Canadian Lawyer

w w w . C A N A D I A N L a w y e r m a g . c o m A p r i l 2 0 1 4 17 O P I N I O N and professionals who embrace our firm's entrepreneurial vision and corporate val- ues." Apparently "management" hadn't asked anyone to turn out the lights and shut down the web site.) Then there's the clients. One moment a client is comfortable in the knowledge his legal affairs are in the hands of a stable team that is part of a firm he knows well. The next minute, he is getting frantic calls from the partner responsible for his files, urging him to follow the partner across the street to another firm (what happened to the team?), a firm the client may know nothing about or have reason to dislike. Profuse assurances about continuity and the extraordinary merits of the partner's new home will, of course, be given, but they will ring hollow. The collapse of a law firm is always a bad thing for clients. Always. It creates uncertainty, discontinuity, delays, and anxiety. Rarely does it lead to better legal service and advice. Lawyers will tell you the clients always come first. And yet the interests of clients never seem to figure in the decisions that destroy a firm. And let's not forget the creditors. The failed firm's biggest asset will be accounts receivable, almost certainly pledged as security for a bank loan or two. Long-term leases, several in the case of a "national firm," will have to be dealt with somehow. There will be little to liquidate for the ben- efit of small and unsecured creditors. One thing's for sure, when a law firm collapses, a lot of people owed money — many of them small suppliers — will be stiffed. Most law firms are now limited liability partnerships, and that offers some pro- tection to partners against angry credi- tors who come up short. But aggressive creditors seeking blood are not without weaponry. They may take a leaf out of the U.S. law firm insolvency playbook and argue fees from ongoing files taken to a new firm belong to the estate of the failed firm, a so-called "unfinished busi- ness claim." The possibility of such a claim makes acquisition of a new star a lot less attractive to the acquiring firm. Another unpleasant fact for failed firm partners is they will likely lose their capital contribu- tion, an amount typically in the six figures and usually borrowed. There's a lot of pain when a law firm falls apart. Some partners lose a comfortable home and have trouble finding another. Many employees are out on the street. Clients suffer. Creditors lose out. None of it has to happen. Who is to blame? Greedy partners, that's who, the self-proclaimed locomotives who are tired of pulling boxcars and are looking for more money. They have a lot to answer for. They hurt a lot of people. It's an ethical disaster, a fiduciary fiasco. But there may be poetic justice. Those responsible for the collapse of a law firm may lose more than they gain. Someone once said, "He who is not contented with what he has, would not be contented with what he would like to have." It was Socrates. Philip Slayton's latest book is Bay Street: A Novel, about a big law firm in big trouble. You can read the first chapter at baystreetanovel.com. New editioN Gatley on libel and Slander, 12th edition Joint Editors: richard ParkEs, Q.c., and ProfEssor alastair Mullis contributing Editors: godwin busuttil, dr. andrEw scott and adaM sPEkEr Gatley is the leading text on libel and slander. this new edition brings practitioners up to date with the latest developments in the law of defamation, both substantive and procedural. it analyzes the relevant case law, and guides the reader through practice and procedure in detail. the 12th Edition deals in depth with the Defamation Act 2013. it also incorporates the latest case law and tracks the developing law in areas such as press freedom to report on matters of public interest, interim injunctions and damages. Gatley on Libel and Slander, 12th edition is also available as an ebook on thomson reuters ProView™. call for details. TO PLACE YOUR ORDER Call toll-Free: 1-800-387-5164 in toronto: 416-609-3800 Fax toll-Free: 1-877-750-9041 in toronto: 416-298-5193 email: carswell.international@thomsonreuters.com order # l15574-e12-65203 £315 GbP Jurisdiction: united kingdom, commonwealth hardcover december 2013 sweet & Maxwell Shipping and handling are extra. Price subject to change without notice due to currency fluctuations and subject to applicable taxes. A professional grade platform that allows you to interact with your eBooks in entirely new ways. This free app allows you to access your most most: everywhere. pp y y trusted reference materials where you need them s let you ch p hi Vi lib table of contents allows you to drill down to find what you need while keeping track of your path. u can perf ts from any thin your own b oView library. NEw EDiTiON iN ThE COmmON LAw LibRARY

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