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Book Tickets Online For Gala Dinner

Tickets for the October 4th, 2007 Gala Dinner can now be booked online at www.lawsocietyalberta.com.

The 100th Anniversary Gala Dinner, held in Edmonton and Calgary, will offer participants the opportunity to hear two keynote speakers for the price of one.

Guest speakers will be Chief Justice Beverley McLachlin at Northlands in Edmonton and The Honourable Peter Lougheed at the Roundup Centre in Calgary. Both speeches will be simulcast via satellite uplink at both venues.

Master of Ceremonies will be lawyer Allan Shewchuk in Calgary and lawyer Jim Wachowich in Edmonton.

The 100th Anniversary Gala Dinner will be hosted by the Law Society of Alberta, Court of Queen's Bench and the Legal Archives Society of Alberta.

Cocktails start at 6 p.m. with the dinner program to commence at 7:00 p.m. Tickets are $150 each or $1100 per table (seating eight). (Free parking is offered with your ticket at Northlands). Please book your ticket now to avoid disappointment!

Lawsuit Lending Concerns Outlined

by Ron Everard, QC, Chair, Professional Responsibility

What is Lawsuit Lending?

Litigation funding has become something of an industry in recent years.

Lawsuit lending companies typically advance money to personal injury plaintiffs, secured against the ultimate proceeds of the claim. Loan agreements in standard form are most often signed out of the presence of the plaintiffýs lawyer, who is then served with an Assignment or Direction to Pay out of the litigation proceeds.

Sometimes the lawyer is also faced with taking the clientýs signature on the loan agreement. Interest rates and fees on the ýloansý often cannot be deduced without some detailed calculation, but can exceed 60% of the principal amount. In some cases, lawyers have been induced to direct their needy clients to specific lenders or clients are steered to a lawyer for some consideration.

What are the concerns?

Alberta lawyers have brought some of their concerns to the Professional Responsibility Committee of the Law Society. These include:

Will the lawyer and the client be party to charging a criminal rate of interest contrary to s. 347 of the Criminal Code?
- By giving any advice on the loan liability?
- By taking the signatures or acknowledging an assignment?
- By actually paying the interest?
If the lawyer takes a benefit from the lender, will the lawyer be guilty of receiving an illegal commission contrary to s. 426 of the Criminal Code or unethical fee splitting contrary to the Code of Professional Conduct, Ch. 13, R. 8?
Do conflicts of interest or confidentiality issues arise in accepting instructions to pay the lender?
Will the lender attempt to direct the lawyerýs judgment in the case?

What advice, if any, should a lawyer give the client about entering into the loan or paying it off?

What can a lawyer do?

Lawsuit loans, especially at reasonable rates of interest, may provide an important source of funds to the client, even helping to avoid an ill-advised early settlement driven by financial need. Lawyers themselves can make compassionate loans to their clients, but only without interest: Code of Professional Conduct, Ch. 6, R. 9 and Commentary. The best interests of the client need to be weighed on a case by case basis and balanced with the plaintiff lawyerýs professional responsibility and risks of criminal and civil liability. When a client has contracted a lawsuit loan, a lawyer should consider at least:

Whether the loan agreement interferes with the exercise of the lawyerýs skill and judgment;
Whether the agreement adequately protects the clientýs information confidentially provided to the lender by the client or the lawyer;
Scrutinizing the fees and interest charges and, if they are usurious, alert the client;
The possible need to refer the client for independent legal advice on entering into the agreement or on paying it out;
Refusing to pay any fees to lenders who refer clients;
Refusing to refer clients to specific lenders;
Refusing to accept any fees from lenders who make loans to clients;
Paying money claimed by the lender into court if the client disputes the amount owing to a lender.

The Professional Responsibility Committee continues its interest in lawsuit lending. Any questions or concerns may be directed to the Chair by contacting Jennifer Rothery at the Law Society.