LegalZoom, Inc. v. North Carolina State Bar
North Carolina Business Court
2015 N.C. Business Court 96 (2015)
LegalZoom (plaintiff) sued the North Carolina State Bar (defendant) to permit North Carolina consumers to use its interactive, question-based document-generation software, which the bar had argued constituted the unauthorized practice of law. The parties settled via consent judgment, under which LegalZoom's services would not be treated as the unauthorized practice of law for two years (or until the state amended its practice-of-law statute), provided LegalZoom met six specified conditions.
Whether the state bar may agree by consent judgment that internet-based interactive software generating legal documents from consumer responses does not constitute the unauthorized practice of law, provided certain conditions are met.