New exam question: There is a Quistclose Trust on the 20% owed to the lawyer who helped his client obtain the monetary judgement such that if the client does not pay, there is a resulting trust back to the Court in favour of the lawyer since the judgement includes the contingency fee. So, then the Court can require that the funds in total he paid into Court and held until the funds are paid by the Court to the lawyer since the 20% contingency fee appears in the judgement and pursuant to the order. Because of the late fee of 2% a day, the amount owed to the lawyer is now the total amount of the judgement awarded. The order will not be fulfilled until the payment is credited to the lawyer's account. You are a lawyer and litigator with Bon Gens and Noscavenger LLP (Noscavenger LLP). You have a client that is in need of your help. You help them in an application for an injunction to prevent a thieving competitor toy company from using a trademark belonging to the client; a trademark for toys called the "Squid(TM)" toy. The toy is made out of material that is similar to silly putty and can stick to walls but it is made in the shape of a squid or octopus. The clients name is the CARIANA Arts Group. PART III-THE ISSUES The issues are as follows: 6 There is no doubt as to the ownership of the Trademark Squid™. The first issue is damages for infringement of the Trademark. The application was successful, preventing the use of the trademark. The Law Firm completed the work on a partial cost and fee basis with the remainder of fees to be paid as a contingency fee. The fee is considered property in law and the firm is entitled to full recovery of the same. There was a putative contract as evidenced in the exchange of emails between the parties to confirm there is a meeting of the minds between the parties as consenting adults for the completion of legal work on a contingency fee basis. It is not only putative but the actual contract is read and reviewed by the Squid Company and its CAG board of Directors and it's Chair. They receive a copy by email and in person. They attempted almost immediately after the successful Application to abate the agreement. But the work is already done and the Injunction was successful. So, why would you try to renege? The Contingency fee involves a percentage of any damages award as requested by the Application. The service helped you and you benefited from the help. Do you intend to kill? The Application requested general damages of $1,500,000.00 and punitive damages of $890,000.00. Damages in total were awarded following Warren's work in the amount of $800,000.00. The contingency fee per the agreement is 20%. In settlement, the Firm Noscavenger LLP will accept 12% as discussed in 2011 following the completed And successful Application in Court. There is under law a binding agreement. The contingency fee and required payment as a percentage (% ) of the damages award appears in the Court order as requested. In addition, there is interest to be paid daily on non payment of the fee of $160,000.00 based on 20% of the damages award noted above with a per day late fee of 2% Federal Bank of Canada bank rate from the date of the judgement as endorsed on May 9th, 2011. If they pay $4000.00 per week from todays date in an agreement to settle without the late fee debt , it will be paid off by September 13h, 2026. So a status hearing is to be called as of January 2020. See 3925928 Manitoba Ltd. v. 101029530 Saskatchewan Ltd., 2005 FC 1465 PART IV-LAW 21. On the facts before the court, there is no dispute as to the ownership of the contingency fee that belongs to Noscavenger LLP. As property, the contingency fee is subject to statutory protection in the event of misappropriation, fraud or any unauthorised use contrary to the interests of the owner. Allowing continued, unauthorised non payment would be unjust. Payment for services to Consumers is guaranteed by the Consumer Protection laws. Consumer obligations: Under consumer protection laws, consumers are required to pay for goods or services they agree to purchase, especially if it's part of a valid contract. Initial Payment for costs and filing fees was made pursuant to the general retainer and Contingency Fee agreement as provided to them by email and in writing on February 28th, 2011 at the office. On 3/2/11, HG >> >> Hello Warren, >> >> You gave me the receipt on Moday evening. Thanks. >> The contract is approved. >> Our ideal situation is to have the injunction by the end of next week. Is >> there any possibility of that? Is it a centralized system, or does the >> earliest date depend on which court is granting the injunction? >> >> Also, let us have the draft asap so that we can take it to the board and >> move without delay. >> >> Regards, >> >> HG Hello Noscavenger LLP >> >> A crucial step for us is to have a CAG board resolution re your contract >> and >> the injunction. To speed up this process, please send us a draft of the >> contract and injunction for me to present to the board. >> >> I will call an emergency meeting as soon as you send the documents, have >> the >> appropriate resolution, then meet with you very shortly after that. >> >> Thanks. >> >> >> Regards, >> >> HG >> >> Chair >> CARIANA™ ARTS GROUP The exchange of emails between the parties in particular dated February 17th 2011 confirm that the client approved the Retainer Contract with Contingency Fee agreement and the work proceeded further to their earlier written instructions by email on February 16th, 2011 as follows: The injunction is the only lever the CAG has to bring them to the table - >> in >> good faith. >> >> Like you, the CAG had put the Black and Caribbean community first, only >> to >> be taken advantage of. The CAG will not go that route again. >> >> Currently we have at least one major community paper that understands and >> is >> fully supportive of our position in trying to regain full control of our >> Festival. >> >> Unless there is a legal requirement to give some notice, the CAG >> instructs >> you to proceed with the injunction at this time. >> >> Best regards, >> >> >> HG >> Chair >> CARIANA™ ARTS GROUP Scandecor Developments AB v. Scandecor Marketing AV and Others and One Other Action [2001] UKHL 21 (4th April, 2001) at paragraph 16-22. The contingency fee is property. Misappropriation of property belonging to another knowingly and deliberately is a criminal act and a fraud. R. v. Huk, 2009 ONCJ 242 (CanLII) Almecon Industries Ltd. v. Anchortek Ltd., 2004 FC 172 (CanLII) Di Manno Estate v. Valenzisi, 2007 CanLII 57463 (ON S.C.) R. v. Waddell, 2005 CanLII 4925 (MB P.C.) 23. In civil matters, the court will not lend its assistance to individuals involved in the misappropriation of property who assert a right to a licence to use the same. Cleaver v. Mutual Reserve Fund Life Association, [1892] 1 Q.B. 147 at 156 Fry, L.J., said: It appears to me that no system of jurisprudence can with reason include amongst the rights which it enforces rights directly resulting to the person asserting them from the crime of that person....This principle of public policy, like all such principles, must be applied to all cases to which it can be applied without reference to the particular character of the right asserted or the form of its assertion. The use of the litigation materials without full payment is the issue. The litigation materials are, in themselves, intellectual property and cannot be used enjoyed or enable benefit to the user without full payment. Payment is necessary and required under law. You were helped and you benefited, so you must pay. There is a valid and non-voidable contract between the parties for work to be completed and so it was completed successfully with drafting, service and filing on time. The contingency fee is an incorporated term of the contract. There is a contract between the parties; as agreed for payment of base fees and filing fees with other costs and then also a contingency fee of 20%. The judgement says if paid late, the late fee adds 2% per day. As of 2025, they would owe the entirety of the judgement awarded to Mr. Lyon who signed the agreement and performed the work as a sole liability business proprietorship and Firm( The Angel Ronan Firm). Click for more.

 New exam question:  

There is a Quistclose Trust on the 20% owed  to the lawyer  who helped   his client obtain the monetary judgement such that if the client  does not pay, there is a resulting  trust back to the Court in favour of the lawyer since the judgement includes the contingency fee. So, then the Court can require that the funds in total he paid into Court and held until the funds are paid by the Court to the lawyer since the 20% contingency fee appears in the judgement and  pursuant to the order.  Because of the late fee of 2% a day, the amount  owed to the lawyer is now the total amount of the judgement awarded. The order will not be fulfilled until the payment is credited to the lawyer's account.  

 

You are a lawyer and litigator with Bon Gens and Noscavenger LLP (Noscavenger LLP).  You have a client that is in need of your help.   You help them in an application for an injunction to prevent a thieving competitor toy company from using a trademark belonging to the client; a trademark for toys called the "Squid(TM)" toy.   The toy is made out of material that is similar to silly putty and can stick to walls but it is made in the shape of a squid or octopus.  The clients name is the CARIANA Arts Group. 

 

PART III-THE ISSUES

The issues are as follows:

6

There is no doubt as to the ownership of the Trademark Squid™.

The first issue is damages for infringement of the Trademark.  The application was successful, preventing the use of the trademark.  The Law Firm completed the work on a partial cost and fee basis with the remainder of fees to be paid as a contingency fee.  The fee is considered property in law and the firm is entitled to full recovery of the same.   

There was a  putative contract as evidenced in the exchange of emails between the parties to confirm there is a meeting of the minds between the parties as consenting adults for the completion of legal work on a contingency fee basis. It is not only putative but the actual contract is read and reviewed by the Squid Company and its CAG board of Directors  and it's Chair. They receive a copy by email and in person.   They attempted almost immediately after the successful Application to abate the agreement. But the work is already done and the Injunction was successful. So, why would you try to renege? The Contingency fee involves a percentage of any damages award as requested by the Application. The service helped you and you benefited from the help.  Do you intend to kill? The Application requested general damages of $1,500,000.00 and punitive damages of $890,000.00. Damages in total  were awarded following Warren's work in the amount of $800,000.00. The contingency fee per the agreement is 20%. In settlement, the Firm Noscavenger LLP will accept 12% as discussed in 2011 following the completed And successful Application in Court. There is under law a binding agreement. The contingency fee and required payment as  a percentage (% ) of the damages award appears in the Court order as requested.   In addition, there is interest to be paid daily on non payment of the fee of $160,000.00 based on 20%  of the damages award noted above with a per day late fee of 2% Federal Bank of Canada bank rate from the date of the judgement as endorsed on May 9th, 2011. If they pay $4000.00 per week from todays date in an agreement to settle without the late fee debt , it will be paid off by September 13h, 2026.   So  a status hearing is to be called as of January 2020. 

See 3925928 Manitoba Ltd. v. 101029530 Saskatchewan Ltd., 2005 FC 1465 

PART IV-LAW

21. On the facts before the court, there is no dispute as to the ownership of the contingency fee that  belongs to Noscavenger LLP.   As property, the contingency fee is subject to statutory protection in the event of misappropriation, fraud or any unauthorised use contrary to the interests of the owner. Allowing continued, unauthorised  non payment would be unjust. Payment for services to Consumers is guaranteed by the Consumer Protection laws. 

• Consumer obligations: Under consumer protection laws, consumers are required to pay for goods or services they agree to purchase, especially if it's part of a valid contract.

Initial Payment for costs and filing fees was made pursuant to the general retainer and Contingency Fee agreement as provided to them by email  and in writing on February 28th, 2011 at the office.

On 3/2/11, HG 
>>
>> Hello Warren,
>>
>> You gave me the receipt on Moday evening. Thanks. 
>> The contract is approved. 

>> Our ideal situation is to have the injunction by the end of next week. Is
>> there any possibility of that? Is it a centralized system, or does the
>> earliest date depend on which court is granting the injunction?
>>
>> Also, let us have the draft asap so that we can take it to the board and
>> move without delay.
>>
>> Regards,
>>
>> HG

Hello Noscavenger LLP
>>
>> A crucial step for us is to have a CAG board resolution re your contract
>> and
>> the injunction. To speed up this process, please send us a draft of the 
>> contract and injunction for me to present to the board.
>>
>> I will call an emergency meeting as soon as you send the documents, have
>> the
>> appropriate resolution, then meet with you very shortly after that.
>>
>> Thanks.
>>
>>
>> Regards,
>>
>> HG
>>
>> Chair
>> CARIANA™ ARTS GROUP

 The exchange of emails between the parties in particular dated February 17th 2011 confirm that the client approved the Retainer Contract with Contingency Fee agreement and the work proceeded further to their earlier written instructions by email on February 16th, 2011 as follows: 

The injunction is the only lever the CAG has to bring them to the table -

>> in

>> good faith.

>>

>> Like you, the CAG had put the Black and Caribbean community first, only

>> to

>> be taken advantage of. The CAG will not go that route again.

>>

>> Currently we have at least one major community paper that understands and

>> is

>> fully supportive of our position in trying to regain full control of our

>> Festival.

>>

>> Unless there is a legal requirement to give some notice, the CAG

>> instructs

>> you to proceed with the injunction at this time.

>>

>> Best regards,

>>

>>

>> HG

>> Chair

>> CARIANA™ ARTS GROUP

Scandecor Developments AB v. Scandecor Marketing AV and Others and One Other

Action [2001] UKHL 21 (4th April, 2001) at paragraph 16-22.

The contingency fee is property. 

Misappropriation of property belonging to another knowingly and deliberately is a criminal act and a fraud.

R. v. Huk, 2009 ONCJ 242 (CanLII)

Almecon Industries Ltd. v. Anchortek Ltd., 2004 FC 172 (CanLII)

Di Manno Estate v. Valenzisi, 2007 CanLII 57463 (ON S.C.)

R. v. Waddell, 2005 CanLII 4925 (MB P.C.)

23. In civil matters, the court will not lend its assistance to individuals involved in the

misappropriation of property who assert a right to a licence to use the same.

Cleaver v. Mutual Reserve Fund Life Association, [1892] 1 Q.B. 147 at 156

Fry, L.J., said:

It appears to me that no system of jurisprudence can with reason include amongst the rights which

it enforces rights directly resulting to the person asserting them from the crime of that

person....This principle of public policy, like all such principles, must be applied to all cases to

which it can be applied without reference to the particular character of the right asserted or the form of its assertion.  The use of the litigation materials without full payment is the issue. The litigation materials are, in themselves, intellectual property and cannot be used enjoyed or enable benefit to the user without full payment. Payment is necessary and required under law. You were helped and you benefited, so you must pay. 

There is a valid and non-voidable contract between the parties for work to be completed and so it was completed successfully with drafting, service and filing on time. The contingency fee is an incorporated term of the contract.  There is a contract between the parties; as agreed for payment of base fees and filing fees with other costs and then also a contingency fee of 20%.  The judgement says if paid late, the late fee adds 2% per day. As of 2025, they would owe the entirety of the judgement awarded to Mr. Lyon who signed the agreement and performed the work as a sole liability business proprietorship and Firm( The Angel Ronan Firm). 

There is valid consideration between the parties but failing to pay the contingency fee on the damages award granted to the parties is a scavenging breach of contract.   

Scotsburn Co-Op. Services v. W.T. Goodwin Ltd., [1985] 1 S.C.R. 54

26. Consideration moves from the promisee to the promisor. 

Carlill v Carbolic Smoke Ball Company [1892] EWCA Civ 1

27. A contingency fee is a valuable piece of property. It is evidence of the owner’s interest in the quality

of his creations and ownership of a percentage fee of the damages recouped from his work as Legal Counsel, Litigator or Barrister.  He will be interested in maintaining its value. It is in the owner’s

interest to protect it and obtain payment of that fee once the damage award is handed down by the Court as based on his service before the Court.  

Scandecor Developments AB v. Scandecor Marketing AV and Others and One Other Action [2001] UKHL

21 (4th April, 2001) at paragraph 16-22.

28. Protection for property is afforded by rule of law in Judeo-Christian societies.

“Once the law recognises something as property, the law should extend a proprietary remedy to

protect it.”

Douglas & Ors v. Hello! Ltd & Ors [2007] UKHL 21 (02 May 2007) at paragraph 310.

29. For a statutory infringement of contingency fee  the owner is entitled to protection and damages

pursuant to Federal laws.

30. IT IS SUBMITTED that the Applicant is entitled to an award of damages and elects to receive the

same in the amount to $1,500,000.00 for general damages and exemplary and punitive damages of $890,000.00.

3925928 Manitoba Ltd. v. 101029530 Saskatchewan Ltd., 2005 FC 1465

31. IT IS SUBMITTED that you cannot rob someone of a right to statutory protection for property. The contingency fee to be paid is property owed in  the  use of the law materials that are in themselves intellectual property.   

rights under a fraudulent contract if in fact, the intent proves to be a fraudulent intent to obtain legal services by deception which is a criminal fraud and a breach o contract for which general damages can be awarded.  

To  answer this question, please discuss the law of contract in general in this scenario where there is a written agreement found on the email account as sent to them originally in 2011, written discussions by email confirming the agreement and an oral agreement between  the parties with the work completed thereto as agreed with the documents exchanged by the parties for the completion of the work. IS there a meeting of the minds as to payment of the fees for the work; including the % fee of the damages award.