Douglas C. Hodson

In an appeal concerning transportation regulation, the appellant sought to invalidate amending rail interswitching regulations on the basis that the regulator followed improper governmental direction in the rule-making process.

The appellant accepted that the regulator had statutory authority and that a presumption of proper administrative action applied.

The Court held that no evidentiary foundation was provided to rebut that presumption.

The appeal was dismissed with costs to the federal respondent.

The Court allowed the appeal and held that the law firm breached the duty of loyalty by accepting a retainer directly adverse to a current client without consent, then breaching duties of commitment and candour by dropping existing retainers and failing to disclose.

The bright line rule against concurrent adverse representation applies to related and unrelated matters, subject to limited scope constraints.

The matter was remitted for redetermination of remedy focused on maintaining public confidence in the administration of justice.