While clients are advised to ensure that they are in compliance with their state and local canons of professional responsibility, VLS has taken steps to assist you in meeting your ethical obligations. The American Bar Association has issued two main opinions regarding the ethics of outsourcing: ABA FO 420 (2000) and ABA FO 8-451 (2008). Here are the key points in those opinions:

ABA FO 420 (2000) – Surcharge to a Client For Use of a Contract Lawyer

• • Opinion confirms that a “surcharge” may be added when billing a client for the cost of services provided by a contract lawyer.

  
  • A surcharge is made when a retaining lawyer charges the client more for the services of the contract lawyer than the cost incurred by the retaining lawyer for obtaining those services. In other words, a surcharge is profit.

  
  • The surcharge must be reasonable as prescribed by Model Rule 1.5(a).

  
  • If the cost of a contract lawyer is billed to a client as a legal “expense,” no surcharge may be added.

  
  • There is no duty to disclose the surcharge when the work of the contract lawyer is supervised, or absent supervision, when the work of the contract lawyer is adopted as the work of the retaining lawyer.

  
  • Although the ABA suggests that the contractual relationship be disclosed to the client, there is no ethical obligation to do so, and ABA FO 420 reaches its conclusions based upon the presumption that no agreement exists between retaining attorney and client relating to the costs of the contract lawyer. (see footnote 1)

ABA FO 8-451 (2008) – Lawyer’s Obligations When Outsourcing Legal and Nonlegal Support Services

• • A lawyer may outsource legal or nonlegal support services provided the lawyer remains ultimately responsible for rendering competent legal services to the client under Model Rule 1.1.

  
  • Where the relationship between the firm and the individuals performing the services is attenuated, no information protected by Rule 1.6 may be revealed without the client’s informed consent.

HOW VLS MEETS ITS ETHICAL OBLIGATIONS



Confidentiality and Security of Client Information
Each VLS research attorney and project manager is assigned a specific log-in ID and password and only has access to cases on which he/she is working. We will never divulge your name to any other clients and only the project manager and research attorney working on your case will have access to the information contained in your files. In addition, all of our project managers and research attorneys sign strict confidentiality agreements prior to employment. As all of our project managers and research attorneys are graduates of accredited law schools in the United States, the requirements of confidentiality are treated with the utmost care and respect.



Avoiding Conflicts of Interest

VLS treats as sacrosanct the requirement that all attorneys avoid conflicts of interest. Therefore, prior to accepting any assignment, VLS conducts a thorough conflicts check to ensure that that no conflict exists. Our database maintains a current list of all current and former clients (and opposing parties). In keeping with the mandate of the legal profession, we will refuse any assignment if there is even “an appearance of impropriety.



Proper Oversight of Contract Lawyers
What separates VLS from other online research companies is our oversight system. Your case is first reviewed by a project manager – an attorney licensed in the United States (often in more than one jurisdiction) who has a thorough knowledge and understanding of the nature of the profession. The project manager interacts directly with the client and with the research attorney to ensure that all work is performed in a manner that is acceptable to the client.



Billing for Outside Legal Support Services 

For billing purposes, legal support from VLS may be thought of as temporary and/or contract attorneys. Pursuant to the Model Rules of Professional Conduct, a retaining order may charge a premium for outsourced legal services if the work is adopted as the work of the retaining attorney. VLS’s service contract is specifically drafted to assist the retaining attorney in meeting this ethical requirement. These billing procedures do vary from state to state however, and attorneys should always ensure that they are in compliance with their state’s ethical rules as well as the Model Rules of professional conduct.

If there is ever an issue as to the propriety of requesting any project, the client should defer to the Rules of Professional Responsibility in their state.