Law in Quebec

News about Quebec legal developments


Quebec

  • 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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  • Committee recommends a modest salary increase for Quebec judges

    Days before the Quebec government enacted a contentious back-to-work legislation to end an acrimonious labour standoff with its Crown prosecutors and government lawyers, a judicial compensation committee released an inconspicuous report that will likely once again test the government’s rapport with the principle players of the legal system.

    A five-member blue-ribbon panel of legal and financial experts established under the Courts of Justice Act (Act) recommended handing Court of Quebec judges, municipal judges and justices of the peace a modest hike in their remuneration package, but it would be surprising if the provincial government embraces the recommendations, given past history.

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  • Following back-to-work legislation, mass exodus of Quebec Crown prosecutors is feared

    Several weeks after the Quebec government enacted back-to-work legislation that compelled striking Crown prosecutors and government lawyers, two Quebec Crown prosecutors have submitted their resignation, the beginning of what some fear may prove to a mass exodus.

    Charles Levasseur, a crown prosecutor who handled many high-profile cases, notably the case dealing with former Quebec Court of Appeal judge Jacques Delisle accused of murdering his wife, is stepping down. He said that while other factors came into play, the labour conflict “probably” precipitated his decision to work for the law firm Thibault Roy Avocats. “The last conflict was difficult. It made me realize that the Crown will never be the same, and my motivation will never the same. That is the impact of the back-to-work legislation,” said Levasseur in an interview with a French-language legal website.

    That is likely a sign of things to come, fears Gilles Ouimet, the head of the Barreau du Québec.

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  • 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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  • News roundup: A truce, a crucifix and class actions

    A truce has ostensibly been declared by two men who dominated the legal and political scene in Quebec over the past year. Premier Jean Charest and former Justice Minister Marc Bellemare have seemingly dropped lawsuits against each other, launched in the wake of the judicial nomination scandal in the province.

    Nearly a year ago the former justice minister rocked Quebec with explosive allegations that powerful party fundraisers tainted the judicial appointment process six years ago. On the same day Bellemare lodged a formal complaint with Quebec’s provincial police force, Premier Charest launched a $700,000 libel lawsuit against the former justice minister for “false, malicious and defamatory remarks” and appointed former Supreme Court of Canada Justice Michel Bastarache to preside over a commission of inquiry into Bellemare’s allegations. Bellemare, in turn, sued Charest as well.

    The Bastarache commission made in late January sweeping recommendations to address “several weaknesses” in the Quebec judicial selection and appointment process “vulnerable to all manner of interventions and influence” even though it dismissed Bellemare’s allegations that he acted under undue pressure by Liberal Party fundraisers, with the consent of Premier Charest, in the appointment of judges.

    Last month the Quebec government introduced a series of new interim rules that drew tepid praise.

    In a press release issued yesterday, Bellemare gives a number of reasons for dropping the suit, surprisingly stating that the whole episode “was blown out of all proportion.” He also said that the lawsuits and the Bastarache commission “cost Quebec taxpayers millions of dollars.” Quebec taxpayers, however, were no longer picking up the tab for the legal battle the two protagonists were fighting against each other.


    Never mix politics and religion, so the adage goes. Jean Tremblay, mayor of the City of Saguenay, doesn’t buy it.

    The City and the mayor were recently ordered to pay $30,000 in moral and punitive damages by a Quebec Human Rights Tribunal to a citizen for discriminating against his freedom of religion and conscience, and to remove a crucifix and a Sacred Heart statue from city council meetings as well as to stop reciting a prayer before each city council meeting. “By reciting a prayer and displaying religious symbols in a hall where all citizens are invited to participate in the life of a democratic municipality, the Mayor and the City of Saguenay did not respect its obligation to remain neutral,” said the Tribunal.

    The outspoken mayor launched a campaign to collect funds for an appeal, and it’s working. So far, the city has collected more than $100,000, an indication that “Quebecers are attached to their identity, their tradition and their culture,” says the mayor.


    Quebec used to have a deserved reputation as being a haven for class action suits.

    The pendulum began to swing four years ago when the appellate court affirmed in Bouchard v. Agropur Coopérative et al the necessity of a legal relationship between the petitioner and all of the entities he wishes to sue. In Lallier vs Volkswagen Canada inc. and Del Guidice c. Honda Canada inc., the Court of Appeal established more precise criteria that place a higher burden on plaintiffs to pass the authorization stage, said class action expert Peter Richardson of Borden Ladner Gervais LLP. “These are criteria defense lawyers have been trying to plead for many years but maybe now are getting recognition,” said Richardson, who successfully pleaded the Volkswagen case.

    “It’s never been easy to obtain class action authorizations, but with these two rulings the Quebec Court of Appeal has certainly made it more difficult than ever,” remarked class action expert Fred Adams of Adams Gareau in Montreal.

    It may be more daunting but it is certainly possible. Over the past week Quebec Superior Court authorized two class actions.

    A class-action lawsuit launched by a Montreal sixplex building owner who blames Montreal’s aging sewage pipes for repeated flooding over the last five years was granted authorization. Eugène Robitaille is seeking $2,000 for each homeowner who signs on as well as the cost of repairs.

    Also granted authorization was a class action launched by Option consommateurs, a consumer rights non-profit organization, against furniture retailer The Brick for alleged misleading advertisement. Option consommateurs is seeking punitive damages of $5 million after it says The Brick claimed clients would not have to pay interest on financed purchases for 15 months. The suit says that clients are in fact charged an annual fee of $35.

  • New interim rules over judicial nomination given tepid praise

    A series of new interim rules introduced by the Quebec government to tighten the judicial nomination and selection process has drawn lukewarm praise, not in the least because it fails to rein in the discretionary powers of the Premier and the Minister of Justice even though the Bastarache commission warned that the process was open to possible political interference.

    In late January, the Bastarache commission made sweeping recommendations to address “several weaknesses” in the Quebec judicial selection and appointment process “vulnerable to all manner of interventions and influence.”

    The new interim rules, described by legal insiders as a “step in the right direction,” makes a few minor changes to the judicial selection and appointment process, notably prohibiting political staff who work for the Minister of Justice and the Premier’s office from taking part in the process.

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  • Imposed settlement leaves bitter taste

    Days after the Quebec government enacted back-to-work legislation that compelled striking Crown prosecutors and government lawyers, a movement appears to be afoot to mollify the rancorous atmosphere reigning between the principle actors of the province’s justice system.

    It’s not going to be easy.

    Louis Dionne, director of criminal and penal prosecutions, met with Quebec’s chief prosecutors and assistant chief prosecutors, the majority of whom asked for reassignment in a show of support with striking lawyers, for a five-hour stretch in Quebec City. Dionne, who refused to grant the reassignments, described the meeting as being “constructive.” He also admitted that the Quebec Crown is in need of “oxygen.”

    But for many it’s too little, too late. The association representing Quebec crown prosecutors called for Dionne’s resignation, saying he should have spoken up during the labour conflict, and not after the back-to-work legislation was adopted. “Crown prosecutors do not understand, and are even angry, that their boss did not publicly come to their defence at a time when the Quebec criminal justice system was living through its worst crisis,” told me Christian Leblanc, the head of the Quebec crown prosecutors association.

    The imposed settlement has been harshly criticized by Quebec’s legal community. One lawyer told me that lawyers – and judges — are discouraged by the turn of events. Another said that, while he is optimistic by nature, he is pessimistic that things will get better, adding that successive Quebec governments have paid little heed to the administration of justice.

    In a letter to its 23,000 members, the head of the legal society the Barreau du Québec, said that the government has ruptured the bond of trust with public sector lawyers by enacting back-to-work legislation – a rebuke that a former Barreau administrator described as being too little, too late.

    Morale is low, and the repercussions will likely reverberate throughout the corridors of justice for quite some time. Unless the Quebec government has a change of heart and begins to seriously address issues that need to be grappled with, assert legal observers, the very same that say that it is not likely.

  • Trucking company ordered to pay $10,000 for discrimination

    A Montreal-area trucking company has paid the price for having a well-entrenched policy of refusing to hire female truck drivers.

    The Quebec Human Rights Tribunal ordered Bernard Wolinsky, owner of Laurentian Shavings Products Inc. and Lanjay Peat Moss Inc., to pay $10,000 to a female truck driver for discrimination.

    The Tribunal, which found that Wolinsky refused to consider the complainant’s application because she was a woman, held that her right to be treated with equality and dignity had been breached. She was awarded $7,000 in moral damages, and $3,000 in punitive damages.

    The complainant, answering a classified advertisement, dropped off her curriculum vitae at the company’s headquarters. As the complainant was shown into Mr. Wolinsky’s office, he told her that he did not hire women. He did not interview her even though she had five years experience working part-time for a number of transportation companies.

    According to the evidence before the Tribunal, Wolinsky told her: “We don’t take women here. It’s very difficult for a woman to remove the snow from the roof of the trailers.” When informed by a Human Rights Commission investigator that a complaint was lodged against him, Wolinsky replied: “I don’t hire women. It is my prerogative.”

    In 2009-2010, the Human Rights Commission investigated 52 files of sex discrimination, 35 of which were related to employment, and several involved women’s access to non-traditional jobs.

    The complainant, answering a classified advertisement, dropped off her curriculum vitae at the company’s headquarters. As the complainant was shown into Mr. Wolinsky’s office, he told her that he did not hire women. He did not interview her even though she had five years experience working part-time for a number of transportation companies.

    According to the evidence before the Tribunal, Wolinsky told her: “We don’t take women here. It’s very difficult for a woman to remove the snow from the roof of the trailers.” When informed by a Human Rights Commission investigator that a complaint was lodged against him, Wolinsky replied: “I don’t hire women. It is my prerogative.”

    In 2009-2010, the Human Rights Commission investigated 52 files of sex discrimination, 35 of which were related to employment, and several involved women’s access to non-traditional jobs.

  • Top crown prosecutors resigning

    The high-stakes poker game has begun.

    The Quebec government is in the midst of tabling back-to-work legislation to end the two-week dispute with provincial crown prosecutors and government lawyers. It appears that Bill 135 will hand lawyers working in the public domain a six per cent increase until 2015, a far cry from the 40 per cent hike sought by crown prosecutors and government lawyers in order to attain parity with provincial and federal colleagues.

    In riposte, senior crown prosecutors are resigning from their management positions. Claude Chartrand, Quebec’s chief organized crime prosecutor, set the balling rolling when he tendered his resignation — and so far ten 40 out of of his 50 colleagues followed suit today. More are expected.

    In his letter of resignation to Louis Dionne, director of criminal and penal prosecutions, Chartrand said the province does not have enough prosecutors to proceed against 155 Hells Angels members charged with money laundering in the wake of Operation SharQC, a police crackdown on the biker gang. The SharQC legal team is composed of ten crown prosecutors, a figure that is supposed to be 16.

    In the meantime, the provincial legal society, Barreau du Quebec, has denounced the back-to-work legislation.

  • Back-to-work legislation looms as negotiations fail

    Quebec Premier Jean Charest has summoned all members of the National Assembly to a special session today to enact back-to-work legislation after a negotiated settlement with Quebec’s 1,500 striking Crown prosecutors and government lawyers have stalled, raising the spectre of mass resignations.

    “I regret that we are forced to have a special law because the consequences of the absence of the prosecutors is a heavy burden on the system of justice,” Charest said yesterday.

    Government lawyers, the lowest paid in the country, are asking for salary parity with their colleagues across the country. Crown prosecutors are also pressing the government to create 200 more positions.

    The creation of a new anti-corruption squad, announced last week, in response to allegations of corruption in the construction industry is now in jeopardy. The province’s striking Crown prosecutors said they will not take part in any corruption probes if they are legislated back to work.

    Crown prosecutors have described the back-to-work legislation as immoral and irresponsible, pointing out that it would be the second time in five years that the Quebec government has decreed wages and working conditions for crown prosecutors and government lawyers. They are threatening to resign en masse.

  • Doing business in China – With rewards comes risks

    When Montreal toy maker Mega Brands Inc. was awarded $1.3 million by Quebec Superior Court following a legal tussle with a Chinese supplier, it highlighted the perils of doing business abroad but also underscored the value of putting pen to paper a comprehensive, detailed and binding contract that clearly spells out the obligations of each party.

    Keen to strengthen ties with the world’s fastest-growing economic juggernaut, Canadian business all too often gloss over the risks and exposure of doing business with Chinese suppliers. Risk management is frequently eschewed, due diligence shirked, and contracts inadequately drafted.

    “What is so surprising is that in Canada even small business would not conceive of entering into a relationship without having a contract, yet when we go into China we lose our minds and don’t undertake the due diligence because we are so eager to have the business relationship,” observed Cyndee Todgham Cherniak, a leading lawyer in international trade.

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  • News roundup: On crucifixes, missing judges and spying

    The City of Saguenay and Mayor Jean Tremblay has been ordered to pay $30,000 in moral and punitive damages by a Quebec Human Rights Tribunal to a citizen for discriminating against his freedom of religion and conscience. The City and the mayor were also ordered to remove a crucifix and a Sacred Heart statue from city council meetings as well as to stop reciting a prayer before each city council meeting.

    “By reciting a prayer and displaying religious symbols in a hall where all citizens are invited to participate in the life of a democratic municipality, the Mayor and the City of Saguenay did not respect its obligation to remain neutral,” said the Tribunal.

    In spite of the ruling, it appears that Quebec’s National Assembly will not follow suit. A crucifix placed over the Speaker’s chair will stay put.

    This is not the first time that Mayor Jean Tremblay lost an expensive court battle. In 2009, in a ruling that harshly castigates the mayor for providing testimony akin to science fiction, Quebec Superior Court condemned the city and the mayor to pay nearly $600,000, plus interest and legal costs, to the city manager for wrongful dismissal.


    Quebec crown prosecutors and government lawyers have long complained about being woefully understaffed. Now Court of Quebec judges have joined the chorus. The criminal section of the provincial court in Montreal is apparently in dire straits. Out of its roster of 32 judges, five have retired, one passed away, one is ill and one was nominated to Quebec Superior Court — and none have been replaced. All of which has led to lengthy court delays, said Justice Ruth Veillet, the Court of Quebec coordinating judge for the Montreal region. She has gone so far to wonder “whether if we are going to free people who have committed serious crimes?”


    Surreal, almost akin to a novel by John Le Carré. It appears that the City of Montreal conducted a ten-month long investigation against a public servant who has become its nemesis – the city auditor. City comptroller general Pierre Reid allegedly led the operation, and investigators ostensibly even examined confidential e-mails, apparently including  e-mails between clients and lawyers, which is supposed to be protected by client-sollicitor privelage, according to a report by Montreal newspaper La Presse.

    “By its length and magnitude, this intrusion, or this interference, are akin to systematic espionage and a real fishing expedition that were clearly meant to build a case against the auditor general,” city auditor Jacques Bergeron wrote in a three-page letter to members of city council.

    Quebec Municipal Affairs Minister Laurent Lessard publicly rebuked the city, pointing out that “the auditor must have a free hand. He’s there to audit the administration and not to be audited by the administration.”

    Gilles Ouimet, the head of Quebec’s legal society, told me today that even if the allegations are true (which he described as disturbing), there is little that the Barreau du Quebec would be able to do.

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  • Quebec Business Corporations Act in force

    Quebec’s legislative framework for companies incorporated in the province, for years practically shunned by the business and legal community, has been revamped, modernized and simplified, drawing praise alike from corporate and commercial lawyers and shareholder activists.

    Replacing both Part I and Part IA of the outdated and much-maligned Companies Act (Act), which was last updated nearly three decades ago, the Quebec Business Corporations Act (BCA) has the ambitious aim of making Quebec a national leader in the business legal landscape thanks to the introduction of measures that clarifies directors’ duties, simplifies the process of incorporating in the province, and grants new rights to minority shareholders.

    “It brings Quebec into the 21st century,” remarked Benjamin Silver, counsel to McCarthy Tétrault LLP’s business law group in Montreal. “It’s got all the pluses that modern corporate statutes like the Canada Business Corporations Act (CBCA), the Ontario Business Corporations Act, and the new British Columbia Business Corporations Act but it has also kept a few things and has a few little twists that other statutes don’t have that will make it doubly attractive. It’s a good little package altogether.”

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  • Norbourg class action good business for lawyers

    A couple of weeks 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, Quebec’s securities regulator is facing an expensive legal tab.

    The Autorité des marchés financiers (AMF) has incurred $12 million in legal expenses to defend itself in the Norbourg scandal, according to a French-language television network. The law firm Heenan Blaikie ostensibly charged $9.275 million.

    Over the past five years, five government bodies hired the services of private-sector lawyers at a cost of $51.9 million. Investissement Quebec spent $1.2 million, utility giant Hydro-Quebec $9.2 million, the Société générale de financement $9.8 million, the Caisse de dépôt et de placement du Québec $15.4 million — and the AMF $16.4 million.

    Marc Lajoie, head of the Association des juristes de l’État (AJE), a union representing nearly 1,000 lawyers, notaries, and other legal professionals now on strike, does not understand.

    “If they don’t have the money for prosecutors and government lawyers, then they surely don’t have the means to reach out to the private sector to hire people for cases,” Lajoie told me recently. “All we’re asking is that our salaries be pegged to the Canadian average.”

Law in Quebec
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