Law Times

Page 2 NEWS November 25, 2013 Law Times • Little choice for new partners The goodwill payments are "highly material for a young lawyer, as Mr. Djurdjevac the pre-existing partners want to deal with something in a particular way, they have was at the time," Corbett noted. "Indeed, taking the every ability to do so. firm's position as exWhen you're invited pressed, the goodwill to become a partner, was a fixed long-term there's not really much obligation, akin to a of a negotiation over bank loan, and the what the agreement is sort of obligation that going to say. You take it could well lead someor you leave it." one in Mr. Djurdjevac's If Deacon Spears position to purchase knew it was expectinsurance for it if he ing payments from had financial responsiDjurdjevac over a fivebilities to others." year period, it should According to Camhave considered what eron, the apparent would happen if he deal in the Djurdjevac left before that time, case is "unusual" as Radnoff suggests. "We're past the point 'When you're invited to become a partner, partners often make of time where part- there's not really much of a negotiation over goodwill payments ners stay in one law what the agreement is going to say,' says Brian for the time they were present at the firm. Photo: Laura Pedersen firm for their entire Radnoff. "The standard way careers. It's quite common for people to move around from it's done in the industry is that you'd pay for the goodwill over a period of time place to place, including partners." Corbett asked the firm's counsel, Nicole and if you did happen to cut out of the Henderson, whether Djurdjevac's estate partnership after two or three years, you would have had to pay the amount if he had would only be liable for the amount while died in a car accident just a few days after you were there," says Cameron. He adds: "I would consider [the arentering the partnership. "Her response was instructive: we rangement in this case] to be unusual in should not assume that the firm would terms of what the standard arrangement have taken such a hard line in such tragic would be in most law firms." Radnoff says it's possible law firms circumstances," wrote Corbett. "That is both a good answer and no have different ways of designing their answer at all," the judge continued.  "It is partnership buy-in payments but notes a good answer because it is the only rea- the bottom line is that the agreement sonable response in the circumstances. It should state all expectations and consider is no response at all because it side-steps various unforeseen but likely scenarios. "The take-away is if there's an important the legal question. If the legal response issue, particularly payments over time, you is yes, the balance would be owed to the firm, then this would have to have been should deal within the partnership agreemade clear to Mr. Djurdjevac at the time ment what's going to happen if the partner leaves before all the payments are made."LT he entered the partnership." Continued from page 1 Your invaluable resource for insolvencY restructuring in canada New editioN REsCuE! ThE CompAniEs' CREdiToRs ARRAngEmEnT ACT, 2nd EdiTion JAnis sArrA When your area of practice is shaped by the courts, your job's tougher than most. You need to know which cases matter – and why they matter. Fortunately, bankruptcy/insolvency practitioners can turn to the new second edition of Rescue! The Companies' Creditors Arrangement Act, 2nd Edition for expert insight on the most important decisions and developments in this critical area of legislation.Learn how the latest decisions in insolvency law have shaped and defined the scope of the Companies' Creditors Arrangement Act (CCAA) – and exactly how they'll affect your next corporate restructuring proceeding. You'll get accurate, practical guidance to the most important piece of legislation in bankruptcy/insolvency practice. An invaluable research tool, a convenient reference to procedure, and a welcome source of practice aids, Rescue! The Companies' Creditors Arrangement Act, 2nd Edition will enrich your understanding of this extraordinary statute and help you successfully move your client's company forward. oRdER # 985537-65203 $135 softcover 700 pages september 2013 978-0-7798-5537-7 Shipping and handling are extra. Price subject to change without notice and subject to applicable taxes. AvAilAble Risk-FRee FoR 30 dAys order online: www.carswell.com Call toll-Free: 1-800-387-5164 in toronto: 416-609-3800 Winkler optimistic about reform Continued from page 1 From his role as a negotiator, Winkler moved on to establishing his reputation for judicial mediation, Filion adds. "One of the many elements of his legacy would be as a great judicial mediator and advancing the practice of judicial mediation beyond what it was in the past," he says. For his part, Winkler remains optimistic some of the justice reforms he has been calling for since becoming chief justice in 2007 will become reality. "When I started talking about access to justice 6-1/2 years ago, I was really a pioneer," he says, noting his big emphasis on fixing the delays and cost concerns in family law. "Everybody knows these are the issues, but people have tightly held views on this," he says, referencing proposals to deal with the issue such as triaging matters, mandatory mediation, and better disclosure. "We'll get there," he adds. "I'm confident we'll get there on the family law because we've made so much progress." But when it comes to the ongoing challenge of access to justice and, particularly, the difficulties in cases like the Nortel matter, Winkler is clear that cultural issues are at play. "What it is is the litigation mentality where you always try to get the maximum success out of a dispute. That's a cultural problem," he says. "There's such a thing as winning too much . . . because you leave a trail of disaster behind you," he adds. Asked about other reforms to reduce court backlogs, Winkler mentions the need to simplify the procedural rules and provide mechanisms to get matters to trial faster. "If the trial date is imminent . . . they don't have time to have motions," he says. "Time leads to more litigation," he notes. As far as his legacy goes, Winkler suggests he made big strides on transparency at the court. For example, he introduced the Court of Appeal's annual report and brought a more celebratory flavour to the annual opening of the courts ceremony. "Instead of being a boring thing where we talk about statistics, it's celebratory," he says. In addition, Winkler says he made many efforts to increase the court's accessibility by speaking at events across the province and meeting with lawyers and law students. "That's part of my legacy is this outreach, this openness. . . . When I was a lawyer, we didn't know anything about this place." As for his future plans — besides his involvement at the Osgoode institute — the Pincher Creek, Alta., native expects to continue doing mediations and will also spend more time at his property in Markdale, Ont., that in some ways takes him back to his roots. "It's like rural Alberta," he says. LT www.lawtimesnews.com

• Cover