LawPRO finished 2012 with a deficit of $2.9 million, according to financial statements presented at the Law Society of Upper Canada Thursday.

Distribution of claims by practice area. (Source: LawPRO)

The insurer attributed the loss to reduced premium rates and a “troubling, ongoing trend” when it comes to swelling claims figures.

“Claims costs are high and rising,” LawPRO said in its report, adding the number of claims reported to the Ontario insurer in the last year “increased significantly” to 2,560, a jump from less than 1,800 at the beginning of the decade.

In the same period, the average cost per claim also increased by $10,000. The median amount was pulled up by a growing number of severe claims, which cost greater than $100,000. While these exorbitant cases amounted to a claims expense in the $80- to $90-million range between 2007 and 2011, “the 2012 program’s ultimate cost is projected to exceed this range,” said LawPRO.

“The growth in claims is faster than the growth in lawyers and premiums,” said Susan McGrath, chairwoman of LawPRO’s board of directors and a law society bencher in presenting the report.

What McGrath called “Ontario-specific characters,” such as high cost of real estate and legal services also rack up claims expenses.

Not surprisingly, the real estate and litigation practice areas resulted in the majority of claims LawPRO received, amounting to 33 per cent of claims cost.

“Looking more closely at the underlying cause of claims by policy year, we are seeing a startling increase in types such as time management, as well as failure to either know or apply the law,” according to the report.

LawPRO currently has 3,500 open files, the highest number in the last decade. This is “despite a concerted and successful effort on the part of the company’s claims group to close more files than the previous year,” it said.

But LawPRO praised its work when it comes to its expanded online efforts to help lawyers avoid claims, particulary through its Avoid a Claim blog (http://www.avoidaclaim.com/). It also reported a survey result that showed 86 per cent of lawyers were satisfied with how the company handled their claims.

Last year, LawPRO won all six matters it took to trial and on which a decision was rendered. It was also victorious in both matters that went to appeal and succeeded in 18 out of 25 summary judgement applications.

LawPRO’s full report can be found here.

Canada

Harper government shows support for private bill that could mean 40 year sentences, The National Post

Contractor's lawyer seeks jail time for client who destroyed home, drained savings of elderly woman, Toronto Star

UN to question Canada on treatment of indigenous people, Calgary Herald


United States

Court rules commentary not needed for fair use defence in 'landmark' copyright ruling, Reuters

Appellate specialist on board to defend $400M antitrust verdict against Dow Chemical, Reuters


International

Venezuelan opposition leader to challenge election results in court, Reuters

Legal sanctions on Putin's opposition causes some to accuse him of 'Stalinism', Reuters

A greater focus on technology and strong leadership from the judiciary are both key to improving access to civil justice, according to a series of reports released yesterday by the National Action Committee on Access to Justice in Civil and Family Matters.

A greater focus on technology and strong leadership from the judiciary are both key to improving access to civil justice. (Photo: Gail J. Cohen)

The reports and their recommendations will form much of the basis for discussion at the CBA’s Envisioning Equal Justice Summit that takes place in Vancouver over the next couple of days.

“The role of technology is an important feature of the committee’s thinking,” says Trevor Farrow, chairman of the Canadian Forum on Civil Justice who participated in the creation of the reports.

Technology is seen as a way to make the system more fair, just, efficient, and streamlined, Farrow tells Legal Feeds. While there are strides being made in some provinces, Canadian courts generally lag behind those in other developed nations.

“It is trite to say that technology is changing the world," notes the report on court processes. “While lawyers and judges are working hard to keep up, it is not very controversial to say that, as a general matter, courts and the legal profession have some work to do to catch up to the current technology movement.”

Suggestions for improved technology in the courts include creating interactive court forms, developing and encouraging the development of e-filing and e-courts, and encouraging teleconferencing and videoconferencing, particularly in remote areas.

But the reports also suggest access to legal information to better inform citizens — who should be the primary focus of all access to justice initiatives — of their rights and obligations can be relatively easily achieved through more online legal information.

“The key justice system stakeholders in each Province and Territory should collaborate to explore and realize the access to justice benefits of web-based legal services and on-line dispute resolution models,” says the report on access to legal services.

Online information can be the basis for public legal education and information initiatives that are particularly important with the growing number of self-represented litigants in the courts. Providing them with solid legal information up front will benefit not only those who don’t have legal representation but the whole court system as unrepresented litigants will be better able to manage their cases.

While the reports laud changes already underway in many areas, there is still some way to go to make the civil justice system responsive to those who use and need it.

Primarily in the courts, there needs to be a “culture shift.” And judges must be at the forefront of that shift and be active in sharing changes and improvements with judges in other courts and jurisdictions.

“Judges in this country have a high degree of respect from the public and stakeholders in the justice system,” says Farrow.

That level of respect gives them great power to pull the system back or move it forward, he says. But being the trenches every day, judges know what is happening and many have good ideas for ways to make the sytem better.

The report suggest some examples of leadership initiatives

• Judges and court staff should actively work together to find ways of improving communication to deal with specific problem areas or issues that are in need of reform (scheduling, trial management, document management, etc.).
• Positive examples of public engagement and public education by judges (and court staff) should be encouraged in order to “speak out for justice” (including at new judge ceremonies, opening of the court ceremonies, at schools, colleges and universities, etc.).
• Internal initiatives, potentially including annual awards and/or other forms of recognition for staff ideas in the area of improving court performance, should be considered and welcomed.

But it is not just up to the courts. Every player in the system can have a role to play from the government, to lawyers, social services, the courts, and others.

“We see need for change all along the justice continuum,” says Farrow.

Asked if he thought these reports would end up sitting on the shelf collecting dust like so many others on improving the civil justice system, Farrow says he’s optimistic that substantial change is on the way.

“Now, I think there’s more a national discussion than ever before,” he says. “People are really starting to take seriously the need for change.”

He notes the push is coming from Chief Justice Beverley McLachlin down through the whole justice system and beyond. “It is so broadly based, it has wide support across the country and deeply within the system.”

All four reports from the National Action Committee on Access to Justice in Civil and Family Matters are available on the Canadian Forum on Civil Justice’s web site.

Canada

Years of legal wrangling ended when court ruled woman must remove niqab to testify, The National Post

Terror suspect refuses to acknowledge Criminal Code, says it is not a holy book, Calgary Sun

Condo dwellers surprised by 'perfectly legal' 10 per cent rent increase, Toronto Star 


United States

Patent challengers use review process to 'strike first' before litigation has started, Reuters

Healthcare on top of priority list for enforcers of antitrust law, Reuters


International

EU antitrust body is looking into Google concessions, Reuters

Arab bank ordered by court to face financing trial, Reuters

Veteran lawyer and political campaigner Ralph Lean has called for firms to better accommodate those who wish to work into their 70s, as he leaves Cassels Brock & Blackwell LLP for Heenan Blaikie LLP.

Ralph Lean will join Heenan Blaikie as counsel after 25 years at Cassels Brock.

Lean is leaving Cassels next Tuesday after he says the firm failed to make him an offer to stay beyond its mandatory retirement age of 68 that he felt reflected his experience.

Lean, who is 67, tells Legal Feeds: “In early January they offered me a contract for two years but we couldn’t agree. . . They offered me less than I thought I was worth.”

He had “nothing negative to say” about Cassels, where he has worked for 25 years, noting he was leaving on good terms.

“In the past two days I’ve had 25 to 30 partners visit me. They’re devastated that I’m leaving but understand it was a business decision,” he says.

But he believes firms need to “figure how do we deal with 68 year olds who want to stay and want to practise.”

“We live in an age of age discrimination,” he says. “The present 67, 68 is the old 40. I’m choosing to carry on working because I want to. I’ve seen too many of my clients sell their business and have more money than they ever dreamed possible and almost 100 per cent of them get sick.

“I didn’t want to go to Florida for five months a year. I imagined putting deals together and raising money for political campaigns and raising money for charity.”

Lean sits on the board of several charities and is a visiting professor at Ryerson University as well as a well-known political fundraiser.

A self-declared Conservative, he plans to support controversial Toronto mayor Rob Ford’s re-election campaign in 2014, due to Ford’s “economic performance.”

In 2010, he worked with Ford’s unsuccessful Liberal opponent George Smitherman. He previously raised funds for former Toronto mayor David Miller, before withdrawing from the camp after several years due to clients’ concerns with the direction Miller was taking.

He says he is excited to be joining a firm that counts prime minister Pierre Trudeau among its alumni, and will move to Heenan Blaikie on May 1 as counsel.

The contract lasts just over 2.5 years, but both parties “expect it to get renewed,” says Lean, who notes he was offered a “significant bonus based on performance.”

He is confident the majority of his clients will move with him, due to the close relationships and networks he has built over the years.

“I have a huge Rolodex. I probably know more people than any lawyer in the country,” he says.

His web site reveals his clients include Donald Trump and NBA star Vince Carter and that he goes fishing with former U.S. president George Bush.

He hopes to also use his role as honorary consul for the Kingdom of Morocco to connect contacts there with Heenan Blaikie’s Paris office and says he will play a part in the firm’s China strategy, making the most of his “spectacular contacts in the government.”

He adds: “I hope I can make the next 20 years at Heenan Blaikie. My vision has always been to die at my desk, unless I have a health issue and can’t get to my desk.

“This has been a very troubling month but I never felt younger. I have a new career. My new partners are excited and jumping in files and calling me and couldn’t have welcomed me more.”

One of the two men accused of an al Qaeda-backed plan to derail a passenger train in Canada questioned the authority of Canadian law to judge him, telling a court on Wednesday the Criminal Code is imperfect and is not a holy book.

Canadian police escort suspect Chiheb Esseghaier from a plane to a truck after arriving in Markham, Ont. (Photo: CTV News)

Chiheb Esseghaier, a Tunisian-born PhD student, faces charges that include conspiracy to murder and working with a terrorist group.

He and another suspect allegedly hoped to derail a passenger train, perhaps at a bridge near the U.S.-Canada border, with possible heavy loss of life, said authorities.

In a brief hearing where he was ordered back into custody, Esseghaier, 30, said the allegations against him are based on laws that are unreliable because they are not the work of God.

“All of these conclusions was taken out based on [the] Criminal Code,” he told a Toronto court. “The Criminal Code is not [a] holy book.”

He added: “Only the creator is perfect.”

Esseghaier, who has a thick black beard and wore a blue-black windbreaker, declined to use an Arabic interpreter the court had made available. But he seemed to struggle at times to understand the proceedings.

Canadian authorities said they have linked the two to al Qaeda factions in Iran. They said, however that there is no indication the plans, which police described as the first known al Qaeda-backed plot on Canadian soil, were state-sponsored. Tehran has vehemently rejected any ties to the arrests.

Authorities said there is also no connection to the Boston Marathon bombing. But U.S. officials say investigators are trying to establish if the two suspects were part of a wider network with associates in the United States, especially in New York.

Esseghaier, along with Raed Jaser, 35, of Toronto, were arrested on Monday in separate raids after what police said was a joint Canada-U.S. investigation that started last year after a tip from a member of the Muslim community.

Jaser was remanded into custody on Tuesday. He denies the charges against him, said his lawyer John Norris, who has also represented Canadian Guantanamo detainee Omar Khadr.

Jaser was born in the UAE and came to Canada with his parents as refugees 20 years ago, although he only recently obtained status as a permanent resident.

U.S. officials said the suspects were believed to have worked on a plan to blow up a trestle bridge on the Canadian side of the border as the Maple Leaf, Amtrak’s daily run between Toronto and New York, passed over it.

Canadian police said there had been no immediate threat to rail passengers or to the public.

Police had tracked Esseghaier for a year before making the arrests. U.S. sources close to the investigation said he made several trips to the United States, with one official saying “loose ends” were still being pursued in the United States.

Why the arrests were made on Monday was the source of speculation on Wednesday, with some reports saying officials felt a sense of urgency to act preventively after the Boston tragedy and others saying they decided to act after intelligence showed the plot was closer to being execution.

“I don’t get into operational matters,” Canadian Public Safety Minister Vic Toews said when asked to comment on the timing of the arrests.

Jaser’s lawyer Norris called the timing of the arrests “notable”, citing the events in Boston and anti-terror legislation being debated in Parliament.

The link to Iran has puzzled some experts, as there has been little evidence of attempts by the few al Qaeda figures there to attack the West. However, a U.S. government source said Iran is home to a little-known network of alleged al Qaeda fixers and “facilitators” based in the city of Zahedan, very close to Iran’s borders with both Pakistan and Afghanistan.

Canada severed diplomatic ties with Iran last year over what it said was Iran’s support for terrorist groups, as well as its nuclear program and its hostility towards Israel.

Canada

Toronto immigration lawyer offering free services to dying mother in fight to have daughters made Canadian citizens, Toronto Star

Father of teen who killed herself after being bullied calls for new law against online harassment, Vancouver Sun

Lawyer for two media publications says judge erred on murder case publication ban, Chronicle Herald


United States

Public defender takes on complicated task in Boston bombing case, Reuters

Appeals court rules 1998 copyright act is not a defense for online music service, Reuters


International

Euro zone's top project to boost economy will not wait for EU law change: Eurogroup head, Reuters

Protest leader calls charges against him 'trumped up,' urges court to throw case out, Reuters

Two men charged in Canada with plotting an attack on a passenger train appeared in separate courts on Tuesday while Iran reacted angrily to police accusations that the plotters were backed by al Qaeda elements in Iran.

John Norris, the lawyer for terror suspect Raed Jaser, speaks to the following his client’s brief appearance in at Old City Hall court this morning. (Photo: Jon Blacker/Reuters)

Raed Jaser, 35, of Toronto and Chiheb Esseghaier, 30, of Montreal were arrested in separate raids and charged on Monday, sparking worries of a Canadian attack just one week after the Boston Marathon bombings killed three people and injured more than 200.

Jaser arrived at the procedural hearing in Toronto’s Old City Hall courthouse sporting a long black beard and black cap. Details of the hearing are covered by a publication ban.

Jaser, who denied any involvement, was detained and will return for a bail hearing at a later date, his lawyer, John Norris, told reporters.

“He denies the allegations and he will vigorously defend them,” Norris said outside the court, describing Jaser as being in a state of “shock and disbelief.”

He would not disclose Jaser’s nationality but said he has been a resident of Canada for 20 years.

Outside the court room, a middle-aged man, a woman in a cream-colored hijab and a younger man identified themselves as family, but would not give their names or answer questions.

Esseghaier, a Tunisian-born doctoral student at a Montreal-area university, appeared at a Montreal court, handcuffed and in shackles.

He told the judge that conclusions had been drawn from deeds and words “that are only appearances.”

“We can’t conclude. . .” he said before being cut off by Quebec judge Pierre Labelle, who said this appearance was only designed to fulfill a legal requirement that he appear in his province within 24 hours of his arrest.

Bearded and bespectacled, Esseghaier was remanded in custody until an arrest warrant is executed and endorsed in Quebec. Federal prosecutor Richard Roy said he expected this to happen Tuesday, allowing Esseghaier to be flown back to Toronto for a court appearance there.

Canadian authorities have linked the two to al Qaeda factions in Iran but they say there is no indication the attack plans, which police described as the first known al Qaeda-backed plot on Canadian soil, were state-sponsored.

Police said they had been investigating the two suspects since last fall after a tip from the Muslim community in Toronto.

U.S. officials said the attack would have targeted a rail line between New York and Toronto, a route that travels along the Hudson Valley into New York wine country and enters Canada near Niagara Falls.

Canadian police said only that the plot involved a passenger train route in the Toronto area.

Little is known about Jaser but a spokeswoman for the Institut National de la Recherche Scientifique near Montreal confirmed to Reuters that Esseghaier was a doctoral student at the research institute.

Iran had some senior al Qaeda figures under a form of house arrest in the years following the Sept. 11, 2001, attacks, but there has been little to no evidence to date of joint attempts to execute violence against the West.

However, a U.S. government source said Iran is home to a little-known network of alleged al Qaeda fixers and “facilitators” based in the city of Zahedan, very close to Iran’s borders with both Pakistan and Afghanistan.

Iran reacted angrily to being tied to the arrests. Canada last year severed diplomatic ties over what it said was Iran’s support for terrorist groups, as well as its nuclear programmed and its hostility towards Israel.

“No shred of evidence regarding those who’ve been arrested and stand accused has been provided,” Iranian Foreign Minister spokesman Ramin Mehmanparast said, according to the Mehr news agency.

Starbucks has named Gowling LaFleur Henderson LLP as the recipient of its International Excellence in Diversity Award for 2012 — the first Canadian firm to receive the award.

(l to r) Gowlings’ CEO Scott Jolliffe, Gowlings’ partner Susan Rosen, Michele Jenkins, director, managing corporate counsel of Starbucks Coffee Canada, Gowlings’ COO Sharon Mitchell and Gowlings’ managing partner Stephen Pike.

Presented by the coffee company’s law and corporate affairs department, the distinction recognizes Gowlings for its efforts to enhance diversity and promote inclusion — both within the firm and across the legal profession.

“In all categories, Gowlings consistently demonstrated a deep commitment to diversity,” said Lucy Lee Helm, Starbucks’ executive vice president, general counsel, and secretary in a statement. “In 2012, the firm’s percentage of women attorneys and partners was best in class among our international law firms. Their efforts are deeply impressive and demonstrate true leadership in enhancing diversity and creating critical opportunities for diverse legal professionals.”

Some of the categories Starbucks measured included:

• The number of diverse professionals from Gowlings who have worked on legal matters for Starbucks;
• The number of diverse professionals granted partnership status at Gowlings in recent years;
• The firm’s overall support for diversity initiatives and programs, both internally and externally;
• The existence of an organizational structure that reflects a strong commitment to diversity, including flexible work options and formal mentorship programs.

Gowlings represents Starbucks in numerous areas in all of its offices across Canada and in Moscow. Susan Rosen, the firm’s client team leader for Starbucks says the coffee giant requires Gowlings to engage a diverse roster of lawyers to work on its files.

“Starbucks recognizes that it takes a diverse team to effectively serve a diverse clientele, and they’re committed to upholding a culture where diversity is valued and respected. This extends not only to their own organization but to all of their external service providers worldwide, including law firms,” says Rosen.

Starbucks has conducted an annual diversity survey of its legal service providers around the world since 2009.

The results give Starbucks the ability to compare the diversity efforts of law firms. Previous award recipients include Morrison & Foerster LLP, Baker & McKenzie, and Littler Mendelson PC.

Sharon Mitchell, Gowlings’ chief operating officer says clients regularly ask about diversity within the firm’s ranks.

“Sometimes it’s in the context of an RFP; other times it’s just part of a client’s overall evaluation of our firm. We’re always happy to provide this information because we understand how critical diversity is to an organization’s success, and we feel the exact same way.”

Diversity is increasingly becoming a factor for companies when engaging external counsel, although Canadian firms well behind their American counterparts on this issue.

“Yes, we’re definitely seeing this more often. Increasingly, general counsel — especially in the U.S. — are asking us to provide some background into the diversity of our teams. Ultimately, they want law firms to reflect the diversity in their own organizations, and Gowlings is well positioned to do this,” says Mitchell.

Over the years, Gowlings has supported a range of diversity and social responsibility initiatives. It is a founding member of the Law Firm Diversity and Inclusion Network, and one of the original signatories to the Law Society of Upper Canada’s Justicia Project, aimed at retaining more women in legal private practice. The firm has since spearheaded the Justicia Project on behalf of the Law Society of Alberta and the Law Society of British Columbia.

Canada

Toronto lawyer denies 'nasty tweets' about Boston bombings from his Twitter account, Toronto Star

SCC Justice Morris Fish is retiring, leaving Harper to make next appointment, Calgary Herald

Engineer charged under health and safety laws in deadly Elliot Lake mall collapse, The National Post


United States

Antitrust law tested by Cablevision's suit against Viacom, Reuters

Court rules Medicare plan has 'no right' to sue man's survivors for medical expenses, Reuters


International

Egypt's president takes back plan to 'purge' judges, says he will respect the judiciary, Reuters

100 political prisoners get amnesty from Myanmar, Reuters