Law Times

Law Times • OctOber 27, 2014 Page 3 www.lawtimesnews.com David McRobert, environmental lawyer, Peterborough, Ont. The global and national economic forces driving the move to ABS undoubtedly will increase in the next decade. The LSUC in its wisdom is facing the music by consulting with lawyers on various models for ABS. In the 1980s when paralegals began to lobby [the province] and the LSUC for status recognition in the courts and the legal system, many lawyers circled the wagons to keep them out and there still is resistance to them. The trend is inexorable, but we can develop a regulatory system in Canada that improves access to legal services and enhances the credibility of lawyers in our society. At the same time, the critics raise valid concerns that some businesses may not be suitable as owners or investors in law firms and could pose regulatory challenges to the LSUC." David Fysh, sole practitioner, London, Ont. Anyone other than lawyers owning law firms is a bad idea because then you have a whole agenda that's apart from practising law and doing the best for the client. It's a strictly business agenda, so I don't think it's a good idea. There was an attempt by First Canadian Title to set up closing centres to essentially displace lawyers in the real estate area. That attempt largely failed. It just didn't f ly, but you never know — somebody like Walmart might try to do something similar. I obviously don't think that's a good development and I wonder about the quality of service from an outlet like that. Again, the agenda will be set by people who are not lawyers, so they're not necessarily going to care about a lot of the issues that we would. They're going to look for profit. That's it." Thoughts on alternative structures from across Ontario by yamri Taddese Law Times T he Law Society of Upper Canada recently pub- lished a discussion paper on alternative business structures to get the profession talking about the possibility of allowing non-lawyers to own law firms. The options include partial or unrestricted ownership of law firms by those who aren't lawyers themselves. Some members of the bar say investment from non-lawyers is crucial for the legal profession as it would foster the kind of innovation it needs to stay relevant and competitive. But others are more skeptical. They worry about possible conf licts of interest that may come with inves- tors having a say in how law firms operate. The critics also predict challenges for small-firm and sole practi- tioners as large corporate owners force them out of the marketplace. Law Times asked several lawyers from across Ontario to join the debate and offer their thoughts on the issue. 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Preparing commercial documents has never been easier O'Brien's Encyclopedia of Forms and Precedents, Eleventh Edition Commercial and General, Division I Includes online access Order # L91111-65203 $1178 7 volume looseleaf supplemented book + online access Anticipated upkeep cost – $401 per supplement 3-5 supplements per year Supplements invoiced separately L91111 Also available in online only or print only formats Master Subject Index also available Shipping and handling are extra. Prices subject to change without notice and subject to applicable taxes. 00218EB-A43203 CANADA LAW BOOK ® Available risk-free for 30 days Order online: www.carswell.com/obriens Call Toll-Free: 1-800-387-5164 In Toronto: 416-609-3800 Graham Bennett, Giffen Lawyers LLP, Kitchener, Ont. The concern is we're afraid the big-box, sort of a McLaw approach might have some adverse effects on access to justice for people who might be vulnerable, who might have smaller claims. Concern No. 2 is the conf lict of non-lawyers having an ownership interest in large or even smaller firms. The concern is also whether or not there's any evidence that access to justice is significantly improved by the introduction of ABS. I think our view is that if you use caution and a take a go-slow approach, it may be worth considering. But we haven't seen any evidence so far of meaningful benefits to consumers through ABS." Howard Simmons, Simmons Da Silva LLP, Brampton, Ont. The outside financier is usually a bank and banks don't care what you do — they're looking at getting repaid. They don't care what kind of law you do — as long as they're secure, they don't care. But now you're going to have outside investors saying, 'I don't like you doing pro bono work, I don't see the financial value in that. I don't think you should take this case that's controversial.' Because while the lawyer might think it's good for him and the firm might think that's a lovely idea, [the investors would say], 'We think it's a bad idea as investors.' And as an investor, why wouldn't you think that? So I think there's high risk and there's not enough experience yet to see where this is going to fall out." Monica Goyal, Fleet Street Law, Toronto The current restrictions on law firm ownership mean that only the largest firms have the resources available to fund the costs of legal innovation. Disruptive, technology-driven change is coming to our profession like it has to every other profession, and if we don't allow outside interests to invest in smaller firms, we will see our profession take up less and less space in the legal services market." '' '' '' Roger Oatley, Oatley Vigmond Personal Injury Lawyers LLP, Barrie Ont. ABS might be good for national and international firms, but [it] ranges from inconsequential to disastrous for the rest of the profession. The big firms will take care of themselves. Corporate raiders will scoop up the plaintiff 's personal injury firms and will ignore everyone else. It won't improve access to justice one bit. Look around at the leading advertisers in the personal injury bar and ask yourself if you would want them to control the plaintiff 's personal injury bar or if you would want to work for them. Will the law society maintain control over large corporate owners? I doubt it. It would be the ruin of much that we now hold dear." Joan MacDonald, sole practitioner and Small Claims Court deputy judge, Hamilton, Ont. There's a great deal of investigation still required, but it appears that [ABS] may not be beneficial to small firms. Now, that's at first blush. Certainly, my view at this point, while it's premature, is that there are some red f lags that a few of us from this area have discussed and that is what is the impact going to be on solo and small firms and public access to justice. I'm a sole practitioner and I have been but for a few years in my career. Usually, we see many opportunities for large firms, but you have to be cautious to protect everyone in the profession." '' '' '' ''

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