Canadian Lawyer

January 2014

The most widely read magazine for Canadian lawyers

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But more firms are using another option as a stepping-stone, offering most of the trappings of a partnership without having the capital contribution. The non-equity partnership means no shared profit and no liability for the lawyer and usually no voting rights. Pekarsky describes it as a marketing tool used by both the lawyer and the firm and it signifies you've climbed another rung in the ladder. He also sees it as a leveraging tool used by firms to get an extra two to four years out of lawyers before bringing them into full partnership. It's also used for lawyers who are about to retire, but aren't quite ready to leave. They've taken their equity out of the firm, but they're still working and it remains important for them to be seen as a partner, so they become non-equity partners. But for young lawyers, this interim phase delays their access to a full partnership, so it could well take up to 12 years from their year of call to become equity partners. In a full partnership, the role of the individual lawyer is much different in a small firm than it is in a large firm. From his perspective at a boutique firm, Pekarsky feels much more like an entrepreneur who daily makes decisions about the direction of his business. In a large firm the decisions are largely left to a senior leadership group. "The whole quest for partnership is just a giant pie-eating competition where the first prize is a piece of the pie," he says. "Your ability to influence is so minimal, you may as well be an employee." In fact, what status the individual lawyer has within the large firm is a question the Supreme Court of Canada has been asked to answer. In McCormick v. Fasken Martineau DuMoulin LLP, Michael McCormick was obliged to retire from his law firm in 2010 at age 65, as per the firm's partnership agreement where he was in an equity partnership. He filed an age discrimination complaint with British Columbia's human rights tribunal that found although a partner, McCormick was in fact an employee and subject to human rights legislation. That finding was upheld at the British Columbia Supreme Court, overturned by the appeal court, and now awaits a decision by the Supreme Court of Canada, which heard the case in December. "It's a question of whether or not a person is covered by the protection of human rights legislation when a person is a partner," said Vancouver lawyer Murray Tevlin, acting for McCormick. Human rights boards from Ontario, British Columbia, Alberta, and Canada are interveners in the case as are several accounting firms. "The law firm that is ntitled-1 1 involved in this, Faskens, is a tremendous law firm. We did not want to have to do this. It's almost like suing your friend. . . . It will be good for the profession to have an answer to this," adds Tevlin. "We say that's against the way we do things in Canada." How the court ultimately decides could well impact other professions and is expected to set the tone of what a partnership means for the individuals involved. Practical. Intensive. Comprehensive. An Osgoode Professional Development certificate, taught by top experts with years of practical experience, can give you the up-to-date overview you need to better serve your clients. The time commitment is typically 30 hours and sessions are structured for busy professionals. Choose from more than 20 unique certificate programs, including: March 31 - April 4, 2014 January 24, February 12 & 27, March 25, April 22, 2014 January 29, February 6 & 12 & 19 & 26, 2014 March 25 & 31, April 7 & 16 & 23 & 30, 2014 (Toronto) April 7 – 11, 2014 February 13 & February 28, March 24, April 3 & 28, 2014 April 1 & 8 & 22 & 29, May 6, 2014 February 25 – 28, 2014 April 28 - May 2, 2014 April 10 & 17 & 23, May 1 & 8, 2014 Osgoode Professional Development, 1 Dundas Street West, Suite 2600, Toronto CLE www.CANADIAN L a w ye r m a g . c o m Jan uary 2014 23 13-12-12 5:07 PM

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