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Calgary firm under investigation for handling of residential school survivors’ claims

Article Origin

Author

By Shari Narine Sweetgrass Contributing Editor CALGARY

Volume

19

Issue

1

Year

2011

A Calgary law firm which represents residential school survivors in the Independent Assessment Process is under investigation for breach of settlement agreement.
However, while the investigation, entailing an audit of claims, is carried out by the court monitor, Blott & Company can continue to represent their clients as they seek settlements for sexual and physical abuse through the Indian Residential School Settlement Agreement.
British Columbia Supreme Court Justice Brenda Brown lifted the 15-day suspension she had placed on the law firm. That suspension was imposed on Oct. 31 after Crawford Class-Action Services brought its concerns to the forefront.

However, Shawn Gilhula, director of operations with Crawford Class-Action Services, would not say what triggered his law firm’s investigation. Crawford serves as court monitor overseeing all aspects of the IAP and Common Experience Payments process.

IRSSA Chief Adjudicator Daniel Ish said he did not know the particulars that prompted the court monitor to take action.

“They came into some information that some of what was filed in the court, an affidavit evidence, that suggested there might be some irregularities. It was on the basis of that that they brought the court action to get the court order,” said Ish.

Brown’s court order gives Crawford access to retainer and fee arrangements between Blott & Company for both CEP and IAP claimants, as well as retainer and fee arrangements between Blott claimants and a number of named loan and financial service providers.

Ish said that the Indian Residential Schools Adjudication Secretariat had set out general guidelines in September 2010 regarding legal fees. According to those guidelines, a settlement of less than $30,000 would result in a 25 per cent legal fee while a settlement greater than $150,000 would mean a 15 per cent legal fee.

“These are just guidelines for a typical case … where nothing is irregular, either positive or negative,” said ish. However, the guidelines do not restrict counsel from proposing a fee higher than the 30 per cent maximum (in which Canada pays 15 per cent).

If a claimant asks for a review, the IRSAS undertakes one. A claimant could ask for a review where the proposed legal fees exceed 15 per cent. Any rulings made by IRSAS adjudicators are binding on the lawyer. An adjudicator could also initiate a review. There are 110 adjudicators.

Gilhula said he did not know how long the investigation would take.

“I would hope it gets done within a couple of months,” said Ish. “They want to do a proper job … and they’ll be putting a fair amount of resources behind it. But it shouldn’t drag on too long.”

The cost of the investigation will be covered by the federal government.

While the investigation is ongoing, Ish will be monitoring the work undertaken by Blott & Company and providing monthly reports to the court. Ish said his reports are not part of the investigation but will provide further information to Brown.

Past irregularities in settlements have led to investigations which resulted in one lawyer in BC being disbarred. A lawyer in Winnipeg is presently facing a disciplinarian hearing in front the Manitoba Law Society.
Residential school survivors who suffered severe abuse have until Sept. 19, 2012, to apply for compensation through the IAP. To date, Ish said approximately 20,000 applications have been received, with hearings held for more than half already. He expects 6,000 to 7,000 more applications to be made by the deadline.

“Our main concern is that, and this really is what the whole settlement agreement is about, and that is that the claimants obtain the compensation that they’re entitled to under the agreement. That’s really what drives absolutely everything we do … and that’s why we watch it so carefully,” said Ish.

Brown issued a partial publication ban on any information that may lead to the identification of any claimant or any lawyer in Blott & Company.

Blott & Company represents approximately 3,000 survivors.