While trial lawyers are perhaps most affected, many in the trade say other sectors – such as real estate – are also feeling the pinch. Small firms and relative newcomers, they say, are most exposed
Godfred Chongatera, a lawyer in a small three-person mixed practice in Halifax, said he estimates his overall business has fallen 35 to 40 per cent. Declining revenues and work have meant having to lay off two full-time staff.“Who knows where this is going?” Chongatera said. “If this drags on for a long time, some or most sole practitioners will fold.”
One significant cost is for practice and insurance fees that can add up to around $5,000 or $6,000 a year. Some law societies have deferred payments but the bills will still come due after months of reduced income. Mylene Lemieux, president of the 5,000-member Young Bar of Montreal, said those doing insolvencies or contract law, for example, are managing. Those dependent on court activity, especially solo practitioners, are hurting. Even employees of national law firms, she said, have taken pay cuts of up to 20 per cent or been laid off.“We are concerned by the situation,” Lemieux said. “It’s been very difficult.
“There are reserves. There is money available,” Banack said. “It certainly wasn’t intended for this purpose, but perhaps could be realigned or redesignated in a way that could reflect the financial trauma the lawyers and paralegals are experiencing.”Banack noted that car-insurance companies have been giving pandemic-related rebates.
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