Question
You are a paralegal licensee, providing legal services as Justice for All Professional Corporation. Your client, Winston Burrows, formerly worked as a sales clerk in
You are a paralegal licensee, providing legal services as Justice for All Professional Corporation. Your client, Winston Burrows, formerly worked as a sales clerk in ABC Department Store. In August 2013, he fell at work and injured his ankle and wrist. The injury was serious, and he applied for and received workers' safety and insurance benefits. In November 2013, Winston returned to work with modified duties. His old injuries persisted, and he also suffered a neck and shoulder injury. He was unable to complete the modified work trial. He claimed increased benefits based on the new injuries, but was denied them. In February 2014, Winston learned that he could appeal this denial. He decided he would need legal assistance with the appeal, and he approached you. He was referred by a former client of yours, whom you had successfully represented in Provincial Offences Court. Winston was also impressed by your website, which states that you provide representation in Small Claims Court and Provincial Offences Court, and in matters pertaining to personal injury, wrongful dismissal, landlord and tenant disputes, leases and contracts, arbitration, and debt collections. In early March 2014, Winston meets with you at your office to consult with you about his situation. At the end of the consultation, both of you sign a document entitled "Retainer Agreement" that provides, in part, as follows: I, Winston Burrows, of the City of Brampton, hereby retain Justice for All to act on my behalf in the matter of ABC Department Store and the Workplace Safety and Insurance Board. Specifically, said fee will be to act on my behalf to arbitrate and negotiate settlement only. The fee for said services is $1,000.00 plus HST. A money retainer of $750.00 shall be paid in full before said services are provided. Winston pays you $500.00 by credit card as a money retainer. He pays the balance of the retainer the following month. You deposit the monies received to your trust account. At the March 2014 meeting, you advise Winston that he would be much better off suing his employer in a civil court on grounds of personal injury. If he were to do this, he would receive damages in excess of $20,000.00. You also advise Winston to stop participating in vocational rehabilitation with a view to returning to work. Non-participation will make his injury seem more serious and increase the damages he will receive in the civil claim. You urge Winston to see an independent specialist to assess his condition and prepare a medical-legal report to be used in the civil claim against his employer. The report costs Winston $500.00. After the report has been completed, you send a letter to ABC Department Store, threatening to commence a court action against it if it does not agree to pay $25,000.00 in damages to Winston on account of his injuries. When he notifies the Workplace Safety and Insurance Board that he is refusing to participate in vocational rehabilitation and has no intention of returning to work, Winston's benefits are cut off. He has no other source of income. The solicitors for ABC Department Store send you a letter denying liability and pointing out that personal injury actions are not applicable to workplace injuries, pursuant to section28 of the Workplace Safety and Insurance Act. Immediately after receiving this letter, you invoice Winston for $750.00 and move the funds in trust into your operating account. When Winston learns that he has no grounds to claim damages against his employer, he becomes seriously depressed. His family physician prescribes antidepressant medication and refers him to a psychiatrist. Winston terminates your retainer and hires a paralegal who specializes in workers' safety and insurance claims to help him reinstate his benefits retroactively. The consultant charges him $1,400.00 for this service. When the successor paralegal contacts you and asks for Winston's file, you refuse to hand it over to her, asserting a paralegal's lien for unpaid legal services. You also refuse to produce an accounting for all funds of the client then held or previously dealt with, including the refunding of any monies not earned during the representation. Have you behaved appropriately? dentify all ethical and professional issues that arise in the fact situation above for the Paralegal code of conduct and law society rules.
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