While the purveyor of online self-help documents LegalZoom was still probably celebrating the South Carolina Supreme Court’s approval of its business model in March, two weeks later, just over the border in North Carolina, a judge breathed extended life into a case claiming the company engages in the unauthorized practice of law, Robert Ambrogi’s Lawsites reports.
Judge James L. Gale, a Special Superior Court Judge for Complex Business Cases, issued an order and opinion March 24 concerning various motions in a suit involving claims and counterclaims between LegalZoom and the North Carolina State Bar, which argues that the company engages in unauthorized practice of law and also failed to meet filing requirements in seeking approval to run a prepaid legal services plan in the state.
Gale ruled (PDF) that the company had not exhausted administrative remedies for the prepaid legal services plan, and said the UPL issue is so complex he wants to know more before deciding.
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