Law Society investigating XCopper bankruptcy

With many clients now left in a lurch, the Law Society will step in to help the former clients

By Graham F. Scott

On Friday July 4th, 2008

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XCopper BankruptThe Law Society of Upper Canada announced yesterday that it is going to investigate the untimely death of XCopper Services Inc., the paralegal firm that went belly up in June, leaving thousands of clients with unresolved traffic cases. “The investigation will allow us to determine if any disciplinary action is warranted,” the Law Society press release said.

The Law Society has also stepped in to assist clients of the former firm, many of whom apparently paid in advance. It will help them find new representation, ask the court to reopen cases, and run interference to obtain documents and records from XCoppper.

It doesn’t specifically say so, but we think it’s worth noting that the press release includes a paragraph simply reading “With [Law Society] regulation, paralegals are now required to maintain client funds in trust for unperformed legal services. Specified books and records are also required.” There had been speculation when XCopper announced it was closing shop that this regulation tying up client funds might have been responsible for the firm’s cash flow problems. Reading between the lines, it looks to us like the Law Society is looking into that possibility.