Patricia Johnson is part of a law firm consisting of about 15 employees, but you wouldn't know that by stepping into her two-office suite on the 10th floor of downtown Spokane's Paulsen Building.
Johnson is a partner in what's known as a virtual law firm. Her colleagues in Advocates Law Group PLLC, which she has been a part of since August 2011, aren't down the hall or in the next suite, but instead are located all over Washington state.
George Tamblyn, Advocates' Mercer Island-based managing partner, says law firms that operate as it does don't have a central physical office, relying instead on technology as their main form of communication between members and clients. He says virtual law firms provide a more flexible work schedule and are more economical than traditional law firms.
Tamblyn says the firm shares a common Web-based file system, which allows Johnson in Spokane and Tamblyn on the West Side, for example, to communicate easily.
The typical law firm, or brick-and-mortar law firm as Tamblyn refers to them, will have shared office space, Tamblyn says. In that setting, those who are partners in the firm are expected to help cover the cost of overhead and generally divide up the firm's income. Advocates Law Group consists of 14 partners and one associate.
Prior to founding Advocates Law Group, Tamblyn took a break from actively practicing law to teach. When he went back into law, he found the traditional model wasn't what he was looking for.
"I could have gone to work for a large firm because I had that kind of background, but they would have wanted me to put in concessions to pay the rent," Tamblyn says.
He says with the virtual law firm model, individual members are responsible for their own space. With Advocates Law Group, he says most members work from home, with a few, like Johnson, who lease office space. By cutting the cost of overhead, specifically by not leasing large amounts of office space, Tamblyn says lawyers are able to pass on that savings to clients, by offering a lower hourly rate.
"We are able to significantly reduce the overhead, so therefore, we can charge nearly 50 percent less than lawyers with equal experience and training and pass that savings on to the clients," Tamblyn says.
The firm takes 8 percent of a partner's income and puts it toward an overhead fund. This fund covers bookkeeping and marketing, the two biggest expenses for the firm, as well as liability insurance and contractual support staff. Tamblyn says any surplus in that fund is divided amongst members at the end of the year, based on income generation.
Peter Roberts, Seattle-based practice management adviser for the Washington State Bar Association's law office management assistance program, works primarily with solo lawyers and smaller law firms, such as Advocates Law Group. He says he doesn't know how many virtual firms operate in Washington state and Spokane, but he expects the draw of virtual law firms to continue to rise.
Tamblyn and Johnson say they're unaware of any structured like Advocates Law Group that exist the Spokane area.
However, Mary Schultz of Mary Schultz Law PS recently scaled back her six-associate practice, previously located at 111 S. Post in downtown Spokane. She now works as a solo practitioner at a property she purchased south of Spokane. Schultz told the Journal two months ago that she plans to focus more on the electronic medium and that a lot more lawyers are working remotely. Schultz employs two support staff members.
Advocates Law Group contracts out for its support staff, such as marketing and website support. Every member of the firm uses the same bookkeeper in Olympia, and members can rent conference-room space on their own as needed.
Although members are scattered throughout the state, Johnson says she travels to the West Side almost every month for meetings, and she adds that those meetings help foster a trust relationship within the group.
"Having some of the face time is good, and it gives you the opportunity to know everybody," Johnson says.
The virtual law firm model provides a flexibility that otherwise usually isn't found at a brick-and-mortar law firm, Tamblyn says. For example, lawyers are free to set their hours and work part time or full time.
"I enjoy practicing law, and the ability to work as much as I want or as little as I want is important to me," Tamblyn says. "We have some active mothers in our group who, understandably, are very involved in the raising of their children; they can work from their home."
Although flexible, Roberts says problems may arise with virtual law firms when the client-lawyer relationship isn't clearly defined.
"I think that the risk that can occur for the lawyer using virtual or technological means to communicate with clients or potential clients is the 'unintended lawyer,'" Roberts says. The unintended lawyer refers to a relationship that can arise between a lawyer and potential client when the individual seeking counsel might think the lawyer is taking care of an issue, but the lawyer is unaware that the person has that presumption.
"If the electronic communication is assisting the client with their issues, it could arguably become a lawyer-client relationship," Roberts says.
Penny Youde, exec-utive director for the Spokane County Bar Association, says the association doesn't have any concerns about the emergence of virtual firms, and says they can be a useful gateway for new law graduates.
She says virtual law firms provide an opportunity for lawyers right out of law school to gain experience.
"Having a lot of attorneys coming out of law school when the job market is pretty slim, it works well for them," Youde says.
Johnson disagrees, at least from the perspective of her own firm. She says Advocates isn't structured in a way that provides mentorship for younger law professionals. Attitudes, expertise, and people skills likely would be fostered more at a brick-and-mortar law firm.
"It doesn't matter what you're studying, you're studying books; you're not studying handling real life issues," Johnson says, adding it helps to have a group or colleagues there to help develop those skills. "A virtual law firm doesn't really foster that. I imagine there's a way it could be done, but that's just not the model that we're following."
She says with the right business model and structure, virtual law firms could be a possibility for law school graduates, but Advocates isn't structured in a way that would make it easy for a new lawyer to have access to a mentor on a regular basis.
Tamblyn says Advocates is structured rather in a way that attracts lawyers with active practices who are approaching retirement age.
A recent study completed by the Washington State Bar Association projects that within five years 24 percent of active attorneys in the state will look at or seriously consider retirement. Tamblyn says that projection has caused a stir among attorneys who are concerned about a potential shortage of experienced lawyers.
Tamblyn says virtual law firms allow those attorneys mulling retirement to continue to practice, but still be able to cut back if they choose to do so. He says, however, it will take time for the idea of virtual law firms to gain momentum.
"Lawyers are a conservative group," Tamblyn says. "So, the idea of changing what you're doing or what you've done for years is an uncomfortable idea."
He says for many, the high cost of overhead is still a necessary price to pay to feel part of a firm and maintain a collegial group for counsel.
"A lot of them can't imagine just not going to the office and having that feeling of belonging to a fixed group where everyone is sort of there in their offices," Tamblyn says.
He anticipates firms will look at how virtual firms are operating as a way to maintain quality while decreasing cost.
"It'll be more driven by the competitiveness of the industry and as large legal services become more price conscious," Tamblyn says.