THE LAW SOCIETY OF ALBERTA

ANNUAL REPORT 1999

OUR MISSION

To serve the public interest by promoting a high standard of legal services and professional conduct through the governance and regulation of an independent legal profession. ANNUAL REPORT 1999 THE LAW SOCIETY OF ALBERTA

THE LAW SOCIETY OF ALBERTA

#600, 919 - 11th Avenue S.W. Calgary, Alberta T2R 1P3 Telephone (403) 229-4700 Toll free 1-800-661-9003 FAX (403) 228-1728 www.lawsocietyalberta.com

THE BENCHERS

Terrance D. Clackson,Q.C., President Alan D. Macleod,Q.C., President (02/99 - 12/99) (12/99 - ongoing)

Janet Andersen, lay bencher Larry G. Anderson,Q.C. John D. Bascom,Q.C. Everett L. Bunnell,Q.C. Anthony L. Friend,Q.C. Alain Hepner,Q.C. Cheryl C. Gottselig,Q.C. Eric F. Macklin,Q.C. Douglas McGillivray,Q.C. Bryan E. Mahoney,Q.C. Virginia M. May,Q.C. Kenneth G. Nielsen,Q.C. Simon Renouf,Q.C. Patricia Rowbotham,Q.C. Rhonda K. Ruston,Q.C. W. Paul Sharek,Q.C. Hugh D. Sommerville,Q.C. Francine Swanson,Q.C. Morris Taylor, lay bencher Jack Watson,Q.C. Wilfred Willier, lay bencher

OFFICERS Peter L. Freeman, Q.C. - Executive Director Donald Thompson, Deputy Executive Director (Effective 01/12/99) David J. Turner - Deputy Secretary (Retired 01/09/99) James D. McLeod - Deputy Secretary Sarah J. Brickett - Director of Insurance L. Steven Dyer - Director of Audit Lindsay MacDonald,Q.C. - Counsel Paul McLaughlin - Practice Management Advisor Mel L. Scott, C.A. - Treasurer Barry Vogel, Q.C. - Practice Advisor

2 THE LAW SOCIETY OF ALBERTA ANNUAL REPORT 1999

CONTENTS

BENCHERS & OFFICERS OF THE LAW SOCIETY OF ALBERTA, 1999 ...... 5

THE LAW SOCIETY OF ALBERTA ...... 6

Self Regulation and Benchers ...... 6

Professional Standards ...... 6

Lawyers’ fees ...... 6

Penalties for misconduct ...... 6

Public protection ...... 6

Services ...... 7

Office of the Practice Advisor ...... 7

Lawyer Referral Service ...... 7

Publications ...... 7

RECOGNIZING EXCELLENCE ...... 7

Distinguished Service Awards ...... 7

1999 Viscount Bennett Awards ...... 7

Lifetime Achievement Award ...... 7

W. Bernie Kelly,Q.C., Memorial Prize ...... 8

50 & 60 Year Certificates ...... 8

ACTIVE MEMBERS BREAKDOWN ...... 8

PRESIDENT’S REPORT ...... 9

Government Relations ...... 9

Multidisciplinary Practices...... 9

Contingency fees ...... 9

Interjurisdictional Mobility Protocol ...... 9

Pro Bono Initiative ...... 9

Legal Aid ...... 9

3 ANNUAL REPORT 1999 THE LAW SOCIETY OF ALBERTA

Law Society Administration ...... 10

In Conclusion ...... 10

MESSAGE FROM THE LAY BENCHERS ...... 10

THE LAY BENCHERS - APPOINTED IN THE PUBLIC INTEREST ...... 11

THE COMMUNICATIONS COMMITTEE ...... 11

THE CIVIL PRACTICE ADVISORY ...... 12

THE CONDUCT COMMITTEE ...... 13

THE CORPORATE & COMMERCIAL ADVISORY ...... 13

THE CRIMINAL PRACTICE ADVISORY ...... 14

THE EDUCATION COMMITTEE ...... 15

THE FINANCE COMMITTEE ...... 15

THE FAMILY LAW ADVISORY ...... 16

THE GENDER, EQUALITY & EQUITY COMMITTEE ...... 16

THE INSURANCE COMMITTEE ...... 17

THE JOINT LIBRARY COMMITTEE ...... 18

THE PROFESSIONAL RESPONSIBILITY COMMITTEE ...... 19

THE PRACTICE REVIEW COMMITTEE ...... 19

THE UNAUTHORIZED PRACTICE COMMITTEE ...... 20

OTHER 1999 STANDING COMMITTEES ...... 21

1999 AD HOC COMMITTEES ...... 22

THE LAW SOCIETY OF ALBERTA CONDENSED FINANCIAL STATEMENTS ...... 23

ALBERTA LAWYERS INSURANCE ASSOCIATION CONDENSED FINANCIAL STATEMENTS ...... 25

4 THE LAW SOCIETY OF ALBERTA ANNUAL REPORT 1999

BENCHERS & OFFICERS OF THE LAW SOCIETY OF ALBERTA, 1999

(From left, front row) Eric Macklin,Q.C.; Cheryl Gottselig,Q.C.; Kenneth G. Nielsen,Q.C.; Alan D. Macleod,Q.C. (president-elect); Terrance D. Clackson,Q.C. (president); Peter Freeman,Q.C. (executive director); Larry Anderson,Q.C.; Francine M. Swanson,Q.C.; Simon Renouf,Q.C.; (Back row) David J. Turner (deputy secretary); Jack Watson,Q.C.; Everett Bunnell,Q.C.; Anthony Friend,Q.C.; Allison MacKenzie (communications director); Janet Andersen (lay bencher); Paul Sharek,Q.C.; Alain Hepner,Q.C.; Bryan E. Mahoney,Q.C.; James D. McLeod (deputy secretary); Virginia M. May,Q.C.; Paul McLaughlin (practice management advisor); Peg James (risk management advisor); Morris Taylor (lay bencher); Hugh Sommerville,Q.C.; Wilfred Willier (lay bencher); John D. Bascom,Q.C.; Barry Vogel,Q.C. (practice advisor); Patricia Rowbotham,Q.C.; Douglas McGillivray,Q.C.; Trudy Caisse, (legal counsel); Sarah Brickett (director of insurance).

5 ANNUAL REPORT 1999 THE LAW SOCIETY OF ALBERTA

THE LAW SOCIETY OF ALBERTA

The Law Society’s principal duty is opinion from the Professional Conditions to serve and protect the public Responsibility Committee. of practice interest. A self-governing society, its may also be While currently the criteria of authority is derived from the Legal imposed on a academic credentials for admission to Profession Act of Alberta. The member. While the profession are set by the inde- legislature has respected the funda- some cases of poor conduct are dealt pendent Universities Coordinating mental democratic tradition that the with through the discipline process, Council, plans are underway for the legal profession should be independ- efforts are made to resolve others transfer of this responsibility to the ent of the government and should through reviews, mentors, education National Committee on Accreditation. regulate itself. upgrading or counselling. The educational requirements for lawyers include undergraduate study, SELF REGULATION AND BENCHERS a three year law school program, one PUBLIC PROTECTION Every two years Alberta lawyers elect year as an articling student (learning The Law Society of Alberta instituted 20 of their members to serve as by working with a senior lawyer), and the first mandatory insurance benchers. The benchers act as a the completion of the eight-week bar program in Canada in 1969. Every board of directors who meet regularly admission course. The bar admission lawyer practising in Alberta must and serve without remuneration, course, directed by the Society purchase liability insurance with except the president who is chosen through the Legal Education Society compulsory coverage of $1,000,000 by the benchers and receives an of Alberta, focuses on core practice per occurrence, adequate coverage honourarium. Although elected by areas, lawyering skills, and profes- for most services provided by the profession at large, each of the sional attitudes. A comprehensive lawyers. Many lawyers purchase three provincial districts (north, set of practice area examinations and additional insurance. The additional central and south) outside of Calgary skill assessments ensure that only amount depends on the size of the and Edmonton is entitled to one those lawyers with a clearly demon- firm and type of law practised. The resident bencher regardless of overall strated level of competence are combination of compulsory and vote. admitted to the profession. optional insurance protects the public and spreads the cost of The Law Society also has three non- LAWYERS’ FEES insurance equitably across the lawyer, lay benchers (public repre- profession. Since 1984, the Insur- sentatives) who are appointed by the The Law Society is not involved in ance and Loss Prevention Committee Attorney General. As fully partici- the regulation of lawyers’ fees. has mounted an aggressive loss pating benchers, the lay benchers Clients may apply to the court for an prevention program, publishing serve on committees and discipline independent fee review (taxation) of comprehensive practice checklists panels. They enrich the discussion their legal fees. As an alternative to and manuals, and sponsoring free on many public interest issues and the taxation process, voluntary fee seminars on law office management open the workings of the profession mediation is available through the and loss prevention techniques. to public scrutiny. Law Society. Lawyers who charge an unreasonably high fee may be In addition to insurance for lawyers’ PROFESSIONAL STANDARDS disciplined by the Law Society. liability, the public is protected for losses suffered through a lawyer’s For persons without the ability to The Alberta legal profession has a misappropriation of trust funds. The pay a lawyer, Legal Aid is available. comprehensive code of ethical Alberta Law Society Assurance Founded in 1970 by the Law Society standards to which all lawyers must Fund, established in 1939, was the and the provincial government, Legal adhere. These standards are con- first of its kind in Canada. Every Aid offers assistance to the needy. tained in the Legal Profession Act, active lawyer in the province contrib- The Rules and The Code of Profes- utes to this fund. sional Conduct, court decisions, and PENALTIES FOR MISCONDUCT Conduct Committee and hearing To ensure the public continues to A lawyer who is guilty of profes- committee decisions. In case of receive the highest quality of legal sional misconduct may be repri- doubt, lawyers also refer to authorita- services, the Law Society is vigilant manded, fined up to $10,000, sus- tive text books and journals, and seek in protecting the public against pended from practice or disbarred. guidance in the form of a written

6 THE LAW SOCIETY OF ALBERTA ANNUAL REPORT 1999 unqualified persons illegally practis- three lawyers practising in the ing law. applicable field of law. The caller can RECOGNIZING then make an appointment with one, SERVICES two or all three of those lawyers, EXCELLENCE advising that they were referred by The Law Society of Alberta offers a Lawyer Referral. There is no charge variety of services to both lawyers for the first half hour interview, after and the general public. In addition to which the member of the public can DISTINGUISHED SERVICE AWARDS those programs outlined elsewhere in decide whether or not to engage the th this report, the Law Society offers lawyer at the full fee rate, and the On January 28 , 2000, the Law the following: lawyer can decide whether to accept Society of Alberta and the Canadian the engagement. Bar Association - Alberta Branch presented Distinguished Service OFFICE OF THE PRACTICE ADVISOR Awards to six Alberta lawyers in PUBLICATIONS Confidential free advice for lawyers recognition of their distinguished is available from practice advisor The Law Society of Alberta publishes service to the community, the legal Barry Vogel,Q.C. and practice The Benchers’ Advisory five times profession, and legal scholarship. management advisor Paul annually, and contributes to the Susan P. Hendricks (Calgary), Gordon McLaughlin. Barry Vogel is available publications of the joint Canadian Bar J. Hoffman,Q.C. (Calgary), and Robert to discuss legal, ethical, and practice Association - Law Society of Alberta E. Schnell,Q.C. (Red Deer) received concerns and personal matters such Newsletter. All publications are the Distinguished Service Award for as stress and addiction. He also will available on our website, service to the community; Philip mediate and arbitrate interlawyer www.lawsocietyalberta.com or by North,Q.C. (Lethbridge) received the disputes. Paul McLaughlin provides calling our Central Records Depart- Distinguished Service Award for assistance in practice management, ment. service to the legal profession, and automation and office administration, Professor Richard Dunlop (Edmon- with a focus on the needs of sole Pamphlets available from the Law Society include: ton) received the Distinguished practitioners and members practising Service Award for legal scholarship. in smaller settings. Both will travel A special award recognizing service anywhere in Alberta for meetings *Buying Your Home: Facts to Know Before you Sign in all three categories was presented with members. to the Honourable Chief Justice W. The Office of the Practice Advisor *Civil Actions: The Process if You Kenneth Moore. also offers a Mentor Program in Sue or if You Are being Sued family law, criminal law, civil litiga- 1999 VISCOUNT BENNETT AWARDS tion, wills and estates, and real *The Criminal Justice System: Your property. Rights When Arrested or Charged Alberta graduate students Ian Bruggs, Cori Ghitter, Erin Nelson, and Nickie Vlavianos received the 1999 LAWYER REFERRAL SERVICE Have You Planned Your Estate? Viscount Bennett scholarships The Lawyer Referral Service is Lawyers of Alberta: Serving the valued between $5,000 and $15,000. operated by the Law Society to help Public Interest The scholarships are funded from a people find a lawyer to provide the trust fund established with a gift from legal services they require. An Public Relations Suggestions for the the Right Honourable Viscount information service, Lawyer Referral Practising Lawyer Bennett, P.C., K.C. is not connected with Legal Aid, nor The annual awards for post graduate does it provide any financially *Reviewing the Conduct of Lawyers studies in law are presented to subsidized legal services. A member individuals with high scholastic of the public may phone toll free from *Understanding Your Lawyer’s Fee abilities who are dedicated to their anywhere in Alberta by dialling 1- community and profession, and wish 800-661-1095 or 228-1722 in Calgary When You Divorce or Separate to further their legal education. and a lawyer referral operator will answer. After being advised of the Lawyers & Legal Agents/Paralegals/ nature of the problem or the areas of Legal Assistants law of concern, the operator will give the names and telephone numbers of * Indicates availability in French. Cont’d

7 ANNUAL REPORT 1999 THE LAW SOCIETY OF ALBERTA

LIFETIME ACHIEVEMENT AWARD ACTIVE MEMBERS BREAKDOWN On May 25th, John Martland,Q.C., past president, Law Society of (MARCH 1, 2000) Alberta, presented Maclean E. Jones,Q.C., with the Society’s Male Female Lifetime Achievement Award. The With firms Calgary 1936 1478 458 Lifetime Achievement Award is Edmonton 1400 1057 343 presented in recognition of an individual member’s accumulative Lethbridge 93 76 17 contributions to the legal profession Red Deer 76 61 15 and the greater community outside of Medicine Hat 41 35 6 the practice of law. During the course Grande Prairie 24 21 3 of their legal career, through their ongoing efforts and contributions, Other 275 214 61 recipients of this award have had a Total 3845 2942 903 positive impact on the public’s Sole Practitioners Calgary 437 296 141 opinion of the legal profession and Edmonton the administration of justice. 314 246 68 Lethbridge 14 13 1 W. BERNIE KELLY,Q.C. Red Deer 28 22 6 MEMORIAL PRIZE Medicine Hat 15 13 2 The 1999 recipients of the W. Bernie Grande Prairie 8 6 2 Kelly,Q.C. Memorial Prize are Thomas Other 167 141 26 Langford of the University of Total 983 737 246 Alberta, and jointly, Kimberley Dawn Corp & Companies Calgary Jones and Sean Patrick O’Neill of 504 320 184 the University of Calgary. The annual Edmonton 114 75 39 prize is awarded to law students in Lethbridge 3 2 1 honour of the Law Society’s former Red Deer secretary, W. Bernie Kelly,Q.C. 3 2 1 Medicine Hat 2 2 0 50 & 60 YEAR CERTIFICATES Grande Prairie 0 0 0 Other The benchers presented 50 year 30 24 6 certificates to William Chipman,Q.C., Total 656 425 231 the Hon. Samuel Liberman, Peter Government Calgary 140 76 64 Owen,Q.C., David H. Sinclair,Q.C., Edmonton Joseph J. W. Stratton,Q.C., and 320 178 142 Francis Richard Matthews,Q.C. In Lethbridge 12 11 1 addition, 60 year certificates were Red Deer 6 6 0 presented to Donald McLaws,Q.C. Medicine Hat 7 5 2 and George Crawford,Q.C. Grande Prairie 4 3 1 Other 31 23 8 Total 520 302 218 With a sole practitioner Calgary 0 0 0 Edmonton 2 1 1 Other 2 0 2 Total 4 1 3 Outside of Alberta Total 383 300 83 Active members Total 6408 4718 1690

8 THE LAW SOCIETY OF ALBERTA ANNUAL REPORT 1999

maximum of 10 cases without the PRESIDENT’S REPORT need to formally register or pay an occasional appearance fee. The by Alan D. Macleod, Q.C., President arrangement is mutual and is based on the honour system. We hope to conclude similar arrangements with other jurisdictions during 2000. of lawyers where non-lawyers are also members of a partnership. The PRO BONO INITIATIVE issue is whether this can be accom- During most of the period covered by plished without impairing the inde- During 1999 the Benchers struck a this report, Mr. Justice T. D. Clackson pendence of the legal profession and Pro Bono Committee and charged it was president, until his appointment the ability of the profession to with the mandate of reviewing the to the Alberta Court of Queen’s effectively govern itself. profession’s commitment to provide Bench in December of 1999. There- Since this issue affects all jurisdic- free legal services to economically fore, most of the activities reported tions, the Federation of Law Societies and socially disadvantaged persons. on reflect Terry’s presidency. The of Canada is developing model rules The legal profession has historically Law Society is greatly indebted to which will address the core values of provided such services to society’s him for his excellent work as presi- the legal profession as well as the less fortunate members. We perform dent. governance and independence this role without fanfare in part issues. We will debate the resulting because of obligation and in part because we are uniquely situated to GOVERNMENT RELATIONS model rules in 2000. do so. Our relationship with the Department CONTINGENCY FEES The will for providing pro bono of Justice improved considerably in services remains strong among our 1999. We met with the new minister, During 1999 the Law Society of profession but the structure required David Hancock, shortly after his Alberta conducted a series of town for acting upon that will is not well appointment to Alberta Justice. We hall meetings with our members on developed. As a result the commit- welcome Mr. Hancock’s respect for contingency fees. That exercise was tee is working upon devising a the system and for the Law Society extremely valuable as it allowed our structure that will facilitate access to of Alberta, and we look forward to members an opportunity to forcefully and provision of these services. working with him on issues of mutual express their concerns and sugges- concern. tions. Ultimately the Law Society of LEGAL AID Alberta recommended a number of MULTI DISCIPLINARY PRACTICES changes to the Rules of Court and Throughout 1999 the Law Society of Schedule C, many of which have now Alberta has been in negotiations with The Law Society of Alberta contin- been implemented. Alberta Justice on the proper funding ues to contend with the issues of the legal aid system and the created by multidisciplinary practices INTERJURISDICTIONAL MOBILITY remuneration that should be paid to (MDP’s). The large international PROTOCOL participating counsel. Progress has accounting firms have clearly moved been slow and as a result, a mediator into the delivery of legal services. To In 1993, the Federation of Law was appointed as a means of achiev- date, there is only one firm in Alberta Societies of Canada developed the ing a resolution. affiliated with the big five, and they Interjurisidicational Mobility Proto- In the course of negotiations, the have assured the Law Society of col. While all of the Canadian law governance structure of legal aid has Alberta that their firm consists of societies signed the protocol, to date become an issue. As a result, we are legal professionals and complies fully very few have developed model rules also exploring alternative models for with The Rules of the Law Society of to facilitate its implementation. governance. The governance Alberta and The Code of Profes- During 1999 the law societies of discussions will involve Alberta sional Conduct. However, it is of Alberta and British Columbia took a Justice, the Legal Aid Society and the ongoing concern that eventually the leadership role on implementation of Law Society of Alberta. non-lawyer professionals will want to the protocol by implementing the share in profits of their affiliation and protocol between the two jurisdic- I am pleased to be able to share with see a return on their investment. tions. As a result Alberta lawyers are you that since the appointment of the In particular, our interest is in main- now able to practice in British mediator these negotiations have taining the core professional values Columbia for a total of 20 days on a progressed well, and we expect a resolution imminently. 9 ANNUAL REPORT 1999 THE LAW SOCIETY OF ALBERTA

LAW SOCIETY ADMINISTRATION volunteers who serve on Law Society MESSAGE FROM THE of Alberta committees. Volunteers 1999 saw significant changes in the enable the Law Society of Alberta to LAY BENCHERS senior management team of the Law fulfill its statutory obligations and to Society of Alberta. David Turner develop and maintain programs by Morris Taylor, Janet Andersen retired after 25 years of valuable designed to promote the competent and Wilfred Willier service to the Society as deputy provision of high quality legal As lay benchers, our role is to be the secretary. As a result, we embarked services to the public while maintain- voice of the citizens of Alberta as upon a search for candidates to fill ing a low annual fee. Across Alberta, well as to ensure that the high the role of second-in-command. legal organizations such as the Legal professional standards of lawyers are Education Society of Alberta, Calgary We were fortunate to have had the maintained. We participate in Legal Guidance, the Bar Admission opportunity to select from among a conduct and assurance fund hear- Program and the Legal Resource number of excellent candidates. ings which permits us a view as to Centre continue to provide valuable Ultimately, Don Thompson accepted the relationship between the Law services at minimal cost as a direct our offer and commenced his duties Society and the population at large. in December, 1999. result of volunteers. The complaints and discipline In my six years as a bencher I have Don brings 16 years of experience process of the Law Society continues learned much and met many. The from the Law Society of British to earn the confidence of the public experience has been extremely Columbia where he performed a and the legal community, both of enriching. The people who consti- variety of duties including serving whom contribute to the integrity of tute the staff of the Law Society have most recently as their deputy execu- the system. tive director. been incredibly helpful and support- ive and I am indebted to each of We continue to be impressed with them. the professional and responsible IN CONCLUSION manner in which the important My bencher colleagues are not only business of the Law Society is It is appropriate here to quote Mr. an industrious and intelligent lot, but conducted. Meetings are carefully Justice Terry Clackson: also my friends.The Law Society of scheduled and effectively managed. “As we enter the 21st century, the Alberta and its members are in very Extensive preparation material is legal profession faces significant capable hands.” distributed well in advance of challenges and changes: Among I couldn’t agree with His Lordship meeting dates to allow for active these are the more. discussion. Each year witnesses a application of continual improvement in methods new technolo- and roles to better serve clients. gies to the Respectfully yours practice of law The elected benchers put forth a and the tremendous time commitment and administration dedication in fulfilling their duties as of justice; the your representatives in Law Society effects of matters. The amount of volunteer globalization commitment and pro bono work and shrinking Alan D. Macleod, Q.C. being contributed is significant. borders on the It is an enriching experience to serve practice of law; and changing as a lay bencher of the Law Society societal expectations. All of these of Alberta. We are continually are having a profound impact on how impressed by the dedication, energy law is practised and how it will be and resources put forth by benchers, practised in the future. I remain staff and committee members into the extremely confident of the ability of governance of the legal profession the Law Society of Alberta and the and the safeguarding of the public legal profession to meet these new interest. challenges while maintaining a collegial, yet strong independent legal profession. During 1999, tremendous work was accomplished by the more than 200

10 THE LAW SOCIETY OF ALBERTA ANNUAL REPORT 1999

THE LAY BENCHERS - Canada and the United States, providing expert assistance to the legal profession through the Philadel- APPOINTED IN THE PUBLIC INTEREST phia Company, Technical Advisory Service for Attorneys. Mr. Taylor Appointed by the Minister of Justice with a major Canadian Airline. served as a member of the appeal, for a two-year-term, lay benchers safe During 1999, Ms. Andersen served communications, conduct, discipline guard the public interest and ensure on the appeal, communications, and finance committees during 1999. that the views of the public are education and articling and practice Retired High Prairie considered on issues of pubic review committees. Ms. Andersen’s probation officer concern. Being a lay bencher tenure as lay bencher ended in and active requires active participation in the January 2000, and her efforts were community many duties of the Society, including greatly appreciated by the LSA. volunteer, lay participation on Conduct Hearings, Appointed as a lay bencher Assurance Fund Claims, Conduct bencher in Wilfred Willier Panels and convocations as well as January 1998, worked for membership in a large variety of the and reap- Alberta Justice Society’s standing pointed in and the Solicitor committees. January 2000 General for 30 Prior to to a second years. First ap- opening a term, Morris pointed as a lay bencher in 1998, Mr. business in Taylor is the Willier was reappointed in January 1991, Janet president of 2000 to a second two year term. Mr. Andersen MTR Consult- Willier was a member of the finance, worked for 17 ants Ltd., in practice review and unauthorized years in cus- Edmonton. This firm specializes in practice of law committees. tomer service thoroughbred and harness racing in

THE COMMUNICATIONS COMMITTEE by Alan D. Macleod,Q.C., Chair

THE COMMITTEE This committee consists of benchers, at the Hotel MacDonald in Edmon- a lay bencher and non benchers, ton. A. D. Macleod (C) including a representative of the J. Andersen (V.C) Canadian Bar Association - Alberta PUBLICATIONS B. E. Mahoney Branch. During the past year, the T. Clackson Communications Committee as a The Law Society of Alberta produces R. K. Ruston whole met four times. Highlights of and distributes a variety of publica- M. Taylor the committees work include the tions targeted at informing and F. A. De Walle following: educating both the profession and Wm. Laird Hunter interested members of the public. G. Price CBA Our primary publication, The A. G. Young DISTINGUISHED SERVICE AWARDS Benchers’ Advisory, which advises P. L. Freeman (LSA) On January 25th, 2000 the Law Society members of news relating to the A. MacKenzie (LSA) of Alberta and the Canadian Bar profession and the practice of law, The Communications Committee Association - Alberta Branch pre- was published five times during 1999. facilitates communication between sented Distinguished Service Awards From all reports it continues to be the Law Society of Alberta, its to five outstanding members of our well received and read by the profes- members and the community at large, community. Please see page 7 for sion. The Law Society also contin- and informs the public about the details. The 2001 Distinguished profession and the practice of law. Service Awards will be presented on January 26th, 2001 during a luncheon Cont’d

11 ANNUAL REPORT 1999 THE LAW SOCIETY OF ALBERTA

ues to assist in the funding of the Newsletter, a joint publication with THE CIVIL PRACTICE ADVISORY the Canadian Bar Association. by Everett L. Bunnell,Q.C., Chair The Law Society prints and distrib- utes, on a cost recovery basis, a THE COMMITTEE project for series of consumer information the introduc- brochures which provide basic E. L. Bunnell (C) tion of case information about different areas of W. P. Sharek (VC) flow man- law. These remain popular with the V. May agement in D. A. McGillivray profession and the public. This year, Edmonton R. K. Ruston the committee prepared and released and Calgary L. A. Cusano had been two new consumer information T. D. Hamill brochures: The Process When You conceived. E. A. Johnson Related operating Divorce or Separate and Lawyers and D. J. Lowe procedures were designed by the Clients - A working relationship. The E. F. Macklin Alberta Law Reform Institute. The committee also reviewed and updated A. D. Macleod proposal was that law suits would be the existing brochures. Special P. L. Freeman (LSA) thanks to Anthony Young for his L. MacDonald (LSA) segregated into three categories ongoing effort and commitment as which would proceed to trial no later chair of the brochure subcommittee. than in 12, 20 and 36 months. This During 1999 we witnessed further bundle of change has been stalled for want of provincial funding. Con- MEDIA GUIDE themes of reform advanced, propos- ing changes to the scene of civil cerns have been voiced from the The Law Society and the Canadian litigation. Arising from Alberta’s legal profession about the need for Bar Association co-sponsor the Justice Summit in January, reforms more extensive consultation in this Media Guide, a booklet designed to were proposed and developed vast array of proposed reform. assist the media find appropriate concerning: Discussions continue. representatives of the profession to 1. The public’s need for legisla- The desirability, necessity and field their inquiries. tion in Alberta to enable the feasibility of compulsory mediation commencement of class actions, a as a part of the civil justice processes WWW.LAWSOCIETYALBERTA.COM matter which subsequently led to in Alberta is also being keenly analyzed. During 1999 the web site was rede- a project of the Alberta Law signed to improve navigation and to Reform Commission, which is We witnessed a continued exchange provide easier access to information. presently ongoing. of views concerning the efficacy of A number of additional resources 2. The recognition of a need to significant changes to the Schedule were uploaded to the web site, which protect the litigating public in “C” of the Rules of Court concerning currently includes The Rules, The respect of the treatment of taxable recoverable taxable costs. Concerns Legal Profession Act and The Code costs contained as a part of have been expressed regarding a of Professional Conduct as well as all contingency fee agreements, a likely “chilling effect” to result, new publications, brochures and law matter which has led to new Rules deterring access to civil justice. related links. As more and more of Court. Others saw these reforms imple- members gain Interent access, mented by the Rules of Court 3. The need for more restrictive electronic communication between Committee as long overdue. While Rules for pre-trial discovery the Law Society and its stakeholders the dialogue has at times been fierce, processes, a matter which will become increasingly cost there has been no retraction of these produced new and controversial efficient and feasible. changes. Rules of Court effective Novem- I thank all of the committee members ber 1, 1999. This report would be incomplete for their outstanding efforts during without my expression of apprecia- The machinery of civil justice and 1999. tion to all committee members for access thereto on a cost-effective their sterling efforts throughout the and timely basis are topics of the year. Special acknowledgment is Wolff Report in the United Kingdom warranted for the support provided and are the subject of recommenda- by our secretary, Peter Freeman, Q.C., tions from the Alberta Implementa- and Corrine Kubota, his executive tion Committee of the CBA Task assistant. Force on Civil Justice Reform. A pilot 12 THE LAW SOCIETY OF ALBERTA ANNUAL REPORT 1999

tion of the Conduct Committee to THE CONDUCT COMMITTEE replace the word “invitation” with a term that more accurately connotes by Eric Macklin,Q.C., Chair the intended disciplinary conse- quence. Such a meeting is now THE COMMITTEE copies. The termed a “mandatory conduct amended rule advisory.” E. F. Macklin (C) now provides A. Hepner (VC) During 1999 Conduct Committee that exhibits L. G. Anderson members spend countless hours entered during a E. L. Bunnell reviewing materials in preparation for, C. C. Gottselig hearing held in public and attendance at, conduct panel D. A. McGillivray shall be made available for inspection meetings. Their willingness to K. G. Nielsen and copies made upon request (at a volunteer so much of their time S. Renouf preset prescribed rate) unless the speaks volumes for the support we J. Watson Hearing Committee directs otherwise. get from our members. I wish to M. Taylor One of the disciplinary remedies thank all of the bencher members of J. E. Davison available to a conduct panel after the committee and all of the non M. T. Duckett reviewing the conduct of a member bencher members of the committee B. J. Larbalestier has been to direct that the member without whom we would be unable to L. G. Lien receive an “invitation” to meet with a effectively handle the ever increasing E. O. McAvity bencher to review the member’s workload. Their continued dedica- B. K. Rattan tion helps ensure the independence R. W. Rand conduct that gave rise to the com- plaint. As a result of concern of the profession and our right to self K. J. Warren govern. R. W. Wilson expressed over the perception of the L.MacDonald complaining member of the public Finally, I wish to acknowledge and J.D. McLeod when advised that the lawyer against thank Jim McLeod and the Conduct I. MacEachern whom the complaint was lodged had Department staff for all of their D. Guenter received only an “invitation,” the assistance and hard work. D. Hutchinson (LSA) benchers accepted the recommenda- In keeping with the goal of streamlin- ing the complaint process and THE CORPORATE & ensuring its transparency to both the public and the profession, conduct guidelines are now in place setting COMMERCIAL ADVISORY out the procedure for dealing with conduct complaints from the time by Cheryl Gottselig, Q.C., Chair they are received by the Law Society until they are either dismissed or Under the referred to a conduct panel. With the THE COMMITTEE Chairmanship of other conduct guidelines previously C. C. Gottselig (C) Dale Spackman, in place, we now have guidelines D. R. Spackman (VC) Q.C., the subcommit- covering the time from the receipt of J. D. Bascom tee on Electronic Commerce contin- a complaint to its final disposition. M. F. Swanson ued negotiations with the Law Another step taken by the benchers S. Bodie Society of British Columbia in an G. A. Campbell on the recommendation of the effort to develop a Public Key J. D. Coulter Conduct Committee was an amend- Infrastructure (PKI). A PKI, some- A. J. Hladyshevsky ment to Rule 98(3) of the Rules of the H. M. Kay times called a certifying authority, Law Society. While our hearings D. J. Stratton provides digital signatures and have been held in public over the last G. Ho encryption systems to ensure number of years (subject, of course, B. Romanko electronic business transactions are to some exceptions in appropriate P. L. Freeman (LSA) trustworthy. A PKI is the enabling cases), there had been no mechanism framework to certify that participants It was an interesting and productive in place to allow exhibits entered in electronic commerce are whom during the course of a public hearing year for the Corporate and Commer- cial Advisory Committee. to be copied by those wanting Cont’d

13 ANNUAL REPORT 1999 THE LAW SOCIETY OF ALBERTA

they claim to be. Because the public is opting in favour of e-commerce THE CRIMINAL PRACTICE and governments are switching to electronic filing systems, we are in ADVISORY need of a PKI system that will provide confidentiality, access control, authentication, integrity and by Hugh Sommerville,Q.C., Chair non-repudiations. This topic will be THE COMMITTEE discussed at the next Federation of between law Law Societies meeting with the view H. D. Sommerville (C) enforcement to possibly developing a national J. Watson (VC) agencies and the PKI structure. G, Davis legal profession. The committee has continued to l. Stevens This issue has been lobby the Alberta government on W. Willier going on for some time, and no final various issues including the reduc- K. McLeod solution has yet been reached. E. A. Hughes tion of corporate registry fees, R. G. McGuaig The ethical issue of defence lawyers unlimited liability corporations and C. Seto communicating to the complainants needed amendments to the Alberta B. McLaren in domestic assaults was brought Business Corporations Act. A very L. MacDonald (LSA) before the committee for considera- useful meeting was held with The D. Guenter (LSA) tion. After significant discussion, a Honourable Pat Nelson, Minister of V. Blain, (LSA) paper was drafted and forwarded to Government Services, in an effort to professional responsibility. After This committee helps sort out have these issues put on the legisla- their approval, the paper was pub- practice problems between crown tive agenda. lished in the Benchers’ Advisory as and defence, and gives the criminal the position of the Society on the With the addition of John Bascom, bar a more official and unified voice issue. The paper did not purport to Q.C. to the committee, we focussed with which to deal with the court and draw exact lines between approved on the responsibility of lawyers government. The committee consists and disapproved communications, handling trust monies in such a way of a balance of practitioners from the but did try to show where some of as to identify if those funds are the defence bar and the federal and the danger spots lay. proceeds of criminal activities. provincial crowns, with representa- Attention must be given to the new tion from rural and youth court The issue of paid non-lawyer agents federal piece of legislation called the practitioners as well. The committee appearing in Provincial Court was an Corruption of Foreign Public meets regularly to help sort out issue of some concern to the commit- Officials Act. difficulties before they get confronta- tee. The Romanowicz decision Sarah Brickett will be taking forward a tional, and to keep everyone in- determined that the provinces could request from our committee to amend formed on what is going on in the not prevent appearance by agents the Canadian Lawyer Insurance criminal justice system. where the Criminal Code allowed it, but the case showed that the court Association (Professional Liability In 1999 the committee continued to did specifically have the power to Insurance Group for Alberta) policy monitor the implementation of the refuse to hear morally incompetent to put coverage in place for lawyers Traffic Safety Act. While some input advocates, such as disbarred law- who perform registry services for was made on the early stages of the yers. This committee and Unauthor- individuals “off the street.” legislation, the committee’s main role ized Practice were concerned with was to keep the bar informed on the I would like to thank each of the getting our position out to the courts effects of the legislation. On-going committee members for their tireless and to the federal government. participation in the issues brought competence is an important issue before this committee. The corporate with the Law Society, so we wished Legal Aid issues were very much in and commercial world is in a constant the members to be up-to-date about the forefront throughout the year, state of change. If there are issues this important new law. both in terms of tariff negotiations and governance issues. The negotia- that need to be addressed, please Another issue which the committee tions with Alberta Justice and the contact me at followed was the execution of search Legal Aid Society were conducted by [email protected]. warrants at law offices. With section separate committees, and were not 488.1 of the Criminal Code being concluded until after the end of 1999. struck down, there is a continued interest in setting up a protocol

14 THE LAW SOCIETY OF ALBERTA ANNUAL REPORT 1999

to provide THE EDUCATION COMMITTEE excellent support to the by Simon Renouf, Q.C., chair committee. A matter of considerable ety’s rules, and the rules applicable THE COMMITTEE interest in 1999 to the bar admission course. These was the devel- Pat Rowbotham (C) include applications for reinstate- opment of S. Renouf (VC) ment to active practice, back dating articling recruitment L. G. Anderson of articles, qualifications for student- procedures, which benefitted consid- C. C. Gottselig at-law and principal, student appeals erably from the work of a committee D. A. McGillivray and other matters. The guidelines M. F. Swanson under the leadership of Deans developed by the committee and Law J. Watson Michael Wylie and Lewis Klar. Society staff have been very helpful R. Neil Brown Activity on this issue continued into in handling these applications and F. L. Schutz the year 2000. Dean M. Wylie U of C have continued to be revised and I would like to extend my personal Dean L. Klar U of A updated. thanks and appreciation to all H. A. Robertson LESA In 1999 the Law Society’s Deputy members of the committee and D. J. Turner (LSA) Secretary, David Turner retired. The especially to two former chairs of the B. Gesinghaus (LSA) Education Committee was well Education Committee, the Hon. served by Mr. Turner for many years. Madam Justice P. Rowbotham and The new Deputy Executive Director, The Law Society’s Education Com- Francine Swanson, Q.C. for the Don Thompson who took office in mittee has faced a number of chal- guidance and assistance they have late 1999 has already been of great lenges in 1999 including an increas- provided to me as chair of this assistance to the committee. The ing workload addressing applications committee. staff of the law society, particularly for a variety of requests for special Brenda Gesinghaus, have continued consideration under the Law Soci-

THE FINANCE COMMITTEE by Ken Nielsen, Q.C., chair responsible benchers were of the view that to for reviewing maintain the quality of our library THE COMMITTEE the budgets of services, it was necessary to double the general the annual library grant from $38 to K. G. Nielsen (C) fund, assurance $76 per member. This had a signifi- E. L. Bunnell (VC) fund and Viscount cant impact on the budget. To fulfill H. Sommerville Bennett trust fund and the mandate of the Law Society, it A. Hepner makes recommendations to the was necessary to increase the annual M. Taylor benchers for the annual fee and fee by $65 to a total of $840 per W. Willier assurance fund levy to be paid by member. The breakdown of the major L. A. Johnson members based on recommendations components of the annual fee is as C. J. Miller from the Audit Subcommittee. follows: D. A. Sirrs D. Syme D. J. Turner (LSA) ANNUAL FEE M. L. Scott (LSA) In 1999, the budget for the general General Fee $717.00 B. Whitby (LSA) fund was prepared having regard to a Joint Library $ 76.00 benchers’ resolution in November Bar Admission Course $ 32.00 1997 to provide for a build up of the The Finance Committee oversees the Legal Archives $15.00 financial affairs of the Law Society available surplus. This year, the and adjudicates on claims against the benchers were faced with a request Total: $840.00 to significantly increase the grant to assurance fund. The committee is Cont’d the Joint Library Committee. The 15 ANNUAL REPORT 1999 THE LAW SOCIETY OF ALBERTA

ASSURANCE FUND LEVY THE FAMILY LAW ADVISORY In 1998, the assurance fund levy was reduced from $92 to $67 per member. by Bryan E. Mahoney, Q.C. chair In setting the budget for the fiscal year commencing November 1st, 1999 the benchers determined that upon a THE COMMITTEE review of the assets in the assurance fund available for compensating B. E. Mahoney (C) More recently clients and based on actuarial advice R. K. Ruston (VC) we discussed the received, it was necessary to increase W. E. Best Justice Summit, the concept the annual assurance fund levy to R. J. O’Gorman of a unified family court and practice the 1998 level of $92 per member. N. F. Wm. Picard problems with the Child Support P. L. Freeman (LSA) Centre, family law chambers applica- MISCELLANEOUS MATTERS tions and the new examination for In 1999 the Family Law Advisory met discovery and disclosure rules. The 1999 was the first year that the new several times to discuss family law current move to reform family law procedures and guidelines for practice issues. Since its creation in legislation has not reached the adjudicating claims upon the assur- 1998 the committee has dealt with practising bar yet for comment. We ance fund were in place. These such topics as domestic violence expect to have input once the procedures and guidelines are legislation, police enforcement of Ministry has made a proposal. working very well and have been access orders, access by family law I would like to thank the dedicated responsible for streamlining the lawyers to the motor vehicle registry processing of claims against the committee members for their volun- database, reform of provincial family teer help during 1999. assurance fund and for reducing the law legislation and access to justice. costs of processing same. This year also saw a change in the regulations with respect to late THE GENDER, EQUALITY & payment of the annual fees. As a result of recent decisions of the Supreme Court of Canada, the EQUITY COMMITTEE benchers determined that it was necessary to revise Rule 165 with respect to late payment penalties. by W. Paul Sharek,Q.C., chair This resulted in a procedure being instituted effective for the 1999-2000 THE COMMITTEE Profession.” fiscal year which will see members The commit- suspended if the annual fee is not W.P. Sharek (C) tee conducted paid by March 31st of any given year. G. Ho (VC) a detailed P. A. Rowbotham U of C examination of those The Finance Committee had a very A. Abougoush aspects of the report directed to law active and productive year and I A. E. Acorn U of A societies and made recommendations would like to thank all committee T. Beattie members and Law Society employees S. Chotalia CBA to the benchers. The committee will for their significant contributions B. Enge monitor the progress of the CBA over the year. M. David Gates initiatives. A. L. Kirker Part of our responsibility was to K. Mawani conduct an assessment of the equity M. E. A. (Beth) Miller ombudsperson position, as estab- P. L. Freeman (LSA) lished by the Law Society in late S. Billington (LSA) 1996. This arose out of a benchers’ J. Byron (resource) resolution in February, 1998, which approved the continuation of the In 1999, the committee received and equity ombudsperson program to reviewed the report of the Canadian October 31, 1999 and resolved the Bar Association entitled “Racial Equality in the Canadian Legal Cont’d

16 THE LAW SOCIETY OF ALBERTA ANNUAL REPORT 1999 program be reviewed in 1999 to determine whether it should become THE INSURANCE permanent. The committee reviewed the history of the position since its COMMITTEE inception and the use that has been made of the program, and recom- by Anthony L. Friend, Q.C., chair from the mended to the benchers at the Canadian November convocation that the Lawyers equity ombudsperson position be THE COMMITTEE Insurance continued for three years, with Association (CLIA), A. L. Friend (C) annual reviews. The recommenda- the benchers were able to approve an tion recognized Alberta’s position as B. E. Mahoney (VC) D. A. McGillivray insurance levy for 1999 of $1,909. a leader in this area, and the effec- S. Renouf These credits were made possible as tiveness of the program. The W. P. Sharek a result of better than anticipated benchers accepted the committee’s H. D. Sommerville loss experience by both ALIA and recommendation. Wm. J. Kenny CLIA, as well as favourable invest- In the meantime, Joanne Goss, our R. D. Maxwell ment returns. It should be noted former equity ombudsperson, was D. G. Stokes however that through the course of appointed to Provincial Court and P. A. L. Smith CLIA Rep. 1999 the program’s claims experience Jeanne Byron was hired as an interim S. Brickett (LSA) became somewhat worse, and while equity ombudsperson. The commit- investment returns continue to be tee was therefore instructed to favorable, there is no guarantee that proceed with the job search, and the The Alberta Lawyers Insurance those positive investment results will appropriate process for advertising Association (ALIA), the liability continue over future years. Late in for candidates was initiated. Follow- insurance program for Alberta 1999 the program’s actuaries reported ing an extensive search and interview lawyers, has completed another a $3.5 million decrease in the contin- process, we hired Jeanne Byron to fill successful year of operation. gency reserve in the insurance fund. the ombudsperson position. A number of factors contributed to this decrease, including the applica- INSURANCE LEVY In 1999, the committee continued its tion of some of the surplus to reduce examination of workplace policies, The program’s actuaries projected an the 1999 levy, somewhat lower including revisions to commentaries actual cost per member for the returns on investments, but in in the Code of Professional Conduct program for 1999 of $2,734. However particular the increase in claims that dealing with harassment. as a result of a distribution back to is occurring. Accordingly it likely This report would not be complete the members of a portion of the will be necessary to provide for some without an acknowledgement of the surplus of $625 per member, and as a increase in the insurance levy to the valuable contribution to the commit- result of a $200 per member credit members in future years. tee of Pat Rowbotham, who was appointed to the Court of Queen’s Cont’d Bench of Alberta during 1999. I was CLAIMS REPORTED pleased and honoured to chair this committee in 1999. I wish to extend 4% 9% my sincere thanks to Judge Goss and Madam Justice Rowbotham for their assistance. I also appreciated the valuable work and contributions of 8% committee members, and Susan 42% Billington of the Law Society. Civil litigation 42% Real estate 20% 17% Corporate/commercial 17% Matrimonial/family 8% Other 9% Estate planning 4% 20%

17 ANNUAL REPORT 1999 THE LAW SOCIETY OF ALBERTA

NAME CHANGE These waivers have been in place tions, and the implementation of a since 1997 with no apparent adverse Western Torrens project which The program changed its name in impact on the program. These contemplates changes in property 1999 from Alberta Lawyers Public measures appear to have resulted in conveyancing and registration Protection Association (ALPPA) to the ability to close files at an earlier practice. These are on-going issues Alberta Lawyers Insurance Associa- stage and thereby reduce costs. As a to be addressed by the Insurance tion (ALIA). The new name is less result of the experience to date, the Committee in the future. cumbersome and accurately reflects benchers on the recommendation of the purpose of the program. At the the Insurance Committee, have CONCLUSION request of the Insurance Committee decided to continue for the time the benchers of The Law Society of being the waiver of the deductible. The professional liability insurance Alberta made appropriate amend- program experienced another year of ments to the Law Society’s rules to OTHER ISSUES successful operation. I acknowledge reflect the name change. the time, effort and contributions of The Insurance Committee will all of the members of the Insurance WAIVER OF DEDUCTIBLE continue to deal with a number of Committee over the past year. In issues that have arisen in connection addition, the outstanding role played In 1997 the benchers waived the with the program, including the by Sarah Brickett, Director of Insur- $5,000 per member deductible exclusion of claims arising from ance, and all of the ALIA staff must applicable to claims against the members pursuing ancillary business be recognized. The continued program. Furthermore, the benchers activities, the handling of foreign success of the program and the many waived the surcharge on the insur- legal consultants and practitioners in benefits provided to the membership ance levy that had been made for Alberta who are providing advice on are the result of their hard work and claims under $10,000 if the member foreign laws and who may be regis- abilities. had no paid claims for five years. tered to practice in other jurisdic-

comed new THE JOINT LIBRARY COMMITTEE contribution) to fund the hardware for by Francine Swanson,Q.C. chair internet access in all THE COMMITTEE courthouse libraries includes updat- 26 libraries, ing collections, increased Internet while Alberta M. F. Swanson (C) access and the hiring of a new Justice agreed to H. D. Sommerville (VC) manager of legal information services provide up front M.E. Bryant for the libraries. and ongoing technical IT assist- D. Dancik U of A,ex Officio ance and network access (a great Funding for the courthouse library D. Sanders Uof C, ex Officio addition to its “in kind” contribu- B. Mcinnes Dept. Of Justice system comes from three sources: tions). G. Ho Dept. Of Justice The Alberta Law Foundation (ALF), V. H. Myers Alberta Justice and the Law Society The library levy provides general A. B. (Porter) Chrenek of Alberta through the library levy. funding. The general nature of the P.L. Freeman (LSA) library levy is extremely important in ALF and Alberta Justice funding is the overall coordination of the As the costs of legal materials provided for specific expenditures. funding as the library levy fills the increase, more lawyers are turning to ALF provides contributions in cash widening gaps between the contribu- libraries and online databases as while Alberta Justice makes “in kind” tions made by ALF and Alberta alternatives to private library collec- contributions of staff and facilities. Justice. For the last six years, the tions. The benchers recognize that Coordinating the contributions is a library levy had been fixed at the courthouse library system key element of the funding process. $240,000 per year. Commencing in provides an essential service to the In 1999, ALF and Alberta Justice 2000, the benchers increased the legal profession and the public. To jointly agreed to support the internet library levy from $38 to $76 per provide better legal information access plan: ALF approved a one member. services in the new electronic world time grant of over $110,000 (a wel- in 2000, the restructuring plan for the

18 THE LAW SOCIETY OF ALBERTA ANNUAL REPORT 1999

I would like to all THE PROFESSIONAL RESPONSIBILITY of the committee members for COMMITTEE their expertise and experi- by John D. Bascom, Q.C., Chair The Professional Responsibility ence which Committee met regularly during 1999 assisted the THE COMMITTEE to review issues relating to the committee in interpretation and application of the responding to J. D. Bascom (C) Code of Professional Conduct, and our members. I R. K. Ruston (VC) would also like to thank Barry A. L. Friend ethical questions in general. I noted that many of the ethical inquiries we Vogel and Paul McLaughlin, who G. E. Bowker regularly attend the meetings and B. R. Carbert received concerned confidentiality whose knowledge and input are D. G. Cole and solicitor/client privilege. Al- greatly appreciated. Finally, I would R. J. Everard though we have a specific chapter in S. D. Hillier the Code of Professional Conduct like to thank the committee adminis- H. J. L. Irwin dealing with confidentiality, the trator, Vicky Blaine, who organized B. L. Maxston committee found that lawyers are the meetings and provided valuable S. Raby frequently asked to breach confiden- assistance to the chair. B. Vogel (LSA) tiality by individuals or corporations L. MacDonald (LSA) outside of the legal community. P. McLaughlin (LSA) Additionally, the federal government I. MacEachern (LSA) has proposed new legislation which V. Blaine (LSA) will replace the existing Proceeds of THE PRACTICE Crime (Money Laundering) Act, which will require lawyers to record REVIEW JOINT LIBRARY (CON’T) and report certain types of transac- tions which would be classified as COMMITTEE Library fees for lawyers in other confidential under Chapter 7 of our provinces across Canada range from Code of Professional Conduct. The a high of over $350 per member per purpose of Bill C-22 is to deter and by Virginia M. May, Q.C., Chair year in Ontario, New Brunswick and detect money laundering, however, Newfoundland to a low of $105 in the Professional Responsibility THE COMMITTEE British Columbia. At $76 per member, Committee feels that if Bill C-22 the Alberta library levy is still far becomes law, lawyers will find V. M. May(C) below the average. themselves in constant conflict over M. F. Swanson (VC) their ethical duties and the obliga- J. Andersen Special thanks are extended to Lillian tions mandated by federal legislation. E. Bunnell Vilborg MacPherson and Olga Kizlyk K.G. Nielsen Scarpari, who provided library The Professional Responsibility B. E. Mahoney consulting services; Owen Snider, Committee continues to respond to R. K. Ruston Executive Director of the Alberta Law inquiries from members of our W. P. Sharek Foundation and the Board of Direc- profession and on some occasions H. D. Sommerville tors of the Alberta Law Foundation: we are asked to provide an opinion J. Watson Tony Friend, Chair, David Steele, by another Law Society committee. W. Willier Nolan Steed, Karen Swartzenberger, S. R. Creagh From time to time the committee has P. J. Davis Michael Frey, Orest Olineck and Jim been asked to provide an opinion Pender, who continue to support the R. Dutchak where the fact situation involves a B. Ede objectives of the courthouse libraries legal question that is connected with F. R. Fenwick with significant financial contribu- an ethical inquiry. In such cases the P. G. Lister tions; the many people in Alberta committee provides only an opinion R. A. Philp Justice who work in the libraries; and concerning the ethical inquiry and we G. Sharek Rod Wacowich, Q.C., Assistant advise the individual or group B. Cooper (LSA) Deputy Minister, and Geoff Ho of making the inquiry that the legal M. Rogers (LSA) Alberta Justice for their support and aspects of the question are beyond cooperation concerning the restruc- the jurisdiction of the committee. turing plan. 19 ANNUAL REPORT 1999 THE LAW SOCIETY OF ALBERTA

Committee is oriented towards tee, refer lawyers to the Practice The Practice competency, not discipline. It is one Review Committee. ALIA can also Review of the most effective tools that the refer members. The member’s Committee is Law Society has for monitoring the cooperation with the Practice Review the helping competency of its members and panel is voluntary, except in the case hand of the therefore, in maintaining and improv- of referral from the Conduct Commit- Law Society. ing the image of the lawyer to the tee or a hearing panel, which is Throughout public. The Law Society is currently authorized to mandate a member’s 1999, the involved in implementing comprehen- cooperation with Practice Review. Practice Review sive competency planning and Many hours are spent by fellow Committee provided remedial Practice Review is an integral part of practitioners assisting those mem- assistance to an ever-increasing that process. bers who have been referred to the number of Law Society members. 179 Practice Review Committee and the The Practice Review Committee is new files were opened in 1999, results, both to the individual playing, and will play, an ever larger compared to 27 files in 1997 and 90 member needing the assistance and role in the competency process. For files in 1998. Since the practice to the member of the public receiving example, the committee is working on review process largely depends upon the final product of a lawyer’s developing practice improvement the full cooperation of a member, this intellect, have shown that preventa- seminars. The committee, together increase reflects a greater awareness tive intervention can work for all. with the Education Committee, is of the benefits of the assistance involved in looking at the issue of I have very much appreciated the provided by the Practice Review mentoring and how to deal with the opportunity to work with Barbara Committee both to the member and to suitability of a member to become a Cooper, the Law Society’s practice the public. principal for a new student of law. It review director, and with Merry Anything that impairs a lawyer’s is an interesting, but not surprising Rogers who works with her closely ability to do his or her job does not finding by the Practice Review every day. In addition, I so much result from a moral failure, but rather Committee, that often the members enjoyed working with my fellow from a condition that can be aided that need remedial assistance from Practice Review Committee members, and overcome. Whether the impair- the Practice Review Committee have benefitting myself from their experi- ment which is adversely affecting an not received adequate articles in the ence and dedication. In addition, I ability to practice relates to alcohol- first place, possibly as a result of a found the work of the committee ism or substance abuse, health principal incapable of providing itself most rewarding in terms of problems, stress, or just an unrecog- such. seeing some of my fellow members nized disinterest in the practice of become competent, confident and Other branches of the Law Society, law, the matter does not usually get unstressed members of our society including the Complaints Resolution resolved without assistance. again. Officers, the Conduct Committee or a The focus of the Practice Review hearing panel of a Conduct Commit-

THE UNAUTHORIZED PRACTICE COMMITTEE

by Larry Anderson,Q.C., Chair

THE COMMITTEE The primary purpose of this commit- debt collec- tee is to receive and review com- tion, family, L.G. Anderson(C) plaints regarding individuals or civil litiga- H.D. Sommerville (VC) entities appearing to perform legal tion, criminal B. Mahoney services without proper authoriza- law, workers’ W. Willier tion. The committee met on five compensation D. Kiss occasions and a vetting panel of the issues and real L. McLellan committee met an additional five estate. Fortunately, most of the J. Phillips times. During the year we handled matters can be and were dealt with by J. McLeod (LSA) between 20-30 matters, many of L. MacDonald (LSA) means other than prosecution. which were dealt with on a multiple, J. Stoliker (LSA) Approximately five matters involved ongoing basis throughout the year. prosecution, several of which had The concerns covered a broad spectrum of legal services including Cont’d

20 THE LAW SOCIETY OF ALBERTA ANNUAL REPORT 1999 been commenced prior to this OTHER 1999 STANDING COMMITTEES committee taking over for 1999 and a couple of prosecutions were com- menced during this period. EXECUTIVE EDUCATION PLANS & ARTICLING The committee also assumed a pro- President T. D. Clackson (Subco. Education) active approach with a view to President-elect A. D. Macleod L. G. Anderson (C) raising the profile of the committee Conduct E. F. Macklin J. Andersen Education P. A. Rowbotham and furthering the Law Society’s F. L. Schutz Finance K. G. Nielsen H. A. Robertson LESA, ex Officio efforts to ensure quality representa- Insurance A. L. Friend tion for the public. In this regard, the D. J. Turner (LSA) Practice Review V. M. May B. Gesinghaus (LSA) committee published a brochure Prof. Resp. J. D. Bascom outlining the differences between Law Society P. L. Freeman TRANSFER & MOBILITY qualified lawyers and legal agents. Due primarily to the efforts of Lillian ADVISORY COMMITTEE ON (Subco. Education) McLellan, the brochure was prepared CUSTODIANSHIPS M. F. Swanson (C) and forwarded to the Communica- H. M. Kay tions Committee for fine tuning and A. Hepner (C) J. Law intended publication in the year 2000. K. E. Laws Dean M. Wylie U of C J. M. Shafir The committee also prepared a R. Reeson (Transfer Exams) D. J. Turner (LSA) D. J. Turner (LSA) position for consideration by the B. Whitby (LSA) B. Gesinghaus (LSA) Executive Committee regarding proposed amendments to the Crimi- APPEAL AUDIT nal Code provisions dealing with legal agents. A recent amendment to President T. D. Clackson (Subco. Finance) the Legal Profession Act, which President-elect A. D. Macleod A. L. Friend (C) excludes disbarred lawyers from Conduct E. F. Macklin J. Watson (VC) acting as legal agents where statutes Conduct A. Hepner R. D. Hupfer would otherwise permit, was adver- Practice Review V. M. May James S. Peacock Practice Review M. F. Swanson J. S. Steel tised and circulated amongst the L. G. Anderson K. G. Nielsen M. L. Scott, LSA judiciary and the bar. This has J. D. Bascom S. Renouf P. L. Freeman, LSA helped to resolve a reoccurring E. L. Bunnell P. A. Rowbotham problem particularly in the criminal A. L. Friend R. K. Ruston LEGAL ARCHIVES and quasi-criminal courts. C. C. Gottselig W. P. Sharek B. E. Mahoney H. D. Sommerville J. Watson (C) I would like to thank all of the D. A. McGillivray J. Watson G. E. Price committee members for their contri- J. Andersen W. Willier J. T. Neilson butions and further extend the M. Taylor P. L. Freeman (LSA) committee’s gratitude to Jim McLeod S. Arsenault (LSA) and Joni Stoliker who made our work much easier. The work of Greg Busch ELECTRONIC COMMERCE and Steve Bach who investigated many of the matters is also acknowl- (Subco of Corporate & Commercial) edged with appreciation. D. R. Spackman (C) C. C. Gottselig J. D. Coulter J. J. Ruitenschild P. L. Freeman (LSA)

EDUCATION APPEALS PANEL

(Subco. Education) P. A. Rowbotham (C) R. Neil Brown D.J. Turner (LSA) B. Gesinghaus (LSA)

21 ANNUAL REPORT 1999 THE LAW SOCIETY OF ALBERTA

1999 AD HOC COMMITTEES INFORMATION TECHNOLOGY STEERING SPECIALIZATION COMMITTEE J. D. Bascom (C) N. F. Wm. Picard (VC) ALBERTA REGISTRIES LIAISON M. Scott (LSA) L. G. Andreachuk I. Fadden (LSA) S. D. Hillier Steve Raby (C) D. Fong (LSA) H. A. Robertson, LESA Jack Dunphy L. MacDonald (LSA) R. Carter Lyndon Irwin J. Stoliker (LSA) M. Naber-Sykes Rex Nielsen M. Sikorski (LSA) Christine Rapp B. Gesinghaus (LSA) David Stratton J. Watson TITLE INSURANCE WORKING GROUP Peter Freeman (LSA) J. Dunphy (C) LEGAL AID NEGOTIATING L. Irwin ANCILLARY BUSINESS & S. Raby S. Renouf (C) MULTIDISCIPLINARY PRACTICE S. Shavers J. Bascom P. Smith Patricia Rowbotham (C) M. Duckett P. Freeman (LSA) Gordon Flynn R. O’Gorman Elwood Johnson R. Short Barbara Snowdon M. Taylor TRANSFER OF INFORMATION BETWEEN Corinne Peterson DEPARTMENTS WITHIN LSA/ALIA William H. Smith LIBRARY NEGOTIATING J. Philip Warner K. Nielsen Peter Freeman (LSA) F. Swanson A. Macleod Susan Billington (LSA) P. Warner D. Mercer CLAIMS COMMITTEE B. McInnes P. Freeman (LSA) (SUBCO. INSURANCE)

D. Boyer LIMITED LIABILITY J. Brumlik E. Macklin A. L. Friend D. A. McGillivray G. F. Flynn A. G. McKay S. L. Miller PRO BONO COMMITTEE K. G. Nielsen G. K. Randall T. D. Clackson (C) G. F. Scott A. D. Fielding (VC) P. A. L. Smith R. K. Ruston S. Brickett (LSA) S. Renouf A. D. Hunter E. H. Molstad T. McGregor

22 THE LAW SOCIETY OF ALBERTA ANNUAL REPORT 1999

AUDITORS’ REPORT

THE LAW SOCIETY OF ALBERTA CONDENSED FINANCIAL STATEMENTS OCTOBER 31, 1999

To the Members of The Law Society of Alberta

We have audited the financial statements of The Law Society of Alberta as at October 31, 1999 in accord- ance with generally accepted auditing standards and expressed an unqualified opinion on these financial statements in our report dated December 14, 1999.

In our opinion, the information contained in the attached condensed balance sheet and condensed statement of revenue, expenses and balance of funds is consistent with the above mentioned financial statements from which it was derived.

PRICEWATERHOUSECOOPERS LLP CHARTERED ACCOUNTANTS DECEMBER 14, 1999

A copy of the complete financial statements is available by writing to M. L. Scott, Treasurer, The Law Society of Alberta.

CONDENSED BALANCE SHEET OCTOBER 31, 1999 (1,000’S OF DOLLARS)

Assets 1999 1998 $ $

Current 2,238 2,273 Investment 8,487 8,720 Trust assets 292 265 Fixed assets 521 239 11,538 11,497

Liabilities and Fund Balance

Current liabilities 636 381 Reserve for clients 877 1,020 Trust liabilities 292 265 Deferred rent 605 673 Contributed trust capital 22 22 Contingency reserve 6,056 6,251 Fund balance 3,050 2,885 11,538 11,497

23 ANNUAL REPORT 1999 THE LAW SOCIETY OF ALBERTA

COMPOSITION OF 1999 FUND BALANCE OCTOBER 31, 1999

1999 1998 $ $

General 2,391 2,236 Viscount Bennett 659 649

CONDENSED STATEMENT OF REVENUE, EXPENSES AND BALANCE OF FUNDS FOR THE YEAR ENDED OCTOBER 31, 1999

1999 1998 $ $

Revenue 7,579 7,795 Expenses 7,609 7,077 Excess (deficiency) of revenue over expenses (30) 718 Balance of fund, beginning of year 2,885 2,485 Funds withdrawn from (allocated to) contingency reserve 195 (318)

Balance of Fund, end of year 3,049 2,885

EXPENSE DISTRIBUTION, 1999

3% 7% 13% Custodial & professional fees 3% Review of trust accounts 7% General administration 63% 8% Grants & contributions 6% Premises 8% Governance & discipline 13%

6%

63%

24 THE LAW SOCIETY OF ALBERTA ANNUAL REPORT 1999

SOURCES OF REVENUES, 1999

3% 5% Professional corporations 3% Bar admission 5% 8% Other 8% As s urance levy 6% Investment income 10% 6% Annual fees 68%

10%

68%

AUDITORS’ REPORT

ALBERTA LAWYERS INSURANCE ASSOCIATION CONDENSED FINANCIAL STATEMENTS OCTOBER 31, 1999

To the Directors of the Alberta Lawyers Insurance Association

We have audited the financial statements of Alberta Lawyers Insurance Association as at October 31, 1999 in accordance with generally accepted auditing standards and expressed an unqualified opinion on these financial statements in our report dated December 14, 1999.

In our opinion, the information contained in the attached condensed balance sheet and condensed statement of revenue, expenses and equity is consistent with the above mentioned financial statements from which it was derived.

PRICEWATERHOUSECOOPERS LLP CHARTERED ACCOUNTANTS DECEMBER 14, 1999

A copy of the complete financial statements is available by writing to M. L. Scott, Treasurer, The Law Society of Alberta.

25 ANNUAL REPORT 1999 THE LAW SOCIETY OF ALBERTA

ALBERTA LAWYERS INSURANCE ASSOCIATION CONDENSED BALANCE SHEET OCTOBER 31, 1999 (1,000’S OF DOLLARS)

1999 1998 $ $ Assets Current 2,896 6,414 Investments 42,539 38,934 Fixed assets 34 20

45,469 45,368

Liabilities and Equity

Current liabilities 4,499 4,654 Reserve for claims 25,617 21,780 Equity 15,353 18,934

45,469 45,368

CONDENSED STATEMENT OF REVENUE, EXPENSES AND EQUITY YEAR ENDED OCTOBER 31, 1999 (1,000’S OF DOLLARS)

1999 1998 Revenue $ $

Annual levy 10,464 10,429 Investment income 3,188 4,791

13,652 15,220

Expenses 17,233 12,017

Excess of revenue over expenses for the year (3,581) 3,203

Equity beginning of the year 18,934 15,731

Equity, end of year 15,353 18,934

26 THE LAW SOCIETY OF ALBERTA ANNUAL REPORT 1999

EXPENSE DISTRIBUTION, 1999

1% 5% Operational expenses 5% CLIA Premium 20% Professional fees 2% 20% Provision for claims 72% Loss prevention 1%

2%

72%

27 THE LAW SOCIETY OF ALBERTA

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