Class Questions LegalZoom’s Business

LOS ANGELES (CN) - LegalZoom, a nationwide Web-based legal document service, effectively practices law without a license by advertising that it can "put the law on your side," an unhappy customer says in a Superior Court class action. Charles Drozdyk says he paid LegalZoom $687 to incorporate his business.

Drozdyk says LegalZoom violates state business and professional codes.

Drozdyk lives in Austin; LegalZoom is based in Los Angeles.

Drozdyk says California requires certain language in contracts, including "specific language about the right to rescind, the availability of attorneys fees, how to report the unauthorized practice of law and other matters. The disclosures and the form of contract utilized by LegalZoom do not comply with the statutory requirements."

Drozdyk claims that LegalZoom's Web site states that its forms were "prepared, developed and offered by attorneys," though as a legal document assistant the company is prohibited from "the unauthorized practicing of law."

LegalZoom's Web site shows a testimonial from California attorney "Marko C." but Drozdyk claims the California Bar Association does not show any attorneys with such a name.

Drozdyk says LegalZoom's "Terms of Service" are misleading or false because it represents that it can provide legal advice, review customers' forms, and guarantee satisfaction.

LegalZoom advertises on national media, including the "Sean Hannity Show" on Fox TV and the "Laura Ingraham Show" on radio, according to the complaint.

Drozdyk seeks disgorgement, restitution and an injunction. He is represented by Robert Green with Green Welling of San Francisco.

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