Please keep in mind that this is not legal advice.  The information provided herein is for educational purposes only.  If you believe you require assistance in deciding which business structure is best for you, then you are encouraged to seek a professional (e.g. make a post on Dynamic Lawyers).

In this blog, I’ll be discussing limited liability partnerships, which can be distinguished from general partnerships (discussed in another blog).

Defined
Ontario’s Partnership Act governs limited liability partnerships. A limited liability partnership is a partnership designated as such (s. 44.1). As of July 1998, amendments to the Partnerships Act permitted professions (such as lawyers) to practice in the form of limited liability partnerships.

Ease of Creation
Ontario’s Business Names Act provides that “[n]o persons associated in partnership shall carry on business or identify themselves to the public unless the firm name of the partnership is registered by all of the partners” (s. 2(3)).

In addition to registering the general partnership’s name in the same manner as a sole proprietorship’s, the partners will generally enter into a partnership agreement to modify the default rules prescribed by the Partnership Act. This partnership agreement will usually outline the relationship of the partners to each other and to third parties.

The partnership agreement will also deal with issues such as “term of the agreement, names of the partners, who owns which of the assets, name of the partnership and who owns the name, capital contributions if any, how profits are to be shared, how the partnership is to be managed, how holidays and illnesses are to be handled, liabilities and disability insurance, admission and withdrawal of partners, how the partnership is to be run and conditions and mechanics for dissolution of the partnership” (source: Wendy E. Oughtred, Going It Alone: A Start Up Guide for the Sole Practitioner, (Aurora, Canada: Canada Law Book Inc., 1995), p. 51).

The partners must also establish standards for fee distribution within the firm, including the means of rewarding lawyers for bringing business to the firm, as well as the lawyers who actually work on cases.

Continuity
Unless the partnership agreement provides otherwise, a limited liability partnership can be dissolved in a number of ways, including:

• At the expiration of the partnership’s term, adventure, or undertaking (if specified) (s. 32(a) and (b) under the Partnership Act);
• By the death or insolvency of any of the partners (s. 33(1) of the Partnership Act);
• By the happening of an event which makes it illegal for the partnership to continue (s. 34 of the Partnership Act); and
• On application by a partner in respect of prescribed circumstances (s. 35 of the Partnership Act).

Liability
Unlike a general partnership – where the partners are liable for debts and liabilities arising from the negligent acts of all partners – the partners in a limited liability partnership are not personally liable for the negligent acts of another partner or an employee who is directly supervised by another partner (s. 10(2) of the Partnership Act). However, the partnership assets continue to be at risk for the negligence of the partners and employees (s. 10(3.1) of the Partnership Act). A limited liability partnership is required to carry insurance coverage for each of its member.

Taxation
Like a general partnership, a limited partnership is a flow-through entity, which means that income earned by the partnership is passed on to the partners without being taxed at the partnership level. “If a partnership earns dividend income, taxable capital gains, or realizes a business loss, these sources would be received as dividend income, taxable capital gains, or business losses in the hands of the partners” (source: Clarence Byrd and Ida Chen, Byrd & Chen’s Canadian Tax Principles, 2006-2007 ed. (Toronto, Canada: Pearson Prentice Hall, 2007), p. 863.). The income, losses, and tax credits of the firm is first determined and then allotted to the individual partners in accordance with their equity interest in the partnership (as per the partnership agreement). The income earned by the individual partners will be fully taxed at their personal income tax rate (source: Clarence Byrd and Ida Chen, Byrd & Chen’s Canadian Tax Principles, 2006-2007 ed. (Toronto, Canada: Pearson Prentice Hall, 2007), p. 862). The fiscal year end of the partnership will be same as the individual partners – namely, December 31st of each year (sources Income Tax Act, R.S.C. 1985, c. 1 (5th Supp.), ss. 96(1) and 249.1(1). See also Clarence Byrd and Ida Chen, Byrd & Chen’s Canadian Tax Principles, 2006-2007 ed. (Toronto, Canada: Pearson Prentice Hall, 2007), p. 862.

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Toronto law firms can help answer your legal questions, facilitate your transaction (e.g. business, real estate, wills and estates, family, etc.) or even represent you in court.  To find a Toronto lawyer or law firm, go to Dynamic Lawyers and make a post.  It’s free and anonymous and Toronto lawyers and law firms will respond to you with information and quotes for you to compare.

Here are some of the different types of law that Toronto law firms can assist you in:

• Accidents and Injuries: Involved in an accident where you suffered personal injury?
• Business: Need corporate or commercial agreements? Need to have a lawyer help you do a transaction?
• Charities and Not-For-Profit: Need to establish a Not-For-Profit corporation or obtain charity status?
• Civil Litigation – Higher Court: Have a serious legal claim that needs to be litigated in the Superior Court, Divisional Court, etc.?
• Civil Litigation – Small Claims Court: Have a legal claim (e.g. breach of contract, negligence, etc.) for less than $10,000?
• Constitutional / Human Rights and Freedoms: Challenging a law or government action / inaction?
  Criminal: Charged with a criminal offence? Appealing a conviction?
• Employment and Labour: Need an employment agreement? Unjustly terminated? Need to know your rights?
• Family: Going through a separation or divorce? Fighting to get custody or access? Dealing with spousal and child support?
• Government: Need to lobby the government? Need to resolve a dispute with a government agency?
• Highway Traffic Tickets: Charged with speeding or DUI? Need to fight traffic tickets?
• Immigration: Need to immigrate to Canada? Fighting against deportation?
• Insurance: Having difficulties with your Insurance company?.
• Intellectual Property: Need to register a copyright or trademark? Need help with a patent?
• Landlord and Tenant: Need a resolve a dispute? Need to know your rights?.
• Notary Public / Commissioner: Need to notarize or commission your documents?
• Real Estate: Need someone to facilitate your residential or commercial purchase, sale, or lease?
• Tax: Need help structuring your tax affairs? Need help resolving tax disputes with the Canada Revenue Agency?
• Wills, Estates and Trusts: Need a will? Need to update your will? Find out why having an up-to-date will is a must.

Try to consult with a couple of Toronto law firms and Toronto attorneys until you’re comfortable with whom you’re speaking with.  Toronto law firms differ in size, location, expertise, and reputation.  Go to Dynamic Lawyers and save time and money finding the right Toronto law firms and Toronto attorneys who specialize in the legal area you require!

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Last year, I took my idea (and that’s all it was) for Dynamic Lawyers to a CBC audition for Dragon’s Den.  I couldn’t show the producers anything because it was still a concept at the time.  I told them my idea and shared my comprehensive business plan with them; they really liked it, but they never called me back to do the show.  Thank God!  I would have looked like such a fool presenting before the Dragon’s without anything to show them.  I realize that standing before a group of potential investors and asking for some money without anything to show for it other than a good idea is worth little or nothing at all.  Well, since that experience last spring, we actually finished developing the website and launched it officially in Toronto with great fanfare.  We’ve been written up in almost every major Toronto news paper (with more on the way) and our traffic continues to grow.  This Saturday, I’ll be back at CBC auditioning to be on the Dragon’s Den and I hope to get called back this time…

written by admin \\ tags: 's den, audition, CBC, comprehensive business plan, dragon, fanfare, fool, god, investors, last spring, lawyers, money, news paper, producers, toronto news, traffic

It’s probably safe to suggest that most ordinary Torontonians do not personally know or have immediate access to a lawyer to help resolve their legal issues.

Rather, they may depend on their friends, colleagues, or other professionals they do know (e.g. bankers, accountants, consultants, real estate agents, insurance agents, paralegals, other lawyers they know, etc.) to refer them to a good lawyer who specializes in the field they require.

They may turn to the Yellow Pages (either online or the big yellow book) and simply pick an advertisement and make a phone call.  I’ve been told that people tend to pick the biggest advertisement because they somehow believe that the bigger the ad, the more successful the lawyer or law firm.

They may even turn to the Law Society of Upper Canada’s Lawyer Referral Service, which charges users $6 for a 30-minute conversation with one lawyer.

Alternatively, they may try to resolve their own legal issues.

Torontonians generally only need a lawyer for a limited time and have a limited budget for such engagements. Yet it is hard for these people to distinguish lawyers and law firms from each other, especially given that many small and medium law firms have a general practice. It may also be intimidating for them to approach lawyers with their legal issues, given that doing so may cost money (e.g. $500 for the initial hour visit) and ultimately retaining a lawyer could be very expensive given the uncertainty of hourly billings.

These factors make ordinary Torontonians shy away from seeking or hiring lawyers. Those sophisticated Torontonians who surf the Web looking for a lawyer are hungry for more information than what is provided in the YellowPages or a newspaper advertisement. They are doing a Google or Yahoo search to seek out a particular type of attorney in a particular field in a particular area. They are also looking for testimonials and looking for the experience of a lawyer.

According to the Kelsey Group, provider of strategic research and analysis, data and competitive metrics on the Yellow Pages, and electronic directories, in a survey released in 2005, more adults are using the Internet to research shopping than they are the Yellow Pages.  According to the study, use of the Yellow Pages sharply declined in homes with Internet access, but alarmingly, remained flat in homes without Internet access. This suggests that the average consumer is loath to flip through hundreds of ads in a book, and more likely to tap‐tap‐ tap a few keys to find the information that they need (“Dramatic Shift in consumer practices forces legal industry to re‐ think advertising options”, Canada NewsWire (Ottawa: Mar 1, 2006), pg. 1.).

All in all, it makes perfect sense for users facing these challenges to turn to Dynamic Lawyers as a way of finding the right lawyer for the right price.  Making a post is free and anonymous, posts remain on the website for up to 45 days, and users have the opportunity to receive information and multiple quotes from local lawyers specializing in the area of law requested.  All in all, a very good deal…

written by admin \\ tags: ads, competition, Dynamic Lawyers, engagements, finding the right hourly rates, google, lawyer, lawyers, LSUC Lawyer Referral Service, money, newspapers, paralegal, paralegals, quotes, referrals, retainers, toronto, word of mouth, yahoo, Yellow Pages

Please keep in mind that this is not legal advice.  The information provided herein is for educational purposes only.  If you believe you require assistance in deciding which business structure is best for you, then you are encouraged to seek a professional (e.g. make a post on Dynamic Lawyers).

In this blog, I’ll be discussing general partnerships, which can be distinguished from limited liability partnerships (discussed in another blog)

Defined
Ontario’s Partnership Act governs general partnerships. A general partnership is “the relation that subsists between persons carrying on a business in common with a view to profit”. Here, the word “business” includes “every trade, occupation and profession”.  You may need to consult with a lawyer to determine if you’re already involved in a partnership (without even realizing it!).  In these situations, you may be subject to the Ontario’s Partnership Act and other legislation.

Advantages
The partnership structure offers the advantage of having someone to brainstorm your cases with, share the expenses, and expand your database of clients. Partnerships typically generate a great deal more money than sole practices. The larger the law firm, the more likely it is that a practitioner will be handling large cases for large clients who generate large legal fees (see Judge William Huss, Start Your Own Law Firm: A guide to all the things they don’t teach in law school about starting your own firm, (Illinois, U.S.A.: Sphinx Publishing, An Imprint of Sourcebooks, Inc., 2005), p. 14)

Felicia S. Folk points out the advantages of the general partnership in Getting Started: Opening Your Law Office (updated September 2004), Law Society of British Columbia, p. 6: online: Law Society of British Columbia:

• shared financial risk;
• continuity of cash flow when you are on vacation or ill;
• additional sources of capital and clients;
• broader management base;
• division of labour;
• ability to discuss all files with your partner;
• ability to provide clients with different areas of expertise; and
• sharing cost of associates and support staff.

Disadvantages
Felicia S. Folk points out the disadvantages of the general partnership in Getting Started: Opening Your Law Office (updated September 2004), Law Society of British Columbia, p. 6: online: Law Society of British Columbia:

• divided authority;
• hard to find suitable partners;
• conflicts among partners;
• liability for partners’ actions; and
• less freedom to choose clients.

Ease of Creation
Ontario’s Business Names Act provides that “[n]o persons associated in partnership shall carry on business or identify themselves to the public unless the firm name of the partnership is registered by all of the partners”. In addition to registering the general partnership’s name in the same manner as a sole proprietorship’s, the partners will generally enter into a partnership agreement to modify the default rules prescribed by the Partnership Act. This partnership agreement will usually outline the relationship of the partners to each other and to third parties.  The partnership agreement will also deal with issues such as “term of the agreement, names of the partners, who owns which of the assets, name of the partnership and who owns the name, capital contributions if any, how profits are to be shared, how the partnership is to be managed, how holidays and illnesses are to be handled, liabilities and disability insurance, admission and withdrawal of partners, how the partnership is to be run and conditions and mechanics for dissolution of the partnership” (Wendy E. Oughtred, Going It Alone: A Start Up Guide for the Sole Practitioner, (Aurora, Canada: Canada Law Book Inc., 1995), p. 51.)

The partners must also establish standards for fee distribution within the firm, including the means of rewarding lawyers for bringing business ot the firm, as well as the lawyers who actually work on cases (Judge William Huss, Start Your Own Law Firm: A guide to all the things they don’t teach in law school about starting your own firm, (Illinois, U.S.A.: Sphinx Publishing, An Imprint of Sourcebooks, Inc., 2005), p. 18).

Continuity
Unless the partnership agreement provides otherwise, a general  partnership can be dissolved in a number of ways, including:

• At the expiration of the partnership’s term, adventure, or undertaking (if specified);
• By the death or insolvency of any of the partners;
• By the happening of an event which makes it illegal for the partnership to continue; and
• On application by a partner in respect of prescribed circumstances.

Liability
In a general partnership, all partners are jointly and severally responsible for the liabilities of the partnership up to the total value of their personal assets.

Taxation
A general partnership is a flow-through entity, which means that income earned by the partnership is passed onto the partners without being taxed at the partnership level. If a partnership earns dividend income, taxable capital gains, or realizes a business loss, these sources would be received as dividend income, taxable capital gains, or business losses in the hands of the partners. The income, losses, and tax credits of the firm is first  determined and then allotted to the individual partners in accordance with their equity interest in the partnership (as per the partnership agreement). The income earned by the individual partners will be fully taxed at their personal income tax rate. The fiscal year end of the partnership will be same as the individual partners – namely, December 31st of each year.

written by admin \\ tags: advantages of business structure, association, associations, best legal structure, blog, continuings, general legal structure, insolvency, judges, lawyer, lawyers, losses, money, partnership, practitioner, publicity, relationships

Please keep in mind that this is not legal advice.  The information provided herein is for educational purposes only.  If you believe you require assistance in reviewing, drafting, negotiating, etc. a Confidentiality and Non-Disclosure Agreement, then you are encouraged to seek a professional (e.g. make a post on Dynamic Lawyers).

Confidentiality and Non-Disclosure Agreements (also known as NDAs) are nothing more than ordinary contracts with specific terms related to the idea that one party (disclosing party) is going to provide information of a confidential nature to the other party (receiving party).  Breach of a Confidentiality and Non-Disclosure Agreement may result in a claim that can be enforced by going to court, through equitable remedies such as an injunction, or as otherwise set out in the agreement itself (e.g. arbitration, etc.).  In what follows, I’ll provide some general issues that are dealt with in these types of agreements.

1. Consideration
Like all commercial agreements, a Confidentiality and Non-Disclosure Agreement requires something that’s called “consideration”.  Consideration is something of value given by both parties to a contract that induces them to enter into the agreement.  Consideration is typically something like money for goods or services, etc.  One party receives something of value and the other party receives something of value.  This makes the contract valid, binding, and enforceable.  For a Confidentiality and Non-Disclosure Agreement, the consideration will likely be part of the overall agreement (e.g. I will give you confidential information to do something and then I’ll pay you in exchange for that something).

2. Definition of Confidential Information
Defining confidential information is of utmost importance.  The disclosing party will cast the net wide here to increase the receiving party’s obligations and liability with respect to the information it receives; the opposite is true of the receiving party (who wants a narrow definition of confidential information). Examples of types of confidential information include trade secrets, proprietary information, know-how, or information described in a Schedule. Use of a Schedule should still include an accurate definition of confidential information.  Sometimes, a disclosing party will also say that anything it labels confidential will be considered confidential information as well.

3. Exclusions from Confidential Information
Most confidentiality agreements will normally contain various exclusion clauses which outline the types of information which are deemed not to be confidential within the terms of the agreement.  Generally, these types of exclusions will include:

• information which is publicly available (i.e. information in the public domain);
• information which is already known to the recipient at the time of its disclosure to the recipient by the information provider;
• information which is received by the recipient from a third party who is not in breach of any confidentiality obligations to the information provider;
• professional expertise which the recipient had at the time of disclosure or which the recipient developed or enhanced as a result of reviewing the information or material provided; and
• information which the recipient is required by a court or regulatory body to disclose.

4. Limitations on Use of Confidential Information
The uses the receiving party is permitted to make of the confidential information should be clearly specified in the agreement. This will ensure that the recipient does not use the information for any other purpose.

5. Who Should be Bound by the Confidentiality Agreement
A Confidentiality and Non-Disclosure agreement may need to bind all relevant parties (e.g. parent companies, subsidiary companies, directors, officers, employees, representatives, etc.).  In many cases, it is not practical or necessary to obtain signatures from all relevant parties; in these cases, the receiving party should acknowledge and assume responsibility for making sure that these relevant parties comply with the agreement.

6. Required Protective Measures to be Taken by Recipient
The Confidentiality and Non-Disclosure agreement may include a provision requiring the receiving party to take all reasonable measures available to it to keep the confidential information in the strictest confidence.  Such reasonable steps may include:

• Electronic security (e.g. confidential information may be stored on a computer, server, network, cell phone, etc.);
• Physical security (e.g. confidential information may be in a filing cabinet, on a desk, in a box, etc.);
• Visitor control;
• Controls over photocopying confidential information; and
• Document and computer network control systems which limit access to the confidential information to those who are cleared for such access.

7. Return of Confidential Information
The Confidentiality and Non Disclosure Agreement may need to specify that, upon request, all of the confidential information, in whatever format, should be returned to the information provider and that all memoranda or other ancillary documents prepared by the recipient and based on the confidential information be destroyed.

8. Injunctive Relief
An injunctive relief clause may be included wherein the receiving party acknowledges that monetary damages may be an insufficient remedy and that the disclosing party should be entitled to injunctive or other equitable relief for any breach of the Confidentiality and Non-Disclosure agreement. In most cases where confidential information is being disclosed, the disclosing party cannot wait until a court determines the amount of monetary damages suffered. Here, the disclosing party will want to immediately apply for an injunction prohibiting any further disclosure of the confidential information.

9. No Liability Regarding Information
The agreement should make it clear that the disclosing party is making no warranty or other commitment regarding the accuracy or completeness of any information provided, and that there is in fact no obligation to provide any particular information to the other party.

In case you’re looking for an Ontario Mutual or One-Sided Confidentiality Agreement, then look no further:

Confidentiality and Non-Disclosure Agreement (Mutual)

This Agreement can be used to restrict both parties’ use and disclosure of confidential information that is being provided to it. If only ONE party is sharing confidential information and want to restrict the other’s use and disclosure of that information, then you can purchase a ONE-SIDED Confidentiality and Non-Disclosure Agreement:

Confidentiality and Non-Disclosure Agreement (One-Sided)

Here’s the sample Video Guide that comes with the Confidentiality and Non-Disclosure Agreement (Mutual):

Here’s the sample Video Guide that comes with the Confidentiality and Non-Disclosure Agreement (One-Sided):

All of Dynamic Lawyers‘ legal forms are lawyer-prepared, simple to read, easy to customize, and only a fraction of the price a lawyer would charge. Also, each legal form comes with a FREE VIDEO GUIDE (watch a useful example of how this legal form can be customized), a FREE DL GUIDE (read helpful information about this legal form), and another FREE DL GUIDE that sheds valuable insight into how legal forms can be challenged. What are you waiting for? Best of all, if you DO need a lawyer and need some legal advice, simply make a post and get FREE quotes from Ontario lawyers focusing on the area of law you require!

written by admin \\ tags: agreement, arbitration, breach, business agreements, commercial agreements, confidential information, confidential nature, confidentiality, contracts, educational purposes, equitable remedies, guidelines for confidentiality agreements, injunction, lawyers, legal advice, money, negotiating, non disclosure agreement, non disclosure agreements, utmost importance

As with lawyers, the end of Realtors is often prophesized through the advent of sell-by-owner websites that cut out the 6% commission which Realtors and brokerages charge for a typical transaction.   The idea behind the website is simple: allow owners and sellers to negotiate a purchase and sale agreement for property without involving the middlemen.  This  trend has been ongoing for some time now and there are a number of websites dedicated to squeezing out Realtors, such as For Sale By Owner.

It is interesting to note that although this trend is currently being experienced in its infancy in the legal industry (i.e. where disruptive technologies like Dynamic Lawyers, automated document generation, etc. are making legal services more accessible, affordable, and expedient), there are many difference between Realtors and lawyers which would make Realtors in their traditional form much more obsolete and faster.

To begin, the barriers to entry to becoming a lawyer are much greater than they are to becoming a Realtor (which does not require years spent at university, articling, etc.).  Second, there is a real access to lawyer problem: affordable lawyer specializing in certain legal areas are somewhat hard to find (e.g. Lawyer Referral Service? YellowPages?  Friends and Family?  Who do you turn to?).  There is no such access to Realtors problem: everyone and their uncle knows of a realtor they can turn to in order to sell their home or help them buy a new one.  Moreover, Realtors spend an exuberant amount of money advertising their services in a cut-throat market.  Third, lawyers must often specialize in certain complicated legal areas which take years of experience and know-how to develop expertise in.  For the most part, all Realtors can provide the same basic services – whether it be assisting clients in buying, selling, or leasing a home, commercial office, farm, etc.  If there is specialization in the real estate industry, it is likely confined to geographic areas and types of homes; this doesn’t take away from the fact that all Realtors are capable of doing the same thing (i.e. filling in paperwork, negotiating, and finalizing a deal).  These three differences reveal that lawyers – particularly those who specialize in a complicated legal area such as tax litigation or commercial law – are and will continue to be in high demand and, as such, safe and secure from disruptive technologies that will take business away from other types of lawyers.

Overall, given the low barriers to becoming a realtor, the market prevalence and accessibility to Realtors, and the fact that they can all pretty much perform the same services to assist clients, I envision the end of traditional Realtors happening on a wider scale much quicker than it would for traditional lawyers.

written by admin \\ tags: agreement, continuings, end of realtors, end of s, for sale by owner, lawyer, lawyers, litigants, litigation, money, negotiating, Negotiations, purchaser, referrals, technology, Toronto lawyer Michael Carabash

In an article written almost a year ago by Jim Middlemiss entitled “Bill clock no longer ticks in new firm model; No pressure on lawyers’ at Thackray Burgess” (National Post, 27 February 2008), the author described how one 34-lawyer energy law firm in Calgary was doing things differently: by treating lawyers as consultants.  Lawyers at Tackray Burgess could pick the number of hours they wanted to work and have the flexibility to set their own schedule.  There was no pressure on lawyers to meet billing targets.  While this model has not made significant inroads into the traditional hierarchical partnership structure that dominates most law firms in Canada, it is definitely worth looking into because of the benefits it offers to lawyers and clients alike.  Cognition LLP (in Toronto) and Delegatus Legal Services Inc. (in Montreal) are two other examples of innovative law firms that have sprung up using the lawyer as consultant model.  These firms provide in-house legal counsel on an as-needed basis to their clients.  Their lawyers act as independent consultants (with all the tax benefits) and can earn more money by working more hours (and vice-versa).  This approach doesn’t work for all types of law – e.g. high-end litigation and specialized areas of law such as tax, competition, patent, etc.  But the idea that lawyers can achieve work-life balance (particularly for pregnant women), take advantage of the tax breaks enjoyed by independent contractors, and earn more money by working longer hours than would be possible at a firm (where they don’t get paid for overtime) is definitely a breath of fresh air.  Clients too will also relish in this structure.  For starters, hourly rates are much lower because the law firms won’t have high overheads.  Furthermore, a broader range of clients will be able to afford these more nimble and dynamic lawyers (e.g. a few hours a day for a few days a week/month, etc.).  All in all, a win-win situation!

written by admin \\ tags: billable hours, billing by the hour, Cognition LLP, competition, Delegatus Legal Services Inc., lawyer, lawyers, litigants, litigation, money, partnership, s as consultants, Thackray Burgess, toronto

Part of why lawyers charge ‘so much’ has to do with (1) their unique education, knowledge, skill-set, and experiences, (2) the cost of their education, and (3) the cost of operating a law practice.  I’ll deal with each of these briefly in turn.

To begin, lawyers spend years developing a form of legal reasoning that the layperson lacks (and may never acquire).  Lawyers read all the time, and it’s not easy-reading either!  They have to comprehend vast quantities of legalese written throughout the century or longer.   They research cases and legislation, transcripts and documents, and even delve into the legislative debates to figure out the rationale behind a certain piece of legislation.  Apart from having done their due diligence, they have to present their case in a concise and compelling manner.  They have to briefly review the facts, identify the issues, and make arguments based on precedent or appeals to fairness/justice/efficiency and the like.  In doing all of this, lawyers are held to a high standard of professionalism and legal ethics and are a heavily regulated group.  They have to learn the legal process and the substance of the law and be able to explain both in a simple manner to their clients and others (e.g. opposing parties, judges, etc.).  The life of a lawyer is perhaps the most intellectually stimulating and challenging profession that anyone could ever aspire towards.  No two lawyers are alike and, while some lawyers can provide the same basic services as other lawyers (e.g. wills, incorporation, real estate transactions), people often need specialized lawyers to deal with their particular situation.  Hence, the cost of lawyers’ specialized education, knowledge, skill-set, and experiences are reflected in their seemingly high hourly rates or fixed fees.

The cost of a legal education is also worth mentioning.  I met a person who wanted to own part of my law practice.  I was a bit curious about the request.  Having never met the man, I musingly asked him whether he was a lawyer (since only lawyers can ‘own’ law practices).  “No”, he responded.  “Do I have to go to school for that?  And If so, how much would it cost?” he asked me.  “Sure you do”, I responded: “You need an undergraduate degree with killer marks, great references, and a high LSAT score.  It cost me roughly $25,000 for my undergraduate degree (with books and all) at U of T, then another $75,000 for my combined 4 year LL.B. and M.B.A. degrees at Osgoode Hall Law School and the Schulich School of Business (with books, residence and all).  So by the time I was finished school, I had spent over $100,000 on my legal education.  When students become lawyers, they are typically in significant debt and will look to the highest paying jobs to get them out the quickest (these ‘high paying’ jobs are typically at big bay street law firms which charge the highest fees to their clients).

Finally comes the issue of the costs of setting up and maintaining a law practice.  I can only speak for myself here.  Looking back, I must have spent between $15,000 to $25,0000 to establish Carabash Law.  The biggest expenses were technology purchases (e.g. laptop, website, PC Law, cell phone, printer/scanner/copier, keyboard/mouse, etc.), licensing and insurance fees (almost $3,000), stationary, travelling, bookkeepers, and new suits. After these initial expenses, the only recurring expenses will typically be office supplies, employees, and rent.

So there you have it: it takes a lot of time and money to become a lawyer and, while we do our best to give back to the community that supported us and allowed us to be in our special positions as empowerers and protectors of legal rights,  our fees often appear front and centre in the common person’s mind.  In any event, the next time someone complains that lawyers charge way too much for their services, please remember to keep in mind that their services are unique, their education was expensive, and that they have capital and operating expenses to pay for.  I’m not saying that this justifies lawyers charging astronomical amounts, but these factors should be kept in mind before the insults and derogatory statements begin…

written by admin \\ tags: bookkeeper, efficiency, fairness, insurance, judges, lawyer, lawyers, legal education, legal fees, money, precedents, s, technology, too expensive