Program Reports and Publications

Introducing LIF’s New Digital Annual Report

2020 was a year like no other. Take a few minutes to learn how your indemnity program is performing after 50 years in our new digital annual report. In a brief video on page 2, Chief Operating Officer, Su Forbes, QC, shares the program changes and highlights in 2020.

You can bookmark our website and check out the job opening on our Careers Page. Click here to download a copy of our Program Report.

And for the latest updates from LIF, follow us on Twitter @Lifbc.

LIF Risk Management Video Series - Managing the risks of a limited retainer

More and more lawyers are performing work on a limited scope retainer or “unbundled” basis – namely, performing only a portion of the work on a larger legal matter. It arises in a variety of contexts, including: litigants interested in self-representation but requiring some technical assistance; business clients keen to attend to aspects of a transaction themselves; and executors seeking only to have documents notarized. Unbundling services for your clients, however, can be risky.

In this video, Claims Counsel Sherry Kooner demonstrates how to manage the risks of a limited retainer.

Learn more about steps to take to protect yourself from a loss here.

For the latest updates from LIF, follow us on Twitter @Lifbc.

Suspension of Limitation Periods – your questions answered

The suspension of limitation periods, in effect since March 26, 2020, is no longer tied to the provincial state of emergency declared under the Emergency Program Act, and will end one year after the suspension began. It started at the beginning of the day on March 26, 2020 and will be lifted at the end of the day on March 25, 2021 (see the order). There is no further transition or grace period beyond March 25, 2021.

This does not mean that all limitation periods are automatically ending on March 25, 2021 – the examples below will show you how your limitation period may be affected. This applies to all civil and family proceedings in BC Provincial Court, BC Supreme Court and BC Court of Appeal. 

But don’t wait to file your Notices of Claim and Notices of Appeal. Do it now.

Guidelines for calculating BC limitation periods

First determine that BC law applies to the claim.*

Note: At the time of this Notice, the discretionary power provided to entities that have statutory power to waive, suspend or extend a limitation period will continue until 90-days after the state of emergency is lifted (see sections 1 and 3 of Item 7 of Schedule 2 to the COVID-19 Related Measures Act). That discretionary power is not intended to extend to courts.

* For example, in a contract claim, BC law including BC limitation law will not apply automatically simply because a party commences an action here. The parties may have contractually agreed to another jurisdiction’s law applying to the contract. In another example, under conflict of laws principles, a court may conclude that the claim is more clearly connected to a jurisdiction other than BC, and that the other jurisdiction’s law applies to the claim.

** For greater clarity, April 27, 2021 is the last day to file the Notice of Civil Claim.

*** Please see s. 4(3) of the Interpretation Act.

**** March 26, 2023 is a Sunday. Please refer to the Interpretation Act to determine what impact, if any, this has on the expiry of the limitation period.

This document was developed by the Lawyers Indemnity Fund of the Law Society of BC, in consultation with the BC Ministry of Attorney General, and is shared as educational material. It is not intended to constitute legal advice and should not be relied upon for those purposes. The Ministry of Attorney General confirms that the examples provided above are consistent with the policy intent for how the suspension of limitation periods relating to the COVID-19 pandemic was meant to function.

LIF Risk Management Video Series - Will Drafting Mistakes

Three times as many people over 65 live in BC today as compared with 35 years ago. This aging demographic, coupled with the surge in demand for wills resulting from the COVID-19 crisis, means that challenges to the validity of wills will become more frequent. Wills and estates lawyers are vulnerable.

The number one cause of claims for wills and estates lawyers? Oversights — primarily clerical mistakes in drafting wills and just forgetting to take some step that needs to be taken.

Claims Counsel, Leanne Wood, will describe an actual will-drafting mistake from one of our claim files in this video.

Find out even more information about common mistakes in wills and estates here.

For the latest updates from LIF, follow us on Twitter @Lifbc.

Introducing LIF’s New Website

We have created a separate website to improve our services to you – lif.ca.

Faster. More intuitive. Better.  We listened to your feedback, and decided to make our information more easily accessible to inform and support you – whether that is reporting a claim, learning about your coverage, or gaining new risk management knowledge. You also can check out our job prospects as we have an opening for a Claims Counsel on our new Careers page.

Come find us here – for our Expertise, Service and Results.

Suspension of limitation periods ends on March 25, 2021

An early holiday gift! The government has provided advance notice that although the public health state of emergency continues, the suspension of limitation periods for starting a civil or family action or appeal in BC courts will end on March 25, 2021. For clarity, March 25, 2021 is the final end date for the suspension of limitation periods. There is no transition or grace period (90 days or 45 days) after March 25, 2021. March 25, 2021 is the one year anniversary from the date the first ministerial order suspending limitation periods (Ministerial Order M086) was made on March 26, 2020. BC has graciously been afforded the longest suspension of limitation periods of any province in Canada.

While you still have time - don’t wait; file your Notices of Claim and Notices of Appeal now.

See the order and find out more information from the government here. We will provide you with further details in January 2021. Please note that this order does not apply to the other ministerial orders and regulations made under the COVID-19 Related Measures Act.

Lawyers Indemnity Fund Risk Management Video Series

High Cost of Making Small Mistakes

Corporate/commercial claims account for the most dollars LIF pays out on claims. This practice area also gave rise to the biggest payout in LIF’s history - $7 million. Commercial lending, which is part of corporate/commercial area of law, generates some of the highest payouts. Lawyers practising in this area need to be especially vigilant about conflicts of interest.

Watch this video of Claims Counsel, Surindar Nijjar to learn more about the four most common mistakes in commercial lending.

Learn more about the common mistakes in corporate/commercial claims and risk management tips here.

BC Land Title & Survey Authority – new online identity verification service

The BC Land Title & Survey Authority is offering an online identity verification service to mitigate fraud risk where a physical meeting with an individual is not possible. Lawyers who wish to use technology verification services to enhance their practice are still expected to comply with the existing rules in Part 3 – Division 11 – Client Identification and Verification.

The Law Society previously issued guidance for using video technology for verification in unique circumstances for clients in Canada where a lawyer is unable to use any other verification method. In such circumstances, the transaction should be treated as high risk. Among other requirements, lawyers are expected to document the efforts made to verify the client’s identity in accordance with the existing rules, as well as the reasons why they are unable to verify the client’s identity in accordance with the existing rules. Please see Knowing your client - Guidance and rules during COVID-19 for the Law Society’s Notice to the Profession and detailed guidance as well as video conferencing technology information. If you have questions, contact a practice advisor at practiceadvice@lsbc.org.

Land Owner Transparency Registry in force November 30, 2020

If you are registering an interest in land on November 30, 2020, see the requirements below published by the Land Owner Transparency Registry.

As of November 30, 2020, the Land Owner Transparency Act (LOTA) will require corporations, trusts and partnerships to which the legislation applies to file a transparency declaration and a transparency report with the LOTA administrator to disclose beneficial ownership. Failure to comply will result in the land title registry refusing the registration and may also result in fines.

Further information, including upcoming webinars and other support resources, may be found on the Land Owner Transparency Registry's website.

Lawyers Indemnity Fund risk management video series: Fraudsters continue to target BC lawyers

Are you about to pay out trust funds and your client’s payment instructions have changed? Stop. Ensure that the change is legitimate by calling your client at the number in your file. You must speak directly or make in-person contact with your client.

Watch this video of LIF Director of Claims, Michael Soltynski, to find out how two BC law firms fell victim to sophisticated social engineering frauds involving millions of dollars. Learn how to prevent this from happening to you and protect yourself from loss. 

Any time a payment of trust funds is imminent, assume that a hacker is also aware. Any client's or lawyer's email account can get hacked allowing a fraudster to perpetrate a social engineering fraud. Establish due diligence protocols for transferring funds and ensure all staff receive training and adhere to them. Insurance is available on the commercial market to respond to social engineering frauds so talk to your broker as limited protection is provided to you through Part C of the policy.

Fraud alert: Trojan virus attacks BC law firm

Recently, a BC law firm was hit with a sophisticated Trojan horse virus as a result of a weak password and an inadequate firewall. The virus has allowed the fraudsters to gain access to the firm’s banking and client information, and it has caused emails to be sent to people on the firm’s contact list. These emails can appear as though they originate from the law firm itself, another law firm on the firm’s contact list, the court registry or even the Crown Prosecutor’s office. Nothing on the face of the email looks out of the ordinary except that the email includes an attachment or, in some cases, a zip file to be clicked on and downloaded.

Whatever you do, think before you click.

To protect yourselves and your law firm, be on alert and remind all lawyers and staff to take the following precautions:

• Always think before you click.
• Never open a link or attachment in an email or text message from anyone you do not know.
• If you receive a link or attachment that you were not expecting – even if it is from someone you know – call the sender using the telephone number you have on file (not the number listed in the message) to confirm the message is legitimate.
• If you open a link or attachment that you should have avoided, and a box opens that asks for your password or other information, stop. Close out. Immediately call your IT department to run a scan on your device(s) and inform your other law firm staff immediately.
• Avoid public Wi-Fi, and do not use unsecured Wi-Fi to connect to your work server to do any banking, or to send any confidential or personal information.
• Avoid working in public spaces where third parties may view screens or printed documents.

Learn about the 10 simple steps you can take to protect your system against a data breach here and talk to your IT professional.

Be sure to talk to your insurance broker about buying comprehensive cyber insurance. For information about managing this risk and more, click here.

If you suspect you have encountered a fraud, contact Barbara Buchanan, QC, Practice Advisor, Conduct and Ethics, at 604.697.5816 or bbuchanan@lsbc.org.

Attention civil litigation lawyers: Missed limitations and deadlines are on the rise

You know that sick feeling in the pit of your stomach the moment you realize you’ve made a mistake? One in every four reports to the Lawyers Indemnity Fund is triggered by a missed limitation or deadline. Year after year, lawyers from every area of practice – big firms and small firms, senior lawyers and new calls – fall into the same traps.

Watch this video of LIF Claims Counsel, Greg Sexton, on how to prevent missed limitations and deadlines by adopting some simple practices and procedures for you and your staff to follow.

You can learn even more risk management tips on our website here.

Land Owner Transparency Registry in force November 30, 2020

When registering an interest in land on or after November 30, 2020, the Land Owner Transparency Act (LOTA) will require corporations, trusts and partnerships to which the legislation applies to file a transparency declaration and a transparency report with the LOTA administrator to disclose beneficial ownership. Failure to comply will result in the land title registry refusing the registration and may also result in fines.

For more information about the new requirements and the entities that must report, see the Land Owner Transparency Registry's website, which includes upcoming webinars and other support resources.

Lawyers Indemnity Fund risk management video series

Back to basics: Learn about your indemnification policy

Let’s admit it: reading an indemnification policy is boring. Yet, it is one of the most important documents in your practice to understand - what is covered, what is not, and changes to your coverage. Make sure you know about the changes made to your 2020 policy.

Watch this three minute video of Shelley Braun, Director of Underwriting and Claims at LIF, to learn more.

An overview of the policy and answers to frequently answered questions about your indemnification program can be found here.

New LIF video: Planning for when the state of emergency ends

The COVID-19 Related Measures Act extends ministerial orders, including orders for limitation periods, electronic witnessing, and Supreme Court and Family applications, by 45 or 90 days after the state of emergency is lifted.

Watch this video of Maryanne Prohl, Director of Risk Management at LIF, to learn more about what to expect when the 45 and 90-day grace periods come into effect, and how to avoid issues with limitations for filing Notices of Civil Claim and Notices of Appeal: https://youtu.be/RqaZBf9Z_9w.

Act now. Don’t wait to file your Notice of Civil Claim or Notice of Appeal.

Attention real estate lawyers! Don’t forget additional property transfer tax is payable for foreign nationals, foreign entities and taxable trustees

Lawyers Indemnity Fund will be releasing short videos on risk management once a month, to offer guidance and tips to avoid issues that can lead to claims. The first of these videos is about claims where lawyers have forgotten that a foreign national, foreign corporation or taxable trustee is required to pay additional property transfer tax on certain real estate transactions.

Watch this video of Marlon Song, Claims Counsel at LIF, to learn more.

The additional tax applies to the residential portion of a property that BC Assessment has classified as residential (class 1), farm land (that includes a residential improvement) or commercial (that includes a residential improvement). You can also familiarize yourself with the features of the tax by reading the Ministry of Finance’s web page.

Cyber-attacks on the rise during COVID-19

According to recent reports, phishing attempts have increased by over 600 per cent since the beginning of March. As stated in previous notices, cyber-criminals often strike during periods of disruption, distraction and confusion, all of which have been heightened by the COVID-19 pandemic. Lawyers and law firms have had to focus attention on addressing COVID-related impacts. Remote work environments may have less data security. These and other factors leave lawyers more vulnerable to data breaches. To protect your firm, be on alert and remind all lawyers and staff to take the following precautions before opening emails:

• Always think before you click.
• Never open a link or attachment in an email or text from anyone you do not know.
• If you receive a link or attachment that you were not expecting – even if it is from someone you know – call the sender using the telephone number you have on file (not the number listed in the message) to confirm the message is legitimate.
• If you open a link or attachment that you should have avoided, and a box opens that asks for your password or other information, stop. Close out. Immediately call your IT department to run a scan on your device(s).
• Avoid public Wi-Fi, and do not use unsecured Wi-Fi to connect to your work server, to do any banking, or to send any confidential or personal information.
• Avoid working in public spaces where third parties may view screens or printed documents.

In addition, talk to your IT professional about our ten simple steps and other preventive measures you can take to protect your systems and your data. Also, talk to your insurance broker about buying comprehensive cyber insurance for this risk (your Lawyers Indemnity Fund policy provides limited social engineering coverage but does not respond to ransomware attacks or data breaches). Further information on cyber insurance and other commercial products is available here.

State of emergency extended

The provincial cabinet has extended the state of emergency through to the end of the day on June 23, 2020. The Order-in-Council renewing the state of emergency may be found here.

This state of emergency is the longest in BC history. Premier John Horgan has previously expressed that it will continue with no end in sight but, under section 9(4) of the Emergency Program Act, a state of emergency can only be issued two weeks at a time. The Law Society will continue to provide updates on further extensions as we learn of them from government.

Update on video-conferencing information: risk management tips

Many law firms and lawyers have been required to make a rapid transition to remote work and use video-conferencing technology to provide legal advice and services. The Law Society updated its web page on video-conferencing technology information to include a useful document on risk management tips for video-conferencing, developed by the Lawyers Indemnity Fund to help to reduce the risk of a negligence claim.

Reminder to beat the rush: file Notices of Civil Claim using Court Services Online

While statutory limitations for commencing civil or family actions are still suspended, you are encouraged to file Notices of Civil Claim using Court Services Online. With the province taking steps toward a gradual re-opening of businesses and services, eventually the suspension will be lifted. Avoid the risk of missing a limitation date or the long line-ups at court registries that may occur once the suspension is lifted.

Mental Health Week video statement from LIF

Stress, anxiety and depression are common in the legal profession, and COVID-19 leaves lawyers even more vulnerable to mental health issues. There are resources available to help. Watch Su Forbes, QC, COO of the Lawyers Indemnity Fund, share the story of one lawyer who suffered from depression and what lawyers can do to prioritize health and mental well-being.

Beware of counterfeit cheques drawn on your bank account

Fraudsters often take advantage of disruptive events like the current pandemic. Previously, we notified lawyers of a ransomware attack on a Manitoba law firm’s computer systems. Now, here at home, a BC lawyer has reported that funds were withdrawn from his bank account by the use of a counterfeit law firm cheque. Because this lawyer reviews his accounts online daily, he was in a position to report the missing funds to his financial institution within 48 hours, and the institution credited his account. Protect yourself from unauthorized withdrawals by frequently reviewing your accounts. Report any missing funds to your financial institution as soon as possible. Talk to your broker about the insurance available on the commercial market to respond to these frauds. If you have questions, contact Barbara Buchanan, QC at bbuchanan@lsbc.org or 604.697.5816.

Beware of increased cybersecurity risk during COVID-19

Cyber-criminals often seek to take advantage of rapid change, heightened stress and confusion. In Manitoba, two law firms had their entire computer systems infected with ransomware, which blocked access to their computers, client lists, emails, accounting and financial information and other digital files. The firms were asked to pay an enormous ransom to regain access to their computers, which were likely attacked when a lawyer or employee clicked on a link in an attachment or email. Ontario and elsewhere report that hackers are circulating phony, but legitimate looking, COVID-19 outbreak maps or emails purportedly from IT teams or vendors that ask recipients to click links to open attachments that are infected with malware. 

With many lawyers now working remotely, the increase in virtual access to work servers requires extra vigilance. To protect yourselves and your law firm, be on alert and remind all lawyers and staff to take the following precautions: 

• Always think before you click.
• Never open a link or attachment in an email or text message from anyone you do not know.
• If you receive a link or attachment that you were not expecting – even if it is from someone you know – call the sender using the telephone number you have on file (not the number listed in the message) to confirm the message is legitimate.
• If you open a link or attachment that you should have avoided, and a box opens that asks for your password or other information, stop. Close out. Immediately call your IT department to run a scan on your device(s).
• Avoid public Wi-Fi, and do not use unsecured Wi-Fi to connect to your work server, to do any banking, or to send any confidential or personal information.
• Avoid working in public spaces where third parties may view screens or printed documents.