The Law Society of Newfoundland

2001 - 2002 Annual Report

This Report covers the periodMay, 2001 to April, 2002

The Law Society of NewfoundlandAnnual Report 2001 - 2002ISBN 1-894444-66-3

Law Society Seal:Gerald Squires, RCA, LL D

Published by The Law Society of Newfoundland

The Law Society of Newfoundland

Annual Report2001 - 2002

CONTENTS

Benchers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Law Society Staff . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Membership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Society Committees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

President’s Annual Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Secretary’s Report on Discipline . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Advisory Council Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Law Society Act and Rules Committee Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Bar Admission Course Committee Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Continuing Legal Education Committee Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Education Committee Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Honours and Awards Committee Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Insurance Committee Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22

Library Committee Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Professional Assistance Committee Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Property Management Committee Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

Student Awards Committee Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

Auditors’ Report and Financial Statements,Fiscal Year Ended December 31, 2001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

1

BENCHERS

Officers:

President: Jeffrey P Benson, QCVice-President: William H N Goodridge, QC

Elective Benchers

Eastern District:

Jeffrey P Benson, QCJohn D Brooks, QCWilliam A CadiganBrian F FureyWilliam H N Goodridge, QCSheila H GreenePaul M McDonaldTobias F McDonaldStephanie L NewellRobert M Sinclair, QCJamie M Smith, QCMarina C Whitten

Central District:

Aidan B BeresfordH Wayne Burden

Western District:

M Beverley L Marks, QCDerrick G M Watton

Labrador District:

Edward M Hearn, QC

Honorary Benchers

Lewis B Andrews, QCReginald H Brown, QCV Randell J Earle, QCJ David B Eaton, QCFrancis P Fowler, QC

J Vernon French, QCThe Hon Chief Justice J D GreenThe Hon Gloria HardingThomas R Kendell, QCR Barry Learmonth, QC

Dana K Lenehan, QCAugustus G Lilly, QCDennis C MacKay, QCG David Martin, QCM Francis O’Dea, QC

Thomas J O’Reilly, QCErnest G Reid, QCJohn F Roil, QCThe Hon Mr Justice D RussellThe Hon Mr Justice R Wells

Ex Officio Bencher

Barry R Sparkes

Appointed Benchers

John P Greene Bernice Morgan, D LittC Ted Janes Bert Riggs

2

Treasurers/Presidents Secretaries/Vice-Presidents of the Law Society of the Law Society

— 1834-1845 Records of the Society were destroyed in the Great Fire of June 9, 1846 —

1846 Hon Wm B Rowe, QC 1846 E M Archibald1849 Bryan Robinson, QC 1847 H W Hoyles1852 E M Archibald 1849 F B T Carter1855 F B T Carter 1855 George Hogsett1866 Wm V Whiteway 1856 Henry A Clift1869 Robert J Pinsent, QC 1869 M W Walbank1870 Wm V Whiteway 1866 Robert J Pinsent1879 Robert J Pinsent, QC 1869 M W Walbank1881 J J Little, QC 1877 T I Keough, QC

1885 Robert J Kent, QC 1879 Prescott Emerson, QC1893 Sir Wm V Whiteway, KCMG, QC 1885 Prescott Emerson, QC

1908 Sir James S Winter 1889 A J W McNeily, QC

1911 Daniel J Greene, KC 1895 D M Browning1912 Donald Morrison, KC 1914 C O’N Conroy1919 J A Clift, KC 1916 C H Emerson, KC

1923 P F Summers, KC 1919 Rt Hon Sir Wm Lloyd1927 W R Howley, KC 1937 J G Higgins, QC

1941 C O’N Conroy, KC 1947 J A Barron, QC

1947 John G Higgins, QC 1958 G M Stirling, CM, QC1958 R S Furlong, QC 1959 T A Hickman, QC

1959 G M Stirling, CM, QC 1967 D A Mercer, QC

1971 R W Bartlett, QC 1974 Noel Goodridge, QC1974 Donald A Mercer, QC 1976 Francis P Fowler, QC

1977 Robert Wells, QC 1981 Ernest G Reid, QC

1981 Francis P Fowler, QC 1982 Thomas J O’Reilly, QC1982 Ernest G Reid, QC 1983 M Francis O’Dea, QC

1983 Thomas J O’Reilly, QC 1984 Peter W Strong, QC

1984 M Francis O’Dea, QC 1985 David L Russell, QC1985 Peter W Strong, QC 1986 G David Martin, QC

1986 David L Russell, QC 1986 J Vernon French, QC

1986 G David Martin, QC 1987 Lewis B Andrews, QC1987 J Vernon French, QC 1988 John F Roil, QC

1988 Lewis B Andrews, QC 1989 J Derek Green, QC

1989 John F Roil, QC 1990 R Barry Learmonth1990 J Derek Green, QC 1991 Thomas R Kendell, QC

1991 R Barry Learmonth 1992 Augustus G Lilly, QC

1992 Thomas R Kendell, QC 1993 V Randell J Earle, QC1993 Augustus G Lilly, QC 1994 Reginald H Brown, QC

1994 V Randell J Earle, QC 1995 Dana K Lenehan, QC

1995 Reginald H Brown, QC 1996 Gloria Harding1996 Dana K Lenehan, QC 1997 J David B Eaton1997 Gloria Harding 1998 Dennis C MacKay1998 J David B Eaton 1999 Robert M Sinclair, QC1999 Dennis C MacKay 2000 Jeffrey P Benson2000 Robert M Sinclair, QC 2001 William H Goodridge, QC

2001 Jeffrey P Benson, QC

LAW SOCIETY STAFF

Executive Director: Peter G RingroseLegal Director: Phyllis E Weir

Director of Legal Education: Francis P O’Brien

Accountant: Judith Pardy

Assistant to the Executive Director: Janice K WhitmanAssistant to the Legal Director: Anne P Cross

Assistant to the Director of Legal Education: Regina M Whitty

LIBRARY STAFF

Librarian: Gail A HoganLibrarian: Harriet A Mercer

Library Technician: Renee WhalenLibrary Technician: Brenda Blunden

3

4

MEMBERSHIP

Membership Statistics as of April 30, 2002:

Practising: 462Practising Uninsured: 159Non-Practising: 136Inactive: 1Suspended: 2Life: 18

TOTAL 778

The total membership figures for the years since 1950 are as follows:

1950 - 66

1951 - 64

1952 - 66

1953 - 69

1954 - 72

1955 - 75

1956 - 73

1957 - 76

1958 - 76

1959 - 77

1960 - 81

1961 - 83

1962 - 86

1963 - 86

1964 - 86

1965 - 86

1966 - 86

1967 - 89

1968 - 106

1969 - 110

1970 - 124

1971 - 129

1972 - 129

1973 - 145

1974 - 153

1975 - 179

1976 - 189

1977 - 203

1978 - 237

1979 - 261

1980 - 281

1981 - 316

1982 - 333

1983 - 351

1984 - 371

1985 - 378

1986 - 394

1987 - 408

1988 - 435

1989 - 445

1990 - 477

1991 - 514

1992 - 560

1993 - 588

1994 - 617

1995 - 635

1996 - 669

1997 - 683

1998 - 706

1999 - 728

2000 - 750

2001 - 767

Eight lawyers were called to the Newfoundland Bar on June 27, 2001.

Roll #

1175 Barry Christopher Lake1176 Heather Julia Ann Spurrell1177 Janice Elaine Kitchen1178 Tannis Lynne King

Roll #

1179 Beverly Jean Sheppard1180 Philip Green Warren1181 Heidi Catherine Marshall1182 Kevin John Baker

Lawyers were first regulated in Newfoundland and Labrador under a Royal Charter of 1826; the LawSociety was incorporated on July 1, 1834.

The Barrister and Solicitor Rolls as of the April 12, 2002, Call to Bar reached 1201 enrolments.

IN MEMORIAM

The Benchers record with regret the death of the following members during the period from May, 2001 toApril, 2002:

5

Two lawyers were called to the Newfoundland Bar on October 5, 2001.

Thirteen lawyers were called to the Newfoundland and Labrador Bar on April 12, 2002.

Roll #

1189 John Lewis Dobson Cook1190 Christopher James Fox1191 Nadine Colette Hodder1192 Andrea Beth Channing1193 Annette Judy Stringer1194 Cheryl Lynn Mullett1195 Rory Matthew Barnable

Roll #

1196 Shelley Lee Byrant1197 Philip William John Osborne1198 Kerry Ruth-Ann Hatfield1199 Michael John McCarthy1200 Kimberly Pearl Keeping1201 Robyn Joycelyn Montague

William Richard Smallwood, QC, Roll #233 Sandra Blackwood, Roll #732

Roll #

1183 Kathryn Ann Mercer

Roll #

1184 Carey Shavana Majid

Four lawyers were called to the Newfoundland Bar on February 6, 2002.

Roll#

1185 Joseph Leslie Douglas Anthony1186 Todd Paul Strang

Roll#

1187 Nancy Catherine White1188 Stacey Lynn Tower

STATUTORY COMMITTEES:

Complaints Authorization Committee

Stephanie L Newell, ChairJohn P Greene, lay Bencher

John F Roil, QCWilliam H N Goodridge, QC, Vice-President

[open] lay Bencher, alternatePhyllis E Weir, ex officio

Discipline

SOCIETY COMMITTEES

EXECUTIVE COMMITTEE:

Jeffrey P Benson, QC, PresidentWilliam H N Goodridge, QC, Vice-President

Edward P Hearn, QCStephanie L Newell

Robert M Sinclair, QCJamie M Smith, QC

Peter G Ringrose, ex officio

Advisory Council

6

Law Society Members:Edward M Hearn, QC, ChairJohn M Green, QC, Vice-ChairPhyllis E Weir, ex officioRobert B Andrews, QC

Nicholas J G Avis, QCDenis G Barry, QCBryan J Blackmore, QC

Reginald H Brown, QCAugustine F BruceLisa A ByrneWayne D ChamberlainBruce C GrantJohn J Harris, QCJanet M Henley-Andrews, QC

Robert M. Sinclair, QC, ChairLewis B Andrews, QCReginald H Brown, QCJ David B Eaton, QCV Randell J Earle, QC

Francis P Fowler, QCJ Vernon French, QCHon Gloria HardingThomas R Kendell, QCDana K Lenehan, QC

Augustus G Lilly, QCDennis C MacKay, QCDavid G Martin, QCM Francis O'Dea, QCErnest G Reid, QC

Thomas J O'Reilly, QCJohn F Roil, QCThe Hon Mr Justice Robert V WellsPeter G Ringrose, ex officio

Education

Paul McDonald, Chair

7

Jamie Smith, QC, ex officio Denis G Barry, QCDavid G L Buffett, QCJ David B Eaton, QC

Herbert F EdwardsHeather M JacobsIan C WallaceFrancis P O'Brien, ex officio

RULES-BASED COMMITTEES:

Bar Admission Course

J David B Eaton, QC, Chair

Aubrey L Bonnell, QCV Randell J Earle, QCAugustus G Lilly, QC

Christopher D G Pike, FIICFrancis P O'Brien, ex officio

Library

Sheila H Greene, Chair

Tracy M BastowS Bruce ChislettKimberly M McLennanJames C OakleyRandolph J Piercey

Catherine J PerryPeter G Ringrose, ex officioGail A Hogan, LibrarianHarriet A Mercer, Librarian

R Barry Learmonth, QCWilliam G Morrow QCRonald S Noseworthy, QCD Richard RobbinsLinda M Rose, QCW Gary Rowe, QC

Lay Representatives:Donald CreweClarence GalliottBrenda GengeAllister HannDon JohnsonMarilyn KindenDavid E LockeWalter C Milley

Daniel W SimmonsKevin F Stamp, QCPaul R Stokes, QCEllen E TurpinCharles W White, QC

Dr Melvin RegularDr Marina SextonC Randy SmithGilbert ThomasKaren E ViscountKeith WaltersDomino Wilkins

Discipline (continued)

8

Honours and Awards

Robert M Sinclair, QC, Chair

Augustus G Lilly, QCJohn D Brooks, QCBert Riggs, lay Bencher

Peter Ringrose, ex officioJanice Whitman, Committee Assistant

Law Society Act and Rules

Jamie M Smith, QC, Chair

Glen L C NoelJohn F Roil, QC

Phyllis E Weir, ex officio

Legislation

Brian F Furey, Chair

John D Brooks, QCJames C Oakley, Court Rules Committee RepresentativeJohn V O'Dea, Court Rules Committee Representative

Lewis B Andrews, QCGlen L NoelFrancis P O'Brien, ex officio

Practice Rules Compliance Committee

Marina Whitten, Chair

Pauline Downer, CA,Representative of Canadian Institute of Chartered AccountantsStephanie Newell, ex officioThomas W Fraize

C Ted Janes, lay BencherDavid D McKayIrene S MuzychkaGraham A Wells Peter G Ringrose, ex officio

BENCHER APPOINTED STANDING COMMITTEES

Student Awards

Charles W White, QC, Chair

Denis J MahoneyJoan F Myles

Francis P O'Brien, ex officio

Insurance

Lewis B Andrews, QC, Chair

Edward Hearn, QCChristopher D G Pike, FIICStephen J MayRobert P Pittman

Daniel W SimmonsRaymond P Walsh, FIIC, Insurance AdjusterPeter G Ringrose, ex officio

9

Property Management

Tobias F McDonald, Chair

Jeffrey P Benson, QC, PresidentWilliam H N Goodridge, QC,Vice-President

Brian F FureySheila L GreenePeter G Ringrose, ex officio

Real Estate

Denis G Barry, QC, Chair

Aiden B BeresfordGraham A Wells

Peter D HouseFrancis P O'Brien, ex officio

Project Daisy

John L Joy, co-ChairChristopher P Curran, co-Chair

Thomas J BurkeWilliam A CadiganChristopher English, PhDThe Hon Mr Justice J D Green, Chief Justice, Trial Division

Ernest G Reid, QCPeter G Ringrose, ex officioJanice K Whitman, Committee Assistant

General Practitioners and Mentoring

Derrick G Watton, Chair

D Bradford L Wicks Phyllis E Weir, ex officio

Information and Communications

V Randell J Earle, QC, Chair

Richard L CollinsChristopher D G PikeDerrick G White

Peter G Ringrose, ex officioGail A Hogan, LibrarianHarriet A Mercer, Librarian

Unauthorized Practice

William H N Goodridge, QC, Vice President, Chair

Wayne BurdenM Beverley L Marks, QC

Phyllis E Weir, ex officio

Archives

Bert Riggs, Chair, Archivist, lay Bencher

Members to be confirmed

"Cameras In the Courtroom” Review

Paul McDonald, Chair

Valerie Marshall Ted Janes, lay Bencher

10

BENCHER APPOINTED AD HOC COMMITTEES

Advertising

Dennis C MacKay, QC, Chair

Roger BillChristine A Fagan, QCAugustus G Lilly, QC

Jackie PelletierPeter G Ringrose, ex officio

Law Corporations and Limited Liability Partnerships

Robert P Stack, Chair

Executive Compensation

John F Roil, QC, Chair

J Vernon French, QCReginald H Brown, QCR Barry Learmonth, QC

Lewis B Andrews, QCPeter G Ringrose, ex officio

Guidelines on Ethics and the New Technology

Augustus G Lilly, QC, Chair

Christopher P Curran Colette M Goodyear Sheila H Greene

Lois R Hoegg, QCJohn G KellyJohn F Roil, QC

Law Society Act and Rules Subcommittee

Reginald H Brown, QC, Chair

Trudy L ButtonS Bruce ChislettRebecca C Phillipps

Peter E RalphTerry G RowePhyllis E Weir, ex officio

Limitations Act Subcommittee (Legislation)

Brian F Furey, Chair

Lewis B Andrews, QCGlen L Noel

Francis P O'Brien, ex officio

Jeffrey P Benson, QC, PresidentMichael H DuffyStephen J May

Maureen E RyanBert Riggs, lay BencherPeter G Ringrose, ex officio

11

JOINT LIAISON COMMITTEES:

Law Society and Canadian Bar Association, Newfoundland Branch,Continuing Legal Education

Maureen Ryan - Law Society, co-ChairPeter Shea - Canadian Bar Association, co-Chair

Peter Browne - President, Canadian Bar Association, NF BranchW A Brock Myles - Canadian Bar Representative

Hon William J English - Law Society RepresentativeJeffrey P Keefe - Law Society RepresentativeRoxanne Dean - Committee Assistant, CBA

Francis P O'Brien, ex officio

Law Society and Canadian Bar Association, Newfoundland Branch,National Meeting/Conference

Marina C Whitten

Law Society and Canadian Bar Association, Newfoundland Branch,Committee on Automobile Tort Reform

Jamie P Martin, ChairJeffrey P Benson, QC, President of the Law Society

Peter N Browne, President CBA, Newfoundland BranchDaniel M Boone

Chesley F CrosbieBrian F Furey

B Glen RoebothanD Bradford L Wicks

Law Society/NLMA Liaison

Gillian D Butler, QC, Chair

Timothy J Chalker, QCM Francis O'Dea, QC

Edward P Noonan, QC

Professionals' Assistance

Paul M McDonaldThomas G Mills

Court Standards

Dennis C MacKay, QCWilliam A Cadigan

Provincial Court Judicial Council

H Wayne Burden

Atlantic Law SocietiesRegional Committee

Stephanie L NewellPeter G Ringrose, ex officio

12

I am pleased to report on the activities of thePresident and the Law Society for the period fromJune 2001 to May 2002. As members who followBenchers' Notes are aware, the office of Presidentfulfils two roles, it is both ceremonial and func-tional. I will sketch briefly some of the activitiesthat followed from each of these roles during thepast year.

CeremoniesDuring the past year, I had the honour to presideover the granting of the Degree of Barrister-at-Lawto 27 new members at four Call to BarConvocations. Preparing for these Calls under-scored for me the history and importance of theprofession and the role it plays. Recognising as wedo the importance of a Call to Bar for new mem-bers and their families, the Law Society has invest-ed the ceremonies with the sense of occasion theydeserve. For example, a programme is provided toguests, setting out the sequence of events at theceremony and providing historical backgroundabout the ceremony and about the Law Society.

At the April Convocation, there was another causeto celebrate. The Law Society conferred the Degreeof Doctor of Laws, honoris causa, at the same cere-monies as the Barrister-at-Law Degrees. The occa-sion was unique in our history and honoured MrJustice Robert Wells, a Justice supernumerary ofthe Supreme Court of Newfoundland andLabrador.

At the June 2001 Annual Dinner and Dance, theoutgoing President, Robert M Sinclair, QC, and Iwere pleased to announce Gordon M StirlingDistinguished Service Awards for the HonourableLynne Verge, QC, the Honourable P Derek Lewis,QC, and the band Rough Justice. At the same cere-monies, we presented Certificates of Merit to MrNewman Petten, and Mr Apenam Pone.

Significant DecisionsLooking back at the year, there were a number ofsignal decisions before Benchers that will alter thecourse of the Law Society.

At our January Convocation, Benchers debatedand passed a resolution to change the name of theSociety to the Law Society of Newfoundland andLabrador.

At our April Convocation, the topic of increasedmobility amongst lawyers in Atlantic Canadadominated. Attending this Convocation were thePresidents of the Barristers' Society of Nova Scotiaand the Law Society of New Brunswick. I visitedthe Nova Scotia Barristers' Society to address thistopic in October, as well as the Law Society of NewBrunswick in May. A visit to Prince Edward Islandwas cancelled because of bad weather in February.

By attending each other's Convocations, thePresidents demonstrated a common interest,shared by all law societies in Canada, in increasedmobility of lawyers, and the desire to build uponthe particular commonalities found in AtlanticCanada. To this end, and for some time now, rep-resentatives of each Province have been discussingcommon trust account rules in Atlantic Canada. Acommon Code of Professional Conduct is alsounder consideration.

In recent months, the Atlantic societies have beenexploring how best to improve mobility of theirmembers throughout the region and to build uponsuccesses in Western Canada where, generallyspeaking, members in one western jurisdiction areentitled to practice in another on a visiting basis forup to six months. Atlantic Canada mobility will beon the agenda for the June Convocation. Ifapproved in June, six-month mobility may beavailable to all members in Atlantic Canada byJanuary 1, 2003.

Another significant issue this year is the fitting-upof the Societies' new premises at 196-198 WaterStreet. Final decisions about funding the workwere taken at a special Convocation held on April29. Following a broad discussion of the issues,Benchers approved borrowing monies forimprovements to the building, in an amount up to$1.7 million, from available cash reserves held in

PRESIDENT’S ANNUAL REPORT

Jeffrey P Benson, QCPresident

13

the Insurance Funds. The decision two years ago topurchase the building, and now the decision tofinance the fitting-up from Law Society insurancefunds, will impact significantly and beneficially onmembers and on the public interest for decades tocome.

In the latter part of 2001, the Provincial govern-ment published a consultation paper, developed inresponse to insurance industry pressure to lowerpremium costs, which proposed to effect automo-bile tort reform by removing non-economic lossclaims for victims of all but the most serious andpermanent of automobile injuries, and imposing asubstantial deductible on pain and suffering onthose claims that remain. Our response was imme-diate but balanced and, on a positive note, we havetaken this also as opportunity to further cementalliances with our friends and colleagues in theCanadian Bar Association, combining ourresources into a joint Task Force. This Task Forcehas been instrumental in shaping and informingthe ensuing debate.

Relations with GovernmentI am pleased to report that relationships with thegovernment of Newfoundland and Labradorremain generally cordial and consultative. TheSociety continues to meet twice yearly with theMinister of Justice and Attorney General, the HonKelvin Parsons, QC, to address matters of commoninterest. Central among these discussions duringthe last two years is the need for better court facil-ities in Happy Valley-Goose Bay. I am pleased tonote that the government has allocated funds fornew facilities in the 2002-2003 Fiscal Year.

Continuing with government, earlier this yearmembers of the Executive met with the Hon WalterNoel, Minister of Government Services and Lands.Since the jurisdiction of this Department overlapswith many areas of interest to the legal communi-ty, Benchers believe it appropriate to develop aconsultative relationship with Department offi-cials. The meeting with Minister Noel was infor-mal and productive, and a very good beginning.The Society learned of the Department's commit-ment to improve the services at the Registry Office,and we were able to discuss the views of the jointTask Force concerning the Department's automo-bile tort reform initiative.

Federation of Law Societies of CanadaDuring the last 12 months law societies across

Canada, including the Law Society ofNewfoundland, have funded a pan-jurisdictionalchallenge to the federal government's money laun-dering legislation, focussing upon the adverseeffects this legislation will have on the indepen-dence of the legal profession, our ethical obliga-tions to our clients and our clients' constitutionalfreedoms. To date, all challenges have been suc-cessful, and the federal government has recentlyagreed to exempt lawyers countrywide from theapplication of the legislation pending the conclu-sion of the court challenge. We are hopeful that therelevant provisions will be amended or struck.

Further at the national level, the Law Society ofNewfoundland made application this year to belicensed as an investigative body under thePersonal Information Protection and ElectronicDocuments Act (Canada). The decision was notwithout some discussion amongst Benchers, sincethe federal legislation impacts upon the gover-nance of the profession in the province. However,our status as an investigative body will assist theLaw Society in performing its fundamental inves-tigative and disciplinary functions.

I am currently serving on the Federation of LawSocieties' Governance and AdministrationCommittee. This committee is reviewing theFederation's operational structure to determinewhat changes might be beneficial to member soci-eties and the public interest.

Law FoundationWe are fortunate and grateful to have the contin-ued financial support of the Law Foundation forlaw libraries. For fiscal 2002, the Foundation grant-ed $110,000 for the Law Society Library in StJohn's, $9,000 for the Court House Library inGander and $20,000 for the Sir Richard SquiresLaw Library in Corner Brook. The Foundation'scontribution provides a significant portion of eachLibrary's acquisition budget and, in providing thegrants to the Libraries, the Foundation serves thepublic interest by making better resource andresearch materials available to the bar and, in StJohn's, to members of the public.

Even with the Foundation's generosity, the grantsare alone insufficient to maintain the Law Libraryin St John's. The Law Society will add in 2002 a fur-ther sum exceeding $325,000 for acquisitions andrelated operational expenses, including rentalcosts.

14

Fiscal Year 2001The Law Society ended fiscal 2001 with an operat-ing deficit of $74,579, reducing accumulated sur-plus funds to $514,682. The deficit resulted from anumber of expenditures not anticipated when theBudget was approved in December 2000. Chiefamong these, the custodianship of a member'spractice in Labrador was a significant factor, cost-ing more than $30,000. Other increased costsresulted from the mid-year decision to employ afull-time Receptionist for the Law Society. Severalworthwhile Bencher initiatives throughout theyear added to expenses, such as the honours andawards granted to members and former members(and the receptions for these awards), most notableamong these the Doctor of Laws, honoris causa, con-ferred upon Chief Justice Hickman at his retire-ment. Coupled with increased expenditures, therewas a reduction in revenues. Fewer members andstudents joined the profession last year, reducingfees revenues. Additionally, revenues from lawlibrary photocopiers decreased markedly.Nevertheless, throughout the year Benchers' main-tained a watchful eye over finances and approvedthe added expenditures as they became necessary,a number of them on a one-time basis. For the mostpart, the added expenses constitute normal vari-ables occurring in the management of a profes-sional society and the accumulated surplusremains strong. A copy of the Society's 2001Financial Statements is included with this AnnualReport.

CommitteesOur commitment to our own personal goals andvalues should also entail a commitment tostrengthening the professional community towhich we belong. In this regard, every Presidenthas occasion to learn about and admire the work ofthe Society's many Committees. Every Presidenthas also remarked, as I now do, upon the numberof members who volunteer their time and exper-tise to the work of the Society. These volunteersstrengthen our professional community and andprotect the precepts of self-governance. By theircontribution, our volunteers advance the integrity,credibility and future of the profession.

As always, our Committees have been extremelyactive in 2001-2002. This has resulted in several ini-tiatives being adopted or advanced, including thedevelopment of professional rules and guidelinesassociated with law corporations and limited lia-bility partnerships, the investigation of members'

practices and the retention, storage and destruc-tion of client files, ethical rules governing the useof new communication technologies, policeauthority search warrant protocols and a more for-malized staff evaluation process. An AdvisoryCouncil, consisting of former Treasurers andPresidents, has now been entrenched and hasinformed Bencher debate on a number of impor-tant issues.

In a modest effort to acknowledge the work of ourvolunteers, in June 2001 the Law Society hosted aluncheon at the Fairmont Newfoundland Hotel. DrJean Bruneau addressed the volunteers, speakingabout her years as a lay Bencher and the value ofvolunteering in the community. There will beanother such luncheon in June, 2002, and I hopethis expression of gratitude to volunteers becomesa regular feature in the Law Society's calendar.

Benchers are volunteers, too. They make signifi-cant contributions of time and expertise to the LawSociety. Few members outside the Benchers' tablerealize fully the effort and energy necessary to be aBencher. Old Minutes of Convocations note fromtime-to-time the statutory obligation to meet but,"there being no business to discuss, Convocationadjourned." Today, we occasionally trim theAgenda to ensure its completion within the dayand have on occasion extended Convocation intothe evening or following day.

ConclusionMy term as President has been a source of consid-erable satisfaction. I have enjoyed working withBenchers and our dedicated Law Society staff, andattending meetings of the Federation of LawSocieties and our counterparts throughout AtlanticCanada. In all these instances, much of my rewardcomes from the exchange of views and the struggleto resolve problems to the benefit of the publicinterest and the members whom we represent.These experiences have been the reward and satis-faction for a year of hard work. I have been hon-oured and pleased to have the opportunity to servethe profession and our community in this way. Inclosing, I want to thank and commend ExecutiveCommittee members, Benchers, individual mem-bers with whom I have consulted from time to timeand Law Society staff, all for their consistent sup-port and assistance. ■

The Secretary, a Bencher responsible to oversee thediscipline process, reviews correspondence con-cerning professional conduct to determinewhether the enquiry constitutes an allegation ofconduct deserving of sanction and is within thejurisdiction of the Law Society's discipline process.Conduct deserving of sanction is defined in section41 of the Law Society Act, 1999, (the Act) to includeprofessional misconduct, conduct unbecoming amember of the Society, acting in breach of the Actor the Law Society Rules and failing to adhere tothe Code of Professional Conduct. The Secretary,either refers the allegation to mediation, with theconsent of the respondent and the complainant, orrefers the allegation for investigation. If the allega-tion is resolved through mediation the mediatorconfirms the resolution to the Secretary and to theparties. However, if a satisfactory resolution is notachieved then the allegation will be investigatedsubject to the third party allegation policyapproved by Benchers on June 9, 2000.

A third party allegation is an allegation receivedfrom a non-client or a lawyer opposed in interest tothe client of the solicitor against whom the allega-tion is made. Following a review of the allegationon the basis of specific factors, the Secretary hasdiscretion to defer the investigation of the allega-tion pending the final determination of a proceed-ing. When the investigation is deferred, theSecretary requests from the respondent a waiver ofdelay and consent to any subsequent investigation.Also, the complainant must waive any solicitor-client privilege related to the allegation.

Investigation is conducted through the LegalDirector's office and generally involves anexchange of written correspondence. However,the Secretary may authorize further investigativemeasures as needed. The Secretary submits theallegation to the Complaints AuthorizationCommittee, a committee of at least three benchers,one of whom is an appointed bencher. The powersof the Complaints Authorization Committee arelisted in section 45 of the Act and include the

authority to conduct further investigation and tomake recommendations to the ExecutiveCommittee concerning the respondent's practice.Subsequent to its final consideration of the allega-tion, the Complaints Authorization Committeewill either dismiss the allegation or, where thereare reasonable grounds to believe that a respon-dent has engaged in conduct deserving of sanction,counsel or caution the respondent or instruct theSecretary to file the complaint and refer it to theDiscipline Committee.

The Discipline Committee, established pursuant tosection 42 of the Act, consists of Law Society mem-bers and lay representatives appointed by theMinister of Justice. The Discipline CommitteeChairperson appoints an adjudication panel, con-sisting of two members and one lay representative,to hear the complaint. When an adjudication panelaccepts a guilty plea it makes an order pursuant tosubsection 46(3) of the Act. Otherwise the hearingproceeds pursuant to section 48 of the Act. A partyto the hearing has the right to appeal a decision ororder of the adjudication panel to the Benchers. Adecision or order of the Benchers may be furtherappealed to the Supreme Court of Newfoundland,Court of Appeal.

During 2001, three complaints have been heard byAdjudication Panels. Two respondents were foundguilty of conduct deserving of sanction and repri-mands were imposed. One respondent was exon-erated by the Adjudication Panel. Benchers con-sidered two complaints which had been heardunder the former Law Society Act. Benchers foundthe respondents guilty and imposed periods ofsuspension in both matters.

During the 2001 calendar year, the office of theLegal Director received 132 enquiries.Approximately 27 percent of these enquiries wereresolved through the office of the Legal Director.Requests for general information and questionsabout statements of account constitute approxi-mately 22 percent of the enquiries and are respond-

15

SECRETARY’S REPORT ON DISCIPLINE

William H N Goodridge, QCSecretary

ADVISORY COUNCIL REPORT

Robert M Sinclair, QC

Chair

The Advisory Council was struck in 2001 as astanding committee of Benchers. All PastPresidents were invited to become members of theAdvisory Council. Those choosing to serve are: Chair:Robert M Sinclair , QC

Members:Hon Robert Wells; Francis P Fowler, QC ; Ernest G Reid, QC; Thomas J O'Reilly, QC ; M Francis O'Dea, QC ; G David Martin, QC; J Vernon French, QC ; Lewis B Andrews, QC ; John F Roil, QC ;

Thomas R Kendell, QC ; Augustus G Lilly, QC; V Randell J Earle, QC; Reginald H Brown, QC; Dana K Lenehan, QC ; Hon Gloria Harding; J David B Eaton, QC ; Dennis C MacKay, QC; Peter G Ringrose.

The role of the Advisory Council is to adviseBenchers on matters of importance on whichBenchers expressly seek its counsel and advicefrom time-to-time.

At its inaugural meeting in June, 2001, theAdvisory Council provided guidance to Benchersabout an appropriate method of proceeding in amatter of concern involving professional ethics.

The Advisory Council was convened again on 24April, 2002, to provide guidance to Benchers aboutthe proposed use by Benchers of $1.7 millions ofthe Law Society's 1983-1994 Self-Insurance Fundmonies to finance the cost of renovations to thenew Law Society offices at 196-198 Water Street, StJohn's.

In this latter instance, the Advisory Council rec-ommended that Insurance Contingency Funds "A"and "B" (see the Financial Statements) should con-tinue for insurance purposes in the full amount of$3 millions as recommended by the InsuranceCommittee and previously agreed by Benchers.However, the Council advised Benchers that, in itsopinion, the cost of renovations for the new officescould be funded by a borrowing arrangement fromthe Insurance Contingency Funds to the CapitalFund. It recommended treating the amount as if itwere an investment of the Insurance ContingencyFunds and by attaching an interest payment termto the money transfer, together with anUndertaking to restore the amount to theInsurance Contingency Funds should the needarise. ■

ed to directly by the Legal Director. Approximately27 percent of the enquiries were determined, bythe Secretary, as not constituting an allegation. Thefollowing statistics relate to allegations that wereinvestigated and constitute approximately 24 per-cent of the 2001 enquiries.

Allegations Being Investigated 2Allegations Investigated and Dismissed 20Allegations Resulting in Counsel 2Allegations Resulting in Caution 5Complaints Referred to the Discipline Committee 3

Hundreds of hours of volunteer time are con-tributed on an annual basis by lay representativesof the Discipline Committee, Law Society membersand the Benchers to the discipline process. TheSecretary sincerely thanks all those who assist theSociety in the governance of its members. ■

16

17

ACT AND RULES COMMITTEE REPORT

Jamie M Smith, QC

Chair

The Law Society Act and Rules Committee, underthe chair of Stephanie L Newell, has completedDiscipline Rules that are harmonious with the LawSociety Act, 1999. The committee, chaired by JamieM. Smith, QC, has worked to develop Rules con-cerning practice investigations. Discipline RulesIX and Practice Investigation Rule XIV are avail-able on the Law Society's website. The committee

has proposed amendments to several sections ofthe Law Society Act, 1999. Following Benchersapproval, the amended sections will be forwardedto government for approval during the Autumnsession. ■

The Fall 2001 Bar Admission Course was held in theeight week period between October 2, 2001 andNovember 19, 2001. The Bar Course continues to bea concentrated program. Students receive instruc-tion in the main practice areas of Family Law,Corporate and Commercial, Civil Procedure,Administrative Law, Real Estate and Wills, andCriminal Practice and Procedure and must success-fully complete comprehensive 3.5 hour examina-tions in each of these practice areas. The Bar Courseis the last formal educational experience prior tobecoming a member of the Newfoundland andLabrador Bar. As such, the Course is focused onproviding the most important and essential infor-mation and materials, to ensure students enter theprofession with a high level of knowledge andfamiliarity with Newfoundland and Labrador law.

The Bar Course provides students with a very com-prehensive picture of the laws, practice and proce-dures of the province. In recent years, the Coursehas expanded. This year’s students received infor-mation through the Bar Admission Course lectures,the Bar Admission materials (12 volumes) andapproximately 80 statutes, all of which were exam-inable in the Bar Course examinations.

In addition to the examinable components, the BarCourse includes other important elements.Students participated in discussions and lectures onrisk management and practice management, ethicsand professional responsibility (for which studentscompleted a separate assignment), trust accounting,and professional and personal development issues.

The Course now also has an increasing emphasis onlawyering and transaction skills. Students partici-pated in workshops and lectures in Civil Advocacy,Examination-in-Chief and Cross-Examination,Interviewing Skills, Negotiation Skills, Examinationfor Discovery, Real Estate Transactions, TitleSearching and Surveys, Criminal Advocacy and aMock Trial and Sentencing Hearings.

The Bar Admission Course Committee and our ded-icated Instructors are working to ensure the Coursecontinues to be a valuable and relevant experienceand a useful bridge to practice.

The Bar Admission Committee sincerely appreci-ates the contributions of the approximately 80 vol-unteer lawyers, judges and other professionals who,as lecturers and in other ways, make such a mean-ingful contribution to the Course. ■

BAR ADMISSION COURSE COMMITTEE REPORT

J David B Eaton, QCChair

Continuing Legal Education for members of theNewfoundland Bar is developed and deliveredthrough a Joint Committee of the Law Society ofNewfoundland and the Canadian Bar Association,Newfoundland Branch. This Joint Committee onContinuing Legal Education has, as its goal, theprovision of high quality legal education programswhich assist in keeping our members current andcompetent.

In the period from June 2001 to June 2002 the fol-lowing Continuing Legal Education programswere offered to members of the NewfoundlandBar:

• A Practice Primer: Insights on EffectiveAdvocacy, New Legislation and RiskManagement for Lawyers

• Real Estate Law in 2001: Practice Points andCurrent Topics (St John’s and Corner Brook)Strategies in Using (and Challenging)Psychological and Psychiatric Experts in theLaw

• Legal Research Electronic Products TrainingSessions

• Advocacy Skills Workshop: Sharpening YourSkills in Cross-Examination, Impeachment andRehabilitation of Witnesses on Re-Examination

• New Proceeds of Crime Legislation: WhatEvery Lawyer Must Know

• Focus on Administrative Law, 2001

• The New Class Actions Act (St John's andCorner Brook)

• The New CBCA: Reform of the CanadaBusiness Corporations Act - What does itmean for your practice?

• Using E-Carswell for Legal Research

• Employment and Labour Law: Caselaw andLegislative Update

• Wills, Estate Planning and Probate Practice

Lawyers in Newfoundland and Labrador continueto be enthusiastic and interested in ContinuingLegal Education. They continue to support ourprogramming by their excellent attendance, posi-tive feedback and suggestions for future programs.

The Joint Committee sincerely thanks our manyvolunteer lawyers, judges and other professionalswho give freely of their time and talents, as pre-senters at our seminars, to enhance the knowledgeand professional standards of other practitioners.The Committee is greatly appreciative of thesecontributions and impressed with the excellenceand enthusiasm of our presenters.

In the coming year we will continue to offer rele-vant, practical and useful programs to benefit ourmembers. ■

18

CONTINUING LEGAL EDUCATIONCOMMITTEE REPORT

Maureen E RyanLaw Society co-Chair

19

The Education Committee is responsible for alleducational issues which arise concerning mem-bers and prospective members of the Law Society.The Education Committee deals with ongoingrequests and queries of members and prospectivemembers relating to the requirements in the LawSociety Act, 1999 and the Law Society Rules oneducational issues.

As such, the Education Committee considersapplications from law students for admission as aStudent-at-Law, applications from members ofother Law Societies who wish to practice inNewfoundland and Labrador, and applicationsfrom non-practicing or former members of the LawSociety who wish to reinstate their status to prac-ticing membership. In all of these cases, theCommittee must ensure that the applicant has metthe required standards.

From May 2001-April 2002, the Committee admit-ted thirty-one (31) applicants as Students-at-Law.In that same period, the Education Committee rec-ommended to Benchers that twenty-seven (27) stu-dents, having met the requirements as Student-at-Law, be called to the Bar in Newfoundland andLabrador.

Each year the Education Committee reviews andapproves the marks from the Bar AdmissionCourse examinations and gives direction, whereneeded, with respect to the writing of supplemen-tary examinations or the completion of further

educational requirements before a Student-at-Lawis eligible to be called to the Newfoundland andLabrador Bar.

The Committee recently implemented a new Ruleand Forms respecting Articles of Clerkship. Thenew Rule requires that an Education Plan be filedby the Student-at-Law and the Principal, settingout the practice areas and skills areas that are to becovered in Articles. An Education Plan ProgressReport is jointly filed between six to eight monthsafter articles commence and this gives theCommittee an indication of the progress beingmade in satisfying the Education Plan. Finally, aCertification of Education Plan is filed at comple-tion of articles, certifying that the Education Planhas been successfully completed. Evaluationforms of the Articles of Clerkship are filed by boththe Student-at-Law and the Principal upon com-pletion of Articles.

The new Rule and forms are meant to provideguidance to Principals and Students-at-Law as tothe practice areas and skills which must be coveredduring Articles of Clerkship. This year, the firstgroup of students required to comply with theEducation Plan are presently serving their Articlesof Clerkship.

A complementary rule, dealing with the applicationprocess to be followed where a member wishes toact as a Principal of an articling student, is present-ly being considered by the Education Committee. ■

EDUCATION COMMITTEE REPORT

Paul M McDonaldChair

The Committee was active through the year andmade several recommendations to Benchers forinnovations in the creation of honours and awards,and as to recipients for established awards.

Membership Service AwardsOn the Committee's recommendation, Benchersadopted Certificate Awards for Membership Serviceto members of the Law Society upon the anniver-sary of their Call to Bar. Membership ServiceAwards are to be granted on the following anniver-saries: 25, 40, 50 and 60 years. The recipient musthave been a practising member for at least ten years,and must be in good standing with the Law Societyor have been so upon retirement from practice. Thefirst recipients will be honoured at a special LawSociety luncheon to take place later in 2002.

Seventy-five Year Service AwardOn the Committee's recommendation, Benchersdecided to honour Edmund J Phelan, QC, with aunique 75-year Membership Service Award, to beannounced at the Annual General Meeting June 7,2002. The award will be in the form of a hand-let-tered Certificate prepared by a calligrapher.

Mr. Phelan is the oldest living member of the lawprofession in Newfoundland and Labrador. Hewas called to the Bar on February 1, 1926, andappears on the Law Society Rolls as Member No.157. He was appointed as King's Counsel in 1945and as a Master of the Supreme Court ofNewfoundland in 1947.

Following Confederation, Phelan, KC, was Chair ofa Committee that revised the statutes ofNewfoundland to be in conformity with Canadianlaw. He was the second person to be appointed asChair of the Board of Regents of MemorialUniversity of Newfoundland, serving from 1953 to1968. Phelan, QC, was awarded the degree ofDoctor of Laws, honoris causa by MemorialUniversity of Newfoundland in 1964. He served asan elective Bencher of the Law Society ofNewfoundland from 1963 to 1969. He was granteda Life Membership of the Law Society in April,

1989. He was senior partner of the law firm Phelan& Hawkins.

Phelan, QC, was Solicitor for the Roman CatholicEpiscopal Corporation of St John's and in 1958 wasinducted as a Papal Knight of the Order of StGregory. He was inducted into the Newfoundlandand Labrador Sports Hall of Fame for his contribu-tions to track and field, soccer and hockey as a stu-dent of St Bonaventure's College.

Lapel Pins and CufflinksOn the Committee's recommendation, Benchershave approved in principle the striking of a lapelpin in recognition of membership in the LawSociety of Newfoundland. The criteria for the eligi-bility of persons to wear the lapel pin are underconsideration. The Committee is working on anappropriate design for the pin and engraving/manufacturing arrangements. It is hoped that thepins will be available later in 2002.

The Committee is also considering making recom-mendations to Benchers to adopt a potential designfor cufflinks bearing the Law Society ofNewfoundland logo or other suitable insignia whichmay become available for purchase by membersthrough the Law Society offices later in 2002.

Honourary Life MembershipsThe Committee made recommendations thatBenchers honour a number of members as LifeMembers. It is expected that these honours will bebestowed on a suitable ceremonial occasion later in2002.

Under Rule 2.17 of the Rules of the Law Society ofNewfoundland, any member who has been amember for not less than ten years and who is over65 years and is permanently retired from the prac-tice of law, or is permanently disabled and there-fore unable to practice law, may apply to continuehis or her membership as a Life Member in theSociety. Benchers have the discretionary authorityto allow such applications and to bestow LifeMembership on any member or former member

HONOURS AND AWARDS COMMITTEE REPORT

Robert M Sinclair, QCChair

20

21

with his or her consent upon terms and subject toconditions which Benchers may prescribe.

Volunteer of the YearThe Committee has made a recommendation inprinciple to Benchers that it create the award of"Volunteer of the Year" with the intention that it bebestowed annually upon a member who madeoutstanding contributions to community and char-itable organizations. Further consideration of thisproposed award by the Committee has beendeferred, pending directions from Benchers.

Annual Awards The Committee reviews nominations made bymembers of the profession annually for the recipi-ents of a series of awards that were first presentedtwo years ago. The Committee reviews the nomi-nations, conducts due diligence and makes recom-mendations to Benchers.

Doctor of Laws, Honoris CausaOn 12 April, 2002, the Honourable Robert Wellswas inducted with the degree of Doctor of Laws,honoris causa. Dr Wells is a Justice (Supernumerary)of the Supreme Court of Newfoundland andLabrador, Trial Division, who electedSupernumerary status in December, 2001.

He was the 1953 Newfoundland Rhodes Scholarand was graduated from Oxford University in 1956with a Bachelor of Arts Degree in law and in 1961took his Oxonian Master of Arts Degree. Followingservice of Articles at Gray's Inn, he was called tothe Bar of England and Wales in 1958; he wascalled to the Bar of Newfoundland in 1959. Heserved as a Member of the House of Assembly ofNewfoundland and in the mid-1970's, asGovernment House Leader and then Minister ofHealth.

An Elective Bencher for a number of years, DrWells was the last member to serve a multi-yearterm as Treasurer of the Law Society, from 1977 to1981. In 1985 he became the first (and, to date thesole) Newfoundlander to be elected as NationalPresident of the Canadian Bar Association. At thetime of his appointment in 1986 as Supreme CourtJustice, he was Senior Partner of the law firmWells, O'Dea, Halley, Earle, Shortall & Burke. He isChair of the Judicial Council of the ProvincialCourt of Newfoundland and a Past President ofboth the Canadian Institute for the Administrationof Justice and the Canadian Section of the

International Commission of Jurists. He is anHonourary Bencher.

The Stirling Distinguished Service AwardOn the recommendation of the Committee,Benchers will bestow the Stirling DistinguishedService Award upon John F Roil, QC. Roil, QC, isan Honourary Bencher and is Corporate Solicitorfor Marine Atlantic. Until 2001, he was in privatepractice, latterly as a partner of Cox HansonO'Reilly Matheson in St John's. He holds thedegree of Master of Laws and is well known for hiscontributions to arbitration and employment law.Roil, QC, is being honoured for his valuable serviceto the Law Society, having served for a number ofyears, and still, as a Member of the ComplaintsAuthorization Committee and of the Act and RulesCommittee. Recently, he served as Chair of theSociety's Executive Compensation Committee. Heserves the Society selflessly, tirelessly and withgood cheer.

Certificate of Merit AwardOn the recommendation of the Committee,Benchers have decided to honour two persons asrecipients of the Certificate of Merit Award in 2002.

Charles Lesley Roberts was called to the Bar onOctober 14, 1950. In the early l950's, he was com-missioned by the Government of Newfoundland tostudy and report on the possible establishment of aFamily Court in Newfoundland. Subsequently, in1951, he was the first appointee as Judge of theFamily Court of Newfoundland, staying in thatcapacity for an initial term of six years. After servingfor ten years as Superintendent of Education for theUnited Church of Canada in Newfoundland, he wasreappointed as Judge of the Family Court, remain-ing in that capacity until his retirement in 1984.

Henry Thorne is the retired Deputy Registrar ofthe Supreme Court of Newfoundland andLabrador. He has served the Court in a number ofcapacities, rising through promotions to that ofDeputy Registrar. He served as such during themerger of the District Court of Newfoundlandwith the Supreme Court of Newfoundland andwith the expansion of the Supreme Court ofNewfoundland to a number of judicial centres. MrThorne is warmly remembered by Members for hisadvice, counsel and generous assistance to them inaccessing Court services in a congenial and co-operative manner. ■

INSURANCE COMMITTEE REPORT

Lewis B Andrews, QCChair

22

The Law Society first made available an insuranceprogram for professional liability errors and omis-sions in the mid-1970's, but it was only followingan amendment to the Law Society Act in 1978 thatit was possible to implement a compulsory pro-gram.

By the early 1980's, premiums for the compulsoryprogram were significant by today's standards, yetcoverage was modest. For example, in 1982 thepremium was $1,150 for $100,000 cover, with a$10,000 deductible. In response to these high costs,the Insurance Committee determined it couldreduce costs to members by self-insuring a portionof the risk.

In 1983, the Benchers agreed to a program that self-insured members for the first $30,000 of a claim.Because of projected cost savings, under the newprogram the premium declined $200 and thedeductible was reduced to $5,000. Monies to coveranticipated claims against the self-insured riskwere deducted from members' premiums and heldin separate funds managed by the Law Society,with remaining risk covered by an insurance com-pany.

In 1988, when the Law Society joined the Lawyers'Professional Indemnity Company (LPIC) insuranceprogram, the Society's self-insured component ofthe policy increased to $145,000. The deductibleremained at $5,000 with the balance of risk held byLPIC. In 1991, the self-insured component wasincreased to $245,000 and remained at this leveluntil 1995. Throughout this period, monies tocover anticipated claims against the self-insuredcomponent of the policy were held by the LawSociety in separate funds.

In 1995, facing a different insurance market and onthe recommendation of the Insurance Committee,Benchers determined not to continue with a policythat retained a self-insured component. Under the1995 and subsequent LPIC policies, the insurer was,and remains, responsible for payment of the fullamount of a claim beyond the $5,000 member

deductible. Coverage extends to $1,000,000 perclaim with a $2,000,000 aggregate per member. Asa result of the new policy with LPIC, and becauseclaims against the 1983-1994 self-insurance fundyears are now substantially settled, there is a netsurplus of $2,800,000 in the self-insurance funds,called Fund A. In addition to this amount, there is$447,000 available in an Insurance ContingencyFund, Fund B. Fund B was created over severalyears through a members' fee surcharge in order toprovide monies in the event the insurance pro-gram required a sudden and substantial expendi-ture. Such an expenditure could result from achange in claims experience, a change in insurancecoverage, or possibly a change of insurers. At theend of 2001, Funds A and B taken together held$3,331,224.

During the Special Term Convocation of Bencherson December 4, 2000, the insurance premium andthe cash reserves held in Funds A and B werereviewed as part of the Law Society's annual bud-get process. Concerning the Funds, the InsuranceCommittee recommended, and Benchers agreed,that there was now sufficient cash for emergenciesor other insurance requirements and Fund moniesshould be capped at $3,000,000. Since, at December31, 2000, the Funds held $214,000 in excess of the$3,000,000 requirement, Benchers decided on therecommendation of the Insurance Committee thatit was prudent to use the excess monies to reducethe 2001 insurance premium. As a result, the pre-mium per member was reduced by $482. Benchersfurther determined that, in future years, interestearnings on the $3,000,000 would be used to paydown the insurance premium unless the InsuranceCommittee recommended otherwise and Benchersagreed.

In recent years, Benchers have taken other deci-sions to keep premiums under control. Perhaps themost notable of these decisions was taken at theSpecial Term Convocation of December 1, 1997. Atthat time, Benchers reviewed the claims historysurcharge policy in place during earlier years formembers with multiple claims paid. They deter-

23

During 2001 and the first quarter of 2002, missedlimitations continued to account for the majority ofNewfoundland claims. Over the past ten years,approximately 30% of claims reported and 40% ofclaims costs have been attributed to missed limita-tions. The second most common cause of loss dur-ing this period was defective real property search-es, accounting for approximately 25% of claimsreported and 17% of claims costs. Over time, thegradual implementation of Title Insurance mayreduce the number and cost of real property claimsagainst the insurance program.

For 2002, the insurance premium increased by 10%to $3,300. The increase was attributed to two caus-es. First, was the reduction in interest rates inNorth America. Insurers traditionally invest theirpremiums and include interest earnings in theircalculation of the premiums. With reduced earn-ings from investments, insurers maintain theirreturn on equity by adjusting premiums upward.Second, the impact of the September 11, 2001,attacks resulted in a general increase in all liabilitypremiums. Nevertheless, some relief from premi-um increases is obtained during 2002 from the sub-sidy per member provided from the interest earn-

ings on Fund A and B investments. For 2002, thesubsidy is $215; the net premium is $3,085.

In 2000, and shortly after the Law Society acquiredan office building on Water Street to accommodatethe Library and professional staff, a change inFund A and B investments was contemplated.Paying the cost of renovations to the building fromthese Funds was discussed over many monthsand, at a Convocation in April, 2002, and followingpresentations from the Insurance Committee andthe Property Management Committee, Benchersdecided to borrow from Fund A to a maximum of$1,700,000 the fitting-up costs for the new building.By agreement, the monies borrowed will be repaidto the Funds over 25 years at an interest rate deter-mined annually in November and equal to a one-year Government of Canada Treasury Bill. In theevent the insurance program requires a cash infu-sion for emergency or other purposes, then theLaw Society will borrow from conventionalsources for the monies needed up to the amountborrowed against the Fund. In this way, membersare able to benefit from interest rates below thoseof a conventional mortgage and the Funds areavailable for insurance purposes. ■

mined that the policy was not effective and shouldbe revised. As a result, and at the recommendationof the Insurance Committee, Benchers decided tochange the policy concerning members with multi-ple claims paid. Under the new policy, memberswith two or more insurance claims reported afterDecember 31, 1997, and for which repair costs were

incurred or indemnity payments made after thatdate, will pay a claims history surcharge. Therewill be no surcharge on the first claim paid. A sur-charge will be imposed for a five-year period.Below is a chart illustrating the surcharge struc-ture.

CLAIMS HISTORY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . SURCHARGE

One Claim paid in a five year period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Nil

Two claims paid in a five year period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $5,000.

Three claims paid in a five year period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $10,000.

Four claims paid in a five year period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $15,000.

Five claims paid in a five year period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $25,000.

Each claim paid in addition to five claims paid . . . . . . $25,000. + $10,000. per claim paid

The Professional Assistance Committee is a jointcommittee of the Law Society of Newfoundland, theNewfoundland and Labrador Medical Association,the Newfoundland Dental Association and theNewfoundland Pharmaceutical Association. TheCommittee is responsible for the ProfessionalAssistance Program which provides assistance tolawyers, physicians, dentists, pharmacists and theirfamilies affected by all types of personal problems.Problems may include, but are not limited to, stress,financial and career problems, depression, person-al/marital/family difficulties and inappropriate useof substances.

The Professional Assistance Program employs aclinical co-ordinator, Rosemary Lahey, MSW, a regis-tered social worker with extensive experience work-

ing with individuals, couples and families dealingwith a wide range of social and emotional problems.The co-ordinator, in strictest confidence, facilitatesearly recognition of problems, initiates active inter-vention and makes appropriate referrals for treat-ment and rehabilitation. Referrals are accepteddirectly from the member or from a concerned col-league or family member. Since its inception in 1994,the Program has provided assistance to over 400professionals including, at the end of April, 2002,more than 120 members of the Law Society.

Ms Lahey, the Co-ordinator, can be contacted in con-fidence by calling 754-3007 or toll free at 1-800-563-9133, or by electronic mail at rmlahey@roadrun-ner.nf.net. ■

PROFESSIONAL ASSISTANCE COMMITTEE REPORT

Paul M McDonaldLaw Society Representative

LIBRARY COMMITTEE REPORT

Sheila H GreeneChair

Even though the Law Library will not be moving toits new premises until November or December, 2002,a great deal of transition planning began during2001. In order to accommodate a 30% approximatereduction in space allocated for the Library at theWater Street building, and accommodate the elec-tronic research needs of members, the LawLibrarians began an orderly culling of materials,with print subscription cancellations totaling morethan $66,000. As a result, the Library has becomemore reliant on electronic sources. This change inemphasis from print to electronic sources does notalter core collection values, but it does underscorethe trend of recent years and is now accelerated bythe move to the new building. Although the LawLibrary is moving toward greater reliance on elec-tronic reporters, the Library is firmly committed toproviding a strong research collection including themost comprehensive and up-to-date legal texts andjournals.

In related matters, there has been an increase in thenumber of requests received electronically from

members, ie, by e-mail and facsimile. This increasein remote access to our services has resulted in adecrease in research material supplied by photocopyand an increase in information provided by e-mail.

During the past year the Law Librarians, in conjunc-tion with Continuing Legal Education, provided onand off-site training on electronic legal researchproducts. These 22 small group workshops werevery well received and additional sessions wereoffered to meet demand.

In 2001 the Law Foundation once again providedgrants totaling $110,00.00 for Library acquisitions.The Law Library Committee greatly appreciates thecontinued support of the Law Foundation. The LawSociety's Budget allocation for the Law Library, foracquisitions, space rental, salary, telephone, insur-ance, supplies and travel costs, adds approximately$325,000 to the Library budget. The LibraryCommittee acknowledge with gratitude Benchers'continued support for the Law Library. ■

24

25

Members will be aware that two years ago the LawSociety purchased a building at 196-198 WaterStreet with the intention it be re-fitted for the LawSociety Law Library and professional and supportstaff. When the building was purchased, the objec-tive was to have the transition to new offices com-pleted by December, 2002, when current leasingarrangements at Atlantic Place end. For this rea-son, the recent 12 months have been a time ofincreasing activity for the Committee as it works tothe December deadline.

Last year the Committee completed a carefulreview of the Society's space and function require-ments, and met on several occasions to instruct,and to listen to, the design team headed by JimCase and Beaton Sheppard. Under their guidance,design work was completed on schedule and infull consultation with the Law Librarians and otherprofessional staff. The Law Library will be housedover the first two floors, and on the third there isincorporated room for Continuing LegalEducation lectures, the Bar Admission Course, andfor a Benchers' Convocation Room that can doubleas a place for receptions. The fourth floor will holdall administrative offices.

Concurrent with the Committee activitiesdescribed, the Insurance Committee, the ExecutiveCommittee, the Advisory Council, and Benchers,have been working together to discuss and com-plete financing arrangements for the fitting-upcosts. The President, Jeffrey Benson, QC, refers tothese discussions in his President's Report at thebeginning of this Annual Report. I am pleased toconfirm in my own Report the thoughtful adviceand good-will evident throughout these discus-sions.

As the year began, tenders were called andBenchers approved the bid of RedwoodConstruction. Tenants vacated the Water Streetpremises at the end of March and constructionwork began early April. The contractor assuresthat completion will require 26 weeks from com-mencement. I am confident that, for the first timein 176 years, we will welcome members to the NewYear's Reception at a building that belongs tothem. ■

PROPERTY MANAGEMENT COMMITTEE REPORT

Tobias McDonaldChair

STUDENT AWARDS COMMITTEE REPORT

Charles White, QCChair

26

The Student Awards Committee determines therecipient of four Law Society awards for ArticledStudents-at-Law. These are the Hunt Award, thePenney Award, the William J Browne Scholarshipand the Maxwell J Pratt Scholarship respectively.

The Hunt Award is presented to the Student-at-Law who receives the highest overall averagemark in the Law Society of Newfoundland's BarAdmission Course. The recipient of the HuntAward for the Fall 2001 Bar Admission Course isMs Andrea Channing. Ms Channing servedArticles of Clerkship at the law firm Cox HansonO'Reilly Matheson and her principal was ReginaldBrown, QC . Ms Channing was called to theNewfoundland and Labrador Bar on April 12,2002, at which time she began practicing with thefirm of Cox Hanson O'Reilly Matheson.

The Penney Award is presented to the Student-at-Law achieving the highest mark in the Family LawExamination of the Bar Admission Course. Therecipient of the Fall 2001 Penney Award is also MsAndrea Channing.

The William J Browne Scholarship is presented to aStudent-at-Law who has submitted a researchessay on a legal issue of current public concern.The recipient of the 2002 William J BrowneScholarship is Ms Shirley Walsh, who is presentlyarticling with the firm Duffy & Associates. MsWalsh’s research essay is entitled "Subject MatterPatentability of Medical Treatment Methods".

The Maxwell J Pratt Scholarship is presented to aStudent-at-Law who is a graduate of MemorialUniversity of Newfoundland and a student atDalhousie Law School and is based on academicperformance. The recipient of the 2002 Maxwell JPratt Scholarship is Mr Mark Rogers, who ispresently articling with the firm WilliamsRoebothan McKay & Marshall.

The above awards will be presented on June 7,2002 at the Law Society of Newfoundland AnnualDinner. ■

27

AUDITOR’S REPORTAND FINANCIAL STATEMENTS

for theFiscal Year Ended December 31, 2001