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LegalZoom, Inc. v. North Carolina State Bar

North Carolina Business Court

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LegalZoom, Inc. v. North Carolina State Bar

2015 N.C. Business Court 96 (2015)

North Carolina Business Court

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Facts

LegalZoom.com, Inc. (plaintiff) sued the North Carolina State Bar (defendant) to allow it to provide North Carolina consumers access to internet-based interactive software that generated legal documents based on the consumer’s responses to questions. The bar asserted that LegalZoom’s document services constituted the unauthorized practice of law as defined by state statute. The parties ultimately settled the suit by agreeing to a consent judgment. Under that judgment, the parties agreed that LegalZoom’s document services did not constitute the unauthorized practice of law under North Carolina statute and that LegalZoom could offer North Carolina consumers access to its website for two years (or until North Carolina amended its statute defining the practice of law and extendable by agreement), provided LegalZoom met six conditions detailed in the consent judgment.

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Holding and Reasoning

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