Citation issued: march 16, 2015

Ian David Reith

Citations are authorized by the Law Society of BC's Discipline Committee and list allegations against a lawyer that will be considered at a discipline hearing. Please note that allegations in a citation are unproven until a discipline hearing panel has determined their validity.

Nature of conduct to be inquired into:

1. Between January 2013 and September 2013, in the course of providing legal services in connection with the transfer of shares in L Ltd. from RL and SL to LR, you failed to serve your client(s) in a conscientious, diligent and efficient manner so as to provide a quality of service at least equal to that which would be expected of a competent lawyer in a similar situation, contrary to Rules 3.1-2 and 3.2-1 of the Code of Professional Conduct for British Columbia, by failing to do one or more of the following:

(a) properly consider, determine or understand who your client(s) were;

(b) discuss or clarify with the parties as to whom you were acting for;

(c) discuss with the parties the nature of a joint retainer or what you would do if a conflict between the parties arose;

(d) discuss with the vendors and purchaser what tasks you would perform or what legal fees you would charge, if any;

(e) disclose to the vendors and purchaser that you were no longer the agent for the company handling share transfers;

(f) provide confirmation to the purchaser in a timely manner that you had received funds from him in the amount of $150,000 after he requested confirmation;

(g) prepare an adequate Statement of Adjustments for either party;

(h) advise the vendors or the purchaser that you were leaving on a five week holiday during the period in which the share transaction was to complete; and

(i) make arrangements for other counsel to handle the closing of the share transaction when you knew or ought to have known that you would be on vacation when the parties wished the transaction to complete.

This conduct constitutes professional misconduct or incompetent performance of duties, pursuant to section 38(4) of the Legal Profession Act.

2. Between January 2013 and September 2013, you acted for both LR as purchaser and RL and SL as vendors in a share transaction without complying with the requirements of Rule 3.4-5 of the Code of Professional Conduct for British Columbia, by failing to advise the parties of one or more of the following:

(a) that you had been asked to act for both parties;

(b) that no information received in connection with the matter from one client could be treated as confidential so far as any of the others were concerned; and

(c) that if a conflict developed that could not be resolved, you could not continue to act for both and may have had to withdraw completely.

This conduct constitutes professional misconduct or incompetent performance of duties, pursuant to section 38(4) of the Legal Profession Act.

3. In the alternative to paragraph 2, between January 2013 and September 2013, in the course of representing one or more of LR, RL and SL, and L Ltd. in connection with the transfer of shares in L Ltd. from RL and SL to LR, you failed to comply with the requirements of Rule 7.2-9 of the Code of Professional Conduct for British Columbia, by failing to do one or more of the following:

(a) urge the unrepresented person or persons to obtain independent legal representation;

(b) take care to see that the unrepresented person or persons were not proceeding under the impression that his or her interests would be protected by you; and

(c) make it clear to the unrepresented person that you were acting exclusively in the interests of the client.

This conduct constitutes professional misconduct or incompetent performance of duties, pursuant to section 38(4) of the Legal Profession Act.