Law Times

Page 2 December 2, 2013 Law Times • NEWS Lawyer 'surprised' after LSUC takes control of Heydary firms BY YAMRI TADDESE Law Times A lawyer affiliated with the Heydary brand of law firms says he's "very upset and disappointed" after the Law Society of Upper Canada took control of business activities at the firms last month. The move came after Heydary Hamilton Professional Corp. failed to respond to a judge's order for the return of $3.6 million held in trust for clients.  Mark Hayes of  Heydary Hayes Professional Corp., says he was "certainly surprised . . . very upset and disappointed. It was a great shock for everyone." His firm is a separate entity from Heydary Hamilton. On Nov. 26, Superior Court Justice Julie Thorburn made an ex parte order to strip the Heydary law firms of their control and possession of all "practicerelated materials or client property of any kind whatsoever." The order also allowed the law society to enter the Heydary offices during business hours to search and to take possession of documents including client files, trust funds, corporate records, and electronic data. The judge gave the LSUC wide discretion to do what it sees fit at the law firms, including winding down their businesses. The order comes after Heydary Hamilton chairman and managing director Javad Heydary and his directors didn't respond to an earlier endorsement asking them to return funds held in trust for former clients Samira and Hasan Abuzour. The $3.6 million in question is part of a settlement owing to the couple after Heydary Hamilton represented them in a commercial dispute. The Abuzours received the first two instalments of their $5.1-million settlement, their lawyer Ray Thapar says, but the third and last payment of $3.6 million never made it to them. The $3.6 million has been in the Heydary Hamilton trust account that take to clear?" since April 2013, acOn Nov. 14, cording to Thorburn's Thorburn issued a Nov. 14 endorsement consent order askon the return of the ing Heydary Hamfunds. None of the ilton to at least reallegations have been lease the $2.1 milproven in court. lion that wasn't in Of the $3.6 milbank drafts to the lion, $1.5 million was clients by 5 p.m. the in 24 separate bank next day. That hour drafts, says Thapar, came and went. But head of commerJavad Heydary the money never arcial litigation at Simmons da Silva + Sinton LLP and rived, according to Thapar, who counsel for the couple in their says Heydary left the country action against Heydary. Thapar that same evening. In an endorsement on Nov. notes Heydary was "suspicious of the nature and legitimacy of the 20, Thorburn said it was "clear" drafts" and suggested his suspicion that Heydary was aware of the order when he left town. "I am was the cause for the delay. "I would say my client has advised that Mr. Heydary left for made about 11 requests for his Dubai and then Iran on the evemoney," says Thapar. "The law firm ning of Friday, November 15th, first took the position that, 'Look, after my November 14th order we need to allow the draft to clear was to have been complied with before we release the funds,'" he and trust funds transferred to the adds. "But you and I do banking applicants," wrote Thorburn. "It is all the time. These are not cheques; clear that Mr. Heydary was aware they're bank drafts. How long does of my November 14th order." With more than 1,400 pages of essential legal references, Ontario Lawyer's Phone Book is your best connection to legal services in Ontario. Subscribers can depend on the credibility, accuracy and currency of this directory year after year. MORE DETAIL AND A WIDER SCOPE OF LEGAL CONTACT INFORMATION FOR ONTARIO THAN ANY OTHER SOURCE: • More than 27,000 lawyers • More than 9,000 law firms and corporate offices • Fax and telephone numbers, e-mail addresses, office locations and postal codes INCLUDES LISTS OF: • Federal and provincial judges • Federal courts, including a section for federal government departments, boards and commissions • Ontario courts and services, including a section for provincial government ministries, boards and commissions • The Institute of Law Clerks of Ontario • Small claims courts • Miscellaneous services for lawyers EARLY BIRD ORDERS MUST BE ACCOMPANIED BY CREDIT CARD PAYMENT ORDER YOUR COPY TODAY AND ENTER TO WIN AN iPAD MINI** * Offer expires December 15, 2013 • price is based on orders of 100 copies or more **available to new purchasers only EARLY BIRD MULTIPLE COPY DISCOUNTS Perfectbound • December 2013 SPECIAL PRICE $74 (Regular $77) L88804-626 1-9 copies …………………………………………$74 10-49 copies ………………………………………$70.15 50-99 copies ……………………………………$67.84 100 or more copies ………………………$64.76 Multiple copy discounts available Shipping & handling plus applicable taxes are extra Visit carswell.com or call 1.800.387.5164 for a 30-day no-risk evaluation Untitled-1 1 www.lawtimesnews.com 13-09-13 10:32 AM Heydary's departure came as a surprise to Hayes, who notes he's "as in the dark as you are about what exactly happened and where Heydary has gone." Counsel for another Heydary Hamilton lawyer, Darren Smith, confirmed Smith had received the order and sent it to Heydary, the judge said, noting Heydary had said he "would be dealing with the matter himself." When a lawyer who works with Heydary called the firm's bank regarding the $2.1 million, she was told "no trust funds belonging to the Abuzours was there," according to Thapar. According to Thorburn's endorsement, the lawyer who called the bank was also told Heydary is the only person who has the authority to withdraw those funds. The endorsement also says Heydary's counsel, David Shiller, made numerous attempts to contact his client to no avail. Thorburn gave Shiller permission to remove himself as counsel of record if he wishes. Shiller didn't respond to a request for comment. Law Times couldn't reach Heydary either. Thapar's clients are bringing a contempt application against Heydary Hamilton and its directors for breach of Thorburn's Nov. 14 order. "Heydary PC's counsel refused to provide the court with any explanation or circumstances as to why Heydary PC failed to comply with the November 14 order, despite repeated requests from Justice Thorburn for an explanation," the applicant's factum states. "Justice Thorburn provided Heydary PC's counsel an opportunity to speak to its client to find out why the November 14 order had not been complied with. Heydary PC's counsel refused to disclose or provide the court with any explanation and stated that it cannot provide an explanation as its obligation was to protect Heydary PC." The contempt hearing was adjourned to Nov. 29 when all parties, including the law society, were to appear before the judge to seek any necessary changes to the ex parte order. As for Hayes, he expects the law society will allow him to transfer client files to a separate law firm, Hayes eLaw LLP. The developments follow a Law Times story on Nov. 11 in which Heydary Hamilton touted a new model of affiliated boutique law firms. The Heydary law firms, all of which are separate legal entities from Heydary Hamilton, include Heydary Hayes, Heydary Green Professional Corp., Heydary Elliott Professional Corp., and Heydary Samuel Professional Corp. "Heydary Green PC is a separate law firm that is carrying on business as usual," said Michael Cochrane of Heydary Green. "We are serving our clients. The issues currently being reported are confined to Heydary Hamilton." LT

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