N.C. Business Court Rules Electronic Lien Filing Service Engages in Unauthorized Practice of Law

Watch out who you hire for legal services!

Judge James Gale, who presides over the state’s Middle District Business Court, ruled that an online commercial lien filing service was engaged in the unauthorized practice of law.

The ruling was against Lienguard, Inc.  Lienguard, is on online computer website which operates in Oak Brook, Illinois and charges a flat fee of $495.00 for a mechanics lien.

Their website proclaims, “Simply fill out the form and we’ll do the rest!”

Judge Gale concluded that Lienguard crossed the line from being a simple lien drafter to practicing law when the company’s employees prepared lien forms for customers, rather then letting the customers fill in the blanks themselves.

“Lienguard performs services beyond that of a scrivener, and in doing so it engages in the unauthorized practice of law,” Gale said in his order, which applies only to Lienguard’s claims of lien service. The company also files notices and public and federal bond claims for clients.

The court’s ruling gives credence to the belief that lien claims, especially those that are filed on complicated commercial or residential projects, need the watchful eye, knowledge and know-how of a good construction lawyer.

Anderson Jones, PLLC files liens and bond claims on a regular basis.  For more information on this topic or how we can assist you with your lien and bond claims contact Anderson Jones today at (919) 277-2541 or by email.