Law in Quebec

News about Quebec legal developments


  • Quebec legal developments to watch in 2014

    Law will play a role in shaping events in Quebec this year, and perhaps for years to come.

    The Charbonneau Commission’s inquiry into the construction industry has just resumed its public hearings, and more of the same is expected. Embarrassing and indecent revelations have come to light that politicians and professionals, and organized crime and major and the construction industry have subverted all things democratic. Two well-known mayors face criminal charges, one of whom stands accused of gangsterism, a law designed to thwart organized crime.

    The probe will continue to study organized crime in the construction industry this month before moving on to other topics of interest, which have yet to be revealed. The Charbonneau Commission must submit an interim report to the Quebec government by the end of January 2014, and a final report is expected by April 2015.

    The Supreme Court of Canada has begun to hear an unusual case that may reinvigorate the Quebec sovereignist movement. It will have to decide whether a judge who joined its ranks was lawfully appointed. Prime Minister Stephen Harper chose semi-retired Justice Marc Nadon, a Federal Court of Appeal judge, to fill one of the three places on the bench held for Quebec. According to Section 6 of the Supreme Court Act, judges “shall be appointed from among the judges of the Court of Appeal or of the Superior Court of the Province of Quebec or from among the advocates of that Province.” The nation’s highest court will have to determine whether a justice who served at the Federal Court is allowed to be a part of the country’s most senior bench. It will also have to determine whether federal government can unilaterally make changes to the appointment process as it did through the passage of the budget bill, C-4, or whether this requires a constitutional change needing provincial approval.

    “It’s very sad for the institution,” remarked Hugo Cyr, a law professor at the Université de Québec à Montréal. “It politicizes a process that shouldn’t be politicized. As soon as the process of appointment puts in question the legitimacy of one of the judges, it weakens the entire institution. That institution is the institution in our political system that is meant to be above political disputes.”

    Also in the agenda is the Parti Québécois’ government divisive secular charter bill. A National Assembly committee has begun hearings on the bill, which will prohibit public servants from wearing overt religious symbols such as the hijab, kippa or crucifix. The bill has deeply divided Quebecers, and will likely set off another round of heated debates over freedom of conscience and religion, and gender equality.

    Though largely unnoticed by the public, a new Code of Civil Procedure will likely have a dramatic impact on the Quebec justice system. A decade after reforming the Code of Civil Procedure based on the principle of proportionality, Quebec intends to overhaul it once again in order to establish a more rapid, more efficient and less costly civil justice that would improve access to justice and increase public confidence in the justice system. In an effort lauded by the legal community, the new Code aims to modernize and streamline the pre-trial process, trials and appeals, using collaboration along with proportionality as its guiding principle. The new Code imposes parties a positive obligation to cooperate and communicate in completing the court record, and grants courts broad and extensive case management power. It also obliges parties to “consider” recourse to private modes of dispute prevention and resolution before referring disputes to the courts. In this vein, the bill codifies the rules around mediation, reforms the rules applicable to arbitration, and provides specific measures for international arbitration. It is expected to be passed this year.

    Also in the making is the first foray into the digital age by Quebec courts. An online dispute resolution pilot project to resolve small claims court cases is scheduled to be launched this fall by the Quebec government.

  • 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.

    (more…)

  • Code of Civil Procedure being overhauled

    A decade after reforming the Code of Civil Procedure based on the principle of proportionality, Quebec intends to overhaul it once again in order to establish a more rapid, more efficient and less costly civil justice that would improve access to justice and increase public confidence in the justice system.

    In an effort lauded by the legal community, Bill 28 aims to modernize and streamline the pre-trial process, trials and appeals, using collaboration along with proportionality as its guiding principle.

    (more…)

  • Quebec court authorizes privacy class action against Apple

    A privacy class action suit launched by a software engineer against Apple Inc. and Apple Canada Inc. was granted authorization by Quebec Superior Court.

    Gad Albilia alleges that Canadian residents who purchased an iPhone or iPad and who downloaded free software applications from the Apple’s virtual App store onto their devices have had their privacy rights infringed. He claims that personal identifiable information was collected through the apps and was transmitted, without the knowledge or permission of class members, to third-parties for purposes “wholly unrelated to the use and functionality of their iDevices or the apps.”

    Albilia alleges that the information collected would have included precise home and workplace locations and current whereabouts; unique device identifier (UDID); personal name assigned to the device; and the consumer’s gender, age, postal code and time zone. He also alleges that information was collected on search terms entered, selections of movies, songs and restaurants as well as app-specific activity.

    He also claims that resources such as storage, battery life and bandwidth of their iDevice were consumed and diminished without permission by Apple and downloaded free apps.Albilia, who launched the class action after learning that two similar class actions were filed in the U.S., is suing Apple because it has full control over the apps and the Apple ecosystem.

    He alleges that Apple allowed “for the making of clandestine and intrusive use of personally identifiable information while representing to its clients that they will protect their privacy,” noted Quebec Superior Court Justice Pierre Nollet.

    But because Albilia’s legal arguments are principally based on the application of privacy laws in Quebec, including the Quebec Charter of Human Rights and Freedoms and civil liability arising from the Civil Code, Justice Nollet found that the petitioner failed to establish a real and substantial connection for residents outside Quebec.“The Petitioner has not demonstrated that the legal systems in the twelve and more different jurisdictions that he wishes to apply to this case rely on similar laws and concepts,” noted Justice Nollet.

    The class action is seeking compensation and punitive damages, though it does not state how much. It is also seeking injunctive relief against Apple to stop allowing third parties to collect and disseminate personally identifiable information.

    While “respondents have raised very serious issues and difficulties arising from the motion for authorization as drafted,” Justice Nollet concluded that the “action is clearly not frivolous and manifestly destined to fail.”

  • Tug of war – Canadian labour under seige

    When the final tally was counted, the labour movement could be forgiven for heaving a sigh of relief. The Senate this week amended, some say eviscerated, legislation passed by the House of Commons that would have given organized labour another sound reason to believe it is under siege.

    This time the Conservative government would have under the auspices of accountability and transparency forced unions to disclose financial information to tax authorities. Other entities that too receive favourable tax treatment were inexplicably exempted from the disclosure obligations. Organized labour could be forgiven for feeling that its capacity to flex its muscle is being thwarted as it helplessly watches the federal government trying to systematically strip elements that once made it a force.

    Provincial governments across the country too are following suit. Many have enacted legal obstacles to make life difficult for labour. “It’s the age of conservatism,” told me Ronald Pink of Pink Larkin, a law firm from the Atlantic Canada that actually boasts it pays heed to social justice. “We are turning back the clock 50 years on things we fought to achieve.”

    Others see matters differently.

    What follows is a look at legal developments that could shape the Canadian labour landscape for years to come.

    (more…)

  • 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.

    (more…)

  • Former lawyer ordered to pay $77,000 in damages

    A former lawyer and her companion who made the lives of their neighbours so miserable that they fled to Alberta before even selling their home have been ordered to pay more than $77,000 in damages by Quebec Superior Court recently.

    Sonia Desrosiers, a lawyer no longer enrolled in the Barreau du Québec, and Renée Jetté lodged or penned during a three-year stretch no less than 22 “malicious” complaints and demand letters against their neighbours before the provincial police, fire department, municipality, the Quebec Human Rights Tribunal, and the Society for the Prevention of Cruelty to Animals (SPCA).

    “The defendants have in a well-thought-out manner planned and repeatedly committed different acts with the intention of harming the applicants,” said Judge Charles Ouellet in a 15-page ruling.

    (more…)

  • Workplace privacy: “People don’t understand it”

    Workplace privacy, an issue few seriously thought about even a decade ago, has become a conundrum for employers. The ubiquitous presence of mobile technology, the explosive evolution of social media coupled with shifting and seemingly contradictory attitudes towards privacy as well as an evolving legal landscape have left in-house counsel in a quandary. Even outside of work, questions linger around the scope of employee privacy and the extent to which employers can keep tabs on employees.

    No wonder then when Borden Ladner Gervais LLP recently ran a seminar on workplace privacy in Toronto in the wake of a much publicized Supreme Court of Canada ruling that has divided privacy lawyers over its significance, the turnout out was nearly twice as much as expected.

    “Privacy is on people’s minds,” says Robert Weir, an employment lawyer who led the seminar.  “People don’t understand it, don’t get it.”

    (more…)

  • 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.

    (more…)

  • 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.

    (more…)

  • 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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  • Ruling limits powers of Quebec securities regulator to impose gag orders

    Days before the former head of Canada’s largest engineering firm was formally charged with fraud, SNC-Lavalin Group Inc. won a key legal battle against the provincial securities regulator who unsuccessfully tried to keep details of an investigation it was conducting into the scandal-ridden engineering powerhouse from the firm’s audit committee and external auditors.

    In a ruling that limits the powers of the Quebec securities regulator to impose gag orders, the Quebec Court of Appeal clarified the procedures the Autorité des marchés financiers must follow when issuing non-disclosure orders. The appeal court also upheld a decision by a specialized tribunal that oversees the securities watchdog, which allowed an SNC-Lavalin executive under investigation to provide details to the company’s audit committee and its external auditors Deloitte & Touche.

    “The Quebec Court of Appeal seems to have given the AMF a lot of latitude to use its discretionary powers but if it becomes excessive it will place limits,” observed Yves Robillard, a Montreal securities lawyer with Miller Thomson LLP. (more…)

  • Appeal court provides guidance on contempt of court

    The use of contempt of court in civil proceedings will likely diminish over time as judges begin to exercise discretionary powers to redress abuse of process under legislation originally designed to thwart SLAPPs, or strategic lawsuits against public participation, observed the Quebec Court of Appeal.

    Contempt of court, an exceptional remedy given its quasi-criminal character and potentially grave sanctions, should be used sparingly and as a “last resort,” particularly since more suitable civil sanctions exist such as running the risk of losing the case on the grounds of abuse of process, dismissal of claims, the striking of allegations to institute proceedings, or even the possible forfeiture of funds held in deposit, advised the appeal court in a 24-page ruling.

    “Viewing contempt as a last resort where there is an alternative remedy, better-tailored to the context, has the further advantage of reserving contempt for those cases of egregious behaviour that genuinely threaten the authority of the courts and merit the strong medicine of the quasi-criminal contempt sanction,” said Justice Nicholas Kasirer in a unanimous ruling.

    (more…)

  • Financial institutions ordered to pay $200 million

    Quebec’s business and legal community and consumer protection advocates are concerned over the impact of three related class action rulings by the Quebec Court of Appeal, with some fearing that motions seeking class action authorization will now be more easily granted while others are worried that consumers will pay the price following the court’s interpretation of what is included in the cost of credit.

    In a series of complex and controversial rulings the Quebec Court of Appeal in part overturned a lower court’s ruling that ordered nine different financial institutions to pay damages amounting to almost $200 million for improperly disclosing (or not at all) and charging fees for currency conversions in credit card transactions under the Quebec Consumers Protection Act (Act).

    (more…)

  • 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.

    (more…)

Law in Quebec
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