Law Times

Law TiMes • May 2, 2011 NEWS PAGE 5 Judge paves way for resolution of law firm breakup BY MICHAEL McKIERNAN Law Times Matlow ordered the new firm to turn over the names and contact information for all affected cli- ents, as well as the status of the claim, billing details since its ori- gin, and the amount of any settle- ment by May 13. Loreto must then notify the affected clients whose accounts are ordered to be assessed. They may participate in the hearings if they wish, although they may not have representation by any- one with a connection to the new firm or Loreto. Despite his order, Matlow 'All I want is to get on with my life and all I want is my money, but they don't want to give me my money,' says Frank Loreto. transferred contingency-fee files following a bitter split at a To- ronto personal injury firm nearly three years ago. Late last year, Frank Loreto A sued four of his former associ- ates in a $3-million lawsuit alleg- ing they were unjustly enriched when they brought 225 clients with them to their newly estab- lished firm, Little Morello Vettese Segreto LLP, in the summer of 2008. The move followed the dis- missal of an earlier claim by Lore- to that the new firm's principals, Ian Little, Dianna Morello, John Vettese, and Piera Segreto, had breached their fiduciary duty to him when they approached cli- ents to switch to Little Morello Vettese Segreto. The lawyers had previously worked at Loreto Lit- tle Morello and ran the personal injury practice that generated 95 per cent of its total billings. Many of the files have re- sulted in large settlements with a 30-per-cent contingency fee due to the lawyers. The four lawyers say Loreto can only be paid for work done on the cases before the transfers, but he wants to see the whole file, including the details of any settlement, before deciding what to charge for his portion. Assessments had already be- gun in 26 cases after the new firm objected to accounts de- livered by Loreto. In addition, the split has spawned 14 Small Claims Court actions between Loreto and individual former clients as he sought payment. In the meantime, the new firm brought a motion to have the latest unjust enrichment claim dismissed, but all legal proceedings related to the case have now been stayed after law- yers for both sides agreed to let Ontario Superior Court Justice Ted Matlow set a road map for the resolution of the fee dispute. In coming to the agreement, Matlow said the parties "unchar- acteristically decided to exercise common sense and good judg- ment" in what has otherwise been a "long, hostile, costly, and so far unproductive saga" characterized by "bad feelings and hostility." In his April 18 ruling, Superior Court judge has paved the way for assess- ments of more than 200 held out hope for a less compli- cated way to proceed. "It would be far better for many reasons if the principal parties could still find a way to avoid the cost and effort and the consequences of engaging the affected clients in a dispute which is really not theirs but that of the various lawyers involved," he wrote in the deci- sion. "If no resolution can be reached, it is the lawyers who will ultimately have to explain this unseemly dispute and bear the inevitable consequences." But in an interview with Law Times, Loreto suggests the spirit of co-operation that led to Mat- low's decision won't last very long. "They're basically in denial," he says of his adversaries. "All I want is to get on with my life and all I want is my mon- ey, but they don't want to give me my money," he adds. The bad feelings stem in part from a peace bond application by the four lawyers against Loreto for threatening behaviour when he attempted to personally serve documents on them. A justice of the peace is currently hearing evi- dence on that application, which is back in court in late May. Loreto sees Matlow's decision as a victory because he had previ- ously argued for a consolidation of the assessments. Matlow also declined to disqualify an assess- ment officer that the new firm didn't want to see participate. But in a statement, Morello said she and her co-defendants were pleased to see Loreto's vari- ous actions stayed. "We are look- ing forward to moving forward without the threat of any further unnecessary litigation," she wrote. "It has been our goal to finalize matters between ourselves and Loreto at least expense to all con- cerned without bringing clients into the dispute." The split has its origins in a late-night meeting at the old firm in June 2008 when the four lawyers approached Loreto with a proposal for a profit-sharing partnership. Loreto says he felt ambushed by the offer and things quickly boiled over. Dismissing Loreto's claim for breach of fiduciary duty in Feb- ruary 2010, Superior Court Jus- tice Edward Belobaba found Lo- reto had fired two of the lawyers and constructively dismissed the other two during the explosive meeting. Within weeks, the new firm had set up shop and began ap- proaching former clients after seeking advice from the Law Society of Upper Canada on how to go about soliciting them. But Loreto claims the new firm cherry-picked files and says the split and its aftermath have al- most bankrupted him. Only a recent personal injury settle- ment allowed his firm to survive. "I'd run out of people to bor- row money from. I truly believe these people are shocked I'm still standing but I'm a survivor." CAYMAN ISLANDS GOVERNMENT On behalf of His Excellency the Governor, Duncan Taylor, CBE, the Judicial and Legal Services Commission invites applications for the position of GRAND COURT JUDGE SALARY: CI$190,187 (US$228,224) per annum (tax free) Candidates for this position must: • have a minimum of 10 years post-qualifi cation experience in the practice of law and be qualifi ed to practice as a lawyer in the Cayman Islands, the United Kingdom or the Commonwealth. • possess a sound and thorough knowledge of the particular areas of law which this post needs, and have the ability to interpret local legislation and case law in making decisions. • possess excellent research, analytical, oral and written skills. • have the ability to exercise good judgment and commitment and to be conscientious and to work diligently. • be able to command the respect of the legal profession and the community, and possess absolute personal integrity. • be able to demonstrate procedural fairness in all cases and deal tactfully and courteously with all participants, as well as with the public. • be a person of maturity and sound judgment, possessing strong communication and listening skills and expertise in time and management. The post holder will be subject to a Code of Conduct promulgated by the Judicial and Legal Services Commission. Additionally, he/she should preferably have: • specialist judicial experience of at least fi ve years in the criminal/civil division of a superior court of record. • experience of the trial of complex fi nancial criminal cases. www.recruitment.gov.ky Debbie.Bodden@gov.ky APPLICATION DEADLINE: 6 May, 2011 Cayman-1_LT_May2_11.indd 1 4/28/11 10:47:53 AM CAYMAN ISLANDS GOVERNMENT On behalf of His Excellency the Governor, Duncan Taylor, CBE, the Judicial and Legal Services Commission invites applications for the position of MAGISTRATE SALARY: CI$96,372 - CI$117,420 (US$115,646 - US$140,904) per annum (tax free) Candidates for this position must: • have a minimum of 5 years post-qualifi cation experience in the practice of law in the United Kingdom or a Commonwealth jurisdiction. • be able to demonstrate fairness in all cases and deal tactfully and courteously with all participants, as well as with the public. • be able to command the respect of the legal profession and the community, and possess absolute integrity. He/she must be impartial and independent of all outside infl uences and must conduct himself/herself at all times in a way that is consistent with the dignity of judicial offi ce. • be a person of maturity and sound judgment, possessing strong communication and listening skills and expertise in time and management. The post holder will be subject to a Code of Conduct promulgated by the Judicial and Legal Services Commission. Additionally, he/she should preferably have: • prior experience as a magistrate, preferably in the United Kingdom or a Commonwealth jurisdiction. • experience of drug trials, particularly drug importation and traffi cking cases, and less serious drug cases through the Drug Rehabilitation Court. • an enthusiasm to participate in various pilot projects in the Summary Court aimed at a more restorative approach to the treatment of domestic violence, D.U.I and psychiatrically-impaired offenders, which may lead to the promulgation of legislation for the establishment of new specialist courts. www.recruitment.gov.ky Debbie.Bodden@gov.ky APPLICATION DEADLINE: 6 May, 2011 Cayman-2_LT_May2_11.indd 1 www.lawtimesnews.com 4/28/11 10:45:47 AM Digital LT.indd 5 4/29/11 11:28:48 AM

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• Jury Hunt
• Contested Elections
• Focus On Personal Injury Law