Law Times

Law Times • March 18, 2013 New LawPRO requirements for paralegal partnerships Page 5 NEWS Lawyers debate joint trial for Nortel BY JENNIFER BROWN Law Times D Rogers believes they'll strive to get a consensus because there's no oversight body to ultimately determine any divergence in opinion. Brandon Barnes, a lawyer with Davis LLP, doesn't see why it can't succeed and applauds the judges involved for coming up with a creative approach. "I think it's quite a wise decision in the sense there is a reluctance sometimes to acknowledge the limits of the jurisdiction of the court," says Barnes. "By that, I don't mean the legal jurisdiction but the geographic jurisdiction. There's a tendency to think the assets are overseas and it's out of our reach. Looking at this from a global perspective and recognizing the business of Nortel was essentially global in nature, why not allow the courts to rise to that level?" Barnes says it's important to understand the Nortel insolvency has a number of relatively unique features. While that may lead some to also think it will result in large legal bills and a lot of procedural hurdles, the reality is there's "only so much runway." The alternative would be an out-of-court procedure involving arbitrators from both sides of the border. Administrators for former Nortel units in Europe had asked the judges to send the matter to binding arbitration. They can appeal the decision. LT The premium has been underwritten espite concerns it could lead to for paralegals, according to Waters, who chaos, a joint trial to divvy up the adds the fees are "considerably lower than $9 billion from the liquidation of aralegals working in part- [for] lawyers." Nortel Networks Corp. could be a nership with lawyers will The required insurance coverage, creative solution that might just work, an insoon have to purchase says Tzanis, is a "fair and reasonable" solvency lawyer says. their own insurance price to pay to be able to rub shoulders Earlier this month, a U.S. judge and a Canafrom LawPRO. with lawyers at a law firm. dian counterpart agreed to a joint, simultaneous C onvo c at i on At times, a paralegal's trial. Kevin Gross, a U.S. Bankruptcy Court judge approved a motion actions could also mean in Wilmington, Del., told the parties on a conon Feb. 28 that will a claim against the partference call held jointly with Ontario Superior ensure paralegals' ner lawyer, the law society Court Justice Geoffrey Morawetz in Toronto that own insurance is committee said. In such the litigants should prepare for a trial late this year. responsible for cases, LawPRO not only Gross and Morawetz have been overseeing claims brought covers the lawyer's costs the liquidation of the former telecommunicaagainst them. but it also incurs an additions giant. LawPRO insurtional burden associated It may be the "best option of the options that ance coverage for with "pursuing the paraleremain," says Linc Rogers, a partner with Blake both partner lawgal partner in a subrogated Cassels & Graydon LLP. yers and paralegals action, who may face an Kathleen Waters "Although not desirable in the sense that will create consisuninsured exposure," aca consensual mediation would have had a tency and reduce gaps in coverage, cording to the report. resolution to it that all the parties would have according to the Law Society of In cases where a claim against a lawbought into and would have been preferable, Upper Canada. This also means yer due to a paralegal's actions succeeds, since that didn't work they were left with little lawyers don't have to bear the cost LawPRO would be "liable for a claim [for choice as to how to resolve this," he says. of a claim against paralegals they which] it had received no premiums," acGiven the judges in charge of the process, work in partnership with. cording to the law society. LT Under the current framework, a paralegal's insurance may refuse to cover negligence or actions outside the scope of practice, according to a report of the law society's paralegal standing committee. "This means that the paralegal risks being personally liable for any loss. This also raises a risk to the public that insufficient funds may be available to compensate a client." LawPRO president and chief executive officer Kathleen Waters calls the move "a public protection issue." "When you have a group of partners, if they have different insurers covering different partners, there is a bigger risk of claims sort of going down the middle," she says. "You have a heightened chance of ending up with a claim that may not get paid at all." Inside you will find: In effect, the new regulation will be applicable only to a small of more portion of paralegals. LawPRO than 58,000 barristers, solicitors and Quebec says it's aware of only 10 paralegals at eight law firms who work in notaries, corporate counsel, law firms and partnership with lawyers. judges in Canada; But the law society anticipates combined licensee partnerships for the Supreme Court of between lawyers and paralegals Canada, the Federal Court of Canada, Federal will occur more frequently in Cabinet Ministers, departments, boards, the future. John Tzanis, president of the commissions and Crown corporations; Paralegal Society of Ontario, says he hopes the new requirement gives lawyers enough asFebruary each year related to each province for the Courts of surance that more of them will Appeal, Supreme Courts, County and District be able to create partnerships L88804-590 Courts, Provincial Courts, law societies, law with paralegals. "I think as lawyers tend to schools, Legal Aid, and other law-related offices have more confidence in paraleL88804-590 of importance. gals and their ability to practise, Prices subject to change without notice, this is something that might happen more often," he says of the MORE THAN A PHONE BOOK to applicable taxes and shipping & handling. partnership approach. "I don't think five years ago many lawyers thought they would Visit carswell.com or call 1.800.387.5164 for a 30-day no-risk evaluation ever be in partnership with paralegals. It's a matter of confidence." A LawPRO estimate says the premiums for the required paralegal insurance coverage are in the range of $1,300-$1,400. BY YAMRI TADDESE Law Times P CANADIAN LAW LIST 2013 YOUR INSTANT CONNECTION TO CANADA'S LEGAL NETWORK Untitled-1 1 www.lawtimesnews.com 13-01-29 3:10 PM

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