Beware the bright line: class action put lawyers in conflict of interest
On July 5, the Supreme Court upheld its strict test for preventing conflicts of interest in the legal profession. The appellant, Canadian National Railway (CN), was a client of the respondent law firm, McKercher LLP. Then McKercher agreed to represent the plaintiff in Wallace v. Canadian National Railway, a class action against CN and other defendants for potentially $1.75 billion. CN alleged a conflict of interest and applied to remove McKercher as lawyers for the proposed class. Writing for the Court, Chief Justice McLachlin agreed that McKercher crossed the well-entrenched “bright line rule” by acting against a current client without its consent. But she did not decide whether to remove McKercher, since she recast the legal test for that remedy and sent the question back to the court of first instance for reconsideration. [more]
Canada Gets Tough on Foreign Corruption
Amendments to Canada’s Corruption of Foreign Public Officials Act (CFPOA) that came into force last week toughen penalties for foreign corruption.
The CPFOA makes it a crime in Canada to bribe foreign officials. Canadian companies operating abroad, particularly in emerging markets, need to be aware of the CFPOA. Key amendments include the introduction of nationality jurisdiction to the CFPOA, a new books and records offence, and increased sentences. [more]
No pot of gold at the end of the Rainbow
A decision by joint operators of an oil field to use a single fluid hauler was not an unlawful conspiracy, the Alberta Court of Appeal held recently, overturning a 2011 decision that awarded over $5.5 million to the loser of a competitive bidding process: 321665 Alberta Ltd. v. Husky Oil Operations Ltd., 2013 ABCA 221. [more]
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