The Law Society of Ontario (LSO) has brought an application alleging that

John Clarke, a paralegal, failed to maintain books and records as required by By-law 9. The LSO also asserted that the paralegal engaged in professional misconduct by failing to cooperate with and respond to a Law Society investigation.

The application stems from three complaints the LSO received from Mr. Clarke's clients and from two opposing lawyers, which caused the LSO to conduct investigations.

First Investigation - Case Number 2018-946

The Law Society received a complaint from Mr. Clarke's former client TS on April 5, Y-4. Based on the

information received from TS, an investigation was instructed on May 9, Y-3 into whether Mr. Clarke

may have:

mishandled/misappropriated client funds;

behaved dishonourably by including improper term(s) in his retainer agreement;

acted in a conflict of interest and/or behaved dishonourably by asking his client to sign a power

of attorney with improper term(s) and/or without recommending that his client obtain

independent legal advice;

failed to provide the client with her original documents; and

failed to preserve client property.

Second Investigation-Case Number 2019-32

The Law Society received a complaint from Mr. Clarke's former client IM on November 29, Y-4. Based

on the information received from IM, an investigation was instructed on April 17, Y-3 into whether Mr.

Clarke may have:

had his client sign improper documents;

engaged in improper advertising/failed to provide services as advertised;

misled his client;

failed to account to his client;

failed to follow client instructions;

acted without client instructions; and

failed to serve his client.

Third Investigation-Case Number 2020-547

On July 4, Y-2, the Law Society received a complaint from two lawyers representing opposing parties in

a labour matter of Mr. Clarke's client UP. Based on the information received, an investigation was

instructed on July 12, Y-2 into whether Mr. Clarke may have:

had his client sign an improper document; and

acted in a conflict of interest by preferring his own interests to the interests of her client.

Additional facts about Mr.Clarke

On July 5, Y-2, Mr. Clarke told the investigator that he was not familiar with what books and records he was required to maintain and that he had not read By-Law 9. Mr. Clarke has repeatedly requested that his trust account be unfrozen. The Law Society has not agreed as it has not been satisfied that Mr. Clarke's books and records had been brought into compliance with By-Law 9. You have met with your client and reviewed all of the correspondence. The correspondence is hundreds of pages of long. You have determined the structure and content of the answers from Mr. Clarke is difficult to follow what is being addressed and why and that information was provided and then corrected and revised over and over again. Mr. Clarke has not tried to show that she provided the documents and information requested, but just a long story of her attempts to comply. Her emails often included information in relation to clients that had nothing to do with the investigation. Your client said that the deadlines by the LSO are unreasonable and unachievable given his health issues and other difficulties. Mr. Clarke has no evidence that the deadlines proposed were met. Mr. Clarke informed you that he has health difficulties, which have prevented him from responding to the investigative inquiries. Your client admitted to you that his books and records were not compliant and does not even know if they are now and that he was unable to provide the investigator with books and records required by ByLaw 9 because she did not maintain books and records as prescribed by By-Law 9. He has also told you that by the time the Law Society issued the Notice of Application his books and records were in compliance to the best of his knowledge. You are concerned because your client has told you two different stories about the books and records being compliant. Mr. Clarke has spent time trying to bring his books into compliance and says that the books are compliant to the best of your client's knowledge and tells you that he did not intentionally fail to bring his books and records into compliance Mr. Clarke now realizes that he should have hired a bookkeeper and/or adopted proper software.

Mr. Clarke has health difficulties, including both physical and mental health and has provided you with a medical note. However, there is nothing in the note that states his difficulties were connected to failing to have compliant books or records. He has been on ODSP since Y-1 and has made a consumer proposal under the Bankruptcy and Insolvency Act, to address GST arrears to the CRA and other arrears. His Notice of Assessments shows a total income of $24,000.00. Mr. Clarke is very concerned about his ongoing files and his ability to realize his contingency fee income for matters on which he has already worked.

reference: Knight, S. P. (2021). Small Claims Court: Procedure and Practice (5th ed.). Emond Publishing. https://online.vitalsource.com/books/9781772557978

please prepare a Schedule A for Mr.Clarke based on the additional facts. 

Answer rating: 100% (QA)

Answer Schedule A Summary of Mr Clarkes Situation Allegations by the Law Society of Ontario LSO Failure to maintain books and records as required by B... View the full answer