THUNDER BAY - Local lawyer, Theodore Scollie, who was found to have engaged in misconduct and conflict of interest will have his law licence suspended for two months, a punishment the Law Society of Ontario said could have been much heavier.
“The Licensee’s admitted misconduct is very serious. We doubtless would have imposed a heavier penalty than a two-month suspension were it not for the joint submission,” the Law Society of Ontario Tribunal ruling reads.
The Law Society of Ontario Tribunal released its decision on punishment for Scollie earlier this month, after previously finding in March 2022 that he engaged in misconduct during two commercial transactions between December 2013 and December 2016.
Scollie was working with Erickson’s LLP at the time of the transactions and an investigation into misconduct was launched in November 2020.
According to the Law Society of Ontario’s finding, Scollie failed to provide an adequate quality of service for his client during the first commercial transaction.
“He disregarded his client’s instructions and failed to appropriately review the details of the transaction,” the Tribunal said. “His omissions resulted in his clients, the bank, and LawPRO not being properly counselled and protected. These are serious ethical and legal failures.”
During a second commercial transaction, Scollie was found to have acted in conflict of interest by allowing: “confidential and solicitor-client privileged information to be accessed and used by his partner Mr. (Gino) Arnone, whose interests were adverse to those of his own clients.”
Arnone was also working with Ericksons LLP at the time and the Law Society of Ontario ruled in April 2022 that he engaged in misconduct. Arnone has since surrendered his licence to practice law following the ruling.
Additionally, Scollie also failed to provide competent services during the second transaction by not communicating with the client in a timely and effective manner, failing to follow client instructions, and failing to prevent another partner in his firm from disbursing his clients’ trust funds in a manner that was contrary to his clients’ instructions.
There was also a finding that Scollie failed to supervise and instruct a real estate clerk and improperly delegated tasks to a non-lawyer, as well as mishandling trust funds by removing them without first delivering a fee billing.
Scollie was first called to the Ontario Bar in 1994 and joined Ericksons LLP where he became a partner in 2013.
The Tribunal noted that since the investigation into the misconduct, Scollie has taken steps to improve his client management skills and is continuing with professional development courses.
However, the Tribunal also noted that the findings of misconduct, as well as the prolonged duration during which they occurred, was a very serious aggravating factor that had adverse effects on Scollie’s client.
“We also consider that it would have been appropriate for the Licensee and the firm to apologize to [the client], whose faith in the legal profession has now been damaged,” the Tribunal said.
“The profession and practice of law is based on trust. A licensee who ignores his clients’ instructions, allows interests conflicting with those of his client to prevail, and who provides incompetent, unresponsive service breaks that trust, harms his client, and also breaks the confidence and trust of the public. Such actions bring the reputation of the profession into disrepute.”
The two-month suspension was part of a joint submission by all parties and the Tribunal agreed it is within range of penalties imposed on similar cases of misconduct.
But the Tribunal noted that it would likely have imposed a heavier penalty had it not been for the joint submission, citing Scollie’s actions as ‘deeply unsettling.’
“It is precisely the sort of misconduct that strikes at the heart of the relationship between the legal profession and the public,” the Tribunal said.
A spokesperson with Ericksons LLP said it was an unfortunate matter and the firm took active steps to rectify it.
"We believe the pro-active approach taken by [Scollie] and the firm was recognized by the Law Society Tribunal in accepting the penalty jointly proposed by [Scollie] and the prosecutor for the Law Society," the statement reads. "[Scollie] cooperated fully with the investigation, and we accept the decision of the Tribunal."
The spokesperson added the firm is confident that revised policies put in place at will prevent similar incidents from happening in the future and noted that no client funds were misappropriated by Scollie or any other member of the firm.
In addition to the two-month suspension, Scollie will also be required to pay costs of $27,500. He will have one year to pay.
