sobota, 16 grudnia 2017

Welcome to the New Normal. How the Modern Technology will Truely Change the Legal Profession.




During one of the Warwick Legal Network conferences, we were listening to the speech prepared by business coach and advisor, held under the key phrase “welcome to the new normal”. Briefly speaking it was about the rapid changes in the legal profession which are, at least partially due to the technological shift and on which we, the lawyers are completely unprepared. One of the speaker’s slides presented a picture of an old man, who was supposed to represent the oldfashioned, clumsy lawyer unable to adapt to the coming changes. The speaker was not aware that the picture, which he picked up accidentally on Internet actually depicted a famous British philosopher, John Stuart Mill. In 1871 he was caricatured by Vanity Fair because of his advocacy of women’s right. Paradoxically one of the most progressive thinkers of the XIXth century was presented as a symbol of XXIst century business conservatism. And that was a very good symbol of the whole speech. A lot of interesting but highly ungrounded speculations on the future lawyer. Since then, however, I started to collect information on, how the legal business really changes. My experience suggested that the prophesied revolution has not come still and the legal profession is surprisingly resistant to new technologies (it is a shame, and at this point, the blundering speaker was right).  Recently, however, thanks to the manager from Wolters Kluwer whom I met during the conference “Digital Champions” in Warsaw, I found an extensive paper summarising the research on the possible impact of new technologies on the legal business. In my view, it gives a sound answer to that question[1]. Two professors did apparently a very simple thing. They checked and described the technologies which are already applied to the legal services or which are quite promising to be applied in the nearest future, and then set them against the collected data on how much time do the lawyers devote to the specified tasks. They also assessed and ranked the lawyers’ tasks according to their susceptibility on automation, and thus their possible replacement by machines and AI algorithms. If you think that we lawyers mainly review and draft documents, you are wrong. Most of our time is spent on legal writing (18%), legal analysis and strategy (27%), court appearances and preparation (14,5%) and negotiation (5%). All those tasks are very resistant to automation. Therefore in the foreseeable future, we can sleep relatively good. It will not be easy to replace us with machines. The entire impact of the technology on the employment in the legal business was estimated by the authors on 19%, that means about 2,5% annually. The productivity growth at a rate of 2,5% p.a. is impressive but it does not mean that a half of the legal staff will lose their jobs soon. This rather moderate reduction of the employment will happen, providing however that the modern technology will be adopted by law firms and that it will be legally permissible. Both assumptions are dubious. Lawyers are extremely resistant to new technologies and very slow at their adoption, what frustrates my interlocutor from Wolters Kluwer, who was among other things responsible for the sale of their computer programs for lawyers. And some of the developing solutions raise doubts whether they should be allowed without restrictions. It especially refers to the automatically generated legal memos, responding users’ queries which raise problems of consumer protection. The prediction of the court verdicts by the so-called “predictive coding” is also problematic as it may unfairly privilege the party who disposes of that technology. 
Reading the paper, I also noticed two other unrelated issues which should concern us. One is very practical and one almost philosophical. Although we should not be afraid of rapid layoffs, it is worth noting that since 2007 in America the total value of legal services provided to clients has been stagnated or even dropping by 0,6% p.a., despite the fact that the number of lawyers has risen. It is strange as by 2007 it was growing of about 13% annually. So what happened? It might be the case that the Internet websites which are already providing low-cost, basic legal services for unsophisticated clients bite the piece of cake. It is however even more likely that there is growing pressure from the market on lowering the lawyers’ bills and especially on the contingency fees arrangements instead of hourly bills. The latter is, by the way, good news for modern technology providers. One of the indicated barriers to their adoption was an hourly rate arrangement, which brings no incentive to increase productivity.
The second issue is connected with a predictive coding and the possible prediction of the court verdict. If it is deployed, it will raise doubts on the actual lawyers’ function in the judicial system. The famous American legal philosopher and the judge, justice Olivier W. Holmes proposed the account of the so-called “bad-man perspective” which reduced the purpose of the law and respectively the lawyers’ main task to sentence prediction. However, this simplification is not even true in Holmes’s theory. In many of his writing, we find the very evolutionary approach to the law, which appears to be the engine of the social changes an thus the main causal factor of the civilisation development. Lawyers play in it their part too. If we exclude them from this stream, reducing their job to the proper application of the “sentence predictor” we risk the stoppage or at least the slowdown of the social change.


[1]  Dana Remus, Frank Levy, Can Robots Be Lawyers? Computers, Lawyers, And The Practice Of Law

poniedziałek, 22 maja 2017

Lawers - Who We Are and How We Provide Our Services?

Professor Richard Moorhead is the author of one of the chapters in Oxford Handbook of Empirical Legal Research devoted to lawyers and other legal services providers. Our self-image is usually full of ethical claims regarding the way how we provide legal services to our clients. I found it extremely interesting to learn how it looks in eyes of empirical social researchers. Unfortunately, most of the results come from the USA and other common law countries. But it should not be a consolation for continental lawyers as I see a lot of analogy. And it does not look very nice.
1. Lawyers are not uniform. There are castes among them. Surprisingly the division runs not along the statutory distinguished professions (attorneys at law, barristers, public notaries, tax advisors, and others) but along the clients, whom services are provided.  Those who work for large organisations (mainly business) are considered to be an elite, contrary to those working for individuals with low and medium incomes. Normally this status is associated with higher rates, salaries and partnership in a big law firm.
2. This higher status could be justified by incomes but rather not by a professional ethic. Lawyers often emphasise their autonomy,  independence both from authorities and clients. This is not the case of elite lawyers, They are less likely to define their clients' problems, rarely report value conflicts and almost never give up their jobs on that basis. It looks like either they strongly identify themselves with clients'  aims and values, or simply subordinate their values to their jobs.  
3. In the assessment of legal candidates, meritocracy is a myth. Law students are typically a privileged group, from upper strata, well-educated families. The recruitment to law firms does not base on pure merits too. "...hypothetical elite student has 70% chance of entering the profession compared to only 11% chance of a black woman with the same level of formal qualification."  
4. Lawyers strongly distinguish between clients who pay them more and less. For those not wealthy enough they do too little, especially in reference to criminal defence. Lawyers leading role is to persuade clients of merits of pleading guilty. They rather represent the interest of the state and prosecution, and this does not arise out of rational, technical-legal assessment of the strength and weakness of the individual case. 
5. The picture is more ambiguous in reference to the wealthy, business clients. The hypothetical claim that lawyers do too much to them (i.e. record too many billable hours) is not plausible enough. Researchers disclose great variability both among lawyers and clients. 
6. The quality of services does not depend on the lawyer formal membership in any statutory professional group. But it depends strongly on their informal specialisation. Formally underqualified lawyers (paralegals), who specialise in a particular legal issue render better services than well qualified general practitioners. 
We may sum it up with a claim which would be trivial for the economist: The pretence of lawyers to be perceived in terms of their special role in society and their vocational ethic is highly unjustified and contradicts to the observed practice. But their analysis it terms of professional services provided in a free market, subordinated to the law of supply and demand, does not disclose any peculiarities. With one important reservation: "Lawyers work at the heart of social and economic controversies. In evaluating what they do researchers have to grapple with major instabilities in our understanding of law and justice."

sobota, 20 maja 2017

Jakość usług prawnych

The Oxford Handbook of Empirical Legal Research (2010) jeden z rozdziałów poświęca badaniom nad prawnikami świadczacymi swoje usługi dla klientów (prywatnych lub instytucjonalnych) (Moorhead R., Lawyers and Other Legal Service Providers). W polskich realiach obejmowałoby to pokaźną grupę radców prawnych, adwokatów, doradców podatkowych, rzeczników patentowych i in. Sam autor przyznaje, że badania takie głównie prowadzone są w USA oraz w mniejszym zakresie w innych krajach common law, sporadycznie natomiast na kontynencie. Niemniej wyniki tych badań są na tyle interesujące, że warto podzielić się kilkoma refleksjami. Tym bardziej, że w obszarze profesjonalnych usług prawnych równiez następuje pewna globalizacja i unifikacja.
1. Zawody prawnicze są kastowe. Podział jednak nie przebiega według ustawowych grup zawodowych, ale według kryterium klientów. Za elitę uważani są (albo raczje uważają się) ci, którzy świadczą swoje usługi dla dużych organizacji (głównie biznesowych). Zwykle wiąże się to z wyższymi stawkami, wyższym statusem majątkowym oraz partnerstwem w dużej kancelarii prawnej.
2. Taki podział może być uzasadniony ze względu na kreterium statusu majątkowego, ale nie ze względu na kryterium "etyki zawodowej". Podstawowy, teoretyczny przymiot zawodów prawniczych to bowiem autonomia - niezależności od sądów, organów administracji i klientów. W przypadku prawniczej elity, ten ostatani element raczej nie ma miejsca. Instytucjonalni klienci jasno określają swoje cele i oczekiwania i spodziewają się w tym zakresie podporządkowania. I otrzymują go, gdyż w tym obszarze prawnicy bardzo rzadko sygnalizują konflikt interesów i konieczność rezygnacji ze zlecenia ze względów etycznych.
3. Kastowość wyraża się też w dostępie do zawodu i nie chodzi tu o bariery ustawowe, które akurat w USA są relatywnie niskie. Prawnicza elita twierdzi, że wyłącznym kryterium rekrutacji są aspekty merytoryczne. Tak jednak nie jest. Biały mężczyzna, pochodzący z wyedukowanej rodziny ma 70% szans na dostęp do owej elity, podczas gdy afroamerykanka z tymi samymi wynikami w nauce raptem 11%.
4. Prawnicy silnie wartościują klientów, ze względu na to ile im płacą.  Najbardziej jest to widoczne w odniesieniu do niezamożnych klientów, korzystających z obrony w sprawach karnych. Badania zdają się wskazywać na silną tendencję do nakłaniania ich do karno-procesowych porozumień z oskarżycielem, zmierzających do przynania się do winy i uniknięcia procesu. W znacznej części przypadków taka strategia nie jest związana z rzetelną analizą sprawy i ewentualnej siły dowodów prezentowanych w akcie oskarżenia.
5. Bardziej niejednoznaczny obraz rysuje się w odniesieniu do zamożnych, instytucjonalnych klientów, nie do końca potwierdzający hipotezę, jakoby w ich przypadku prawnicy robili za dużo (czytaj: ewidencjonowali za dużo fakturowanych godzin). Występują tu duże rozbieżności pomiędzy poszczególnymi prawnikami i firmami. Jednak w przypadku wynagrodzenia ryczałtowego wyraźnie widać odmienną strategię, polegającą na unikaniu czynności których wpływ na jakość i końcowy wynik jest niepewny. Taka strategia wcale nie musi być korzystna dla klienta, a może wynikać z natury usług prawnych, które nie mają wyraźnie przewidywlanego rezulatatu i raczej polegają na stosowaniu szeregu strategii, którym przypisuje się różne prawdopodobieństwa sukcesu.
6. Jakość świadczonych usług nie zależy od formalnej przynależności do określonej, licencjonowanej grupy zawodowej (np. do adwokatury). Zależy natomiast silnie od przyjętej specjalizacji. Nielicencjonowani prawnicy, wyspecjalizowani w określonej dziedzinie świadczą usługi lepszej jakości od licencjonowanych "ogólnych praktyków".
Podsumowując można postawić tezę, która z punktu widzenia ekonomisty będzie trywialna. Pretensje zawodów prawniczych do bycia postrzeganymi w kategoriach ich szczególnej roli społecznej, wyrażonej np. w zasadach etyki zawodowej pozostają raczej w sprzeczności z obserwowaną praktyką. Ich analiza w kategoriach usług profesjonalnych sprzedawanych na rynku, podporządkowanych prawu popytu i podaży, nie wykazuje szczególnych osobliwości. Z jednym zastrzeżeniem. "Prawnicy pracują w samym sercu społecznych i ekonomicznych kontrwersji. Badacze społeczni oceniający ich pracę muszą przede wszytskim zmierzyć się z fundamentalną niestabilnością w naszym rozumieniu tego czym jest prawo i sprawiedliwość."