Victims of incompetent lawyers get payout after probe found gap in compensation system

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Despite judicial criticism of the situation, LawPro denies coverage when lawyers fail to report a client’s claim against them or refuse to help defend the action

TORONTO — A man who lost hundreds of thousands of dollars because of a negligent lawyer has finally received partial compensation years after winning a court judgment that has proven unenforceable.

Other cases The Canadian Press reviewed turned up several people who had lost out on compensation for car-crash injuries or ended up in jail because lawyers failed to do their jobs. None was able to collect on court-ordered damages, even though all members of Ontario’s legal profession must carry liability coverage through the insurance company known as LawPro.

What lawyers involved in such cases said they had never heard of is a policy the law society adopted in 1997. It provides victims of lawyers access to an internal compensation fund when LawPro declines coverage. The fund can reimburse victims up to $500,000. Over the past 20 years, a spokeswoman said the fund has paid out a total of $552,565 for 14 claims involving 13 lawyers — a fraction of the $100-million LawPro lays out for claims annually.

 

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