Lawyer directory website Avvo is offering fixed fee legal services on a limited basis and plans to expand the services

 

Hello and welcome to this Ethics Alert blog which will discuss the recent decision by the lawyer directory website Avvo to offer legal services to individuals through selected lawyers for a fixed fee and charge the lawyers a marketing fee to participate.  An ABA article dated January 12, 2015 discussing Avvo’s plans is here: ABA 1-12-16 Avvo legal services article

According to the ABA article, Avvo recently began testing the new service and it plans to offer the services more broadly over the next few months.  The service is called Avvo Legal Services offers a variety of limited-scope legal services at a fixed fee. The legal services include review of legal documents such as business contracts and nondisclosure agreements as well as more complicated matters such as uncontested divorces and citizenship applications.

According to the article, Laura Moriarty, Avvo’s vice president of communications, stated that Avvo is testing the service in Atlanta, Chicago, Dallas, Houston and Phoenix and will begin offering the services in additional markets in February 2016. “Moriarty declined to identify the markets where it will initially be offered except to confirm that one will be Massachusetts.”

The ABA article states that “Avvo first got into the business of offering legal advice last year when it launched Avvo Advisor, a service that provides on-demand legal advice by phone for a fixed fee of $39 for 15 minutes. With this new service, Avvo will determine the types of services to be provided and the prices. Attorneys who sign up will be able to select which services they want to offer. When a client buys a service, Avvo sends the client’s information to the attorney. The attorney then contacts the client directly and completes the service.”

“Clients will be able to choose the attorney they want from a list of those within their geographic area who have registered to participate. Clients pay the full price for the service up front.  After the service is completed, Avvo sends the attorney the full legal fee, paid once a month for fees earned the prior month. As a separate transaction, the attorney pays Avvo a per-service marketing fee. This is done as a separate transaction to avoid fee-splitting, according to Avvo. Attorneys pay nothing to participate except for the per-case marketing fee.”

“Among the services to be offered will be document review for $199, for which the attorney will pay a $50 marketing fee; formation of a single-member LLC for $595, with a $125 marketing fee; uncontested divorce for $995, with a $200 marketing fee; and green card application for $2,995, with a $400 marketing fee.  The terms of the service require attorneys to contact a new client within one business day for a 30-minute introductory call. If the attorney determines the client is not the right fit, the attorney can decline the representation.”

An online FAQ about the legal services on Avvo’s website states that “(l)ocal clients purchase legal services, choose the attorney they want to work with, and pay the full price of the service up front. The chosen attorney then completes the service for the client and is paid the full legal fee. As a separate transaction, the chosen attorney pays a per-service marketing fee for the completed, paid service.

Avvo General Counsel Josh King also states in the FAQ that Avvo is not acting as a lawyer referral service and that lawyers should not be concerned about fee splitting since “(f)ee splits are not inherently unethical. They only become a problem if the split creates a situation that may compromise a lawyer’s professional independence of judgment. We believe that Avvo Legal Services fees, like credit card fees, would involve the sort of technical fee split that would not create such a potential for compromise. Nonetheless, we have tried to keep things simple and clear by making the per-service marketing fee a separate charge.”  The FAQ is here:  Avvo legal services FAQ

Bottom line:  Although it is clear that AVVO (a third party non-lawyer website) is attempting to structure this legal services arrangement in a way to avoid ethics issues, whether this arrangement is ethical or unethical is subject to further analysis and interpretation by each jurisdiction regarding fee splitting and potential lawyer referral issues.  Lawyers who are interested in participating should carefully review their jurisdiction’s Bar rules and/or consult with and consult their Bar or consult with a lawyer familiar with the Bar rules before agreeing to participate.

Be careful out there!

Disclaimer:  this e-mail is not an advertisement and does not contain any legal advice and the comments herein should not be relied upon by anyone who reads it.

Joseph A. Corsmeier, Esquire

Law Office of Joseph A. Corsmeier, P.A.

2454 McMullen Booth Road, Suite 431

Clearwater, Florida 33759

Office (727) 799-1688

Fax     (727) 799-1670

jcorsmeier@jac-law.com

www.jac-law.com

NOTICE OF CONFIDENTIALITY:  This electronic communication and the information contained herein is legally privileged and confidential proprietary information intended only for the individual and/or entity to whom it is addressed pursuant to the American Bar Association Formal Opinion No. 99-413, dated March 10, 1999 and all other applicable laws and rules.  If you receive this transmission in error, you are advised that any disclosure, copying, distribution, or the taking of any action in reliance upon the communication is strictly prohibited.  Any unauthorized use, distribution, or disclosure of this communication is strictly prohibited.  If you have received this in error, please notify us immediately by return e-mail at the above telephone number and then delete message entirely from your system.  Thank you for your cooperation.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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2 Comments

Filed under Attorney Ethics, Avvo legal services, joe corsmeier, Joseph Corsmeier, lawyer fee splitting, Lawyer Referral Services

2 responses to “Lawyer directory website Avvo is offering fixed fee legal services on a limited basis and plans to expand the services

  1. Pingback: South Carolina ethics advisory opinion states that matching legal services such as those offered by Avvo are prohibited | Lawyer Ethics Alert Blogs

  2. Pingback: South Carolina ethics advisory opinion states that matching legal services such as those offered by AVVO are prohibited | joe corsmeier

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