May 2024 | ALIA Newsletter

Practice directions push for transparency when Artificial Intelligence is used in legal matters as ChatGPT inaccuracies make headlines

AI technology has been shown to fabricate information and exposes lawyers to risk of breaching privilege

With more user-friendly Artificial Intelligence programs, such as ChatGPT, gaining popularity, several Canadian courts have taken proactive measures to ensure transparency when it comes to using AI tools in the practice of law.

In June 2023, practice directions were issued by the Court of King’s Bench of Manitoba and the Supreme Court of Yukon, both highlighting concerns regarding the reliability and accuracy of research generated by AI tools. In response to these concerns, both courts have mandated that when AI technology is used in the preparation of legal submissions, the party must disclose what tools were used and for what purpose.

Courts for Alberta, Quebec and Nova Scotia followed suit in October 2023, each publishing a notice to the profession urging caution using AI in submissions to the court. In December 2023, the Federal Court of Canada issued a notice requiring a declaration at the top of any court document that used AI to generate content, and announced interim guidelines that ban Federal Court judges from using AI in decisions.

It would be reasonable to presume more directions of this nature could follow in other jurisdictions.

Read full story

Civil Litigation Filing Levy pilot continues

ALIA exploring options to address Subscriber non-compliance

The ALIA Board has approved the continuation of the Civil Litigation Filing Levy (“CLFL”) pilot program. This decision came after a two-year pilot of the CLFL that launched on July 1, 2021.

The CLFL remains steady at $75 (plus GST) per filing for the 2024-2025 Policy Year. Subscribers who make applicable civil litigation filings in the Court of King’s Bench of Alberta are required by the Rules of the Law Society of Alberta to report and remit the CLFL each quarter.

Failure to pay outstanding CLFL invoices results in automatic suspensions in the same way and on the same dates as failures to pay any professional liability levy instalment.

Further information on the CLFL can be found in the CLFL FAQs and CLFL Information Chart.

CLFL program compliance

To ensure fairness to Subscribers who diligently report filings that attract the CLFL, ALIA Management and the Board continue to explore methods to ensure compliance with reporting and remittance obligations. These may include audit procedures and remedies under the indemnity program’s Group Policy for those who intentionally avoid reporting assessable court filings and remittance of the related $75 (plus GST) levy, and will be announced at a later date.

In the interim, audits of Subscribers and law firms continue.

Alberta lawyers urged to consider additional coverage beyond ALIA's Group Policy

As the value of client matters and transactions increases over time, so does the need to secure adequate levels of errors and omissions insurance. ALIA recommends that Subscribers undertake an analysis of their practices and consider whether purchasing excess coverage above the Group Policy limits is merited.

Although ALIA's policy offers generous financial protection for the majority of claims Subscribers face — a limit of $1,000,000 per occurrence per policy period and $2,000,000 in the annual aggregate — it may not be enough to protect firms and Subscribers' personal assets.

Additionally, coverage under the Group Policy is restricted to claims involving domestic law or areas of foreign law approved by ALIA as set out in a general endorsement to the Group Policy.

Excess insurance can be purchased through Canadian Lawyers Insurance Association ("CLIA") and commercial brokers. If you have foreign law exposure, you should discuss your insurance requirements with a commercial broker.

Learn more about CLIA excess insurance

Do you or does your firm currently purchase excess liability coverage?

In ALIA's 2021 Subscriber Survey, 44% of respondents said they (or their firm) purchase excess liability coverage, half of whom indicated they obtain it from CLIA.

ALIA STAFF STORIES IN OTHER PUBLICATIONS

The road to the recent amendment of the Alberta Rules of Court — Rule 4.31

Darren LaRose | ALIA Manager, Claims

Published online by the Canadian Bar Association,

Alberta Branch

An Alberta Court of Appeal decision in 2017 signaled a clamp-down on litigation delays, triggering a dramatic increase in Rule 4.31 claims.

In response, ALIA opted to fight for its Subscribers and requested a change to how the courts apply Rule 4.31.

Read the full story

ALIAlert SCAM WATCH

Dial "S" for scammer

Law firm lost $250k after employee lied about calling client to confirm bank details

There's a vintage solution to modern Internet scams hitting Canadian law firms: pick up the telephone.

One Manitoba law firm is feeling the sting after more than a quarter-million dollars was sent to a scammer. In finalizing a real estate deal, an assistant checked-off the box saying they called to confirm the banking details with the client. This turned out to be a fib.

Read the story: Law Society of Manitoba

ALIA does not provide legal advice. ALIAdvisory newsletters, ALIAlert warnings, ALIAction notices and the content on ALIA’s website, notices, blogs, correspondence and any other communications are provided for general information purposes only and do not constitute legal or other professional advice or an opinion of any kind. This information is not a replacement for specific legal advice and does not create a solicitor-client relationship.

ALIA may provide links to third-party websites. Links are provided for convenience only; ALIA does not vet or endorse the information contained in linked websites or guarantee its accuracy, timeliness or fitness for a particular purpose.

If you believe you have been targeted by potentially fraudulent activity, please contact ALIAlert.

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