Canadian Lawyer

10 F E B R U A R Y 2 0 1 9 w w w . c a n a d i a n l a w y e r m a g . c o m R E G I O N A L W R A P O N T A R I O ALTERNATIVE BUSINESS STRUCTURES REPORT COULD SPUR DEBATE IN BENCHER ELECTIONS W ith a Bencher election coming to the Law Society of Ontar- io this spring, the long-standing debate about expanding the legal industry outside of the traditional law firm model is set to be a hot-button issue. A consultation period for a LSO proposal for lawyers and para- legals to provide legal services through charities and not-for-profit corporations recently ended, and a report on alternative business structures should come before Convocation this spring. The next bencher election in Ontario will be on April 30. In the Law Society of Ontario's 2015 election, the Ontario Trial Lawyers Association came out in support of candidates who spe- cifically opposed alternative business structures. The law society's Alternative Business Structures Working Group has been looking at the issue since 2012 but the group shelved a proposal to allow non-lawyer majority ownership of law firms in 2015. Charles Gluckstein has been involved in the issue for several years through the OTLA. He says the organization had expressed concerns that certain alternative business structures could present conflicts of interest: for instance, a firm might drop a class action lawsuit because it is not moving fast enough to meet profit goals; or it might pres- ent quid pro quo opportunities for donors to civil service organiza- tions to get legal services. He said there was specific concern that Ontario lawyers could fall prey to "bottom line" pressures like those faced by lawyers in the U.K. and Australia. "[In 2015], we had warned the law society of the risks of having a non-majority-lawyer-run law firm. The law society did listen to us," says Gluckstein. Gluckstein says that, apart from a few minor tweaks, the law society's proposal for charities and not-for-profit corporations to provide legal services has support among trial lawyers, but that it's only the first iteration. Other, more corporate implementations of alternative business structures may not get the same level of support, he says. "If you look at demographically where the votes came from" in 2015, said Matthew Peters at panel discussion in Dec. 4, "it was a protectionist vote of the profession to prevent other people from coming in and ultimately preventing access to justice." Peters, who is McCarthy Tétrault LLP's national innovation leader, was speak- ing at the BC Legal Innovation Forum conference in Vancouver. The Law Society of Ontario currently allows a few key lawyer- and paralegal-owned business structures in the province: sole pro- prietorship, partnership, limited liability partnership, professional corporation, and multidisciplinary practice, according to the law society's 2014 discussion paper on the topic. So-called alternative business structures provide expanded options for business structures, such as equity financing by non- lawyers or non-paralegals, firms offering both legal and non-legal services, and firms offering legal tech solutions, the discussion paper said. Law Society treasurer Malcolm Mercer, who worked closely on the proposal before his election as treasurer last year, says there are no plans to continue the working group on alternative business structures after this proposal is implemented, so there is no intent to expand to other models. "We focused on civil society organizations because that was a clear focus on access to justice without raising collateral concerns," Mercer says. Rebecca Bromwich, a lawyer who is running for bencher and Program Director for the Graduate Diploma in Conflict Reso- lution program at Carleton University, says she is aware some lawyers feel that allowing alternative business structures at all is a "slippery slope." But, she says, the proposal that's on the table now is quite controlled, narrow and thoughtful. — Anita Balakrishnan, with files from Jennifer Brown "[In 2015], we had warned the law society of the risks of having a non-majority- lawyer-run law firm. The law society did listen to us." Charles Gluckstein The Bencher Election is Coming Visit out new micro-site devoted to the upcoming LSO Bencher Election with news coverage, candidate profiles and advertising opportunities for bencher candidates. Connect with all facets of the bencher election and make an informed decision by visiting BencherElection.ca today. Untitled-1 1 2019-01-23 1:08 PM

• Cover