Canadian Lawyer

20 O C T O B E R 2 0 1 5 w w w . C A N A D I A N L a w y e r m a g . c o m LAW SOCIETY OF MANITOBA The law society is seeking new powers to regulate law firms through a proposed legislative amendment. LAW SOCIETY OF BRITISH COLUMBIA Legislative amendments have given the law society powers to regulate law firms. LSBC will consult with profession this fall on regulating law firms. LAW SOCIETY OF PRINCE EDWARD ISLAND The law society is monitoring entity regulation as it develops in other jurisdictions. LAW SOCIETY OF SASKATCHEWAN Benchers haven't come to a decision as to what they're going to do when it comes to entity regulation, but discussions are underway. LAW SOCIETY OF NEWFOUNDLAND AND LABRADOR Entity regulation has been discussed only in the context of a review of the CBA Futures Report and as part of a national discussion among members of the Federation of Law Societies. The law Society will be engaging in strategic planning in the fall, but cannot say what the out- come of those planning sessions will be. YUKON/NUNAVUT – Information unavailable LAW SOCIETY OF THE NORTHWEST TERRITORIES LSNWT is currently monitoring the situation with respect to entity regulation as it develops in other jurisdictions. NOVA SCOTIA BARRISTERS' SOCIETY A national leader when it comes to entity regulation, NSBS has already given the green light to entity regulation and is now working on an implementation plan. LAW SOCIETY OF ALBERTA Entity regulation is on the radar, but no steps have been taken. The law soci- ety says it will communicate with the profession about it in the future. LAW SOCIETY OF UPPER CANADA A working group has been set up to look into compliance- based entity regulation. BARREAU DU QUÉBEC The Barreau has a contractual relationship with limited liability partnerships and joint-stock companies. Although this relationship does not amount to regulation, "it is a start of a relationship with the principle of supervision, making these partnerships and companies accountable to the Barreau du Québec with regard to the communication of infor- mation and lawyers' independence," it says. of lawyers adhering to those individual, very prescriptive rules is the protection of the public and competence and all those good things," says Perry. "When you shift to a principled approach, it's about a shift to an outcomes approach. In other words, you tell people where you want them to get . . . but you don't spell out the path by which people have to get there. So that leaves room for people to reach the principle, or the goal, by whatever path is best suited to them and their unique situation." In Nova Scotia, the barristers' society has decided on a hand- ful of principles or goals, of which the promotion of access to legal services is one. But the law society will not tell law firms the number of hours of pro bono work their lawyers must do or the fee structures they must build. "We're talking about that being an overall goal, and lawyers and law firms will be free to explain the way in which their work contributes to that," says Perry. A sole practitioner, for example, may say he or she is provid- ing a range of legal services in an underserved area or a rural area facing extreme economic decline. "It's really about leaving room for people to get to the desired outcome by whatever path suits for them," adds Perry. For an industry founded upon heed- ing and translating rules, this sudden flexibility might be daunt- ing. "Some people will find it easier to say, 'Give me the list of rules; tell me what I have to do.'" And yet, the success of entity regulation may lie squarely in that uncomfortable space where lawyers will be forced to become innovative in ways that help the industry thrive while improving access to justice. "When we do this entity regulation stuff, it's with access to justice at the front of our mind because they have to work together, and entity regulation will only be a success if it contrib- utes to [increased] access to legal services," says Perry. Entity regulation will also change what the law society rep- resents in the lives of lawyers, Perry adds. Right now, lawyers prefer as little interaction with the regulator as possible. A call from the law society is associated with trouble of some kind. But a shift from a solely compliant-based regulatory system to a compliance-based one could modify that relationship as the law society takes on a more supportive role. The law society would engage with law firms to provide guidance as they build ethical infrastructures their lawyers will work under, says Perry. Existing structures part of the problem Part of the problem with the existing structure, of course, is that law societies have little involvement with the way law firms are run unless there is a complaint about the conduct of a specific lawyer. Recently, Ontario lawyer Alan Rachlin informed the law society about a motion he brought in a personal injury matter regarding the issue of lawyers who work independently but also in association using a common business name. Rachlin's client, Aviva Canada Inc., argued it's not clear who is legally account- able in those structures. Aviva was questioning the structure of Diamond & Diamond Personal Injury Law Firm, which repre- sented the plaintiff in the matter. Rachlin told an Ontario Superior Court that when he reached out to the law society, its response was it would not get involved unless he files a complaint. Although the judge ultimately decided Rule 21 of the Rules of Civil Procedure didn't allow him to make a determination on the issue, he agreed there LAW SOCIETY OF NEW BRUNSWICK The law society will have a discussion on entity regulation as part of its plan to amend the Law society Act.

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