Yates, Bereznicki-Korol, Clarke

Business Law in Canada, Ninth Edition

Chapter 1: Managing Your Legal Affairs

Copyright 2011 Pearson Canada Inc.

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Chapter Objectives
When you complete Chapter 1, you should be able to:
Explain how lawyers bill their clients Outline the procedure to follow to complain about your lawyer Discuss the ethics of lawyers and of clients Describe a code of business conduct
continued

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Chapter Objectives, continued

Explain the meaning of sophisticated client Describe the role of the lawyer Identify when to hire a lawyer and when to represent yourself Explain how to find a good lawyer Describe legal aid

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Question for Discussion

The first thing we do, lets kill all the lawyers per Shakespeare Would Canada be better off without lawyers? Record your thoughts now Discuss at end of class if your answer has evolved

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Becoming a Sophisticated Client

Confident
Not in awe of lawyers

Knowledgeable
Spot, not necessarily solve legal issues

Up-to-date
Internet
continue

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Becoming a Sophisticated Client, continued Understand the role of lawyer and client Understand the costs How to deal with dissatisfaction with lawyer

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The Role of the Lawyer

Provides relevant legal advice
Advises and recommends

Client is decision maker

Not the lawyer

Lawyer bound to follow clients instructions

If lawful Or fire the client

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Solicitor-Client Privilege
Lawyer cannot divulge communications with client, or even the existence of the client
without permission knowledge of a crime or potential crime

Lobbyist registration exception regarding client name, etc.

continued

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Solicitor-Client Privilege, continued

Encourages frankness
Full story necessary to get the best result

Legally enforceable
Only privileged communication that is legally enforceable Means others (reporters, clergy) are sometimes jailed for contempt

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Question for Discussion

What experience have you had with the legal system? How did you feel about it?

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When to Hire a Lawyer

New business, buying existing business
Searches Contract / Agreement

Compliance issues
Ignorance of the law is no excuse

Physical location
Long term lease terms Purchase land and building
continued
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When to Hire a Lawyer, continued

Financing of business
Shareholder loan, capital Bank debt and security

Contracts
Employment, Supply

Intellectual property
Patent agent

Criminal charge against business or officers

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When to Represent Yourself

Obtaining legal information, not advice On-line sources Understanding the information Type of issue at stake
Criminal charges almost necessitate a lawyer

If you think you might need a lawyer; you need a lawyer

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How to Find a Good Lawyer

Referrals Provincial Law Society
Legal referral services

Yellow pages / internet advertising Meet with each lawyer on your list to find the most appropriate

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Legal Aid
Eligibility varies from province to province Financial guidelines Subject matter guidelines Legal Aid will appoint lawyers to represent individuals in certain cases. Duty counsel

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How Lawyers Bill Their Clients

Fixed fee Hourly rate Contingency fee
Champerty / Maintenance historically

Disbursements
Other Charges
continued

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How Lawyers Bill, continued

Tariffs Sales and other taxes Retainer
financial contractual

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Question for Discussion

Is there a limit on contingency fees in your jurisdiction? Do you agree with the concepts of limits? Is the limit in your jurisdiction too high or too low? Should it change based on the risk of success with the case?

Copyright 2011 Pearson Canada Inc.

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How to Complain About Your Lawyer

Just because you lost your case, doesnt necessarily mean your lawyer is at fault Provincial law societies are self-governing Complaint resolution process varies Mediation services may be available Investigation, formal hearing if warranted
continued
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How to Complain, continued

Compensation requires additional civil action Errors and Omissions / Negligence Insurance Fidelity Assurance

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Ethics of Lawyers
Every provincial and territorial law society has rules of professional conduct Ethical behaviour implies integrity, honesty and professionalism Failure to observe ethical behaviour may result in fine, suspension or disbarment

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Ethics of Clients
No code of conduct for business people Businesses should establish their own code of conduct for the organization and their employees High profile failures:
Conrad Black Bernie Madoff

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Question for Discussion

Does your business / employer have a mission statement? Does your business / employer have a code of conduct? Are these referred to and used in the daily conduct of business?

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Paralegals
Exist in all provinces and territories as employees in law offices Operate under the supervision of a lawyer Cannot give legal advice

continued

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Paralegals, continued
Ontario differs
now licensed by the Law Society authorized to represent clients in small claims court, provincial offences court, summary conviction court and before some administrative tribunals

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Question for Discussion

There are significant problems with access to affordable legal assistance, and self represented litigants Is Ontarios promotion of paralegals a proper manner of addressing these problems? Other possible ways?

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