Law in Quebec

News about Quebec legal developments


Criminal law

  • New trial ordered in the notorious case of Guy Turcotte

    When the Quebec Court of Appeal ordered a new trial in the notorious case of Guy Turcotte, the former cardiologist who was found not criminally responsible due to a mental disorder in the 2009 stabbing deaths of his two young children, it took the exceptional step of overturning a verdict largely based on a ruling that was not yet rendered by the nation’s highest court, note legal experts.

    The Quebec Court of Appeal, relying on guidance provided by the Supreme Court of Canada in R. v. Bouchard-Lebrun, 2011 SCC 58, [2011] 3 SCR 575 issued five months after Turcotte’s murder trial, held that Quebec Superior Court Justice Marc David’s  instructions to the jury were “deficient, which necessarily had a major impact on the verdict.”

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  • Quebec Court of Appeal provides guidance over Anton Piller orders

    Litigants who obtain evidence seized through Anton Piller orders, an extraordinary legal measure granted in exceptional circumstances, do not have an “automatic” right to review the material, according to a recent ruling by the Quebec Court of Appeal.

    Anton Piller orders, described by the Supreme Court of Canada as a “draconian” measure, are civil search warrants that allow one party (accompanied by a bailiff and independent supervising lawyer) to launch a surprise raid on the business premises or homes of people when there is good reason to believe that one party to a lawsuit is in possession of documents or material that could be concealed or destroyed. It is considered by legal observers to be an intrusive and powerful legal remedy because no notice is given to the party against whom it is issued. Indeed, defendants only find out about the existence of the order when they are served and executed.

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  • Damage control: Law society seeks to restore public trust

    The professional corporations overseeing lawyers and engineers declared recently that they now intend to get even tougher on crooked professionals. Zero tolerance, declared Nicholas Plourde, who stepped down earlier this month as the head of the Quebec bar. The president of the Quebec engineering professional corporation stated that his organization is “determined to get to the heart of the matter and restore public trust.

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  • Tough new anti-corruption laws in the horizon

    Canadian companies who paid little heed to anti-bribery compliance can no longer afford to be complacent following proposed amendments that will beef up Canada’s anti-corruption laws and bring it somewhat in line with jurisdictions such as the United States and the United Kingdom.

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  • Misappropriation of funds: The profession’s dirty little secret

    On an unusually warm and foggy Saturday evening this past December the $1.7-million home of Dany Perras was set ablaze, the third time in the space of a year an act of vandalism targeted the former Montreal lawyer. Perras, who resigned abruptly from the roll in October 2011, is under investigation by the Quebec Bar for allegedly orchestrated a multi-million dollar Ponzi scheme through his lawyers’ trust account. It’s been more than 16 months since the scandal that shook the Montreal legal community erupted, and the fallout is still being felt. Successfully petitioned into bankruptcy, Perras is the subject of an ongoing criminal probe and a host of legal proceedings – many of which are under court seal — launched by more than a dozen creditors seeking an amount surpassing $6 million.

    The Perras case is unique, and yet at the same time it is not.

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  • Canada’s tough stance on dirty money

    New anti-money laundering regulations introduced to demonstrate Canada’s tough stance on dirty money to international authorities will require reporting entities to spend more money, resources, and time to be in compliance, according to experts.

    Published in mid-February in its final form in the Canada Gazette, the amendments to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (Act) are meant to address several key failings identified by the Financial Action Task Force (FATF), an international body established in 1989 that sets standards for anti-money laundering (AML) and anti-terrorist financing (ATF) activities. In 2008, FATF found that Canada, a founding member, was “non-compliant” on preventative measures such as customer identification and due diligence to combat money laundering.

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  • Investors delighted but insurers concerned

    A ruling that ordered an insurance company to pay $460,000 to a Quebec couple after their financial advisor invested their retirement nest egg in promissory notes in scandal-plagued Montreal financial group Mount Real Corp. has raised questions over the scope of professional liability insurance coverage in the province and ostensibly broadened investor’s protection.

    Quebec’s financial and insurance sectors are now worried over the impact of a Quebec Court of Appeal unanimous decision that declared inoperative clauses excluding gross negligence in professional liability insurance policies under the Act respecting the distribution of financial products and services (ADFPS). Law insurance experts are speculating that the finding may have a reach beyond the ADFPS, and affect professional liability insurance policies held by the indemnity funds of Quebec’s 44 professional corporations, including the Barreau du Québec. The Quebec legal society declined to comment.

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  • Judge convicted of first degree murder remains in jail

    Retired judge Jacques Delisle, hoping to become the second person in Quebec in thirty years to be released pending an appeal, will have to remain in jail after Quebec Court of Appeal Justice Richard Wagner ruled that releasing him could undermine the public’s faith in the justice system.

    Delisle, believed to be the first Canadian judge to ever stand trial for murder, was found guilty last month of first-degree murder in the death of his invalid wife by an eight-man, four-woman jury after three days of deliberations. The 77-year-old retired judge, who automatically received a sentence of life in prison, with no possibility of parole for 25 years, plead before the Quebec Court of Appeal that he should be released pending an appeal because he was having a tough time in prison due to his advanced age and the position he held in society.

    Under s.679 (3) of the Criminal Code an appellant may be released pending the determination of his appeal if the appellant establishes that the appeal or application for leave to appeal is not frivolous, if he would surrender himself into custody in accordance with the terms of the order, and if his detention was not necessary in the public interest.

    In a 13-page ruling, Justice Wagner found that Delisle’s application for leave to appeal was not frivolous nor did he pose a flight danger. But Judge Wagner found that a public, knowledgeable about the justice system and the circumstances surrounding the case, would risk losing confidence in the criminal and penal system if “I acquiesced to the demand made by the appellant.”

    “The appellant was found guilty by 12 persons, impartial and independent, of committing one of the most serious crimes sanctioned by the Criminal Code,” wrote Justice Wagner, who was appointed to the Quebec Court of Appeal bench two years after Delisle retired. ”It consisted of a premeditated murder with obvious violence on a vulnerable person. The appellant must establish very serious grounds for appeal to justify, in light of the circumstances surrounding this case, his release. This demonstration was not made.”

  • News roundup: Tainted water, a falling-tree fatality and a lawyer fined for tax evasion

    The Minister of National Defence is considering appealing a recent class action ruling that awarded $15,000 to residents of a small town near Quebec City inconvenienced  by the contamination of well water by a known carcinogen.

    Quebec Superior Court Justice Bernard Godbout ruled that the class action suit launched by the townspeople of Shannon failed to prove that trichloroethylene (TCE), a solvent used on a nearby army base to clean artillery and ammunition, was responsible for abnormally-high cancer rates in the town. Shannon, a community of 2,000 people, is located near the Canadian Forces Base Valcartier, a huge military defence complex.

    “The evidence did not demonstrate that it is probable that the spilling of TCE contaminated the groundwater under the municipality of Shannon, making it the cause of an abnormally-high number of cancer cases, disease and other allergic reactions,” Godbout wrote in his judgment.

    Justice Godbout found however that the contamination of well water of TCE was an inconvenience to residents and ordered the government to pay compensation of $15,000 to about 300 affected residents who were among the 2,700 present and former residents lending their name to the class-action suit.

    “We will review the decision in order to evaluate next steps,” said Minister of National Defence Peter MacKay in a press release.


    In August 2006, a 27-year old Quebecer was in the driver’s seat of his parked car when an old poplar tree crashed down onto his vehicle during a violent storm, and killed him.

    A coroner’s report on Gabriel Rossy’s death confirmed the tree that fell on him was found to be 90 per cent rotten and had been “dangerous” for at least one or two years.

    His family sued the City of Westmount for failing to maintain the tree, but a Superior Court judge dismissed the action, saying it was a matter that should be dealt with through the province’s Automobile Insurance Act – a ruling that was overturned by the Quebec Court of Appeal in November 2010 who found that the car had nothing to do with Mr. Rossy’s death.

    In a ruling that marked the first the Supreme Court of Canada tackled Quebec’s no-fault insurance plan, the nation’s highest court restored the lower court ruling and dismissed the lawsuit against Westmount. The top court ruled Rossy was using his vehicle as a means of transportation when the accident occurred, and as a result his family must turn to Société de l’assurance automobile du Québec (SAAQ), the provincial automobile insurance board, for compensation.

    “This is enough to find that the damage arose as a result of an “accident” within the meaning of the Act and that the no-fault benefits of the scheme are triggered. Therefore, the respondents’ civil claim is barred and they must turn instead to the SAAQ for compensation,” wrote the SCC in a 7-0 decision.

    “The Court of Appeal erred in interpreting the Act too narrowly,” added Justice Louis LeBel who penned the decision. “Such an interpretation risks unduly restricting the  intended application of Quebec’s no-fault scheme and must therefore be rejected.”


    A Montreal lawyer, charged following a Canada Revenue Agency investigation of an art-donation scheme, was fined $840,000 after pleading guilty to a tax evasion charge before the Court of Quebec.

    Stéphane Saintonge “voluntarily contravened the Income Tax Act in 2003 by enabling a third party to obtain an ineligible amount of tax deductions for the donation of artwork to the Municipality of Larouche,” said Canada’s Revenue Agency.

    The scheme consisted of backdating a series of transactions in order to unduly boost the tax credits claimed, according to the Revenue Agency.

  • Third Montreal defence lawyer beaten up in less than a year

    A criminal defence lawyer who has represented members of organized crime in many high-profile cases, was assaulted outside his home last Friday, making it the third Montreal lawyer who has either been attacked or received death threats over the past year.

    Gilles Doré suffered a serious head injury, and is now reported to be in stable condition, according to The Montreal Gazette.

    Doré gained notoriety within Quebec’s legal community for writing a stinging personal letter to a judge, criticizing him for being pedant, cantankerous, and petty. The letter, replete with insults and personal attacks according to the Quebec Court of Appeal, was handed to Quebec Superior Court Chief Justice Lyse Lemieux, who forwarded it to the syndic (or investigating officer) of the Barreau du Québec. The syndic filed a complaint before the Barreau’s disciplinary committee, accusing  Doré  of writing an disrespectful letter, that lacked objectivity, moderation and dignity, thereby contravening s.2.03 of the Quebec Code of ethics of advocates (Code). The disciplinary committee found Doré guilty of the infraction, and suspended him from practicing for 21 days. Doré appealed the verdict before the Professions Tribunal and Quebec Superior Court, both of whom rejected the appeal.

    In upholding the rulings by the lower courts, the Quebec Court of Appeal found that writing letters is a constitutional right, and that the disciplinary decision violated the appellant’s freedom of expression. “It remains now to determine whether this decision is a reasonable restriction that can be justified in a free and democratic society,” said Justice André Rochon in an 18-page ruling.

    That case is now before the Supreme Court of Canada.

    Last month, another Montreal lawyer was the victim of a series of death threats and intimidation, with two vehicles parked in front of his home were firebombed.

    Last December Joseph La Leggia, a well-respected lawyer,  was attacked and left badly injured in front of his home. His case too remains unsolved.

  • Class action authorized against three accounting firms in Mount Real financial scandal

    Nearly six years after 1,600 investors were bilked, left holding an estimated $130-million of worthless promissory notes when Montreal financial group Mount Real Corp. was shut down by the Quebec securities regulator, a Quebec judge authorized a class action against two former executives, two financial service companies and three accounting firms.

    In a ruling that appears to have lowered the bar for class action certification against accounting firms, Quebec Superior Court Justice Jean-François Buffoni held that the representative plaintiff demonstrated that the allegations she is trying to establish between the fault allegedly committed by the accounting firms and the harm suffered by the class does not “appear to be frivolous nor manifestly unfounded” and stands a reasonable chance of succeeding, even though the representative plaintiff admitted that she did not rely on the audited financial statements to make an investment decision.

    “This ruling represents an important precedent regarding the civil responsibility of accounting firms,” noted Bruce Johnston, a Montreal lawyer for one of the three law firms representing the investors. “I hope it sends a message to auditors. It’s very important that auditors do their work properly and be held accountable if they fail to do so.”

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  • Quebec first province to regulate money-services industry

    A recently passed bill that made Quebec the first province to regulate the money-services industry has elicited mixed reactions, drawing praise by some who see it as a blessing for legitimate small businesses catering to ethnic communities, unease by others who are concerned about the potential broad reach of the law, and baffled some legal observers who wonder why the provincial government appears to be duplicating an already existing federal law.

    Touted as part of an offensive against money laundering and tax evasion schemes, the Money-Services Businesses Act (Act) introduces a licensing regime for money-services businesses that will be administered and enforced by the Autorité des marchés financiers (AMF), Quebec’s securities regulator.

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  • New indemnity fund proposed following out-of-court settlement in Norbourg class-action

    Days after an agreement in principle was reached in the Norbourg class action suit, opening the door for thousands of investors to recover nearly all the money they lost in one of the biggest investment frauds in the country, questions surrounding the efficacy and scope of investor protection provided by the debt-ridden indemnity fund overseen by Quebec’s financial watchdog have surfaced.

    A group of investor advocates, financial professionals, and the body that oversees financial professionals in Quebec are beckoning the provincial government to cast a critical eye on the financial services compensation fund administered by the Autorité des marchés financiers (AMF), a call that Quebec Finance Minister Raymond Bachand seems to have heard. The finance minister recently requested the securities regulator to “see if something different should be put in place, how it should be done, while listening to industry.”

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  • Norbourg: Law firms seeking $11 million

    A couple of days after an agreement in principle was reached in the Norbourg class action suit, allowing thousands of investors to recover nearly all the money they lost in one of the biggest investment frauds in the country, a lawyer warned me that the case was far from over.

    That’s because the $55 million settlement against Quebec’s securities regulator, Northern Trust Co. of Canada, Concentra Trust, accountant Rémi Deschambault and accounting firms KPMG LLP and Beaulieu Deschambault did not cover legal fees. “The judge in the case has opened a can of worms,” told me the class action specialist. “It’s unheard of to reach a settlement without agreeing to the legal fees.”

    The lawyer is right. The law firms that negotiated the settlement are seeking $11-million, representing 20 per cent of the $55-million settlement, in legal fees — and the victims are not happy. Three Norbourg victims are expected to be in court today arguing that the amount is far too much, with one saying that lawyers should be receiving up to five per cent while another asserting that 6.5 per cent is reasonable. “It’s disproportionate,” said François Leblanc, an industrial relations consultant whose family lost hundreds of thousands of dollars in the Norbourg scandal. “In my opinion, 6.5 per cent of the settlement is a reasonable remuneration. They’re calculating $400 an hour, which would give them salaries of $700,000 a year.”

    Quebec Superior Court justice André Prévost is expected to render a decision by month end. “I am conscious that the Norbourg investors have lived through difficult times,” said the judge yesterday. “The conclusion is approaching.”

  • Mount Real scandal: Three more convicted

    Several weeks after three more individuals linked with the bankrupt Montreal financial group Mount Real Corp. were ordered to pay fines ranging from $7,000 to $104,500, its former president now faces charges in an another alleged fraud that dates back to 1998.

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Law in Quebec
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