Law Times

Remember when? A look at some of the big stories, including scandals, that have raised eyebrows since 1990 By Glenn Kauth THE LANG MICHENER AFFAIR A Bay Street fi rm that no longer exists was at the cen- tre of controversy in the fi rst issue of Law Times on Jan. 22, 1990. at month, a Law Society of Upper Canada disci- pline panel found Albert Gnat, Bruce C. McDonald, Bruce A. McKenna, Donald N. Plumley, and Donald J. Wright had knowingly breached a duty to "make timely disclosure" to the regulator of the suspected il- legal activities of former Lang Michener LLP partner Martin Pilzmaker. Although senior management at the fi rm was aware of rumours of unethical behaviour by Pilz- maker as early as February 1986, it didn't inform the law society until December of that year. Pilzmaker, an immigration lawyer, was the subject of heated debate at the fi rm by early 1986 amid concerns over his bill- ing practices, rumours of unethical conduct, and what Law Times referred to as a gaudy and extravagant life- style. An investigation by a partner at the fi rm that Au- gust found "clear evidence" of illegal or unethical acts. But that wasn't all there was to the so-called Lang Michener aff air. As details about the case emerged, there were questions about why the law society i nvestigated but didn't pursue discipline against four other senior Lang Michener lawyers. While investiga- tors recommended charges against all nine lawyers, LSUC discipline chairman Paul Lamek declined to do so. Given that the four high-profi le partners in- cluded Burke Doran, a law society bencher, the deci- sion raised concerns about favouritism by the LSUC. While Lamek said a report by the law society's outside counsel didn't support charges against the remaining four lawyers, Law Times obtained a copy of that docu- ment that suggested otherwise. LAWYER GETS NINE YEARS FOR STOCK SCHEME He's gone on to a successful career as a legal journalist, but Julius Melnitzer had been a prominent lawyer in London, Ont., prior to a downfall sparked by criminal charges laid by the Royal Canadian Mounted Police in 1991. at year, the partners at Cohen Melnitzer ex- pelled him from the fi rm a er police charged him with uttering forged share certifi cates worth more than $25 million. At the time, police had also searched a printing company, the results of which unearthed an additional $100 million in forged stock certifi cates. 24 Duncan Street, ird Floor, Toronto, Ontario, M5V 2B8 Telephone: (416) 864 -6200 Facsimile: (416) 864 - 6201 www.taxandtradelaw.com Almost two decades ago, a leading Canadian lawyers magazine featured Millar Kreklewetz LLP in an article on Canadian Super Boutiques, calling us a "brand name for commodity tax and related international trade work". Not much has changed. Today we continue to assist a wide range of national and international companies with their indirect tax and trade issues and provide specialized advice to Canadian and U.S. lawyers seeking assistance in these matters for their own clients. Millar Kreklewetz LLP would like to take this opportunity to congratulate Law Times, its editors, writers, and hard-working staff , for 25 successful years in the Canadian legal publishing industry! MillarKreklewetz_LT_Mar24_14.indd 1 14-03-20 9:35 AM In December 1991, Melnitzer, now a writer for publications such as Law Times, pleaded guilty to 43 charges of forgery, fraud, and attempted fraud. In addition to the banks he defrauded, some of Melnitzer's former law partners and other business associates lost millions. In 1992, the court sentenced him to nine years. AG, DEPUTY IN PUBLIC BATTLE A dispute over the hiring of a prominent lawyer at the Ministry of the At- torney General was at the heart of a bitter battle between former deputy at- torney general Mary Hogan and then-attorney general Howard Hampton. In early 1992, Law Times obtained a letter from a lawyer retained by Hogan and addressed to former premier Bob Rae seeking a federal judicial appointment as she was on the verge of losing her job due to her dispute with Hampton. e letter noted Hogan's "enormous and constant stress" in her work- ing relationship with Hampton, who "has refused to work with her." Part of the discord stemmed over the pair's disagreement over the hiring of Michael Code, now a Superior Court judge, as deputy min- ister of criminal prosecutions. Hampton wasn't happy about hiring a defence lawyer as the province's chief Crown. e letter suggested the parties had agreed Hogan would stay in the job until she received a federal judicial appointment. But in the end, she ended up returning to the Ontario Court of Justice, where she still serves as a judge. e story also ensnared Law Times, which received a visit from police investigating the source of the leaked letter. BAY STREET LAWYER'S FALL FROM GRACE It was a signifi cant fall from grace when Bay Street lawyer Bob Donald- son found himself facing discipline for his misconduct. In 1992, Donaldson received an 18-month suspension for mis- conduct that included deliberately misapplying client general account balances and recklessly obtaining personal fi nancial benefi ts by using plane tickets paid for by his fi rm or its clients. e case, described as "a truly tragic situation" by the committee head, included revelations of Donaldson's excessive alcoholism. e former Blake Cassels & Graydon lawyer billed about 1,000 more hours a year than most lawyers and described leaving the offi ce at 4:30 a.m. and returning at 7 a.m. According to a 1992 story, Donaldson was someone who spread himself too thin in his eff orts to be all things to all people, a situation that prompted his psychiatrist to tell him he was "an accident looking for a place to happen." LSUC BATTLES $122-MILLION INSURANCE DEFICIT You might think Ontario's public institutions are in a fi nancial mess now. But do you remember the Law Society of Upper Canada's massive insurance defi cit? In 1994, lawyers faced massive hikes in their errors-and-omissions insurance rates due to a $122-million defi cit. In July of that year, bench- ers pondered whether to keep the July levy at $2,175 pending a study of the issue. Already, lawyers had paid $2,175 in January of that year, an amount that included an increase to off set the defi cit. Today's fees look pretty good given the 2014 base premium of $3,350 per insured lawyer. e fee hikes prompted big debates within the profession. Criminal lawyers, for example, took aim at the real estate bar, contending they were responsible for most claims. SUSPENDED LAWYER STABS LSUC DISCIPLINE COUNSEL A lawyer suspended by the Law Society of Upper Canada because of mental illness turned on the regulator's counsel in a violent incident that earned him a criminal conviction in 1995. at year, Justice Frederick Hayes found Dwight Raymond Taylor guilty of stabbing Robert Conway in 1987. Convocation had suspended Taylor in 1983, but his dealings with the law society and discipline counsel Conway continued as he sought www.lawtimesnews.com Mary Hogan's battles with former attorney general Howard Hampton were available for all to see when Law Times received a leaked letter detailing her distress. Page 16 March 24, 2014 • Law TiMes

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