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Keywords

pleamotioncomplianceregulationjudicial review

precedentpleamotionjudicial review

Related Cases

LegalZoom.com, Inc. v. North Carolina State Bar, Not Reported in S.E.2d, 2014 WL 1213242, 2014 NCBC 9

Facts

LegalZoom offers legal document preparation services and prepaid legal services plans through its website. The North Carolina State Bar had previously investigated whether LegalZoom's services constituted the unauthorized practice of law (UPL) and issued a cease and desist letter in 2008. LegalZoom sought to register its prepaid legal services plans but faced multiple concerns from the State Bar regarding compliance with state regulations. After filing a complaint, LegalZoom and the State Bar engaged in motions regarding the registration and legality of these services.

LegalZoom, through its website, www.LegalZoom.com, offers two services: (1) a legal document preparation service; and (2) in those states where permitted, prepaid legal services plans.

Issue

Whether LegalZoom is engaged in the unauthorized practice of law by offering its internet-based document preparation service and whether the State Bar must register LegalZoom's prepaid legal services plans.

The court must now determine whether the State Bar has issued a final decision that it has been directed to make, and if so, whether LegalZoom has availed itself of available administrative procedures before seeking court review.

Rule

The court must determine whether the State Bar has issued a final decision regarding the registration of LegalZoom's plans and whether LegalZoom has exhausted its administrative remedies before seeking judicial review.

The APA generally sets out conditions precedent to judicial review of an administrative determination, including a requirement for a final agency decision and exhaustion of administrative remedies.

Analysis

The court analyzed the correspondence between LegalZoom and the State Bar, noting that LegalZoom had not forced the State Bar to make a final decision on the registration of its plans. The court emphasized that LegalZoom's failure to pursue available administrative procedures precluded it from seeking judicial review. The court also considered the differing interpretations of the State Bar's authority under the relevant administrative rules.

The court has considered LegalZoom's arguments that further pursuit of administrative processes should not be required.

Conclusion

The court denied LegalZoom's motion for partial judgment on the pleadings, concluding that LegalZoom had failed to exhaust its administrative remedies.

Accordingly, LegalZoom's Motion for Partial Judgment on the Pleadings is DENIED.

Who won?

North Carolina State Bar prevailed in the case because the court found that LegalZoom did not exhaust its administrative remedies before seeking judicial review.

The court concludes that LegalZoom has failed to exhaust its administrative remedies.

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