Il-LegalZoom?

26 July 2011 By Reynolds Holding Follow @holdingren

Attorneys claim LegalZoom practices law without a license. The real beef may be that it’s more costeffective than they are. If lawyers have a legitimate case against the U.S. online provider of basic documents, which may soon go public, they should make it in the marketplace.

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A Missouri federal judge rejected on July 21 LegalZoom's motion to dismiss a classaction lawsuit that claims the online legal document service is practicing law without a license. The former customers who filed the suit seek triple the fees they paid the company, but do not claim the documents or services they received were defective. A trial is scheduled for Aug. 22.

Robert Shapiro, a lawyer who successfully defended O.J. Simpson against murder charges, started LegalZoom with three partners in 2001 and often appears in advertisements for the Glendale, Californiabased company. The website uses decisiontree software to help people complete legal documents. To prepare a will, for example, a customer selects that option and then answers a series of automated questions. After paying a fee, he receives the completed will.

Earlier this month, an Alabama lawyers' group also sued LegalZoom, claiming the company engages in the unauthorized practice of law and asking a judge to bar it from doing business in the state.

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