Reference no: EM133411311
Harry Styles, Q.C. is a prominent Canadian business lawyer. He is a partner in the law firm, Akrum & Bassim LLP (the "Firm") that is located at Suite 111, 999 Toronto Street, Toronto, Ontario, M9T 9T9. As part of his practice, Mr. Styles often helps his clients with estate planning and preparation of wills. Harry's hourly billing rate is $555. When Harry thinks it is suitable and the client consents, Harry often utilizes a junior business law associate, Minnie Striver ($200/hr.), to do some of the work on a client matter.
The Firm charges 13% Harmonized Sales Tax (HST) on all fees. The firm charges its disbursements without markup. The Firm charges an interest rate of 10% per year on all invoiced amounts that are not paid within 30 days of the date of the invoice. Dr. Mary Philpott is a physician with a successful medical practice. Dr. Philpott practices medicine as a sole proprietor. The Firm has acted as counsel to Dr. Philpott in the past.
The Firm's past work for Dr. Philpott consisted of Harry advising Dr. Philpott on equipment leases for some expensive medical equipment, and advising Dr. Philpott about how to comply with personal health information laws. All previous Firm files for Dr. Philpott have been completed and closed in the Firm's file system. Harry recalls that Dr. Philpott was quite late in paying the Firm's bills and the Firm's accounting staff had to send her overdue reminders before the bills were paid. Nevertheless, all of Dr. Philpott's past bills were paid in full. Despite having acted as counsel for Dr. Philpott, the Firm does not have any written retainer agreement(s) in place with her. Dr. Philpott recently married her yoga instructor, Jon Tenderkopf. Initial Call From Dr. Philpott
On January 15, 2023, Dr. Philpott calls Harry and informs him that she and Jon may be interested in jointly retaining the Firm to prepare their wills. She also mentions that she will likely be calling Harry for advice on a new medical equipment lease, but she will get back to him later if the lease matter goes ahead. During the call, Harry mentions to Dr. Philpott that before the Firm could accept the joint retainer to prepare the wills he would have to inform Jon of the Firm's continuing relationship as counsel to Dr. Philpott. Dr. Philpott consents to Harry informing Jon about the Firm's continuing relationship with Dr. Philpott. Preliminary Zoom Call with Dr. Philpott and Mr. Tenderkopf
On January 20, 2023, Harry has a Zoom call with Dr. Philpott and Mr. Tenderkopf. During the call, Dr. Philpott and Jon confirm that they would like to jointly retain the Firm so that Harry will draft their wills. They confirm that each of them would like their estate to vest entirely in the other (i.e. their spouse) upon their death. Each will should provide that if they die simultaneously or the beneficiary spouse has predeceased the testator spouse, all of the testator spouse's estate vests in the The Yoga Association of Upper Canada.
Harry proposes that, if the matter is to go ahead, Minnie Striver could do the preliminary information gathering that is necessary to prepare the wills, and Harry could then draft the wills and meet with the clients to have the wills properly signed. Jon and Mary responded that this will be acceptable. During the Zoom call, Harry informs Jon that Harry in particular, and the Firm in general, have acted as legal counsel for Dr. Philpott in the past with respect to her medical practice. Harry also recommends that Jon obtain independent legal advice about entering into the proposed joint retainer. Jon responds that he does not plan to obtain independent legal advice about the joint retainer, but he nevertheless thanks Harry for the recommendation. Harry confirms this matter will be limited to the Firm preparing each spouse's will and associated affidavits of execution, attending to the signing of the wills and affidavits of execution, and sending the couple a final report on the matter.
Harry tells them he estimates this work will amount to approximately $1,000 in total fees, plus HST (plus any disbursements). Despite this estimate, Harry confirms the Firm will charge the hourly rates of Harry and Minnie for the respective time they take in performing the work, which could result in the bill for this matter being more or less than the estimated amount. Harry also tells the couple that, for the Firm to start the matter, payment of an up-front retainer of $1,130 will be required.
The couple instruct Harry that the bills for this matter should be addressed to Dr. Philpott. Dr. Philpott is a busy physician and she requests that the Firm communicate with her about this matter via email. Jon also tells Harry that the Firm should communicate with him via his personal email. Harry asks the couple whom he should call if something urgent arises that cannot be discussed via email, and the couple tells him to call Dr. Philpott in these circumstances at her office at 416- 555-0199. Jon asks Harry how long it will take the Firm to prepare the wills, as he is eager to try some extreme yoga moves that could possibly be fatal. Jon says he wants to ensure his will is in place before he takes his yoga "to the extreme".
Harry tells the couple that, when the Firm starts work on the matter, they will be asked to fill out a detailed information sheet to provide the Firm certain information that is necessary to prepare the wills (for example, the information sheet will include a detailed list of each spouse's assets). Once this is done, which usually takes about 1 week, Minnie might take about 1 additional week to review and process this information and discuss it with the spouses. After that, approximately 1 week would be required for Harry to completed the first draft of the wills. Harry informs the couple that before the Firm will accept the joint retainer, Mary and Jon will have to mutually sign a Joint Retainer Letter Agreement prepared by the Firm. Harry also mentions that he will only be in a position to send the Joint Retainer Letter Agreement to Mary and Jon if he is satisfied that the Firm does not act on any other matters that would prevent the Firm from accepting the joint retainer. Before their meeting concludes, Harry tells the couple that he understands they want the Firm to act for them jointly on this matter.
Harry tells them that, as a result, the Firm will not be able to treat any information received from one of them in connection with the matter as confidential so far as the other is concerned, and if a conflict develops that cannot be resolved, the Firm will not be able to continue to act for both of them and might have to withdraw from acting for them completely. Harry tells the couple that this issue will be set out in detail in the Joint Retainer Letter Agreement that will be sent to them for their review and consent as a condition of the firm accepting the joint retainer. At this point in the meeting, Dr. Philpott signs off. However, before Jon signs off from the call, Jon tells Harry that he understands he will have to provide a list of his assets to the Firm, and he wonders if Mary might see Jon's list of assets.
Jon tells Harry that, "theoretically and for example", if Jon buys a sailboat in the next few days he might not want Mary to find out about it. Harry repeats his previous warning to Jon, i.e. that the Firm will not be able to treat any information that one of the couple provides in connection with the matter as confidential so far as the other spouse is concerned. Jon says he understands and accepts this, and thanks Harry for clearing up "that purely theoretical discussion about a purely theoretical sailboat". After the call, Harry searches the Firm's conflicts database and finds no evidence that accepting the joint retainer will lead to a conflict of interest. Instructions:
Based on the above information, draft the Firm's Joint Retainer Letter Agreement for the matter, to be sent by Mr. Styles and addressed to both Jon and Mary for their signature.