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LEGAL REPORT: LITIGATION to seek similar creditor protection here. For Mike Weinczok, an expert on busi- ness restructuring with Cassels Brock & Blackwell LLP in Toronto, the fact the fi l- ing came before Christmas was a sign of how dire the retailer's situation really was since most compa- nies can usually fi nd a way to hang on for what they hope will be a successful holi- day season. "If you've got a retailer that fell off before Christmas, that was a really bad story," he says. Still, Taylor says the prospect of cross- border retailer bankruptcies is one Ca- nadians should get used to even though the local entities are, in many cases, in better shape than their U.S. counter- parts. That's partially due to the fact that seeking protection allows the par- ent company to sell its Canadian opera- tions free of obligations, he notes. As a result, both Taylor and Weinczok expect a busy season for litigation, particularly in the new year. But as some lawyers point out, previ- ous recessions have shown the need to adapt and prepare for the downturn, "I think you're going to see a lot of litigation against directors and officers." — MIKE WEINCZOK CASSELS BROCK & BLACKWELL LLP particularly as corporate work dries up. During the recession of the early 1990s, for example, McInnes Cooper manag- ing partner Bernie Miller says his fi rm shifted its focus to insolvency litigation. "We saw the benefi t of diversifi cation in that when some areas slow down, others pick up," says Miller, a Moncton lawyer whose fi rm has offi ces through- out Atlantic Canada. "We're glad to be diversifi ed regionally as well because the Newfoundland economy continues to be robust," he notes, adding that so far Atlantic Canada has largely skirted the downturn. At Cassels Brock, the fi rm has formed a 19-lawyer credit response team aiming to get a handle on the fi - nancial crunch. With retailers, for example, Weinc- zok says the team is helping clients prepare for the inevitable pressures from cash-hungry lenders following the holiday season. In some cases, that means starting to look for new sources of fi nancing or fi nding ways to improve balance sheets in antici- pation of the squeeze. Nevertheless, Weinczok says besides the inevitable bankruptcy cases, litiga- tors should also expect to fi nd them- selves busy with a wave of shareholder lawsuits. "I think you're going to see a Protecting Ingenuity Everywhere TM Commercial Litigation, minimum 3 Years Toronto Sim, Lowman, Ashton & McKay LLP, Barristers and Solicitors and Sim & McBurney, Patent and Trade-mark Agents are one of Canada's premier intellectual property boutique practices. The Firms combine an extensive international patent and trade-mark agency practice with international and domestic commercial litigation in all aspects of intellectual property, professional errors and omissions, and disputes involving the commercialization of technology. Sim, Lowman, Ashton & McKay LLP seeks an experienced and motivated commercial litigator with a minimum of three years experience to join its litigation practice. The successful applicant will become part of a very collegial practice in our flexible boutique firms with excellent short-term partnership potential, a sensible workload and a team approach to advocacy well supported by experienced paralegal and clerical staff. Please send your resume in confidence, including a description of your courtroom and other litigation experience, to Andrew Jones at jones@sim-lowman.com. 330 University Avenue, Sixth Floor Toronto, Ontario M5G 1R7 Tel: 416-595-1155 Fax: 416-595-1163 Web: www.sim-lowman.com 58 JANU AR Y 2009 www. C ANADIAN Law ye rmag.com SIM_CL_Jan_09.indd 1 12/12/08 11:07:23 AM