DSF is Recognized in Best Lawyers 2024 Edition Devry Smith Frank LLP (DSF) is proud to announce that we have been recognized by Best Lawyers in Canada for the 2024 Edition with 7 of our lawyers ranked across various practice areas. The lawyers being recognized are listed below: David Lavkulik – Personal Injury Litigation Diana L. Solomon – Family Law George O. Frank – Personal Injury Litigation Jennifer K. Howard – Family Law Marc G. Spivak – Personal Injury Litigation Marty Rabinovitch – Labour and Employment Law – Recognized for the first time in 2024 edition of Best Lawyers Todd E. Slonim – Family Law We are grateful for this recognition and will continue to strive to provide the best service for our clients. Best Lawyers is the legal profession’s oldest peer-review publication and garners immense respect as the recognition signifies peer approval. Lists of outstanding lawyers arise from thorough evaluations where legal experts confidentially evaluate their colleagues. For over 40 years, this top peer-review publication acknowledges leading attorneys across more than 100 practice areas, chosen for outstanding feedback. “Lawyer of the Year” is awarded to one attorney in each practice area and metropolitan area, further amplifying its significance. Please visit their website for more details: www.bestlawyers.com By AlyssaBlog, Employment Law, Family Law, Labour Law, Personal Injury, UncategorizedAugust 25, 2023August 25, 2023
How To Address Soaring Food Prices: Recommendations From The Competition Bureau Of Canada The Competition Bureau of Canada (the “Bureau”) is an independent federal law enforcement agency which aims to protect and promote competition for the benefit of Canadian consumers and businesses. The driving principle is that competition drives lower prices and innovation while also fueling economic growth. The Bureau is now casting a harsh light upon an industry which is integral to daily life: the grocery sector. In its recent market study report titled “Canada Needs More Grocery Competition,” the Bureau calls for increased competition.[1] This report arrives on the heels of constantly soaring grocery prices — the highest in over forty years. The Bureau’s recommendations therein may be viewed as an essential step in fostering a more robust and fair grocery marketplace. In brief, Canada’s grocery industry is dominated by three giants: Loblaws, Sobeys, and Metro. This domination makes it more challenging for new entrants or independent stores to compete on that scale. To address rising grocery prices and increase competition, the Bureau suggests that the Canadian government should create a “Grocery Innovation Strategy,” support independent and international grocers, introduce harmonized unit pricing, and limit property controls that hinder new grocery stores from opening. These measures aim to ensure more choice and affordability for Canadian consumers, although changes may take time. Dominance and Market Power in the Grocery Sector One of the primary concerns within the context of Competition Law is the accumulation and exercise of market power. In the grocery industry, dominant players may exert substantial control, influencing prices and choices available to consumers. Market dominance, as outlined in Section 79 of the Competition Act, revolves around entities having substantial or complete control of a class or species of business.[2] With control, there is a possibility of exerting that control to engage in anti-competitive behaviour and independently influence market dynamics. For example, Canada Bread, a major producer of baked goods, recently agreed to pay a $50 million fine after admitting to collusion in fixing the price of bread in Canada.[3] The company confessed that it had collaborated with competitors to raise wholesale bread prices, which affected consumer prices. The collusion involved discussions and agreements on price hikes between executives at Canada Bread and Weston Foods (Canada) Inc. This price-fixing scandal first came to light in 2015 when the Bureau commenced an investigation. The $50 million fine is the highest price-fixing fine ever imposed by a Canadian court. Opportunities for Reform The Bureau has put forward four key recommendations aimed at catalyzing competition in the grocery industry: Whole-of-government strategy: Creating a comprehensive government strategy to facilitate the emergence of new types of grocery businesses is crucial. This approach can ensure that there are fewer barriers to entry and the competitive landscape becomes more diverse. Encouraging independent and international players: Encouraging the growth of independent grocers and facilitating the entry of international players can break the stronghold of the few dominant entities. This could lead to more competitive pricing strategies and innovation in the sector. Harmonized unit pricing requirements: Introducing accessible and harmonized unit pricing requirements can empower consumers to make informed choices. This transparency could drive competitive pricing as consumers can easily compare the value of products across different retailers. Limiting property controls: Property controls can restrict new entrants by making it difficult for new grocery stores to open. Limiting these controls would lower barriers to entry and stimulate competition. These recommendations come while the federal government works to develop a code of conduct for grocers. In January of this year, Agriculture and Agri-Food Canada released a statement stating that this code would strengthen Canada’s food supply chain by promoting transparency, fairness, and predictability.[4] The statement acknowledges that the Code won’t solve all challenges in the food supply chain, but asserts that its adoption will bolster the supply chain’s resilience and earn consumer trust. Embracing Competition Rising consumer prices are connected to the lack of competition in the marketplace. The Bureau’s recommendations come at a time when Canadians are grappling with cost-of-living increases which are increasingly out of control. Implementing the Bureau’s recommendations can ensure a fair playing field in the grocery industry, which in turn can result in lower prices, increase choice, and provide better service. These recommendations may ultimately lead to a more vigilant approach against any other anti-competitive practices, including abuse of dominance or anti-competitive agreements among existing players. The Bureau commits to rigorously scrutinizing the industry, supporting the implementation of a grocery code of conduct, and revisiting the matter in three years. The Bureau is taking a sharp aim at identifying and breaking down the barriers to competition in Canada. These recommendations are a step in the right direction towards a more competitive and consumer-friendly grocery industry in Canada. [1] See: Competition Bureau Canada, Canada Needs More Grocery Competition: Competition Bureau Retail Grocery Market Study Report (Gatineau, Quebec: Competition Bureau, 27 June 2023); see also: Competition Bureau Canada, Competition Bureau makes recommendations to promote competition in Canada’s grocery industry (Gatineau, Quebec: Competition Bureau, 27 June 2023). [2] Competition Act, RSC, 1985, c C-34, s 79. [3] Pete Evans, “Canada Bread agrees to $50M fine for role in bread price-fixing scandal,” CBC News (21 June 2023). [4] See: Agriculture and Agri-Food Canada, Joint Statement on the development of Canada’s first-ever Grocery Code of Conduct (Ottawa, Ontario: Agriculture and Agri-Food Canada, 13 January 2023). By Fauzan SiddiquiBlog, UncategorizedJune 28, 2023June 28, 2023
What Parents Need to Know About Private Schools and Education Law – Before Signing Their Kids Up In our education law practice, around half of our cases are on behalf of parents against private schools because the school did not meet the parent’s expectations, told a child to leave without good reason, or did not meet their child’s needs. This post is not intended to take a stand against private schools. Half of our cases on behalf of parents are against public schools. However, it is often the private school parents, not the public school ones, who have large misconceptions about how Ontario’s Education Act, or Education Law more broadly, apply to the schools their children attend. The reality is that Ontario Private Schools do not have the same curriculum, rules or legally imposed standards that public schools do. The Ontario Government allows a lot more choice when parents choose private education. That is precisely the reason why parents pick Ontario Private Schools. Some parents do not want their kids taking sexual education classes, some don’t like the anti-bullying component that is mandatory in public schools, some parents what subjects taught with a religious focus, some parents want schools that use permissible corporal punishment or other types of discipline that are not available in public schools, some parents don’t want their kids being taught alongside kids that have special needs or are otherwise disadvantaged, some parents want teachers with qualifications that are different from the qualifications required by the Ontario College of Teachers or want their children to have teachers that are not confined by the standards of practice and ethics imposed by that body. Choosing Private School is About Opting Out of Government Standards and Requirements In choosing a private school, parents are choosing an education that is very different from that provided by public schools. This post is not about whether public or private schools are better because that largely depends on the specific school in either system. But, what many parents do not understand is that while it is NOT true that the Education Act does not apply to private schools, more than 95% of the Education Act does not apply. Further, the Ministry of Education does not regulate, license, or otherwise oversee the day-today-operation of private schools. The Ministry does not even inspect elementary schools or high schools that do not grant Ontario Secondary School Diplomas, even if those schools provide other diplomas such as the IB program. The Ministry of Education provides a LOT of direction to public schools about how they will operate. It does this through the Education Act, Government Regulations, and Policy and Procedure Memoranda that all set out exactly how public schools must do things. In most, if not all, circumstances, those directions are rooted in the latest research into best teaching practices. In several areas, the expectations placed on public schools are considered to be the best in the world. But private schools are not required to follow them. To be clear, private schools do NOT have to follow the direction of the Ministry of Education in areas such as: Discipline – including suspensions, expulsions, or other forms of discipline Removing a child from his or her school Addressing the special needs of students Anti-bullying programs Specific curriculum content Student evaluation or testing procedures Communication with parents Participation in school activities Codes of conduct or dress code Vaccination or other health requirements or Record keeping Teacher or principal qualifications If your child needs or would benefit from the specific standards or procedures set by the Ministry of Education, then you may want to look at public schools and even what you have to get your child into a specific public school. Many private schools boast of having standards that exceed the requirements expected of public schools. But, there is no legislative nor government requirement that a private school even meet the standards in public schools. The Ontario Government is not going to step in to ensure that a child is being properly educated or treated at a private school and will look at the curriculum content only if the school wants to give the student an Ontario Secondary School Diploma. Private School Standards Are Set Privately Between Parents and the School That does not mean there are no legal requirements placed on private schools, just that those legal requirements do not come from the government. Instead, they come from the contract that the parents sign with the school. Like with End User Licence Agreements on apps and phones, parents tend to skip over these contracts assuming they have some form of standard terms, or that they are related only to the payment of fees or other unimportant matters. But, those contracts set out what education parents can expect their children to receive and how the school will treat those children. Private Schools Set Their Own Rules for Kicking Kids Out Looking at specifics, one area where private school parents are often caught off guard is about private schools kicking kids out. There are a lot of rules that public schools have to follow if they want to kick a kid out and public schools cannot just tell a kid not to come to school anymore. Private schools don’t have to follow any of those rules. Private schools can force a student to leave based on what is set out in the contract. Most of the established private schools have contracts that essentially say “We can permanently remove any student from the school at any time, for any reason and we do not have to have a hearing or listen to the parents at all and we do not have to refund any portion of the tuition.” Parents usually just sign that contract without thinking about it. Some schools set out a procedure, or say they will mirror the requirements placed on public schools by the Education Act, or that students can only be ejected for violating the code of conduct. However, most private schools do not have those sorts of terms in their contracts with parents and instead have contracts that allow them complete discretion as to when to remove students. Most private schools can even remove a student who is a victim of bullying or other acts because the victim student “does not fit in” or the aggressor students are more desirable. Almost all private schools reserve the right not to readmit students for future academic years. That means they can literally say in June that they don’t want to see a student anymore in September, although that can be difficult if the school and parents have signed a new contract earlier in the year. If parents do not like this possibility, they have to carefully read the contract and make sure they don’t enroll at a school where the contract will allow things to happen that they don’t like. And to be clear, our firm has done lots of cases where parents do not believe their child would be removed from the school. This can be because they went to the school themselves, or they have other children who are at the school or were at the school, or they cannot foresee any situation where a school would not want their child, or even because they have given the school a LOT of money. We have seen lots of cases where parents are absolutely shocked to learn that their child is no longer welcome at a private school and the school is using the terms of the contract against them. When parents come to see us, we do have some remedies under contract law or human rights law and some other strategies we can try to fix the situation. You can make an appointment by calling 416-446-5847. But, the stronger the contract, the more difficult – AND EXPENSIVE – it will be to try to fix things. So, parents should review the contract carefully – and usually the Code of Conduct that is incorporated into the contract – to make sure the contract meets their expectations and will not come back to haunt them if things go sour. Admission Processes And Decisions Are Made By the School We do understand that parents are often just glad that their child got accepted into a private school as it can be very competitive to get in and that it can be embarrassing when a child is not accepted into a private school, particularly when it seems their child is not “up to snuff” or may have unique needs that are keeping them out. Private schools are private businesses so they can choose who they serve and who they do not – unless the decision violates the Ontario Human Rights Code. But many private schools have complex multi-stage admission processes that allow them to deny admission for reasons that are not related to a student’s traits that would violate the Human Rights Code. The last thing that most parents want to do is start questioning the terms of the contract when the school might just turn around and offer the place to another child. Still, we see many parents who are not happy with a private school and where that school failed to meet their expectations. Parents do need to carefully read that contract. If what it promises is different from what parents expect, they need to consider whether that school is the right one. It can be difficult to fight what a school is doing, even when kicking a student out if the school can point to their contract and say it is allowed under the contract, or our contract doesn’t require what the parents expect. Grades and Academic Discipline Giving out grades is one of the very few areas where the Ministry of Education does have expectations of private schools, but not in a way that really assists parents. Private schools are required to have a policy about how they will communicate student achievement to parents. But, how private schools communicate student achievement is entirely up to the private school. They can use the Ministry of Education standard report cards, but they do not have to do so. They do not even have to use formal grades. However, to grant a credit towards a course that will lead to an Ontario Secondary School Diploma, private schools must show that their evaluation of students is based on evidence of achievement of the provincial curriculum expectations, is conducted several times during a course and uses several methods for evaluating the student, as well as meeting other criteria. When it comes to challenging whether an evaluation of a student was fair or accurate, there is no direct way to challenge a private school’s methodology. Many private school contracts specifically state that parents cannot, and will not, do that. Doing so will be, at best, difficult. Similarly, there are no direct ways to challenge a school’s finding that a private school has acted with academic dishonesty, or the method used in the investigation. Where a school makes such a finding and the imposes consequences are consistent with a Code of Conduct that has been incorporated into the contract with the parents, there is little that private school parents can do. If the consequences are severe for the student, they may want to consult with a education lawyer to see if there are any unusual or creative legal solutions available. One course of action that might be available where the school imposed a grade or discipline that did not take into account a student’s special needs, is to pursue a remedy based on human rights grounds. Private Schools Usually Do Have To Accommodate Special Needs Ontario public schools have a refined process for identifying and providing assistance to kids. While, in most circumstances, private schools cannot refuse to admit a student because that student has special needs, they often find other reasons to refuse admission. However, once a student is in a private school, that school has to accommodate that child’s special needs to the point where it will cause undue hardship. For very small, usually religious based private schools, that are not-for-profits, and that charge very little for tuition and do not have much in the way of resources, the school may legitimately not be able to provide much accommodation for special needs. But larger schools can, and must, provide accommodation for student’s special needs. People cannot contract out of the Ontario Human Rights Code, so the contract is not a factor in those circumstances. If a private school student has a disability or needs some other type of special treatment or services, the private school cannot refuse to provide those accommodations if it is reasonably able to provide them. Private schools cannot refuse to continue to reach a student because that student has a special need that the school could reasonably accommodate. While we often hear private schools say “we don’t do things that way”, or “our standards do not allow us to provide accommodation”, the law says differently. Any parent faced with that sort of attitude should get advice from an education lawyer. Bullying – It’s Up To Private Schools What To Do, If Anything One thing that can actually CREATE special needs in a student is repeated bullying. Bullying can cause lots of long lasting serious problems and is rarely character building for the victim. It often leads to mental health problems that negatively impact a student’s ability to learn and the benefit of attending a private school. The Education Act and the Ministry of Education place a lot of legal obligations on public schools to prevent and address bullying. Those measures are based on the latest research into bullying and its effects. There is nothing in the legislation or from the Ministry of Education that requires private schools to do anything about bullying. Again, that is an intentional decision by government because some parents do not want their children exposed to anti-bullying programs and believe that bullying can be good for kids. They can chose to send their children to schools that allows or encourages bullying behaviour, hazing, peers teaching each other lessons, or other similar behaviour. Other private schools have very strict anti-bullying measures, some of which are modeled on what is required in public schools. Again, to a point, what a private school is legally required to do about bullying is set out in the contract with parents – to a point. There can be legal consequences for a private school that allows bullying. When a school fails to supervise students properly, it can be liable for damages for mental or physical harm caused to a student. The law does not permit students, or the student’s parents, to consent to the student being seriously harmed. So, a school that says parents agreed to let their child be bullied will not be successful with that position in court. In addition, many types of bullying, anything that is based on disability, race, ethnic origin, family status, sexual orientation, gender or similar traits is a violation of the Ontario Human Rights Code. So, there can be penalties for institutions when bullying is also bigoted. Since bullying can have a lot of serious negative repercussions, it can lead to mental or physical disabilities. Once a child has such disabilities, the child’s school is required to accommodate those challenges to the point of undue hardship. When those disabilities were caused by events at school, it is really difficult for a school to get away with saying that fixing a problem that it, in part, caused, will be too hard. Private Schools Can Hire Whatever Teachers They Like, Regardless of Qualifications Sometimes children run into trouble at private schools because one or more of their teachers or principals do not have any teaching qualifications and so do not know how to address certain educational situations or issues. Again, the Ontario Government made a policy decision to allow a broader range of qualifications than are required to teach in the public system, so there are no minimum qualifications for private school educators or administrators. In addition, private school teachers do not have to be members of the Ontario College of Teachers – in fact they can’t be if they don’t have the qualifications to get a teacher’s license. If a private school teacher is not a member of the college of teachers, there is no body to complain to about the competence of ethics of that private school teacher. Some private schools do require their teachers to be members of the college of teachers. But, the private schools themselves are not required to use only licensed teachers unless their contract with their parents says so. Conclusion To summarize, it is important for parents to read the contract with a private school, which often incorporates a code of conduct and other documents or policies, before signing their child up to attend that school. Even if they feel they have no choice but to send their child to that private school, that contract tells them what they can expect, including the standards (if any) that will be applied to their child’s education. There are no mandatory government standards for how children will be educated in private schools in Ontario, or what they quality of that education will be. Parents can only hold a price school to the contract, and perhaps human rights legislation. If the school does not violate either of those, but the school does not meet the parents’ expectations, there will not be any government intervention and there may few legal options – even if a child suddenly finds him or herself without a private school to attend. “This article is intended to inform. Its content does not constitute legal advice and should not be relied upon by readers as such. If you require legal assistance, please see a lawyer. Each case is unique, and a lawyer with good training and sound judgment can provide you with advice tailored to your specific situations and needs.” By Fauzan SiddiquiBlog, Education Law, UncategorizedMarch 24, 2023July 5, 2023
Fiduciary Fallout: Ontario Court Rules Debt Survives Bankruptcy Amid Trust Fund Misuse In the recent case of Convoy Supply Ltd. v. Elite Construction (Windsor) Corp., the Plaintiff, Convoy, brought a motion for a determination that the debt owing by the Defendants, Elite Construction, and Kostas Michos, the officer, director, guarantor, and directing mind of Elite Construction, survives Kostas’ bankruptcy pursuant to section 178(1)(d) (the “Section”) of Bankruptcy and Insolvency Act, R.S.C. 1985, c. B-3, (the “BIA“). Section 178(1)(d) states: An order of discharge does not release the bankrupt from any debt or liability arising out of fraud, embezzlement, misappropriation, or defalcation while acting in a fiduciary capacity or, in the Province of Quebec, as a Trustee or administrator of the property of others. Facts Convoy supplied construction materials to Elite Construction for which payment was not made. On July 28, 2020, Convoy filed a claim against Kostas’s company and Kostas himself, seeking payment of $92,412.15 in damages for breach of trust, among other things. The claim was made pursuant to the Construction Lien Act (“CLA”) and the Construction Act (“CA”). The claim alleged that Kostas and his company had failed to pay for the materials and had therefore been unjustly enriched. Kostas was also accused of diverting or converting the trust funds for their own use. On December 14, 2021, Kostas made an assignment into bankruptcy. He deposed that he chose to make an assignment into bankruptcy rather than bring a motion to set aside the judgment because he had no reason to believe the judgment would survive his bankruptcy. Kostas submitted that he is only deemed to admit a breach of trust, and a breach of trust is insufficient to trigger the Section. Kostas argued that Convoy must additionally show that the debt arose from some element of “moral turpitude or dishonesty.” The deemed admission that the trust funds were appropriated or converted contrary to trust obligations does not necessarily imply “misappropriation and defalcation” under the Section. Kostas further argued that in the absence of moral turpitude or dishonesty, the Court cannot vary the judgment to include a declaration under the Section. Analysis The Court ruled that Kostas was deemed to admit the Breach of Trust Facts, which included that he assented to and acquiesced in the diversion of trust funds established under the CA for purposes inconsistent with the trust. Similarly, directing trust funds for a purpose inconsistent with the trust is also sufficient to trigger the Section and such diversion is considered “dishonest”. The Court found that Kostas was acting in a fiduciary capacity. As sole officer and director of Elite Construction, Kostas failed to adequately discharge his onus as a Trustee to account for the relevant trust funds pursuant to the CA. Goodman J. determined that Kostas’ deemed admissions establish the type of “wrongdoing, improper conduct or improper accounting” contemplated by the Section. Held The Court granted the Plaintiff’s motion, stating that Kostas’s debt to Convoy still existed, and an order was made for Kostas to pay Convoy $92,412 for damages, $7,000 for punitive damages, and $4,790 for costs, and determined that prejudgment and post-judgement interest would survive the bankruptcy. The Order also stated that the judgment debt would not be discharged in the event of Kostas’s bankruptcy and that Kostas was found to have used trust funds in an inconsistent way and failed to account for them as a Trustee. For more information regarding Bankruptcy, Collections, Fraud, and/or Trusts related topics, please contact Kelli Preston at Devry Smith Frank LLP at (416) 446-3344 or kelli.preston@devrylaw.ca. “This article is intended to inform. Its content does not constitute legal advice and should not be relied upon by readers as such. If you require legal assistance, please see a lawyer. Each case is unique, and a lawyer with good training and sound judgment can provide you with advice tailored to your specific situations and needs.” This blog was co-authored by Owais Hashmi* Sources: Convoy Supply Ltd. v. Elite Construction (Windsor) Corp., [2022] O.J. No. 4186, 2022 ONSC 5353 By Fauzan SiddiquiBlog, Commercial Litigation, UncategorizedFebruary 21, 2023June 10, 2023
Hello world! Welcome to WordPress. This is your first post. Edit or delete it, then start writing! By Fauzan SiddiquiUncategorizedMarch 19, 2020
Targeting the Few Bad Agents in A Growing Toronto Real Estate Market Toronto’s real estate market is currently facing unprecedented growth. Hefty real estate commissions and a lagging economy in other job areas have attracted many people to the career of a real estate agent. While the majority of agents complete a transaction in the client’s best interest, it is clear that there are not enough legal regulations to protect the public from the few bad apples in the bunch who complete deals for their own financial gain. One example of the perfectly legal but shady practice is a “double-ending deal”— i.e. where the real estate agent represents both the buyer and the seller, collecting a commission from each side. While double-ended deals can be fine if the agent clearly communicates their role, conflicts and what they can and cannot do, these types of transactions expose both sides to a high level of risk that their agent may not be acting ethically. Not only do these transactions give rise to conflicting duties to the client (and it is unclear which client the agent is fully advocating for), they can result in both sides paying more for the transaction, despite the agent’s promise of a lower commission rate. Last November, a CBC Marketplace investigation revealed six real estate agents making promises in clear violation of the Real Estate Council of Ontario’s regulation and Code of Ethics. Captured on hidden cameras, the agents promised open house walk-ins that if they chose to use them (the seller’s agent) to buy the property, they could “control the sale” guaranteeing that the buyers would win the home purchase or that they would use insider information to leverage their offer over others. Another concern is about agents who offer “exclusive listing” sales where the buyer’s agent encourages them not to put their home on the open market but instead sell it within the agent’s pool of potential buyers. The research is clear: higher prices are obtained for homes that are placed on the open market. Usually, the one to two percent savings that the agent offers to buyers willing to go through these transactions is paltry compared to the higher price they would have seen on the open market (see this Huffington Post article). Sellers should always be the ones to decide when the solicitation of offers ends. A buyer should be wary if their agent pushes for “one-and-done” offer rounds or to avoid multiple rounds during a bidding war. If the seller’s agent also represents the buyer they should present their own client’s offer first, not last. Other red flags are poor or non-existent photography in the MLS listing (which makes open house walk-ins the primary way of selling the property) or lack of communication with interested buyers (which dissuades growing interest in the property). While I agree with some commentators’ position that an outright ban on double-ended transactions would offer an easily-enforceable solution, I also believe that more should be done to raise the standards of entry for the profession as a whole. Right now, it only takes 213 hours to become a licensed real estate sales professional and the focus of the model is on individual agents, instead of the brokerage as a whole. Placing more responsibility on the brokerage to oversee their agents’ conduct is also a solution that should be considered. With that being said, the best protection from the few unscrupulous agents in the industry is buyers and sellers who know their rights and how to spot practices that raise red flags. If you are in need of a real estate lawyer, please visit our website and contact one of our real estate lawyers today. If you are in need of any other services or have any questions, you may also contact our Toronto office directly at 416-449-1400. “This article is intended to inform and entertain. Its content does not constitute legal advice and should not be relied upon by readers as such. If you require legal assistance, please see a lawyer. Each case is unique and a lawyer with good training and sound judgment can provide you with advice tailored to your specific situation and needs.” By Fauzan SiddiquiUncategorizedMay 11, 2017June 23, 2020
The Dangers of the Online Separation Agreement In the age of the internet, the law is (at varying speeds) adapting to the online realities of the people it applies to. People can now file their taxes, issue small claims court applications and, most recently adjust some child support orders, at the click of a button. With the advent of websites such as lawdepot.ca and other sites which offer templates for legal contracts, people have started turning to the web to construct separation agreements. However, these agreements are no substitute for agreements crafted by experienced lawyers, and people should be aware of the very real dangers of relying on these agreements before using them. In Ontario, separation agreements, marriage contracts and cohabitation agreements (“domestic contracts”) are all subject to the same legal requirements. There are strict rules about the process for concluding an agreement, and the language contained in the agreement, that must be followed if the agreement is to be legally valid enforceable. In no uncertain terms, the strength of a domestic contract is dependant on how it was reached and the language it uses. The ‘Click-Click-Print’ Method Doesn’t Fulfill the Requirements for Negotiating a Domestic Contract In Ontario, domestic contracts must comply with the rules applicable to all contracts. They must be in writing, signed and witnessed by the parties, must not contain illegal terms, and must be made without undue influence or duress. The first few conditions are simple and can be satisfied with a downloadable agreement. While many people believe that short of openly forcing someone to sign an agreement means there is no duress, this is not the case. In terms of domestic contracts, duress can arise from unequal bargaining power (one party is better educated or more affluent than the other) or from situational factors (e.g. if a marriage contract is signed only weeks before a wedding). The best way to ensure that an agreement is not vulnerable to challenge based on duress or undue influence is to have a lawyer represent both parties during the negotiation of the agreement. Judges believe that lawyers provide a ‘buffer’ between the parties and can work to mitigate many types of duress or undue influence. Lawyers will typically negotiate the agreement in writing (such as through emails or letters between them), and this can be important evidence if the agreement is challenged later on. With online agreements, there is no buffer between the parties. There is no written record of negotiations or any evidence that possible sources of undue influence or duress were identified and addressed. Judges will assume that there was little to no negotiation about the agreement. If this is what the judge believes, it is very likely that the agreement will be set aside. The Language is Online Agreements is Basic, Not Comprehensive, and Not Creative No two families are the same and, because of this simple fact, no two domestic contracts are the same. When spouses marry, cohabit or separate, their circumstances are unique, and any domestic contract has to take account of this. Unfortunately, online agreements are ‘boiler-plate’ and the language is drafted in such general terms as to apply to as many people as possible. The limitations of using these agreements is apparent – you are limited to including the terms that the website provides and in the language it uses. There is no room for crafting an agreement that works best for your family. This is why it is always recommended that you have an agreement drafted by an experienced family lawyer, who can advise as to what form of agreement will work best for you and your family. There is no substitute for this. As well, the generality of the language in these agreements can make parties vulnerable if the agreement is challenged. Experienced family lawyers are aware of recent and important cases about domestic contracts, and craft contracts to reflect what these cases say about how contracts should be worded. For instance, the clause for waiving spousal support in the law depot standard online separation agreement is six lines long. Most clauses drafted by lawyers are over a page and include specific language to consider the cases to which I just referred. Without this protection, a lawyer could easily challenge the agreement and have it set aside. The Final Word Domestic contracts are like insurance policies – they are contracts entered into to protect oneself against future liability, be it disability from a car crash or spousal support from a divorce. Just like insurance policies, the value of a domestic contract is not when it is signed but is years down the road when an issue arises. Just as one should want to make sure their insurance policy is valid and enforceable, they should want their domestic contract to be airtight. Unfortunately, online agreements just don’t get there. Many people don’t see the need to hire a lawyer to help them draft an agreement. They think an online separation agreement is sufficient and, let’s be honest, most people don’t enter into these agreements believing they will ever be used; most people don’t buy home insurance because they expect their home will burn down. This can be a costly mistake. Without a properly negotiated and worded contract, people are exposed. They can lose hundreds of thousands of dollars in property and be liable for years of support if agreements are set aside. The up-front cost of hiring a lawyer to do the agreement properly is minimal in comparison. If you are in the process of negotiating a domestic contract, are moving in, getting married or separated, or would like to learn more about domestic contracts, contact a member of our Family Law Team. “This article is intended to inform and entertain. Its content does not constitute legal advice and should not be relied upon by readers as such. If you require legal assistance, please see a lawyer. Each case is unique and a lawyer with good training and sound judgment can provide you with advice tailored to your specific situation and needs.” By Fauzan SiddiquiUncategorizedMarch 17, 2017July 5, 2023
Affordable Single-Family Homes in Cities Other Than Toronto & Vancouver Actively looking for a single-family home in Toronto, Ontario or Vancouver, British Columbia? Giving up on your search and deciding to rent? If you are still on the hunt for home-ownership and would be willing to venture outside of Toronto and Vancouver, there are still very good options for you. The Huffington Post released an article listing the 5 best cities to live in where houses are under $400k, for those who are seeking an alternative to the $1 million + priced single-family homes in Toronto and Vancouver. If you’re willing to venture out of these two cities, these 5 options may be for you. The Huffington Post has taken into effect the Bank of Montreal’s labour market report, along with house prices from the Canadian Real Estate Association to generate the 5 best cities to look for a home under $400,000. The mortgage rates were based on a five-year fixed rate at 3% interest, with an amortization of 25 years and calculated on the city’s average house price. #5. Halifax, NS The average house price in Halifax sits at $274,142 (December 2016) making it one of the most affordable markets in Canada today. With an average household income of around $85,000, you’d be happy to know that the average mortgage payment is around $1,000. #4. Montreal, QC Montreal is full of opportunities for employment. With the number of available jobs increasing, it is becoming an attractive city. Even more enticing is the house prices. In January 2017, the average cost for a home sat at $351,255. With an average household income of $75,000 and an average mortgage payment of $1,330. #3. Ottawa, ON Getting closer to the higher end of the $400k range, Ottawa ranks third. Their housing market places the average home price at $394,001. Average household income is around $102,020 and the average mortgage payment is at $1,492. #2. Windsor, ON Windsor may not have the best reputation if you speak to your friends and family, but it is improving. Their employment has jumped by 3.8% over the pat year, and they possess the lowest home prices for mid-sized cities within Canada. These prices average $217,926 (December 2016), significantly less than Toronto and Vancouver. #1. Brantford, ON Brantford is not very far from the GTA compared to the rest of the cities on the list, and if you would like to still have relatively easy access to Toronto, this may be the place for you. The average home price in January was $386,716 however, the market seems to be increasing at a fast rate. Brantford’s average income was at $73,082 in 2010 and the average mortgage payment is around $1,464. As there seems to be no stopping to the outrageous real estate market in Toronto and Vancouver, venturing outside of the city centre has become very popular for most people who are willing to make the move. To read more about what has been happening with the Canadian real estate market in 2017 thus far, please take a moment to read our previous blog posts, Home Prices Continue To Rise In 2017 and The Canadian Real Estate Market Amid A Trump Takeover. If you are in need of a real estate lawyer, please contact one of our Real Estate Lawyers or call Devry Smith Frank LLP today. “This article is intended to inform and entertain. Its content does not constitute legal advice and should not be relied upon by readers as such. If you require legal assistance, please see a lawyer. Each case is unique and a lawyer with good training and sound judgment can provide you with advice tailored to your specific situation and needs.” By Fauzan SiddiquiUncategorizedFebruary 21, 2017June 18, 2020
My Employer Forced Me to Resign – Was I Fired? By Ivan Merrow Getting fired is never pleasant, but sometimes it happens in unexpected ways. There is a big difference between resigning from your employment voluntarily and resigning after being pressured to do so. A voluntary resignation generally provides no legal remedy against your employer: you chose to end your employment contract, did not suffer damages, and should not be compensated. However, if you feel that your employer forced you to resign to your detriment, you may be entitled to compensation. Was my resignation voluntary? To voluntarily resign in the eyes of the law, you have to demonstrate a clear and unequivocal desire to end your employment. This desire can be expressed in writing, orally, or through your conduct. For example, if you make it very clear that you cannot possibly work for your employer if X happens, and then X happens, you have voluntarily resigned. If you are healthy but stop coming into work and express no intention to return, you have likely voluntarily resigned. Your voluntary resignation can be challenged on the basis that it was not accepted, was withdrawn before your employer acted on it, or was insincere. However, for the purposes of this article, let’s focus on situations where your resignation was not voluntary. You feel your employer forced you to resign and you want a legal remedy. What counts as being “forced” to resign? The legal term for being forced to accept or terminate an agreement is called being under “duress.” Duress can be difficult to prove—the law is reluctant to let people back out of voluntary agreements by arguing they were forced to do so. To show that your employer forced you to resign, you have to demonstrate that the pressure was illegitimate and applied to such an extent that you felt you were given no choice. Important factors include whether you protested the resignation, whether you received legal advice and still resigned, whether you took steps to avoid resigning, and whether your employer provided you with an alternative. Even so, not all alternatives will convince a court that your resignation was voluntary. Does it matter if my employer gave me a choice? Whether you resigned by letter, conversation, or conduct, what happened before you resigned matters. Did your employer give you a choice? Resigning after being given a choice between resigning and getting fired is not considered voluntary. However, it does matter whether you benefitted from the choice. If your employer offers you significant benefits for a resignation, and you accept the deal for personal gain, then your resignation is more likely to be considered voluntary. Does the timing matter? If you felt forced to resign because you experienced harassment, demotion, threats, or unpleasant behaviour from your employer, then the resignation was more likely involuntary. However, if the unpleasant events you blame on your resignation happened years before you resigned, it is less likely you can successfully argue you were fired. The details are important, and play a large role in determining whether you resigned voluntarily or under duress. Key message Resigning from your job does not necessarily mean that it was voluntary. If you feel you were forced to give up your job, you may have a legal remedy against your former employer. However, every situation is different, and the examples in this article may not apply to your case. Your best course is to consult a lawyer about your rights and the remedies available to you. If you have questions about this article or about your resignation, contact the employment lawyers at Devry Smith Frank LLP at 416-446-1400. By Fauzan SiddiquiUncategorizedJanuary 29, 2016December 1, 2020
Reducing Child Support with an RESP Toronto family law expert John Schuman recently addressed a pressing question that plagues many separated parents as their children grow: “I do not have a legal separation in place in Ontario. I have been paying child support for my 16 and 17 year old daughters at $900.00 a month for several years. My oldest daughter starts university in September. My wife and I contributed towards an RESP and there is now $120,000 in the plan. My daughter will be living with her mother and attending university. My wife is talking about a divorce and wants me to provide financial disclosure. I have nothing to gain by obtaining a divorce now. My income is $60,000 annually and I was wondering if I could reduce the support paid and have the money come out of the RESP. Can my wife force me to disclose my assets and proceed with a divorce? I don’t want to go to court and have a court order if I can avoid it.” It sounds like you have a good case to change the way support is paid. Child support is much more flexible after age 18. Available funds such an RESP should be used first. When it comes to university and college expenses, parents contribute to those expenses, above what the child could reasonably contribute, in portion to their incomes with some consideration as to what is affordable. For more on these types of expenses, you may want to listen to this podcast. RESPs can significantly affect what each parent must pay while a child is in post-secondary education. Generally speaking, parents can use an RESP to cover their portion of a child’s post-secondary education expenses. This means that if one parent put all the money into the RESP, what comes out of the RESP will be considered that parent’s contribution to the post-secondary education expenses. There is some benefit to doing that after separation as the parent who uses the RESP will also get to use the government credits and the investment’s growth as part of his or her contribution, while the other parent has to pay using all of their own money. Where both parties contributed, but in different amounts, the money used out of the RESP is often allocated to each parent’s contribution in proportion to what each parent contributed. Where both parents contributed equally, then the RESP is considered an equal contribution from each parent. The child also has an obligation to contribute to his or her own educational expenses by applying for scholarships and bursaries that are available and by working if there is not enough money to cover school expenses, although that does not sound like it applies in your case. Also, you should note that when you are contributing to a child’s post secondary education expenses (either through your RESP contribution or directly), there may be a change to the base child support where the child is going away to school. Part of the expenses that the parents will be sharing are for things like residence, meal plans and other living expenses that would usually be covered by base support. So, it is common for base or table child support to be reduced so that one parent does not pay for the same expenses twice. It may also be the case that spousal support would be changed as well. See this webpage for details. If you want some information about how to change a support order, watch this video. You can also learn a lot more about these child support issues, and other family law matters, by reading this $20 easy-to-understand book on Ontario Family Law. Since these child support for children in college or university cases depend a lot on the particular facts, you should probably speak to a good family law lawyer to find out how the law applies to your specific situation and determine your best options. By Fauzan SiddiquiUncategorizedOctober 28, 2014December 1, 2020