Monthly Archives: September 2009

Alberta Judge Allows Substituted Service via Facebook

What could possibly top “Getting Fired via Facebook” (posted August 14, 2009)?

Here’s the latest: an Alberta judge has allowed a defendant to be served via Facebook. Shaunna Mireau of slaw.ca reported as follows:

The February 5, 2009 Order of Master Breitkreuz from Knott v. Sutherland says that the plaintiffs could substitutionally serve one of the multiple defendants by publication of a notice in the newspaper, by forwarding a copy of the statement of claim to the human resources department where the defendant (formerly) worked, and also by sending notice of the action to the Facebook profile of the defendant.

Although servicing a defendant via Facebook sounds outlandish, rest assured, it’s not. The purpose of substituted service (as it’s called in Ontario) is to give the defendant sufficient notice so that he or she becomes aware of the legal action in a timely fashion. If the court has been convinced that the defendant is a frequent Facebook user, the seemingly odd outcome actually becomes quite logical.

read more…

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Canada’s Official Languages Are English and French; What’s America’s?

As stated in our Constitution,* the official languages of Canada are English and French. That’s why you see bilingual signs in Canadian airports. Accordingly, all Canadian federal laws are written in both English and French versions.

Interestingly, the U.S. Constitution doesn’t have a provision regarding its official language. Although American laws are exclusively written in English, at least at the federal level, it’s interesting to know that the U.S. technically doesn’t have an official language.

Perhaps the photograph below explains why…

via Instaputz

*The Constitution Act, 1867 (U.K.), 30 & 31 Victoria, c. 3.

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PSWLaw to Be Featured on The Lawyers Weekly “Hanging Out Your Shingles”

I’m pleased to announce that Michael Rappaport of M.R. Legal Communications is writing an article on “hanging out your shingles after articling” for The Lawyers Weekly. This article will feature PSWLaw as one of the sole practitioners.

During the interview, I shared my experiences of opening the firm. We dedicated no less than one-third of the interview to business operations: marketing, advertising, what has worked, and what hasn’t. (You’ll have to read the article to find out the answer!)

We then moved on to the pros and cons of being a sole practitioner:

Pros:

  • flexible hours
  • ability to decide what kinds of cases to accept
  • better margin
  • less peer pressure
  • no need to please superiors
  • ability to offer pliant payment schedules to clients
  • being your own boss!

Cons:

  • uneven cash flow compared with salaried positions
  • lack of collegial support on difficult legal questions
  • constant overwork
  • burden of administrative duties and statutory compliance
  • difficulty in finding replacement in emergencies
  • little or no economy of scale
  • dilemmas of work/life balance

At the conclusion of the interview, Rappaport asked me the inevitable question: “What would you tell someone who’s thinking about opening up their own firm after articling?

“Know the challenges ahead and keep your spirit up. You’ll be fine,” I said.

Stay tuned!

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Article Review: Justice Denied by Dylan Young

The [boycott] move was not taken lightly. Many lawyers consider legal aid cases a vocational duty. But over the last 15 years that duty has become an untenable burden,” Dylan Young recently wrote for the magazine Precedent.*

Some outsiders, including lawyers practising outside the Legal Aid Ontario system, saw the boycott by the Criminal Lawyers’ Association against Legal Aid Ontario as holding the justice system hostage. “A lawyer’s greed can never be satisfied,” said a man I recently encountered on the subway.

But there’s more to the greed, the proverbial hostage-taking, and the tariff-increase ransom demanded by the lawyers, the author suggests.

Why is an hourly rate of $77.56-$96.56 not enough for lawyers, some might ask. Sean Robichaud, a criminal defence lawyer who built his now thriving practice on cases funded by Legal Aid, has explained as follows:

“[L]et’s say I have a case of a man who started firing a gun into a public place. I have to review all the disclosure, meet with my client several times, go to court appearances, meet with the families and the Crown, review maybe 20 officers’ notes and watch 27 DVDs of CCTV footage – all before I even go to preliminary hearings. If it’s a legal aid case, I’m allotted 16 hours for preparation unless I apply for a big case management exception. The actual work would take two, three , maybe even four times as long.”

Young goes further: “For one of these lawyers to take on a complex serious crimes case and dedicate not only their own time, but also that of articling students, clerks and junior counsel, $96.95 an hour is simply not a feasible way to run business.”

Besides examining these facts of business, the author also pointed out another flaw in the existing Legal Aid system – that of the power imbalance between the Crown and defence counsels.

For example, as Patrice Band, a former assistant Crown attorney, has pointed out: “In serious cases, there would often be two Crown counsel, the police who investigated the case were available to assist and experts would be retained as needed….” “Then I’d look across the aisle and see a defence lawyer working a case alone.”

The low-tariff rate, the petty allotted hours, and the boycott are only the symptoms of the emaciated Legal Aid Ontario. “The [justice] system only works if we accept that and make all the parts of it strong enough to keep all the other parts in check,” mused Robichaud. “Otherwise, it just topples over.”

Well said, indeed.

Dylan Young, “Justice Denied” Precedent (Fall 2009) 23 online:<http://www.lawandstyle.ca/index.php?option=com_content&task=view&id=730&Itemid=113>

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Tips for Better Account Collection

A wise woman once told me, “[Account] collection is the lifeline of a small firm.” It doesn’t matter how large the accounts receivable are, if they aren’t collected, they turn into bad debt at year-end. Today I’d like to share  tips for small law firms on better collection on accounts receivable.

On Retainer Money

  • It’s easier to get money before the work starts. Get some money before you go on the record or dive into jurisprudence analysis.
  • Rather than asking for a large lump-sum retainer, try to arrange small but frequent payments into the trust account by pre-authorized credit card payments or post-dated cheques. (Not recommended for new clients.)
  • Give your clients adequate notice when the retainer money is running low, or the unbilled fees are approaching the amount held in trust, so they can arrange their cash flow accordingly.

On Billing

  • Bill frequently. Rather than sending out a massive bill every three months, give clients smaller, more manageable bills every few weeks. This way, your bill doesn’t come as a disruption to the client’s cash flow.
  • Be clear on how the fees are calculated. If you charge a block fee, be clear about what’s included and what’s not. If you charge by the hour, tell clients that revisions, correspondences and telephones all cost money. This reduces the risk of post-bill confrontations, which tend to lessen the chances of full collection.

On Accounts Receivable

  • Offer payment plans, including installment payments and postdated cheques. Unless your firm is strained financially, the point is to collect the full amount at some point, rather than not collecting at all. If the client can’t pay the entire amount at once, ask for a few postdated cheques in manageable amounts.
  • Accept credit card payments. It’s a fact of life in the 21st century that people no longer keep large cash reserves – there are bills to pay, investments to make. With credit card payments, – you receive the funds in your account (less processing fees) upon daily settlement. Even if clients are in financial distress at the time of payment, they can sort out the balance with the credit card company in the future. (Make sure you document the authorization properly to avoid future disputes, though.)
  • Charge interest. The point is not to make money off the interest accrued. It’s to create a sense of urgency that the bill will only grow larger if it’s left unpaid. However, it’s important to keep in mind that under the Solicitor Act,* lawyers may only collect interests at the prescribed rate with their client’s consent.

The article above will appear in the newsletter of Ontario Bar Association, Solo and Small Firm Section, winter 2009.

*R.S.O. 1990 c. S.15

Please Note: This article is provided for information and educational purposes and is protected by copyright. It does not constitute legal advice and should not be regarded as such. Regulation referred to may have been amended or repealed since the publication of the article.

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A Brief Note on The Legal Benefits of Getting Married

Why get married? It turns out that, besides the love, affection, and companionship provided by their spouses, married couples also enjoy quite a few entitlements in law not available to”common-law” couples. Today I’d like to share a few of the entitlements with you.

To a great extent in modern Canadian jurisprudence, cohabiting couples who have lived together for a certain amount of time enjoy a vast degree of protection in common law and under the legislation (for example, spousal support under the Family Law Act* and dependency claims under the Succession Law Reform Act^). But a few entitlements remain in the exclusive domain of married couples.

Unlike cohabiting couples, who generally are required to prove that they have lived together for a certain number of years before they become entitled to the spousal benefits, married couples (same-sex or opposite-sex) are instantly recognized  in Canada. It doesn’t matter if the couple have only met yesterday and got married today (as so do many in Las Vegas); the fact that they’re married entitles them to spousal support and property division rights under the Family Law Act in Ontario if their relationship should breakdown (although the amount in question is debatable).

Under the Family Law Act, married spouses are entitled to certain posessory rights with respect to the matrimonial home, regardless of which spouse owns it. For example, both spouses are entitled to live in the home, and neither may dispose of or encumber an interest of the matrimonial home without the other’s consent or a court order.

Married spouses also automatically become each other’s official next of kin. This entitles a spouse to give (or withhold) necessary consent for healthcare and other purposes. Generally, the married spouse has priority in giving or withholding such consent over blood relations such as parents.

The same can’t be said for unmarried cohabitants, who often have to prove their relationship before they are recognized as the next of kin. This can create a significant obstacle in emergency situations.

Further, if the relationship breaks down, the Family Law Act distinguishes clearly between married couples and cohabiting couples. Only married couples are entitled to the statutory right of equalization, meaning, the equal division of properties accumulated during the marriage.

What’s more, if one married spouse predeceases the other, the survivor is entitled to an election between the equalization payment and what has been left for him or her under the will or, where there isn’t a will, under the law of intestacy. Unfortunately, this option isn’t available to cohabiting couples, even though under common law they may be recognized as spouses for other purposes.

Finally, in litigation, there is a limited privilege (“marital privilege“) for married couples, in that one spouse can’t be compelled to testify against the other regarding confidential information communicated between them during marriage. However, this rule has very limited application in modern Canadian law, as it has been narrowly defined by the courts, with various exceptions attached to it.#

*R.S.O. 1990, c. F3

^R.S.O. 1990, c. S.26

# see e.g., Evidence Act, R.S.O. 1996, c. E.23, s.11

PSWLaw is your proud advocate in family law matters.

Please Note: This article is provided for information and educational purposes and is protected by copyright. It does not constitute legal advice and should not be regarded as such. Regulation referred to may have been amended or repealed since the publication of the article.

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Legal Aid Ontario to Get More Funding; AG Still Under Attack

A while ago I posted the blog “Legal Aid Ontario Faces $56M Deficit” on the projected budget gap of Legal Aid Ontario (LAO) this fiscal year. It seemed like the Province of Ontario has stepped in to fill the hole just in time.

Ontario’s Attorney General, the Honourable Chris Bentley announced on Tuesday, September 8, 2009, that the province will increase LAO funding of approximately $150M over the next four years. LAO is expected to receive about $60 million dollars for the current fiscal year.

However, criminal defence lawyers are not amused and call the funding “an insult,” reported the Globe and Mail.* The story reported that criminal defence lawyers in the province saw the funding increase as a band-aid solution that neglected to address the root of the problems. Paul Calarco, a senior lawyer in Toronto, lamented that the offer, which amounts to an increase of about 5% yet was billed as the biggest leap in the history of LAO, will only harden the resolve of the boycotting lawyers.

I have to admit, giving lawyers a raise has never been a popular cause, compared with, say, improving health care and reducing medical wait times. That being said, I do feel strongly that the chronic underfunding of LAO will eventually lead to its demise – the death of a publicly-funded program offering meaningful access to justice for the underprivileged.

The low hourly rate – less than what my automobile mechanic would charge – plus the tight caps on the hours allowed often lead to reluctance to accept LAO funded cases, particularly for experienced counsels, who can otherwise fill their docket with clients who pay the full rate. Clients facing serious and complicated legal problems often have to resort to less experienced lawyers – who may take more hours achieving the same results (or poorer ones) as the more experienced. As junior counsels fill up their hours, LAO becomes less able to offer competitive compensation. A vicious downward spiral hence perpetuates itself.

It’s time to get rid of the band-aid and apply proper stitches instead.

*Kirk Makin “Ontario lawyers continue legal aid boycott; cash infusion called an ‘insult’” The Globe and Mail (9 September 2009) Online: The Globe and Mail <http://www.theglobeandmail.com/news/national/ontario-lawyers-continue-legal-aid-boycott-cash-infusion-an-insult/article1280110/#article>

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A Brief Note on Marriage Contracts and Prenuptial Agreements: Factors and Considerations

Today I’d like to discuss marriage contracts and prenuptial agreements.

In Ontario the legal term for an agreement contemplating a marriage and the possible breakdown thereof is “marriage contract.” As marriage contracts are often referred to as “prenuptial agreements,” the term more commonly used in the U.S., I will use the two terms interchangeably here.

Historically speaking, in common law it was once thought that public policy would be offended by marriage contracts that undermined the institution of marriage by providing for a possible separation. Marriage contracts and prenuptial agreements were accordingly void and unenforceable.

However, social values had changed by 1978 and during that year the legislature legalized marriage contracts by passing the Family Law Reform Act.*

The present governing provision on marriage contracts is section 52 of the Family Law Act, which is reproduced below:

52. (1) Two persons who are married to each other or intend to marry may enter into an agreement in which they agree on their respective rights and obligations under the marriage or on separation, on the annulment or dissolution of the marriage or on death, including,

(a) ownership in or division of property;

(b) support obligations;

(c) the right to direct the education and moral training of their children, but not the right to custody of or access to their children; and

(d) any other matter in the settlement of their affairs.

The authors of Domestic Contracts^ provided the following non-exhaustive list of factors that should be considered when drafting a marriage contract:

BACKGROUND
1. Name of each after marriage.
2. Disclosure of all significant income, assets and liabilities.
3. Description of marital status, current children.
4. Reasons for contract.
5. Special considerations.
6. Whether children contemplated.
7. Value of “Net Family Property” on marriage.

PROPERTY
8. What property will be exclusively owned?
9. What property will have shared ownership?
10. How will ownership be established?
11. How will shared property be divided on termination of marriage?
12. Will business interests be treated specially?
13. Will one spouse have the right to make any claim against the property of the other?
14. How will expenses be shared for it?
15. Who will own it?
16. Can one “buy into” it if other owns it?
17. What happens to home on termination of marriage?
18. Will there be buy out provisions on termination?
19. If it is solely owned do you wish the right of the non-owner to be diminished or eliminated?

DEBTS
20. Which debts are to be mutual?
21. Which debts are to be sole?
22. Special provisions for guarantees.
23. How are debts divided on termination of the marriage?

CHILDREN (IF ANY)
24. Are there to be clauses about their upbringing?
25. What name on birth?
26. Is there to be the right to change child’s name?
27. Obligations to support during cohabitation.
28. Formula for support on separation.
29. Restrictions on permanent removal from place of residence if separation occurs.

SPOUSAL SUPPORT
30. Are there any circumstances when there shall be none?
31. Are there any circumstances in which there will be support payable
32. If support is to be payable, are there terms to limit duration and amount?
33. Will support automatically vary with the cost of living?

Of course, the factors above are not meant to be “one size fits all.” When you’re contemplating entering into a marriage contract, it’s important to consult a lawyer so that your interests are adequately protected.

If you require assistance drafting a prenuptial agreement or a marriage contract, please contact our office at 416-433-5531.

* This act has since been repealed.

#R.S.O. 1990, c. F3.

^ Hugh G. Stark & Kirstie J. MacLise, Domestic Contracts: Comprehensive Guide to Marriage, Cohabitation and Separation Agreements in British Columbia and Ontario, looseleaf (Toronto : Carswell, 1986-2003) at 274.

Please Note: This article is provided for information and educational purposes. It does not constitute legal advice and should not be regarded as such. Legislation referred to may have been amended or repealed since the publication of the article.

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World Wildlife Fund (WWF) Infuriated over Trademark Infringement

The National Post reported this story about the publication of a controversial ad commissioned by the World Wildlife Fund (WWF), pictured above, being published without its approval.

The ad, sporting a tagline that reads “the [2004] tsumani killed 100 times more people than 9/11.” The ad was rejected by the WWF, but the advertising agency submitted it to a contest without the WWF’s approval. After it was published, the ad stirred up much controversy. Understandably, many in New York City were offended by it.

The WWF released a formal statement condemning the ad and is investigating the unauthorized use of its logo.

Under the relevant Canadian law (which is unlikely to be applicable here), the unauthorized use of a registered trademark logo would likely constitute trademark infringement.

The Trade-Marks Act provides the following:

20. (1) The right of the owner of a registered trade-mark to its exclusive use shall be deemed to be infringed by a person not entitled to its use under this Act who sells, distributes or advertises wares or services in association with a confusing trade-mark or trade-name, but no registration of a trade-mark prevents a person from making

(a) any bona fide use of his personal name as a trade-name, or

(b) any bona fide use, other than as a trade-mark,

(i) of the geographical name of his place of business, or

(ii) of any accurate description of the character or quality of his wares or services,

in such a manner as is not likely to have the effect of depreciating the value of the goodwill attaching to the trade-mark.

Under the circumstances, if the incident had happened in Canada, it’s likely that the agency would be deemed to have depreciated the value of the good will attaching to the trade-mark, infringing the WWF’s rights.

PSWLaw offers comprehensive services for your small business’ needs.

Please Note: This article is provided for information and educational purposes. It does not constitute legal advice and should not be regarded as such. Legislation referred to may have been amended or repealed since the publication of the article

*R.S.C. 1985, c. T-13

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A Brief Note on Driver’s Licence Suspension and the Family Responsibility Office (FRO)

Today I’d like to talk about the suspension of one’s driver’s licence by the Family Responsibility Office (FRO).

Under the legislation,* the FRO is entitled to suspend a default support payor’s driver’s licence with30 days’ notice. In this notice the FRO will inform the support payor that his or her driver’s licence may be suspended unless the payor makes an agreement satisfactory to the Director of the FRO, obtains a court order refraining the director from doing so (“refraining order”), or pays all arrears owing under the support order.

The 30-day period following the first notice is crucial. Under the law, the 30-day period is the only window during which the court may deal with the suspension of the driver’s licence. If the 30-day period has expired, the court will no longer have jurisdiction in ordering the FRO not to suspend the licence.

If the driver’s licence has already been suspended by the FRO, it becomes a more serious problem. The court cannot order the director to reinstate the licence. Rather, the support payor must satisfy the conditions as set out in the legislation to have it reinstated.

If you require further assistance, please contact my office at 416 433 5531.

PSWLaw provides effective solution to your family law matters.

*Family Responsibility and Support Arrears Enforcement Act, S.O. 1996, c. 31

Please Note: This article is provided for information and educational purposes. It does not constitute legal advice and should not be regarded as such. Regulation/Legislation referred to may have been amended or repealed since the publication of the article.

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