eLaw - Practice Management Update ¦ March 2015 - No. 50
 
 
                                         
                                     
                                     

 

The Law Society of Manitoba
Professional Education and Competence

 
 

     
 

   eLaw - Practice Management Update                                                March 2015

In This Issue
Money Laundering Search Regime Unconstitutional: SCC
Mandatory CPD Requirement Rules Upheld: MBQB
Can Bankruptcy Trustee Use the Same Lawyer as Major Creditor: MBQB
 Waiver of Privilege Constrained: ONSC
Annual Member Report Reminder
Lawyers for Literacy
 Ransomware Attacks Too Close for Comfort
 Canadian Legal Ethics Stories – Third Iteration
 Recommended Reading
 Continuing Professional Development: LSM

 
     
 

Money Laundering Search Regime Unconstitutional: SCC

In its unanimous decision in Canada (Attorney General) v. Federation of Law Societies of Canada, 2015 SCC 7, the Supreme Court struck down parts of the federal money laundering and terrorist financing legislation requiring lawyers to collect, record, and turn over client information to the government on demand, finding that, as applied to lawyers, the regime violates ss. 7 and 8 of the Charter. A majority of the court found that the search provisions “constitute a very significant limitation of the right to be free of unreasonable searches and seizures guaranteed by s. 8 of the Charter” (para.57) and “inadequately protect solicitor-client privilege” (para.105). Although the court declined to follow the BCCA ruling and Federation argument that independence of the bar is a principle of fundamental justice, they did find at para. 103 that the state cannot impose duties on lawyers that undermine their compliance with the narrower duty of commitment to the client’s cause. As emphasized in this FLSC notice, members of the profession continue to be bound by law society rules and regulations that prohibit them from accepting large amounts of cash and require them to take measures to verify the identity of their clients (the Model Rules).

These articles analyse the decision:

 
 

Mandatory CPD Requirement Rules Upheld: MBQB

The court dismissed a lawyer’s application to have the rules mandating annual continuing professional development requirements declared invalid in Green v LSM, 2014 MBQB 249. The Law Society has the statutory authority (ss. 3, 4, 43 of The Legal Profession Act) to establish rules mandating annual cpd requirements for its members and to suspend members who fail to comply, said the court. The court also rejected the argument that the rules pursuant to which the lawyer was suspended violate the rules of natural justice because they give the LSM the authority to enact a suspension without a hearing or a right of appeal. “The rules as to non-compliance strike a proper procedural balance… between the nature or gravity of the offence and the potential penalty” and a disciplinary process akin to the process for unprofessional conduct, conduct unbecoming or incompetence is not required, according to the court.

 
 

Can Bankruptcy Trustee Use the Same Lawyer as Major Creditor: MBQB

In Maxer (2006) Ltd. v. Leigh C. Taylor et al, 2015 MBQB, the court examines whether and in what circumstances a trustee in bankruptcy can use the same solicitor as the major creditor in a s.81 BIA proceeding. The case was premised on the argument that the lawyer representing both the trustee and the major creditor was in conflict, but the court was of the opinion that it should be viewed from the standpoint of the trustee. The court noted that using the same lawyer was once common (rationalized on the basis that since the maximization of the estate was in the interest of the creditors as well as the duty of the trustee, using the same lawyer made eminent sense), but was becoming more topical with a new emphasis on the independent role of the trustee. The court declined to lay down a “black and white rule” in this uncertain area, but noted that “it would be prudent” and “preferable wherever possible” for trustees to have separate representation. In this case, however, the application to remove the lawyer as counsel was dismissed, given the failure to raise the complaint in a timely way.

 
 

Waiver of Privilege Constrained: ONSC

Solicitor client privilege is “almost absolute” and can be waived only by a conscious, deliberate decision by the client, according to the court in Leggat v. Jennings, 2015 ONSC 237. The issue before the judge was whether a party attempting to set aside a settlement agreement based on misrepresentation had waived privilege, either by implication (by putting his state of mind in issue in arguing that there was a misrepresentation) or by partial disclosure (of a single email to his lawyer). The court adopted the two-part test for waiver of privilege set out in Creative Career Systems and declined to order production of all communications with the solicitor regarding the settlement negotiations. The court found there was no waiver of privilege since reliance on legal advice had not specifically been raised as an issue in the case and the partial disclosure of communications was neither selective nor misleading.  

 
 

Annual Member Report Reminder

The 2014 Annual Member Report, due April 1, 2015, must be completed by all lawyers who had practising status in Manitoba at any time in 2014. The report is available for completion online through the Members’ Portal on the Law Society of Manitoba website. Lawyers who have provided the Law Society with an email address will have received a notification email containing their user id, password, and login instructions.

Questions about the report should be directed to Richard Porcher
rporcher@lawsociety.mb.ca or by phone at (204) 926-2020

For technical problems contact Simon Young
syoung@lawsociety.mb.ca
or by phone at (204) 926-2049

 
 

Lawyers for Literacy

Manitoba lawyers are invited to participate in the 5th annual Lawyers for Literacy fundraising event on Saturday, March 21, 2015 in support of West Broadway Youth Outreach. You can help by getting sponsors and volunteering to read to the kids, by pledging, or by making a tax deductible donation to the program.

For more information email (pbourbonnais@lawsociety.mb.ca) or call (204-926-2038) Pat Bourbonnais at the Law Society.

 
 

Ransomware Attacks Too Close for Comfort

It sounds like a plot line lifted from The Good Wife, but according to this CBC article three BC law firms were victims of Cryptowall ransomware attacks last year. The Law Society of BC issued a fraud alert concerning the most recent hacking, by an extortionist who demanded a ransom to unlock the virus which had encrypted the firm’s computer system and files. Using technical expertise and backed-up data the firm was able to resume operations without paying the ransom, but not all victims are that fortunate. The fraud alert reminds BC lawyers of their ethical obligations to keep client information confidential and directs them to the article Making your e-communications secure in this BC Benchers’ Bulletin, These articles are also informative:

 
 

Canadian Legal Ethics Stories – Third Iteration

 Alice Woolley, law professor and ABlawg author, has published her third annual list of The Top Ten Canadian Legal Ethics Stories - 2014. It includes summaries of the Futures Report, A2J and ABS Initiatives, and the Ghomeshi statement of claim, and updates on the Douglas Inquiry and TWU.

 
 

Recommended Reading

 In "Hire Slow, Fire Fast" or "Hire Smarter, Fire Less"?, from the December 2014 issue of Law Practice Magazine, Jim Calloway interviews Bjorn Christianson, TDS, on his ideas for testing the skills of job applicants.

New articles posted in the CBA’s Practice Link collection include: Invest in your productivity through outsourcing, Help solo/small practitioners compete with the majors, and Top tips for getting paid for your work.

The Law Society of BC’s Lawyers Insurance Fund has a large online collection of practice resources, including links to practice manuals on a broad range of topics, a practice checklists manual, and other practice management resources. It’s a great place to start when researching a practice management issue or building a checklist collection.

Ensuring Competent Representation: Know What You Don’t Know – this ABlawg article discusses lawyer competency and why it is critical “to appreciate when folding ‘em is wiser than holding ‘em.”

Too Much Information! – the author of this Slaw post argues for more clarity in our thinking around protection of confidential information under the law of lawyers and the Model Code.

A Guide to Business Development for Women Lawyers – this comprehensive guide, published by the Justicia Project, “is intended for women who want to improve their business development skills,… but also serves as a resource for lawyers who mentor women and for law firms who want to understand how to better support and retain women lawyers. The strategies outlined are designed to be implemented in firms of varying sizes.”

20 Ways to Improve the Finances of Your Practice – this LawPRO magazine article offers simple tips to improve your bottom line.

Browse in the Clear – browsing the web is rarely private and leaves a trail that advertisers and others can exploit. This article discusses extensions that can be used to limit the tracking.

Technology Use Policies and Resources for Your Firm – this Slaw post links to model technology and social media policies that can be adapted to create written guidelines on acceptable use of firm technology.

 
 

Continuing Professional Development: LSM

Everyday Ethics Series – There is one remaining session in this lecture series on ethics issues featuring Allan Fineblit, Q.C.: Glass 1/2 Full (Little Things that Cause Big Problems), on March 11, 2015. Register now to attend in person or by teleconference.

Lawyers and Governing Boards: Avoiding Common Pitfalls – Presenters Bruce King, Doug Finkbeiner, QC, and Tana Christianson will discuss the risks and responsibilities that come with board directorships and suggest strategies to minimize potential liabilities at this lunch program on June 10, 2015. Register now to attend in person or by tele-presentation.

 
 
 
 
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You are receiving this email in accordance with the Law Society's mandate to uphold and protect the public interest in the delivery of legal services with competence, integrity and independence and to further your opportunities to ensure compliance with the mandatory continuing professional development requirements set out in Law Society Rule 2.81.1(8).

 
 
 

www.lawsociety.mb.ca/
The Law Society of Manitoba
219 Kennedy St
Winnipeg MB R3C 1S8