Justin Katz

The Law Society of Ontario (LSO) sought a permanent injunction against a former paralegal, whose licence was revoked in 2017, for allegedly continuing to provide unauthorized legal services and holding himself out as authorized to do so.

The respondent argued that the LSO's investigation was flawed and that his actions fell under the "friends and neighbour" exception.

The court found that the respondent did provide unauthorized legal services after his licence revocation and that the "friends and neighbour" exception did not apply, as it is not available to revoked licensees and the respondent failed to meet its conditions (e.g., providing services in more than three matters per year and receiving payment).

A permanent injunction was granted.

The plaintiff, Sema Cetin, brought a motion to lift a stay of proceedings in her professional negligence action against her former lawyers, Thomas Percival, Jason Lam, and Krylov and Company.

The stay was initially granted by consent, pending the 'outcome of the trial' of a related motor vehicle action.

The motor vehicle action subsequently settled, leading the defendants to argue the stay was permanent as no trial occurred.

The court interpreted the consent order broadly, considering the surrounding circumstances and correspondence between counsel, finding that 'outcome' included settlement.

The court also applied the 'interests of justice' test, concluding that lifting the stay was necessary to allow the plaintiff's professional negligence claim to be determined on its merits, despite the defendants' arguments regarding prejudice and the extinguishment of claims.

The Law Society of Ontario brought an application for a permanent injunction to restrain Elizabeth Dias from practicing law or providing legal services without a license.

Dias, who was unlicensed, had provided extensive legal assistance and representation to an individual, Don Fex, in multiple Superior and Divisional Court proceedings.

Dias argued she was merely assisting a friend, relying on the "friend or neighbour" exception under By-Law 4 of the Law Society Act.

The court found that Dias's actions constituted the unauthorized practice of law, as the services provided exceeded what a licensed paralegal could offer and were rendered in Superior Court, making the friend or neighbour exception inapplicable.

The court granted the permanent injunction, emphasizing the public interest in preventing unauthorized legal practice and noting the prejudice caused to Mr. Fex by Dias's actions.

The plaintiff law firm, Srebrolow Lebowitz Spadafora PC (SLS), brought a motion for summary judgment against its former associate, Paul Wilkins, and his new firm, PW Lawyers Professional Corporation, regarding unpaid fees from client files transferred upon Wilkins' departure.

The dispute centered on whether certain referral fees paid by Wilkins to a third-party lawyer and a paralegal (who was an SLS employee at the time of referral) could reduce the net fees owed to SLS under their separation agreement.

The court found that the referral fee paid to the third-party lawyer was reasonable, but the fee paid to the paralegal was compensation, not a true referral fee, and thus not deductible.

The court also found PW Lawyers Professional Corporation liable by way of constructive trust for the funds owed to SLS.

The plaintiff, Mabe Canada Inc., sued the defendant, United Floor Ltd., in negligence for approximately $1 million in damages caused by a flood in its warehouse.

The flood resulted from a damaged drainage pipe located beneath the concrete floor, which the plaintiff alleged was punctured by the defendant's stakes during floor installation in 2004.

The court found that the pipe was indeed damaged by the defendant's stakes.

However, the court concluded that the defendant met the applicable standard of care, as the general contractor (First Gulf) failed to adequately inform United Floor of the shallow and unusual location of the pipes, and industry practice did not require the defendant to proactively locate such unexpectedly shallow pipes.

Consequently, the plaintiff failed to prove negligence, and no damages were awarded.