Hawaii Supreme Court Considers Crackdown on Legal Aid Businesses

At Legal-Ez, Betty Marais helps her customers fill out legal civil documents at rates far below what lawyers charge.

She's not an attorney, and her business is built on giving clients easy access to the justice system without having to pay steep hourly rates.

But a proposal before the Hawaii Supreme Court would force small businesses that provide legal documents for do-it-yourself court filings to close.

"This basically shuts me down," Marais said.

The Hawaii State Bar Association is asking the high court to amend its rules that spell out the prohibition against the unauthorized practice of law.

It would prohibit people who are not lawyers from "selecting, drafting or completing documents that affect the legal rights of another person." Illegally practicing law is a misdemeanor punishable by up to a year in jail and a $2,000 fine.

The proposal would crimp the livelihoods of real estate agents, accountants, architects, title insurance companies, sports agents and others, said Cheryl Yuen, president of the Hawaii Paralegal Association.

About 40 people had submitted comments as of last week opposing the proposal, with some saying its only purpose is to protect a monopoly on legal services by Hawaii's more than 4,600 lawyers licensed to practice law.

"Don't they make enough?" asked Evelyne Messeer of Honolulu. "Sounds like pure greed to me."

Bar Association President Jeffrey Sia said the motive is not greed, but the protection of the public. Residents might get flawed legal advice and jeopardize their rights if they don't have adequate legal advice.

"You want to have a form of quality control, if you will," he said.

Insurance companies also oppose the restriction.

John Schapperle, president of the Hawaii Insurers Council, wrote that the proposal would prohibit many of the activities of property and casualty insurers, such as telling auto insurance customers their rights, obligations and types of coverage.

Requiring an attorney would increase costs, which "would be passed on to the policyholders."

Comments on the proposal are being accepted until Friday, and a decision would come later.