RALEIGH, N.C., Oct. 3, 2011 (GLOBE NEWSWIRE) -- Following recent actions by the North Carolina State Bar, including refusing a request to meet and discuss their differences, LegalZoom has filed suit against the Bar requiring them to register LegalZoom's pre-paid legal service plans and seeking confirmation that its business model is lawful. The complaint was filed in the Wake County court and served last Friday.
"LegalZoom has served and delighted residents of North Carolina for over ten years," said Chas Rampenthal, General Counsel of LegalZoom. "The Bar has never presented any evidence of a complaint by a resident who chose to use LegalZoom's self-help services. Now, LegalZoom has improved its offering to include prepaid legal service plans, where an individual can get access to an attorney licensed in their state for $15 per month. I can't understand why the North Carolina State Bar would want to block the registration of our Legal Advantage plans that will vastly increase access to the law for millions of middle income North Carolina residents," added Rampenthal.
This lawsuit follows multiple attempts by the Bar to limit citizens of North Carolina from accessing self-help legal services and prepaid legal service plans in the state. In December 14, 2001 and July 11, 2002 letters, the United States Department of Justice and the Federal Trade Commission jointly urged the Bar to reconsider its opinions requiring lawyers to be physically present during real estate closings and refinancings, stating that the opinions would "likely harm the public," and that the Bar "provided no factual data to support" its position.
In 2008, the Bar's Authorized Practice Committee sent a Letter of Caution to LegalZoom regarding its operations, even after the same Committee reviewed LegalZoom's business in 2003 and found that there was no evidence of wrongdoing. LegalZoom's practices did not materially change during the intervening five year period. Now, the Bar is refusing to register LegalZoom's legal plans, even though they meet all statutory requirements.
"We're asking the court to confirm that we're operating within the limits of the law," said Rampenthal. "We offered to meet and discuss these issues, but the Bar refused us that courtesy. The last thing we wanted to do was file a lawsuit. In LegalZoom's 10-year history, we have never filed a lawsuit against anyone. In this case, we felt that had no choice."
"It appears that the North Carolina State Bar has a pattern of favoring the business of its attorneys over the rights of its citizens," said Rampenthal. "We will continue to fight for every American's right to affordable legal protection."
About LegalZoom.com
LegalZoom is the nation's leading provider of online legal document services and legal plans to families and small businesses. The company was founded by top talents in law and technology to make the benefits and protections of the law accessible and affordable. LegalZoom is not a law firm. It provides self-help services and legal plans where customers have access to attorneys at a fixed monthly fee. The company is headquartered in Glendale, California, with regional headquarters in Austin, Texas. For more information, visit www.legalzoom.com.