LegalZoom Hits Hurdle in North Carolina

LegalZoom was probably still celebrating the South Carolina Supreme Court’s approval of its business model when a North Carolina judge breathed continued life into a case claiming the company engages in the unauthorized practice of law, reports LawSites Blog. According to the post, a special judge dismissed two counts in LegalZoom’s lawsuit against the North Carolina State Bar, in which the company alleged that the bar’s efforts to shut it down violated anti-monopoly and equal protection clauses of the state constitution. The court deferred ruling on the bar’s claim that LegalZoom is engaged in unauthorized practice, concluding that a more extensive factual record is required to understand how LegalZoom prepares complex documents for customers.