Paralegal companies under fire

EDINBURG - Fernando de Luna arrived in court last week ready to finalize his divorce, a sheaf of legal documents under his arm.

But it was only after the judge called him to the bench that he discovered the company he thought would represent him wasn't licensed to practice law.

De Luna prepared his case at one of a handful of local businesses that help customers fill out documents to represent themselves in simple court matters. The companies are quick to point out that their employees aren't lawyers and can't offer legal advice.

In de Luna's case, however, something was lost in the sales pitch - an issue judges have seen unfold in courtrooms across the Rio Grande Valley.

Customers show up to court unprepared for hearings and with paperwork that has been incorrectly filled out. The consequences can extend well beyond their wallets.

"If you honest to God have no kids and no property in a marriage, then there's no reason in the world you can't fill out the papers and represent yourself," said McAllen divorce attorney John King.

"Otherwise, it's like doing an appendectomy with your Swiss Army knife. You can do it, but you probably should call in the experts."

Cindy Dyar, an attorney with Texas Rio Grande Legal Aid, alleges such companies go much further than enabling clients who probably shouldn't be representing themselves.

She is currently preparing a civil suit on behalf of former customers of two legal preparation services who they say handed them documents that wouldn't stand up in any court and also violated state law by providing legal advice.

Improper filings have lead to incorrect separation of marital property and child custody orders that are unenforceable by a court.

"We see people that have wasted time and money and have got nothing to show for it," Dyar said.

DOCUMENT DILEMMA

It remains unclear whether de Luna misunderstood the service for which he was paying or had been actively misled. He declined to answer any questions after his hearing.

But state District Judge Bobby Flores, who oversaw de Luna's case, said it isn't the first time he's run into problems with clients of document preparation services.

"(The customers) pay them money," he said from the bench immediately after de Luna left the courtroom. "And then they come here frequently unready for their cases."

Two McAllen businesses - Documents and More and the now defunct We the People - are the two most egregious offenders, he said. They are also the targets of Dyar's lawsuit.

We the People, a national chain started in 1985, has been sued in at least five states including Texas for violating laws limiting their role.

Dyar's clients have reported that both companies told them (often incorrectly) how to address issues such as property division and child custody in their filings and discussed how to serve the separated spouse with papers - all areas that fall under legal advice, she said.

In some cases, they said, employees had even advised how to answer a judge's questions.

"They were told straight up that (the employees) were not attorneys and that they couldn't give legal advice," she said. "But the end result in the forms that are filed is that there had to be legal advice given along the way."

‘THEY WERE VERY CLEAR'

State statutes prohibit anyone without a license from giving legal advice. But the law turns hazy when it comes to document preparation services. Such companies are allowed if they make clear that their aid is no substitute for the advice of an attorney.

Marty Wasserman, who manages Documents and More, says he reiterates that to every one of his customers and can't be held responsible for those who don't listen.

"A lot of times people come in here and they don't understand what we're doing no matter how many times we explain it," he said.

From the sign proclaiming he's not a lawyer on his wall to the waiver every client fills out before paying for his service, he says most clients understand his role.

His clients pay up to $400 to meet with a paralegal, fill out a questionnaire of information related to their case and then file the case themselves. If the questions get too technical and cross over a line into legal advice, Wasserman refers them to a lawyer, he said.

The entire process costs half of what it might take to hire an attorney for filing a divorce, setting up living trusts and incorporating new businesses.

For many, it works out just fine.

Moments after de Luna left Flores' court in confusion, Delbert Sieger, 61, of Mission, had his divorce decree - which was prepared by Documents and More - signed without a hitch.

"I knew I'd be representing myself," he said. "They were very clear that they weren't attorneys."

We the People closed down its McAllen franchise last year. Documents and More moved into its space a month later.

And although Wasserman claims Documents and More and its employees have no connection to legally troubled We the People, a framed newspaper clipping hanging on his wall names him as the franchise manager for the company in Hidalgo and Starr Counties.

And his office still holds several of the documents for the now defunct local office.

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Jeremy Roebuck covers courts and general assignments for The Monitor. You can reach him at (956) 683-4437.