mainsail, I’m confident we won’t.
Rather, I think we’re going to be able to do a whole lot more, a whole lot quicker. The team at Mainsail are experts in growing companies of our size. With them, we will have new resources and experience to draw from. We can make new investments in our teams and continue hiring great people and empowering them to make an impact for our customers.
I recognize this is just the start of the marathon. We have a long road ahead and to finish first, we will need to continue to innovate.
Connecting deeply with our customers has been crucial to our ability to serve them, and that practice will only deepen. Going forward, our primary focus will remain on the product and relentlessly solving the needs of our customers by bringing them the absolute best tools available.
Now with all that being said, we are hiring! We have a fantastic team dedicated to helping law firms capture more time, get paid faster, and provide the best client services possible. With the momentum and the support behind us, we are looking to continue growing and if you want to join us on this mission and come to work every day where you’re empowered to make an impact, join us.
I’m incredibly proud of what our team has accomplished to date, and I can’t wait to see what we can achieve in this next chapter.[/vc_column_text][/vc_column][/vc_row]
