Allowed to be wrong sometimes

For years now, the question has been discussed again and again in relevant formats whether lawyers will need programming skills in the future. I have always denied this - to acquire and maintain good legal knowledge is enough to fill an evening, there is no room for another discipline (apart from exceptions).

Today I say: that was too short-sighted. Just as marketing professionals need to have a deep understanding of the processes around digital advertising, lawyers of the future need to have a good understanding of the relevant digital technologies.

They don't have to be the ones writing lines of code for e-discovery suites. But they do need to be able to assess what to expect from the various technologies that are usually grouped under the umbrella term "artificial intelligence." Lawyers and notaries, corporate lawyers, judges, prosecutors and administrative lawyers - all of them will, in the course of their very own work, be facing the question of the use of technology for certain process or procedural steps and will have to assess for themselves what they can expect from it and what the risks are. By this I don't mean the eternal data protection issues, but issues such as bias, training sets, confidentiality, and most especially error calculus.

This also creates a whole new set of challenges for legal academia, but even more so for continuing legal education. For a long time, lawyers have seen time constraints as their central problem. The tension will only be resolved if ... but that is another story.

Lent

A week ago, Catholics began this year's Lent. It lasts 40 days, but only because they do not count Sundays; in reality, it is 6 ½ weeks. Today, Lent is mainly equated with abstaining from alcohol, nicotine and fatty foods. In truth, however, it is a time for reflection and inner contemplation. Even if the current geopolitical situation with Russia's war of aggression against Ukraine is not suitable for finding inner peace, I would like to briefly apply the idea of renewal to the legal profession and its tools.

One mantra of legal digitization is as follows: Law firms should standardize their processes for reasons of cost reduction and quality assurance and make use of commercial tools ("LegalTech").As a result, the same texts would then be used by many law firms for frequently occurring processes, and at a lower cost accordingly.

After a bit of introspection, however, one could also say: from a third party's point of view, this may be desirable and sensible, but is it enforceable? Obviously, there are major hurdles, otherwise the numerous systems on the market would already have become more widespread. This need not come as a surprise, because which company will agree to changes that make its own market performance interchangeable without massive pressure? Certainly, it is then argued that it is not about "bespoke lawyering", but about the surrounding - but what if the surrounding earns the greater part of the rent in one or the other law firm?

One need not be surprised that the various text generators and clause managers are primarily found in the legal departments: there are similar cases there in high frequency, and the legal departments are not in competition with each other.

Legal publishing house may offer contract generator - no violation of legal services law

WoltersKluwer offers a so-called contract generator in Germany under the "smartlaw" brand. The Hanseatic Bar Association in Hamburg filed a lawsuit against this with reference to the Legal Services Act and won at first level. However, the German Federal Supreme Court (BGH) has now confirmed the amending judgment of the Cologne Higher Regional Court (I ZR 113/20 - Contract Document Generator).

In detail, the BGH stated that the creation of a draft contract with the help of the digital legal document generator is not an unfair act according to § 3a UWG because it does not represent an unauthorized legal service within the meaning of § 2 para. 1, § 3 of the Legal Services Act (dRDG). The defendant's activity consists of creating contractual documents on the basis of the user's specifications with the help of the software programmed and made available on the Internet. In doing so, it does not act in a specific matter of the user. It had programmed the software on the basis of thinkable typical factual constellations, for which it had developed standardized contract clauses in anticipation of the given answers. The user's individual circumstances, which go beyond the usual case, would not be taken into account in the creation of the contract document - similar to a form book. Therefore, the user does not expect a legal examination of his specific case.

The German bar association is conducting a whole series of lawsuits against providers of LegalTech applications; so far, they have mostly ended in favor of the providers. However, it should be noted in each case that the German legal situation has no direct equivalent in Austria.

Chutzpah

 

Never in my life would I have thought that the word "chutzpah" existed in English. The editor of Legaltech News, Zach Warren, uses it to describe one of the character traits it takes to launch a legaltech startup. In addition, he says, it takes vision and the ability to think as precisely as possible into the situation of the desired user. There's a lot of truth to that.

Many founders fail at even describing their customers. You often hear "all lawyers" or "all attorneys". Maybe you should also generally move away from this customer group-based mindset and instead ask the question, "what pain are you trying to solve with your new product?" Then it's time to show your colors.

One example: from the current study by Wolters Kluwer - I already mentioned it last week - you can read that standardization of contracting is a very important topic for law firms and for corporate legal. But why is that, really? Is it about the speed at which new contracts can be created, or is it about ensuring quality? In the former case, systems like Bryter or top.legal can actually help by analyzing the most important contracts and putting them into a question-answer grid with all the options provided. In the second case, it is more about the internal workflow and ensuring that all valid templates and text modules are actually stored in a defined location and that all employees are obliged to access only these quality-checked modules.

Certainly, the answers will be mostly ambiguous. But the message is: you have to understand your customer very well and know his pains as well as possible before you start developing a new software product. And exactly the same applies to customers facing the introduction of new tools. First define your pains and then deal with possible solutions!

PS: Even if founders have defined the parins and found a solution, it will still be a very long journey that requires a lot of chutzpah.