The recent SLIA News article of November 29, 2018 regarding trust accounts included a reference to an Ontario requirement to wait at least eight days before withdrawing funds, otherwise coverage would be excluded under the Ontario lawyers professional liability policy. To be clear, there is no similar provision in your SLIA policy and coverage would be in place. We are sorry if this has caused you any confusion or alarm.
December 31, 2018 marks the mid-point of our current policy year for Professional Liability Insurance. If you know of any circumstances which might possibly give rise to an insurance claim against you and you have not already reported it to the Saskatchewan Lawyers’ Insurance Association (SLIA), we ask that you report these circumstances to SLIA at this time.
If you think you might have made an error in providing professional services to others, or someone is making allegations (even unmeritorious allegations) that you have made an error, please call, email or write SLIA and put us on notice by completing and submitting a Liability Claim Reporting Form.
Our colleagues at the practicePRO Avoid a Claim Blog recently posted the following: Can you trust what’s in your trust account? A brief overview of Canada’s electronic payment systems. Electronic payments are not instantaneous but are merely a transference of account and ledger information from one financial institution to another, with an intention to ‘settle’ those accounts and finalize the transaction through the transfer or attribution of actual assets at the end of each business day, or even later. When the actual transfer of assets is delayed until the settling of accounts, there is a risk that the payor will back out or be unable to fulfill the obligation. For lawyers that manage trust accounts, there is the risk that the receipt of funds may be reversed at a later point – potentially after the lawyer has already drawn from the trust account in reliance of those funds received. This could lead to overdrawing from the account and breach of trust. The post highlights that it’s good practice for lawyers to ensure they understand the Canadian electronic payment systems.
The Mortgage Instructions Toolkit is a practical resource for residential real estate lawyers in Canada. Over the last few years, lender instructions have increased in scope and lawyers may find themselves being pressured to give opinions and assume responsibility for matters outside their areas of expertise. The result is a significant increase in potential liability. Prepared by the CBA Real Property Section, the practice tools in this toolkit can help you respond to some common lender instruction requests.