The 2012 award for Excellence in Canonry goes to the Ontario Bar Association Franchise Law Section (OBAFLS). In a recent message from Dan Caldarone, the group’s executive director, and posted on the ListServ of the American Bar Association’s Forum on Franchising, the OBAFLS gave a shot across the bow to the U.S. attorneys who focus their practices on franchising. In essence, the posting stated that it had come to this group’s attention that numerous U.S. lawyers were preparing, without the assistance of Canadian counsel, Canadian disclosure documents and franchise agreements for use by their clients in connection with the sales of franchises in Canada.
The posting goes on to note that this conduct has led to the creation of documents that contain errors or omit material information. The posting claimed that this, in turn, may lead to malpractice claims against the lawyers as well as claims that these attorneys are engaging in the unlawful practice of law, and disciplinary proceedings in Canada, in the lawyer’s home state, or both. The message goes on to raise the horrifying specter that this conduct may not be covered by malpractice insurance.
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