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Massive Legal Fees.. BC Woman talks to CBC's "go public"

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  • #16
    One of the things this case highlights is that the "Constructive Trust" area of family law act and unjust unrichment claims remain one of the most complex and expensive areas of litigation to resolve.

    This is one example of when the divorce act wins out, because the rules of equalization and matrimonial home are set in stone and spelled out very clearly.

    When you're not married and the divorce act doesn't apply, the rules for dividing assets are NOT clear cut and claims for a constructive trust are one way to get a piece of the pie you might have had if you were married.

    Co-habitation agreements can help with this, though obviously like other agreements they are subject to scrutiny by the courts and can quickly become irrelevant as real life passes.

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    • #17
      She agreed to it and let it all happen. I blame her for her predicament.
      The problem here that she won and other party should cover cost according to court order. But other party decided to use bankruptcy court
      as a "cleaning house"
      She was in a difficult position. The error on her part, I believe, was permitting the matter to go to trial. The sum of money involved makes it nowhere near reasonable to go through a 19 day trial. Once he was awarded the ~100k at the trial, it was a worthwhile expenditure on her part to pay for a two day appeal to recoup ~80k in payment.

      A conversation that should - and may - have happened concerns the costs of litigation and her ex's ability to pay. The case implies he had little in the way of assets or future earning potential. The risk of losing any cost award to bankruptcy should have been discussed.

      At that point, a settlement amount (likely greater than the 20k paid but less than the 100k awarded at trial) may have been appropriate as a compromise.

      The 18% interest rate surpasses the 7% interest rate suggested in Ontario. However, as it was an amount she agreed to, and knowing the value of the mortgage taken, she cannot be said to be unaware of the risks being taken.

      This situation is a warning to any party who considers the financial gain of their ex, instead of solely their own gain or loss, when conducting litigation. If you can pay your ex 10k to save paying your lawyer 20k, you have made an intelligent and rational decision.

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      • #18
        25.1% is illegal.

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        • #19
          I agree with Orleanslawyer, and know from personal experience, that a person has to weigh the pros and the cons of litigation.

          One of the first questions a lawyer asks a person who is considering retaining them, is for copies of your DL and other identification. I believe this request is primarily for collection purposes if the client doesn't pay their bill.

          I think the total amount for the trial is highly suspect. I believe I heard about this case before Christmas and the legal fees were going to be assessed.

          When marriages fall apart and just one party goes bankrupt it can spell indefinite financial hardship for the non-bankrupt spouse. The current bankruptcy legislation allows a bankrupt to sit indefinitely with creditor protection. I believe there are few rules the bankrupt has to follow aside from not obtaining credit, without leave from trustee, for over $5,000.00 and not being able to be a director in a limited corporation. Yes it certainly is a free ride for many.

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          • #20
            One of the first questions a lawyer asks a person who is considering retaining them, is for copies of your DL and other identification. I believe this request is primarily for collection purposes if the client doesn't pay their bill.
            It is also a matter of professional responsibility. A lawyer must be certain the client is who they claim to be.

            I think the total amount for the trial is highly suspect. I believe I heard about this case before Christmas and the legal fees were going to be assessed.
            90k in legal fees for a case that resulted in a 19 day trial? That is less than 5k/day in trial, plus the additional two days on appeal.

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