On June 10, 2024, Justice Penny of the Ontario Superior Court of Justice, Commercial List found in favour of Osler’s long-time pro bono clients, the Pallottas.
Between the years of 2012 and 2016, the Pallottas were defrauded out of approximately $200,000. This occurred through a fraudulent mortgage investment scheme run through their former solicitor’s law office. The Pallottas had been long standing clients of this solicitor.
At the 2019 trial, the Pallottas were successful in establishing that the solicitor was liable in breach of trust and vicariously liable for the actions of his legal assistant who perpetrated the fraud. Justice Faieta also found that the solicitor had breached the fiduciary duties he owed the Pallottas, noting that the solicitor-client relationship was one of trust and confidence.
In the 2024 trial, Osler was successful in establishing that the debt created by the fraudulent scheme — which had been found to be owing to the Pallottas in the 2019 trial — constituted defalcation or misappropriation within the meaning of section 178(1)(d) of the Bankruptcy and Insolvency Act, and therefore survived the solicitor’s subsequent proposal in bankruptcy.
Pro Bono initiatives by Osler not only assist clients like the Pallottas, who in this case had suffered a significant loss and would not have been able to obtain a comparable level of legal assistance by their own means, but these matters also provide hands-on opportunities for Osler associates.
Andrew Rintoul, a Disputes associate in Osler’s Toronto office who argued the Pallottas case in front of Justice Penny, recounts this as his most meaningful pro bono experience to date. “It was a valuable experience,” said Rintoul, “it provided the opportunity to make submissions at the Commercial List and foster a strong relationship with my clients.”
Pro bono plays a key role in the development of associates, as it often gives junior lawyers unique opportunities that otherwise may not be available so early in their careers, such as making submissions in court and working independently for clients. It also presents lawyers with the ability to explore and gain expertise in areas of law they don’t necessarily encounter in their day-to-day legal work. “It was very rewarding,” recounted Rintoul, “as a pro bono matter, I was given wide latitude to develop legal arguments and strategize on the best way to present the case.”
The Osler team in the Pallottas case also included Michael De Lellis and Mary Paterson. Last year, Osler donated approximately 20.1 hours per lawyer to pro bono matters, with 51.8% of lawyers undertaking more than 10 hours of work pro bono.
Read more about the firm’s pro bono work.
Authors
Associate, Disputes, Toronto
Partner, Insolvency and Restructuring, Toronto
Partner, Disputes, Toronto
