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Judicial Council Forms Update Approved 10/01/2021

https://www.courts.ca.gov/documents/PublisherList20220101-2.pdf

Closing the Justice Gap Working Group committee’s chair and bar leadership decided to cancel upcoming meetings “to allow time for further conversations and determine the best next steps.”

Apparently, lawmakers, last week questioned whether the agency has strayed from its core public protection mission.

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New and existing Legal Document Assistant (LDA) business owners ask which entity their business can or should be. 

According to the California Secretary of State Articles of Organization Form instructions service-based businesses cannot operate via LLC unless there is an affirmative clause in the California Business Professions Code authorizing the subject profession with the ability to do so.

No such clause exists under the LDA Business Professions Code (see BPC § 6400 et seq.) Because the BPC does not contain authorizing clause for the LDA profession to operate via LLC therefore, LDAs are limited to incorporation, partnerships or sole proprietorship.

In fact, professional service providers such as Independent Paralegals, LDAs cannot form an LLC either. According to CA CORP §17701.04.:

(e) Nothing in this title shall be construed to permit a domestic or foreign limited liability company to render professional services, as defined in subdivision (a) of Section 13401 and in Section 13401.3, in this state.

13401. As used in this part: (a) “Professional services” means any type of professional services that may be lawfully rendered only pursuant to a license, certification, or registration authorized by the Business and Professions Code, the Chiropractic Act, or the Osteopathic Act.

13401.3. As used in this part, “professional services” also means any type of professional services that may be lawfully rendered only pursuant to a license, certification, or registration authorized by the Yacht and Ship Brokers Act (Article 2 (commencing with Section 700) of Chapter 5 of Division 3 of the Harbors and Navigation Code).

That said, many Paralegal Service Providers and Legal Document Assistants have structure their businesses as LLCs. Whether the LLC limited liability protections will be tested later when invocation become necessary is unknown. Would a court pierce the LLC veil you asked? We recommend that you seek legal counsel.

When in comes down to owning and operating a business it's ultimately a business decision we all must make individually. Every business decision has it's risks and rewards. The act of staring your own business is a risk within itself.  So... How much risk are you willing to take on? Then proceed accordingly. 

Effective November 30, 2021, Collection Agencies can now text, email and direct message debtors via social media for unpaid debts.  

The Consumer Financial Protection Bureau (CFPB) will proceed with the two final rules issued under the Fair Debt Collection Practices Act (FDCPA):

1. The first rule, issued in October 2020, focuses on debt collection communications and clarifies the FDCPA’s prohibitions on harassment and abuse, false or misleading representations, and unfair practices by debt collectors when collecting consumer debt. 
2. The second rule, issued in December 2020, clarifies disclosures debt collectors must provide to consumers at the beginning of collection communications. The second rule also prohibits debt collectors from suing or threatening to sue consumers on time-barred debt. Additionally, the second rule requires debt collectors to take specific steps to disclose the existence of a debt to consumers before reporting information about the debt to a consumer reporting agency.

According to NPR,  the new rules were devised during the Trump administration, when the bureau became more business-friendly than it had been in the past. Kraninger resigned in January at the request of President Biden, who nominated Rohit Chopra to be the agency's new director.

The new rules also set a limit for the first time on how often debt collectors can call you. Agencies will be restricted to seven calls per week per account in collection.

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Before accepting compensation to provide services every legal document assistant or unlawful detainer assistant must provide the following oral statement:

[Name of unlawful detainer assistant or legal document assistant] is not an attorney.

[Name of corporation or partnership, if any, that is offering legal document assistant services or unlawful detainer assistant services] is not a law firm.

[They/name of the business] cannot represent you in court.

[They/name of the business] cannot advise you about your legal rights or the law.

[They/name of the business] cannot select legal forms for you.

[They/name of the business] is registered in [county name] and the registration number is [registration number].

[They/name of the business]’s registration is valid until [date of expiration of registration], after which it must be renewed.

To confirm that [they/name of business] is registered, you may contact the [county name] clerk’s office at [office address], [or] [office phone number], [or] [if available, office internet website].

Then provide the prospective client with a “Notice to Consumer” to sign and date the notice.

Prior to providing any services every legal document assistant or unlawful detainer assistant shall provide the client with a written contract, the contents of which shall be prescribed by regulations adopted by the Department of Consumer Affairs.

Business and Professions Code 6410.5(b) requires that the statutorily prescribed "Notice to Consumer" be presented to the client "after the [LDA or UDA] makes the oral statements required pursuant to subdivision (a), and before the [LDA or UDA] enters into a contract or agreement for services or accepts any compensation."

Effective January 15th, 2022, all Essential Forms users will be required to create a free account on ceb.com in order to continue receiving updates.

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Effective February 22, 2022, the Sacramento Family Court is transitioning from a commercial to a government zoom account.

As a result, all orders issued for Family Law cases with scheduled events set February 22, 2022, or later will include the new Zoom links, telephone line number, and meeting ID.

Attached is a list of the departments and their new Zoom links.

Over the next week or so, all Family Law orders issued for proceedings scheduled February 22, 2022, or later will be amended to include the new Zoom information.

Effective January 3, 2022, the venue for probate and guardianship cases will change from the Metropolitan Division, Metro Justice Building, to the Metropolitan Division, Juvenile Justice Center, located at 2100 College Avenue, Bakersfield, CA  93305.

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The Superior Court of Alameda County (Court) announced today that it will offer modified services during the holiday weeks of November 22 and December 27, 2021. These service modifications reflect traditionally lower public use of Court resources during the holiday period and also enable Court personnel to participate in a Voluntary Time Off Program (VTOP) as an important cost-saving measure.

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Read the ABA Journal Article by Lyle Moran

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