RULE 3
According to Rule 3.08(1) does the paralegal have good cause to withdraw from representing Mr. Douglass?
Yes, according to 3.08(5) a paralegal MUST withdraw from representation if the client's instructions require the paralegal to act contrary to the Rules, or by-laws.
How is competence defined in Guideline 6?
Competence is founded upon both ethical and legal principles. Competence involves more than an understanding of legal principles; it involves an adequate knowledge of the practice and procedures by which such principles can be effectively applied
Which Guideline 7, subheading best relates to the scenario?
Dishonesty, Fraud or Crime by Client or Others.
Does the LSO allow paralegals to accept various payment methods?
Yes. Cash (subject to limitations), Cheque, Credit card, Debit card, Online payment systems, such as wire transfer or e-transfer.
Should the paralegal have moved forward with the instructions given to them by the Foreman?
No, the foreman is a third party whose authority was never confirmed.
Which Rule 3 subheading best relates to the scenario?
Dishonesty, Fraud, etc. by Client or Others
How does the paralegal's actions display incompetence?
A competent paralegal knows the Rules and understands why each rule is important. The paralegal uses this knowledge and understanding to guide his or her own conduct. (ie. should not have taken on this client)
What warning signs should the paralegal have picked up on?
unclear retainers, large cash deposits, or instructions that bypass legal procedures
What is the maximum amount of cash a licensee can accept?
A lawyer or paralegal shall not receive or accept cash in a total amount of more than $7,500 CAD in respect to any one client file.
How does the LSO define Money Laundering?
The LSO uses The United Nations definition of Money laundering, which is “money laundering” as any act or attempted act to disguise the source of money or assets derived from criminal activity. Essentially, money laundering is the process whereby “dirty money” – produced through criminal activity – is transformed into “clean money,” the criminal origin of which is difficult to trace.
According to Rule 3.01 what should a competent paralegal have questioned in regards to Mr. Douglass?
A competent paralegal would likely question who the client is in this scenario, the nature of the payment, and probe for more details about the matter specifically, prior to proceeding with legal action. Proceeding with this level of ambiguity sets the stage for improper conduct/misconduct from all parties involved.
In which ways did the paralegal not act competently in the scenario?
The paralegal accepts a case without verifying the client’s identity, fails to confirm who has authority to instruct them, and agrees to proceed under unclear and ethically questionable circumstances
What is the paralegal's obligation regarding the use of cash as a money retainer?
The paralegal has an obligation to make further inquiries about the retainer, and should make a record of the results of these inquiries.
Is there a time limit for holding client money in a trust account?
Yes. Part 4, s 8.1. states "A licensee shall not keep in a trust account money related to legal services being provided by the licensee beyond a minimally reasonable amount of time after the legal services have been performed."
What type of documents may the paralegal need?
memo including directions received from LSO Practice Management
letter to insurer laying out concerns regarding your trust account
potentially a police report regarding the possible crime
withdrawal letter to client(s) to inform discontinuance of representation/services
How are Joint Retainers relevant to the scenario?
We don’t yet know the exact relations between the three parties (Mr.douglass, the foreman, and the business), but if they are separate parties involved in the same matter, a joint retainer would need to be established.
Which action in the scenario is most related to Guideline 6?
Applying Skills & Judgment
AND/OR
The Required Standard of Competence
What is the paralegal's duty to the client?
A paralegal must honestly and candidly advise the client regarding the law and the client’s options, possible outcomes and risks of his or her matter, so that the client is able to make informed decisions and give the paralegal appropriate instructions regarding the case
Define Funds as stated in By-Law 9
“funds” means cash, currency, securities and negotiable instruments or other financial instruments that indicate the person’s title or right to or interest in them.
Is it acceptable to receive a bonus from a client?
No, earnings should be based on the legal services provided.
Should the paralegal have deposited the cash into their trust account?
No, As rule 3.02(6) states: the paralegal’s trust account shouldn’t be used for purposes unrelated to the provision of legal services.
What is a limited scope retainer? and does it apply to the scenario?
A limited scope retainer is an arrangement where a lawyer provides legal services for only a specific part of a client's legal matter, rather than the entire case.
No, it does not apply to the scenario.
When advising a client, a paralegal should...
-explain to and obtain agreement from the client about what legal services the paralegal will provide and at what cost
-should explain to the client under what circumstances he or she may not be able to follow the client’s instructions
What should a licensee do if a client refuses to sign a cash receipt?
The licensee must make reasonable efforts to obtain the signature, explaining their professional and legal obligations. If the individual still refuses, the licensee may accept the cash but must note the refusal on the receipt.
Which resource should you consult first?
Red Flags of Fraud, Money Laundering, Terrorist Financing, and Other Illegal Activity
OR
LSO Practice Management Helpline