By Jim Calloway

More technology-based changes are ahead in legal service delivery, and I believe we are reaching the point where many Oklahoma lawyers will be exploring automated document preparation.

Automated document assembly is not new to the Oklahoma legal community. In the 1990s, Oklahoma City lawyer Doug Loudenback created a collection of WordPerfect macros he called the “Grande Macros.” These macros interacted with each other in such a way that they functioned like a current automated document assembly tool. Lawyers entered the data about a case that was needed to prepare family law documents, and it assembled them. The petition was not only prepared but also the summons, a temporary order and the initial discovery requests. It was a huge time saver, and the macros gave the user the option to save the data so that it could be used again for future pleadings as the case proceeded.

Of course, WordPerfect did not win the office suite battle, and Doug Loudenback stopped updating the software when he retired. A few Windows and WordPerfect updates later and the macros were no longer functional.

Now, we see automation tools becoming easier to use. I appreciate that some Oklahoma law firms have embraced automated document assembly tools.

At ABA TECHSHOW 2024, one of the presentations was titled (in part) “Why Document Automation Technology Has Become Mandatory.” People, especially lawyers, dislike being told they must do something. However, AI tools are making legal document automation easier and faster by simplifying template creation.

Barron K. Henley of Affinity Consulting noted in his paper accompanying the above-mentioned ABA TECHSHOW program:

On the most basic level, document automation is the use of software to (very) quickly generate customized Microsoft Word documents. In other words, document automation adds significant functionality to your existing word processor. It allows you to capture the consistencies in your documents such as which sections, paragraphs, sentences, and words go where under any set of facts. It also allows you to capture the irregularities in your documents. Irregularities include custom provisions and intelligent language building that can accurately consider thousands of inputs to produce the correct phraseology every time. Instead of cut and paste, you can pick desired options or alternatives from a list or interview. Instead of manually replacing [testator name] with your client’s name 25 times, you simply respond to on-screen questions and let the computer do the clerical work. Users must only answer questions in an interview/questionnaire to produce letter-perfect, completely customized documents. Neither word processing nor computer skills are required to use such a system once it is built. Even technophobe, two-finger typists can produce perfectly formatted, complex documents without assistance.

The benefits of proper document assembly technology implementation were also noted in the same paper:

Properly deployed, DA technology can exponentially decrease drafting time and increase accuracy. For example, it would be normal for a DA system to compress what normally takes 6 hours of drafting time into 15 or 20 minutes. DA systems can be used as teaching tools, shared with others, and textually updated as necessary. If your practice involves generating complex documents (or a set of documents is the ultimate deliverable), then DA can dramatically boost profitability and/or decrease costs.

Let’s repeat. It would be normal to compress the drafting of a document from six hours of an attorney’s time to 15 or 20 minutes. Boost profitability. Decrease costs.

FASTER, CHEAPER, BETTER

Another point is this increased productivity should also result in a higher-quality legal work product.

Some lawyers could negatively react to this statement, as a lawyer’s goal is to turn out a perfect work product. But mistakes are sometimes made. For example, if you start with a prior work product document that was similar, you can use copy and paste to change the prior client’s name to the new client’s name. But if you copy and paste multiple times, it is possible to miss one. It would be embarrassing to send a document to a client or opposing counsel with a former client’s name in the document. It is not a good look on several levels.

Some of you may respond that Word’s find and replace function should handle this, and it may do a better job. But it is not flawless and may miss things. For example, if your document has a space in the middle of a word or a misspelling, find and replace will miss that.

Starting with a prior work product instead of a template may also result in additional provisions being included that should not be used in the current situation.

DO-IT-YOURSELF?

If someone in the office had the ability and inclination, this could be a viable but challenging do-it-yourself project. But if you have done little yet with the free available Word automation tools (e.g., macros, Quick Parts, customized templates), you likely are not going to dive into a major document automation project on your own.

I reached out to Mr. Henley for some thoughts about DIY Word automation. He said a good rule of thumb was that the project would probably take five times the investment of time than one would estimate. He also indicated that many people create far too many templates. For example, just because you have four types of family trusts you might create, you do not want four templates. Rather, you would prefer one trust template that changes the subsequent interview questions as you answer preliminary ones to generate the documents you need for this situation.

There are numerous providers of document automation solutions. Product names keep changing, and new products are introduced frequently. Some of these offer template creation as a part of their services. Here is a list of leading document assembly products (my apologies to those omitted – it is a constantly updating category): ActiveDocs, Aurora, BigHand Create, Docassemble, Docmosis, Docrio, Doxserá, DraftOnce, Formstack Documents, Forte, Gavel (formerly Documate), HighQ (formerly Contract Express), HotDocs, Innova, Lawyaw, Leaflet, PatternBuilder (formerly Afterpattern), Rapidocs, Templafy, TheFormTool PRO, Woodpecker, XpressDox and ZumeForms.

PRACTICE MANAGEMENT SOLUTIONS

Lawyers who use practice management solutions (PMS) already have all the relevant information about a client’s matter entered into the digital client file. It makes sense that a document assembly program either contained in the PMS or linked to it would make for a convenient method to automatically create documents.

The people at the PMS companies appreciate this reality as well. They are all working on tools to export data into documents. So if you are using one of these tools that doesn’t appear to have document assembly, check the company’s website or contact them to see what progress has been made and when the release is planned.

WHAT ABOUT BILLING?

Oklahoma City attorney Mark Robertson and I have written books for the ABA on alternative billing practices. We anticipated that automation tools would significantly reduce the time lawyers spend on routine tasks. Numerous new and enhanced document automation and AI tools have been introduced to the marketplace. While these tools offer time-saving benefits, they may also pose challenges for those who adhere strictly to hourly billing practices.

The best way to account for the time-saving advantages of this tool is to share the benefit with the client. The automation process may not happen overnight; therefore, many fee agreements will likely contain a mix of hourly fees for situations that are more difficult to predict or automate and flat fees for those tasks that have the benefits of automation. One method of setting those flat fees would be to determine how much was typically charged for the task under the hourly billing method. Then, you can set a flat fee at some reasonable percentage of the “old” fee. That way, when the clients inquire about the flat fee provisions, you can let them know you have automated this process, and it is now less expensive than it was previously.

More cases may lend themselves to charging a flat fee for the entire matter. In flat fee cases, an executed attorney-client contract is very important. A clear list of what tasks the lawyer will do for the flat fee is vital. But even more important is setting forth any related matters the lawyer is not engaged to do under the agreement.

Under Oklahoma law, flat fees should be deposited in the client trust account until earned. But that doesn’t mean a lawyer must track their time as precisely as a matter billed hourly. It is appropriate to set stages or landmarks where the matter is deemed half or one-third completed, and partial trust account withdrawals may be made on that basis.

CONCLUSION

Document assembly tools have already made a significant impact over the past decades, revolutionizing the way legal documents are prepared. From bankruptcy petitions to complex legal agreements, automation has streamlined processes and increased efficiency. As more lawyers seek to automate their own forms, the investment of time and money into these technologies appears promising, offering a substantial return on investment by saving time and reducing costs for both lawyers and their clients. Embracing these advancements will undoubtedly lead to more efficient practice management and improved client service.

Mr. Calloway is the OBA Management Assistance Program director. Need a quick answer to a tech problem or help solving a management dilemma? Contact him at 405-416-7008, 800-522-8060 or jimc@okbar.org. It’s a free member benefit.

Originally published in the Oklahoma Bar Journal — January, 2025 — Vol. 96, No. 1