LegalZoom.com faces class action

Missouri district court seeks to ban DIY legal software

The do-it-yourself (DIY) ethic has spawned a great following in America over the years, but one Midwestern state is now fighting back against the cause for self-empowerment, citing a statute last updated during Franklin Roosevelt’s presidency.

LegalZoom.com, an online service that allows people to create their own legal documents, including wills and leases, is facing a class action in Missouri that is set for trial Aug. 22. The case, Janson, et. al. v. LegalZoom.com, Inc., contends that LegalZoom is violating a state law—signed in 1939, long before the idea of the Internet had been gestated—prohibiting nonlawyers from preparing legal documents.

If the plaintiffs win at trial, it would effectively ban the use of any software for the preparation of any legal documents, and could impact instructional, self-help books and forms found in bookstores, libraries and office supply stores.

"If the plaintiffs are successful, we believe it is going to become a lot more expensive for small businesses and individuals to obtain basic legal forms," Chas Rampenthal, LegalZoom’s general counsel, said in a statement. "Missouri would become the only state in the nation to take away a consumer's right to access online legal document software."

A week ago, U.S. District Court Judge Nanette Laughrey denied LegalZoom’s motion for summary judgment. Judge Laughrey also ruled in favor of the plaintiffs on the issue of whether LegalZoom’s online forms relate to secular rights as opposed to religious rights as defined by Missouri statutes.

"We believe the people of Missouri will ultimately understand that banning self-help legal software that is available in every other state would be absurd," Rampenthal said. "People can use software to prepare their own tax return or do their own banking. The law should not be used to deprive consumers of technologies that make their lives more efficient."

Comments

InsideScoop Daily eNewsletter

InsideScoop delivers the latest-breaking news affecting in-house counsel. Get the latest business trends, current corporate litigation, labor developments, technology initiatives and more — FREE. Sign up now!

You have been subscribed! You will receive a confirmation email soon.

See the entire list of InsideCounsel eNewsletters.

Resource Library


7 Simple Strategies for Improving Legal Fee Budgeting Certainty

Understanding the legal fee budgeting paradigm and following seven simple strategies will help you control...

Complimentary White Paper: Best Practices for Meeting Critical eDiscovery Challenges

Packed with practical advice, this white paper discusses best practices for meeting eDiscovery challenges across...

Complimentary White Paper "Key Considerations for Collection Methodologies and Resources"

This white paper addresses the need for companies to reevaluate their current collection policies in...

Moving Matters In-House: How Technology Enables Legal In-Sourcing

Strategically shifting more matters to in-house counsel has proven to be an effective strategy to...

5 Ways to Promote Responsible Content Sharing

Find out five ways that organizations can promote responsible sharing of content among employees by...

Reducing the Costs of eDiscovery from Collection to Court!

Predictive coding is only one of many ways organizations can make eDiscovery faster, cheaper and...

Discovery Shifts to the Cloud

Adoption of Cloud computing continues to gain momentum. How can IT and Legal Teams avoid...

Lower Your Total Cost of Ownership

With the deployment of Proofpoint Enterprise Archive, organizations have realized significant cost savings in automating...

Health and Safety Risks of Counterfeits in the Global Supply...

This whitepaper underscores the prevalence of counterfeits within global supply chains across a number of...

Get the facts you need to Help Implement Sound Legal...

This whitepaper will examine the cases that are setting precedents. Download "Legal Hold and Self-Collection:...

View All »

Advertisement. Closing in 15 seconds.