Please note that the information provided herein is not legal advice and is provided for informational and educational purposes only.  If you need legal advice with respect to complying with anti-spam or privacy legislation,  you should seek professional assistance (e.g. make a post on Dynamic Lawyers).

So Canada’s old proposed Anti-Spam laws (found in Bill S-235, An Act concerning unsolicited commercial electronic messages) did not go anywhere.  But that’s not the end of that.  This year, the Senate is developing a bill – namely, Bill S-220 An Act respecting commercial electronic messages – that may ultimately become Canada’s anti-spam legislation.  This will be the third time that the government has tried to address the issue of spam – first through Bill S-235, then through Bill s-202 An Act respecting commercial electronic messages (neither of which went anywhere)

At the present time, Bill S-220 has had 2 readings in the Senate and committee meetings (Transport and Communications committee) have taken place.  Next, a report will be presented and debated on before the Senate has a chance to read the Bill again.

So in a nutshell, here’s what Bill S-220 proposes to do (if it becomes law):

Requirements for commercial electronic messages (e.g. an advertisement e-mail):

• They must clearly and accurately identify the sender, contain readily-accessible and accurate heading and routing info, and include info as to how the recipient can contact the person sending the message.
• They must include an accurate subject line.
• They must include a functional unsubscribe facility and a clear statement to the effect that unsubscribing can be done.

Prohibitions in the Bill:

• No person can send a commercial electronic message unless the recipient has consented to receiving the message.
• Implied consent  cannot be inferred from the fact that the recipient’s e-mail address has been published elsewhere or has been generally available to the public.
• A recipient can withdraw their consent.
• It is illegal for someone to offer to supply, supply or use e-mail or address-harvesting software or a harvested-address list.
• No person shall impersonate a trusted source.
• No person shall send out commercial electronic messages that include or constitute false representations (e.g. false representations that the commercial electronic message is being sent by or on behalf of another person, etc.)

Interestingly, there is a duty on every person who knows or ought to know that their business will be advertised or promoted in a commercial way contrary to the Act and who receives or is expected to receive an economic benefit to take reasonable measures to prevent the sending of the message and report any contravention to authorities.

With respect to enforcing these and other provisions of the Bill, anyone who sends a commercial electronic message without the recipient’s consent may be convicted of an offence and liable to a find not exceeding $500,000 and for a second and subsequent offence, to a find not exceeding $1.5-million.

There are other specific offences and fines related to requirements, duties, and obligations found in Canada’s proposed Anti-Spam laws.   Interestingly, apart from being prosecuted under this proposed bill and having to pay a fine, an individual or business could be sued in a civil action for breaching the proposed Act.

Notwithstanding that this Bill has not yet attained the status of law, at the present time, private individuals and companies still need to comply with the Personal Information Protection and Electronic Documents Act (PIPEDA for short), which imposes obligations and liabilities with respect to the collection, use, and dissemination of third party personal information without those parties’ knowledge or consent.

written by admin \\ tags: advertising, anti spam laws, Bill s-220, canada anti spam, conviction, dissemination, e mail, educational purposes, electronic documents, electronic message, legal advice, liabilities, offence, privacy legislation, private individuals, prohibitions, prosecution, provisions, publicity, receiving the message, recipient, spam laws, subject line

Please note that the information provided herein is not legal advice and is provided for informational and educational purposes only.  If you need legal advice with respect to complying with anti-spam or privacy legislation,  you should seek professional assistance (e.g. make a post on Dynamic Lawyers).

Canada’s Anti-Spam Laws are found in the proposed Bill S-235, An Act concerning unsolicited commercial electronic messages.  That’s right: I said “proposed”.  It’s not passed into law yet.  In fact, at the time of writing this blog, the Bill had only been introduced into the Senate (first reading) on May 7, 2008 and had been debated at 2nd reading on May 13, 2008.  You can view the status of the Bill here.  So where does that leave us?  Well, private individuals and companies still need to comply with the Personal Information Protection and Electronic Documents Act (PIPEDA for short), which imposes obligations and liabilities with respect to the collection, use, and dissemination of third party personal information without those parties’ knowledge or consent.

So how would Canada’s proposed Anti-Spam Laws work?   The following information is a brief summary of certain provisions based on the current reading of the text of the Bill (remember: it may get changed if and when it becomes law).

Requirements for commercial electronic messages (e.g. an advertisement e-mail):

• They must clearly and accurately identify the sender, contain readily-accessible and accurate heading and routing info, and include info as to how the recipient can contact the person sending the message.
• They must include an accurate subject line.
• They must include a functional unsubscribe facility and a clear statement to the effect that unsubscribing can be done.

Prohibitions in the Bill:

• No person can send a commercial electronic message unless the recipient has consented to receiving the message.
• Implied consent  cannot be inferred from the fact that the recipient’s e-mail address has been published elsewhere or has been generally available to the public.
• A recipient can withdraw their consent.
• It is illegal for someone to offer to supply, supply or use e-mail or address-harvesting software or a harvested-address list.
• No person shall impersonate a trusted source.
• No person shall send out commercial electronic messages that include or constitute false representations (e.g. false representations that the commercial electronic message is being sent by or on behalf of another person, etc.)

With respect to enforcing these and other provisions of the Bill, anyone who sends a commercial electronic message without the recipient’s consent may be convicted of an offence and liable to a find not exceeding $500,000 and for a second and subsequent offence, to a find not exceeding $1.5-million.

There are other specific offences and fines related to requirements, duties, and obligations found in Canada’s proposed Anti-Spam laws.   Interestingly, apart from being prosecuted under this proposed bill and having to pay a fine, an individual or business could be sued in a civil action for breaching the proposed Act.

written by admin \\ tags: advertising, blog, brief summary, briefs, conviction, dissemination, e mail, educational purposes, electronic documents, electronic message, first reading, law, lawyer, lawyers, legal advice, liabilities, offence, personal information protection, privacy legislation, private individuals, professional assistance, prohibitions, prosecution, provisions, publicity, receiving the message, recipient, spam laws, subject line

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!

written by admin \\ tags: accident, accidents, agreement, attorneys, breach, breach of contract, charity status, Civil Litigation, commercial agreements, commissioners, company intellectual property, contracts, conviction, corpor, corporation, court, criminal, criminal offence, custody, different, different types of law, divisional court, family, firms, government need, human rights and freedoms, injuries, injury, insurance, landlord and tenant, law, lawyer, lawyers, legal claim, litigants, litigation, money, negligence, notarize, notary, offence, publicity, purchaser, quotes, separation, small claims court, support government, toronto, toronto law firms, toronto lawyer, toronto lawyers, traffic, types of law, Wills and Estates

1. Come prepared.  A pound of pain can be avoided with but an ounce of preparation.

2. Know who you’re talking to.  What role is the other party playing?  What powers do they have (or are lacking)?  This helps focus the meeting so that you only ask for what you know you can get.  Otherwise, you’re wasting your time because you’re talking to the wrong person.

3. Know your objective.  What is it that you want to achieve by the end of the meeting?  Always work towards that in the back of your mind.  That’s why you should always have an agenda that will allow you to better achieve your objective.

4. Identify your issues and prioritize them.  This will help all parties know what the other wants and how badly they want it.  This also facilitates creative solutions because you can trade off a low-priority issue for a higher one (especially when the opposing parties’ priorities are the reverse of your own).

5. Don’t waste time on the nitty-gritty.  If you get stuck for the trees, move back to the forest.  Make a note of where you got stuck and then move on.

6. Deal with the easy things first; leave the contentious issues until later.  This strategy helps move the meeting along and makes the parties ease up until contentious issues are

7. Mention your position briefly, but talk about the interests that you’re trying to satisfy.  If these interests can be satisfied in creative ways, then parties’ positions will melt away.

8. Spend most of your time coming up with creative solutions.  Expand the pie!  Find commonalities!  Brainstorm creative and mutually-beneficial solutions!  Everything else about the meeting is just a lead-in to this part.  You should spend at least 75% of your time coming up with solutions to give all parties something.  Evaluate alternatives based on objective criteria that are acceptable to all parties.  These criteria could be time, money, effort, publicity, etc.

9.  Put everything in paper before, during, and after the meeting.  Visual meetings are the best.  Parties are better focused on the task at hand when they have been notified ahead of time of the agenda, objective, issues (listed and prioritized), and proposed alternatives.  This way, time isn’t wasted coming up with these things during the meeting.  During the meeting, use a pad of paper or the chalkboard to show the progress that has been made throughout the meeting.  Finally, make sure to write a summary and next steps (discussed below).  Remember: he/she who controls the language of what is ultimately written and agreed upon will usually have power over the other party.

10. Summarize the meeting and note next steps.  Make sure you record who is going to take action, what action they are going to take, and when they are planning to complete the action.  You’ll need this in writing to make the parties accountable.  At the next meeting, these notes should be reviewed to determine whether action items were satisfied.

written by admin \\ tags: beneficial solutions, contentious issues, creative solutions, how to have a productive meeting, money effort, negotiating, objective criteria, priorities, priority issue, productive meeting, publicity, time money, top 10 rules, waste time, wasting your time, wrong person

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

I’m often asked how Dynamic Lawyers would work in reality. Here’s a quick and real example: I received a phone call the other day from a referral who wanted to know how to go about transferring their home into their spouses name. This is not something I’ve dealt with. I’m not a real estate lawyer. Rather than waste time and jeopardize doing something wrong, I directed the referral to Dynamic Lawyers to put their question out there for lawyers who focus on this area.

All lawyers who are registered with Dynamic Lawyers could search for and find this post. Also, if the lawyers has indicated in their account info that they practice “Real Estate” or “Tax” law (depending on how the user identified the legal area in the post), they would receive the post instantly in their online account and in their email account – to which they could respond. If the post is marked “public”, then everyone visiting the website would be able to search for the post. If the post is marked “private”, then only lawyers who are signed in and searching for the post or who have received the post in their account or inbox would be able to view and respond to it.

If you appreciate visuals, then check out this one page document entitled “How Dynamic Lawyers Works”.

written by admin \\ tags: accountants, Dynamic Lawyers, how does it work, lawyer, lawyers, make a post, publicity, referrals

I am a sole practitioner here in Toronto. I established my practice straight after articling and getting called to the bar (June 2008). People like me often don’t know where their next client is going to come from (typically referrals). But I started getting a client here and there from craiglist.org (I would just respond to individuals who were posting their legal problems).

That gave me an idea: I wanted to come up with a website like www.craigslist.org but which focuses on legal services.

That’s why I created Dynamic Lawyers.

The idea is simple: allow ordinary people to freely and anonymously explain, through an online post (which can be public or private), why they need a lawyer and then receive quick and multiple e-mail responses and quotes from local lawyers. For their part, lawyers specializing in the legal areas sought after would be able to directly and effectively market their services to the public. I believe that this website will simultaneously satisfy two pressing needs by bringing prospective lawyers and clients together.

While the idea is not necessarily new (see www.craigslist.org, www.kijiji.ca, www.lawyerahead.ca, www.canlaw.com, etc.), the way we are going about it is different. We are focusing initially on Toronto. We are focusing on certain legal areas (i.e. high volume transactions with fixed costs). We are not going to litter the website with ads or peripheral services. We are focusing solely on “Need a Toronto Lawyer? Make a Post. Get FREE Quotes!. We are not trying to be everything to everyone. Nor is this service going to be expensive for lawyers who wish to register: we’ve been giving lawyers 2 months free to try it out and we only charge $30 per month after that. My motivation is simple: I don’t like being charged a lot (particularly since it cost me about $15,000-$20,000 to set up my practice with no advertising), so I don’t want to charge individuals in my position a lot either. Finally, the website is going to be very much like a cross between www.google.ca and www.craigslist.ca (clean, simple, and easy to navigate).

Lawyers who have an account also receive new posts in their e-mails and will be able to instantly respond.  The posts are e-mailed out to lawyers based on certain criteria – namely, their geographic area (e.g. Toronto), legal area (e.g. criminal law), and matter (e.g. theft under $5,000). I figure that lawyers like me don’t have all the time in the world to roam the net or the website for clients, so why not just get notifications in my inbox when a new post has been made?

written by admin \\ tags: ads, criminal, Dynamic Lawyers, dynamics.com, lawyer, lawyers, Michael Carabash, motivations, need aaccountants, practitioner, publicity, quotes, referrals, toronto

Businesses don’t plan to fail, they fail to plan.

Below are 10 quick tips in 60 seconds (or however long it takes you to read and absorb them) to help law practices market themselves for success.  There are lots more, but 10 will do for now!

1. Plan, plan, and do some more planning!  Come up with a market plan that outlines things like: the purpose of your marketing, the main benefits you’re offering, your target audience, your marketing weapons, your niche, your corporate identity/personality, and a marketing budget and pro-forma financial statements.

2. Execute, execute, execute!  The hardest part of any business is properly executing your plan.  You can have the best plan in the world, but you need to properly execute to see results.  You know what they say: an A + team with a B idea is always better than a B team with an A + idea.  Set up a marketing calendar and list out your action items.  Then have regular meetings with your team to see what you’ve accomplished in the past, what’s left to do, why things haven’t gone right (or why they have), etc.

3. Determine your niche.  It’s hard to be a jack of all trades these days.  A niche strategy is a viable strategy for earning above average returns in practically any industry: it creates specialized knowledge, skills, experiences, etc. that are hard to replicate (thereby creating a barrier to entry).  Just be sure to niche in something that is in demand!

4. Communicate your brand/identity.  The latter comprises your trust/value proposition to your target market.  It is reflected in both the tangible and intangible aspects of your business (e.g. the way you talk on the phone, the atmosphere in your office, etc.).  Make sure that you’re embodying and projecting the brand/identity of your choice.

5. Dress for profits, keep appearance neat, and great callers with a smile on the phone.  The quickest and easiest way to sell people on your idea is to have them like you.  That’s right: those who like the way you look, speak, gesture, handle yourself around family/friends, etc. will be more inclined to agree with you than if they didn’t like you.  So be nice and smile (even if you’re having a rough day).

6. Solicit and display testimonials and mention your satisfied customers.

7. Publish your own marketing materials.  This could take the form of: newsletters, direct-mail letters, postcards, business cards, brochures, catalogs, gift certificates, signs, trade show materials, proposals, etc.

8. Cultivate publicity contacts.  Find out who writes regularly about your industry and get in touch with them.  Give them something to write about and, if you keep doing that, they’ll be back for more.

9. Create media.  Don’t wait around for free publicity in newspapers, radio, t.v., etc. to call you up for an interview.  Create your own media by doing research and telling the world something new.  Media will come calling because you’ve done their jobs for them.  With the hard work done, they’ll promote you to a much larger distribution channel and more opportunities will arise.

10. Network, network, network!  Grow your connections by attending networking events, trade shows/conferences, making presentations, and doing whatever it takes to meet new people and tell them about your business.

Now go do some marketing!

written by admin \\ tags: 10 tips in 60 seconds, create your own media, execution, law practice marketing, network, newspapers, plan and execute, publicity

It’s 2020. You’re in Toronto and in need of legal services.  Your will is outdated because all your children are now married with children of their own. Meanwhile, your thriving business needs to be incorporated for liability, expansion, and tax-planning purposes. Finally, you need representation to help you fight some speeding and parking tickets.

So, naturally, you turn to the Internet to quickly find cost-effective professional legal services. By this time, the Ontario government and Law Society of Upper Canada have made Dynamic Lawyers (wishful thinking?) the legal intake centre of choice for the general public. You start off by telling Dynamic Lawyers what your preferred language is. Then you proceed to a dashboard where a range of legal services are displayed. A website-generated assistant pops up on the screen and starts asking you in your preferred language what legal services you’re interested in. You say “I need a will”.

The next screen requires that you respond to a number of questions to complete your legal post. Included in your post are things such as:
• your geographic location;
• what service(s) you need performed;
• your timeline for starting/completing those services;
• your budget (if any);
• what language(s) you would like the service providers to speak;
• whether you prefer domestic or international service providers; and
• a limit on the number of responses you would like to receive.

You review the post and then submit it. The post is made anonymously and is absolutely free of charge. All you’re required to input is your e-mail address, which does not show up in your post and is only used to route bids from service providers back to you for consideration.

You’ll go back to the main dashboard and submit additional posts under the following categories: “Incorporate”, “Business Agreements”, “Residential Real Estate Transaction”, “Civil Litigation”, and “Highway Traffic Tickets”.

When you’re finished, you’re asked whether you would like to do an annual legal checkup. You agree. It only takes a few minutes and you’re asked a number of questions to determine if you require any further legal services – or whether anyone you might know may be in need of them. You realize through answering the annual legal checkup’s questions that you do need to update your website and will need someone to help you put together a new website development agreement with your web designer supplier. With all said and done, you close your internet browser and go on living your life.

Behind the scenes, Dynamic Lawyers has already packaged your posts and disseminated them to various legal service providers, whose job is to assess the legal requirements and respond with an outline of the project scope with details concerning quotes and timelines. The legal service providers could be sole practitioners working at home halfway across the world. They have been certified to practice law in Ontario, so they are permitted to bid on the work. They are registered to receive certain types of work, for which they specialize. Other legal service providers could be large multinational firms comprised of legal and non-legal personnel.

So how unlikely is any of this to actually happen?  Well, if I could paraphrase Richard Susskind (once again): the future is not out there somewhere waiting to be found.  It’s here and now and ready to be created by us.

written by admin \\ tags: Dynamic Lawyers, dynamic.com, lawyers, litigation, Michael Carabash, publicity, Richard Susskind

A while back, I looked into what was required to form a multi-disciplinary partnership with non-lawyers (e.g. accountants, bankers, insurance agents, consultants, Realtors, etc.) to offer legal services.  I thought it would be great to have connections with professionals who could provide me with constant and good quality referrals.

But I quickly dropped the idea after discovering a simple truth: compliance with the Law Society of Upper Canada Rules of Professional Conduct and By Law 7 was more than I imagined I could handle!  Being a sole practitioner as it is – with trust fund accounting, insurance and law society filings, etc. – is already burdensome enough when compared with other occupations and professions.  But it’s got to be down-right scary for lawyers (in my humble opinion) in my position who are considering forming affiliations and multi-disciplinary associations/partnerships with non-lawyers.   Here’s why…

For starters, lawyers are ethically and legally not permitted to share, divide, or otherwise split any revenue, cash flows, or profits with non-lawyers generated in the context of providing legal services (LSUC, Rules of Professional Conduct, Rule 2.08(8); see also LSUC, Knowledge Tree, “Fees, Billings and Collection: Referral Fees, Fee Splitting and Division of Fees”).  Lawyers can do so through multi-disciplinary partnership, but not through affiliations or multi-disciplinary associations.

Affiliations

So what if a lawyer or law firm started paying non-lawyers for certain business services that facilitated the delivering/promoting of the former’s services?  Well this business structure could lead to an “affiliation” under the LSUC’s Rules of Professional Conduct (Rule 1.02) and By Law 7.  Simply put, an affiliation exists where one entity (e.g. person, business, organization, etc.) joins a lawyer or law firm to deliver/promote the latter’s services.  If this is the case, then the lawyer or law firm would still not be able to share, divide, or otherwise split revenue, cash flow, or profit generated in the context of providing legal services to the affiliated entity (LSUC, Rule 2.08(9)).

Furthermore, the lawyer or law firm would be subject to additional onerous ethical/professional obligations and reporting requirements, such as:

• Informing clients about the nature and scope of the lawyer or law firm’s affiliation with the affiliated entity and obtain their consent to proceed (Rules 2.04(10.1 ) and (10.2));
• Establish a system to search for conflicts of interest with the affiliated entity (Rules 2.04(10.1 ) and (10.3));
• Ensure that the lawyer or law firm’s advertisements do not mislead the public about who is providing the legal services (Rules 3.04(3), Commentary);
• Ensure that the lawyer or law firm own and maintain control over the law practice and that such practice is not operated on premises used by the affiliated entity for the delivery of the affiliated entity’s non-legal services (By-Law 7, s. 32); and
• Disclose to the LSUC a report disclosing information between the lawyer or law practice and the affiliated entity with respect to financial agreements, ownership/control/management of the law practice, the lawyer’s compliance with conflict-of-interest requirements, and the lawyer’s compliance with confidentiality requirements (By Law 7, s. 33(2)).

The bottom line is that forming an affiliation with non-lawyers is too burdensome and not worth it (because fees cannot be split).

What about a multi-disciplinary association? Well, if non-lawyers teamed up with lawyers to support/supplement the latter’s provision of legal services to clients, then the Law Society of Upper Canada’s multi-discipline rules could be triggered.  Such rules impose obligations on all of the members of the association.  For example, the non-lawyers would:

• Not be able to practice their profession, trade, or occupation except to support/supplement the lawyer or law firm in providing client services (By Law 7, s. 18(2)(1)).
• Have to give effective control to the lawyer or law firm over its practice of its profession, trade, or occupation (By Law 7, s. 18(2)3);
• Not be able to practice its profession, trade, or occupation independent of its agreement with the lawyer or law practice on the premises used by the association (By Law 7, s. 18(2)5); and
• Have to agree to be bound by the Law Society of Upper Canada’s Rules, Guidelines, By-Laws, etc. (By Law 7, ss. 18(2)2).

For their part, the lawyer or law practice would have to agree to comply with various onerous obligations, such as being responsible for ensuring that the non-lawyer members of the association use appropriate skill, judgment, and competence in performing its profession, trade, or occupation and in complying with the Law Society of Upper Canada’s Rules, Guidelines, By-Laws, etc. (By Law 7, s. 19).  As aformentioned, lawyers would not be able to split or share their revenues, cash flows, or net income with the non-lawyer members of the multi-disciplinary association.  So again, the costs far outweigh the advantages of this structure.

So that leaves us with the Multi-Discipline Partnership

A multi-disciplinary partnership involves non-lawyers supporting/supplementing lawyers in providing legal services to clients.  The non-lawyer members of the partnership would, once again, have to comply with the same onerous conditions as non-lawyer members of a multi-disciplinary association.   And so too would the lawyer .  The only difference is that lawyers and non-lawyers would be able to share revenues, cash flows, and profits through the partnership.

Overall, if non-lawyers are going to get involved in promoting and delivering legal services, then the Law Society of Upper Canada is going to have to re-tool its Rules and By Laws to open up the market.  We’ve already seen the large Bay St. law firms hire business managers to help run their law practices more as businesses than as legal professions; let’s keep moving down that road so that we can make legal services more accessible to the general public.

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