On August 10th, the Court of Appeal for Saskatchewan held that the Saskatchewan Court of Queen’s Bench erroneously ordered “solicitor’s notes and inter-office memoranda” to be produced to a client because this categorization was over-broad. It reviewed the Canadian law and held that the authoritative text from Cordery’s Law relating to Solicitors is often misunderstood and unquestionably applied to provide lawyers ownership of their “working file.” It re-stated the test as follows:
- Documents in existence prior to the retainer and provided by the client to the lawyer remain, in the absence of some proof to the contrary, the property of the client.
- Documents prepared by a lawyer for the benefit of the client belong to the client. This would include, for instance: legal research memoranda; pleadings, briefs and other documents filed in court; witness statements; and notes of conversations with the client, other counsel or third parties concerning matters that relate to the substance of the file or to the business of advancing the file toward a conclusion.
- Documents prepared by a lawyer for their own benefit or protection belong to the lawyer. This would include, by way of example, things such as accounting records, conflict searches, time entry records, and financial administration records like draft statements of account and cheque requisitions. Internal communications and notes concerning administrative matters such as the role that various lawyers and staff will play on the file may also fall into this category.
- That said, documents will often be prepared for, or will serve, more than one purpose. For example, a file note setting out instructions received from a client will both benefit the client by helping to ensure that their wishes are clearly understood and benefit the lawyer by memorializing the mandate received from the client. In such circumstances, the predominant purpose should be controlling. Any doubt about the predominant purpose should be resolved in favour of the client with the result being that “documents prepared for the benefit of the lawyer” is likely to be quite a narrow class of material in most files. In this regard, one helpful way to assess if a document belongs to the client may be to ask whether, when it was created, a new lawyer taking over the file at that time would have wanted to have had the document in order to properly and efficiently manage the file and advance the client’s interests. If the answer is “yes”, and particularly if the client paid for the time involved in generating the document, then it should be seen as belonging to the client.
- The fact that the client has been billed for the time involved in preparing a document will be a significant factor, but not necessarily a decisive one, weighing in favour of the conclusion that the document belongs to the client. In this regard, it is difficult to see how a document prepared for the benefit of the client and for which the client was billed would not be the property of the client. However, that said, I doubt that the same is true with respect to documents prepared for the benefit or protection of the lawyer. For example, and without endorsing this sort of billing practice, if the lawyer happens to record and charge out the time involved in doing a conflict of interest check to confirm that they can act for the client, the document reflecting the result of that conflict of interest check would nonetheless belong to the lawyer.
- The burden of showing that a document in a file is the property of the lawyer should rest with the lawyer. They will understand the circumstances in which the document came to be created and will be in possession of the information about who it was intended to benefit.
Note the imposition of a predominant purpose test and a form of presumption in the fourth bullet above, which is at the crux of the Court’s decision.
CPC Networks Corp. v McDougall Gauley LLP, 2023 SKCA 90 (CanLII).
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