ADA, Okla., May 19, 2011 /PRNewswire/ -- As Pre-Paid Legal
Services, Inc. (NYSE: PPD) approaches its 40th year anniversary,
the legal profession (and industry) in the U.S. is undergoing
profound change. As noted in the April 2,
2011 "Report of the Task Force on the Future of the Legal
Profession," sponsored by the New York
State Bar Association, there is a "sea change" taking place
in the legal profession and in "the value proposition upon which
the relationship between lawyers and clients is based."
Although much of the report focuses on corporate law and major
law firms, the industry as a whole is changing. According to a
May 5, 2011 Economist
story, "Ultimately, lawyering is becoming more of a business than a
profession. Some lawyers decry this. Others welcome it. Few deny
it."
Pre-Paid Legal Services, Inc. (PPD) and the network of
independent provider law firms embrace the concept. As the
professional and academic debate about the future of "big law"
continues, PPD provider attorneys are delivering practical,
cost-effective and efficient legal counsel and solutions in a
plan-based format for the everyday legal issues that affect members
(customers) throughout the U.S. and four provinces of Canada.
Attorneys from among the 38 independent law firms that provide
legal services to PPD members were asked to offer their
perspectives on the PPD business model and delivery practices
compared to traditional, private practice law.
Differences in delivery models
"The private practice and the Pre-Paid Legal delivery models are
as different as night and day," said Jim
Merritt, of Merritt, Flebotte, Wilson, Webb & Caruso, PLLC, the
Durham, North Carolina-based law
firm and PPD service provider.
"The differences in these business models and the way the
services are delivered reflect the revolution now under way in the
legal services industry. The Pre-Paid Legal delivery model provides
for quality legal service at lower cost, increased responsiveness,
customer-oriented service and access to the legal system for many
who otherwise couldn't afford it," Merritt said.
As an example of such responsiveness, Merritt says that 90
percent of the time his firm's attorneys respond to member calls as
they come in rather than requiring a return call to that member.
Throughout 2010, PPD provider law firms responded to an estimated
2.1 million member requests for legal services.
Merritt, Flebotte, Wilson, Webb
& Caruso, PLLC (www.carotennlaw.com) has been a PPD provider
law firm since November 1995.
Billing is not the issue
"In a traditional law firm, a lawyer is only as good to the firm
where he or she works as the amount of billable hours he or she
produces. In addition, an initial consultation with a lawyer
usually requires a fee," said Joseph
Lombino, senior partner at Lombino Martino, PS, the provider
law firm for PPD in the state of Washington. "When a PPD member calls into his
or her Pre-Paid Legal provider law firm for consultation, the
Pre-Paid lawyer is not concerned with billable hours or money. The
focus is directly on the member and how to resolve their legal
issue."
"Simply stated, money does not get in the way of a Pre-Paid
Legal member obtaining the legal advice that is required," Lombino
said.
Lombino has practiced law for 27 years, 13 of which he has spent
providing legal services to PPD members. Lombino Martino, PS
(www.lm-wa.com) has been a PPD provider firm since October 2005.
Access to the legal system
Michael Fiffik, an attorney with
Welch, Gold & Siegel, P.C.,
says economic conditions are eating away at the middle-class's
ability to access the legal system.
"We're seeing more pro se (self) representation in court
hearings and it's not only a growing problem, but an untenable
situation," Fiffik said. "All too often, the justice is producing
perverted results because litigants lack access to legal counsel
and representation," he said.
Fiffik believes Pre-Paid Legal Service plans are helping to
reset the balance by making legal counsel available to those in the
middle-class. "The 'prepaid model' is revolutionizing the way
people access legal services and it continues to impact the way law
is practiced and delivered," Fiffik said.
Welch, Gold & Siegel, P.C.
(www.wgspc.com) has been the PPD provider law firm for the state of
Pennsylvania since April 1996.
An ounce of prevention
"Unlike traditional private practice law, which is generally
'reactive,' to an existing problem, the Pre-Paid Legal Services
model provides for a 'preventative' approach," said Melvin Hall, a partner with Riggs, Abney, Neal,
Turpen, Orbison & Lewis Inc. (www.riggsabney.com), PPD's
Oklahoma-based provider law firm
since 1987.
Based on 23 years of experience as both a PPD and private
practice attorney, Hall said people often contact an attorney only
as a "last resort" for legal issues that have become too
significant to ignore. "The PPD delivery model allows members and
attorneys to deal with legal issues before they become major
problems," Hall said.
"In much the same way as with physical illness, early detection
of legal problems leads to the best possible outcome. With the
prepaid model, members have more incentive to contact their
attorney and deal with the 'symptom' of distress rather than
unwanted effect. Pre-Paid Legal Services offers its members not
only legal solutions, but stress relief. It's plain, simple and
effective," Hall said.
The "Report of the Task Force on the Future of the Legal
Profession" points to one of the fundamental driving forces in this
"sea change," noting, "Clients are seeking more efficient services,
predictable fees and increased responsiveness to their needs."
Pre-Paid Legal Services and its provider law firms have practiced
this approach to legal services for decades.
About PPD
We believe our products are one of a kind, life events legal
service plans. Our plans provide for legal service benefits
provided through a network of independent law firms across the U.S.
and Canada, and include unlimited
attorney consultation, will preparation, traffic violation defense,
automobile-related criminal charges defense, letter writing,
document preparation and review and a general trial defense
benefit. We have an identity theft restoration product we think is
also one of a kind due to the combination of our identity theft
restoration partner and our provider law firms. More information
about us and our products can be found at our homepage at
http://www.prepaidlegal.com.
Forward-Looking Statements
Statements in this press release, other than purely historical
information, regarding our future plans and objectives and expected
operating results, dividends and share repurchases and statements
of the assumptions underlying such statements, constitute
forward-looking statements within the meaning of Section 21E of the
Securities Exchange Act of 1934. The forward-looking statements
contained herein are based on certain assumptions that may not be
correct. They are subject to risks and uncertainties incident to
our business that could cause actual results to differ materially
from those described in the forward-looking statements. These risks
and uncertainties are described in the reports and statements filed
by us with the Securities and Exchange Commission, including (among
others) those listed in our Form 10-K, Form 10-Q and Form 8-K.
Please refer to pages 20 - 23 of our 2010 Form 10-K for a more
complete description of these risks. Additionally, these risks and
uncertainties may include changes in associate recruitment and
member retention. We undertake no duty to update any of the
forward-looking statements in this release.
SOURCE Pre-Paid Legal Services, Inc.