Out of office

Taking a break with confidence. Plus all the latest Canadian legal news.

The Hearsay newsletter, by Inn Laws

Most of us will take a disappointing vacation at least once in our lives. Whether it’s subpar accommodations or a surprise bout of food poisoning, sometimes that’s just the way it goes.

But you won’t catch Sabine Hartmann and Michael Balke saying “c’est la vie.” The German couple sued AIDA Cruises after learning about the lacklustre nudist area on their cruise. It was smaller than advertised — and didn’t even have a jacuzzi.

After a court sided with them this week, they’ll have an extra €3,430 to put toward their next fully liberated adventure.

— Dylan Gibbs

TODAY’S DOCKET

  • Cash bail

  • Inclusive oaths

  • Piercing privilege

  • AI-powered “experts”

  • Ripping out bike lanes

MAKING HEADLINES 

Two drivers amiably swap paperwork after a minor bumper tap while a lawyer with a briefcase waits on the sidewalk, unneeded.

🚗 Alberta published the regulations for its Care-First auto insurance overhaul, so we finally know what the province’s no-fault regime will look like. Starting January 1, 2027, people injured in collisions can sue only where the at-fault driver is convicted of a Criminal Code or serious traffic offence.

🐴 We’re headed toward what may be the first test of Manitoba’s new anti-SLAPP legislation. Animal Justice got sued for defamation after claiming that horses collapsed on an exporter’s international flight. The advocacy group wants the suit dismissed as pure SLAPP.

💰️ Ontario revived cash bail on Monday. Anyone granted bail with a monetary condition now has two business days to pay in full — a sharp departure from the old system, which only required payment if the accused breached their bail conditions. The CCLA and the Criminal Lawyers’ Association filed a constitutional challenge the same day, arguing that bail procedure is federal turf and that the scheme denies reasonable bail under section 11(e).

🪶 Witnesses in Saskatchewan’s Provincial Court can now swear on an eagle feather. Chief Judge Shannon Metivier announced the option this week, and every one of the court’s 13 permanent locations now has a feather on hand (gifted by the family of one of the court’s own judges).

🔏 The crime-fraud exception to solicitor-client privilege isn’t just for criminal fraud. According to the Ontario Court of Appeal, it applies to lawyer-client communications that further civil fraud too. The issue came up in a US$3.5-billion claim against Saad Al Jabri, a former high-ranking Saudi official.

🏫 Alberta schools can keep flying flags (for now). The province’s new education rules were set to prohibit schools from flying flags other than those of Alberta and Canada, require a weekly anthem, and empower the education minister to rename schools. Those changes are now paused, but school boards will still be banned from taking positions on political or social issues as of September 1.

IN FOCUS

How the heck does anyone take vacation?

A lawyer stands barefoot on the beach in a dress shirt and loosened tie, hammering at a laptop balanced on one arm, her drink and towel untouched.

An Inn Laws member is headed out of town next week, with no cell service whatsoever. It’s the first time he’s been out of reach since starting his own firm, and it’s naturally driving some anxiety.

But boy, he’s sure not alone. Finding some semblance of balance comes up all the time in our community. Some lawyers find it hard to step away at all. Others can’t escape the fear of what’s waiting when they return: an endless stream of emails and catch-up.

It’s systemic — an all too common trait among high achievers. We tell ourselves we just need to work harder, that everything will collapse in our absence, or that we should downplay the reasons for our absence when we return.

I’ve never been great at this myself. But the time I’ve spent as an entrepreneur has given me space to think about the habits I could have changed when I was practicing. Given a do-over, I’d borrow some of the tactics I’ve heard from Inn Laws members.

I’d put vacation weeks in my calendar early and send them to everyone who might book over them. A partner in our community makes new lawyers do that when they start, which leads to a surprising number of juniors using up every bit of their allotted vacation time in year one.

Another member makes their life easier by tackling the client side of the problem. They set an auto-reply that includes the typical explainer about absence dates, but also makes it clear that clients shouldn’t expect an immediate response on the lawyer’s first day back. The expectation setting makes their catch-up period just a bit less frantic.

The expectation setting doesn’t start at the same time as the vacation, though. It goes back even further. The same lawyer appends a “working together” briefing to every retainer letter, explaining their communication standards, and *gasp* the fact that they might end up taking vacation just like other human beings. With expectations set, clients who demand 24/7 availability simply don’t form part of their practice.

None of this is to suggest there’s a quick fix. Taking time away is hard — especially for firm owners. And the pressures we place on ourselves are deeply embedded in the culture of the profession.

What I can say is that it’s pretty reassuring to hash these issues out in a community with other lawyers facing the same pressures. Long live the brain trust.

FROM THE COURTS

Two road workers roll the painted bike lane up off the road like a strip of carpet while a cyclist stands at the kerb and watches.
  1. Section 7 won’t save your bike lane
    Cycle Toronto v. Ontario2026 ONCA 582

Last summer, a Superior Court judge said that removing Toronto’s bike lanes violated the Charter by endangering the lives of cyclists. The Court of Appeal was pretty critical of that view this week, saying that courts have no business wading into legislative policy:

[J]udges may be tempted to comment on matters of policy. The temptation to do so may be great; judges may suppose that they have much to offer to public policy debate. But the temptation must be resisted… It is illegitimate for courts to involve themselves in matters of legislative policy. Policy is for politics. Whether courts think legislation is wise or unwise, is irrelevant so far as its constitutionality is concerned

  1. Negligent design doesn’t stop at the drawing board
    Gilead Sciences v. I.F.2026 BCCA 339

Gilead found a new way to treat HIV that was easier on patients’ kidneys and bones. So why are they getting sued? A product liability class action alleges the company kept marketing their old drugs despite finding something safer. Gilead tried to throw the action out, arguing that a negligent design claim requires proof that the product never should have been sold in the first place. But according to the BC Court of Appeal, continuing to market a product that was once considered safe can still ground liability:

[W]hen the pleading is read as a whole, it raises the much broader question of whether Gilead negligently or intentionally manufactured and marketed [the old drugs] when it knew that [the new drugs] were safer and economically feasible. As I have already found, a claim in negligent design does not require a material allegation that a product should never have been marketed at all.

  1. AI made me do it
    Arbuckle v. Tanner2026 NSCA 62

A self-represented appellant filed transcripts purportedly certified by a court reporter. Opposing counsel ordered the real ones, counted 39 discrepancies, and learned that the purported certification was fake. The Nova Scotia Court of Appeal dismissed the self-rep’s appeal and ordered $20,000 in costs on an indemnity basis:

[T]he only disposition consistent with the interests of justice is to end an appeal fundamentally tainted by the appellant’s conduct.

BY THE NUMBERS

A man holds up his empty wallet at a service wicket, face falling, as the clerk pulls the shutter down in front of him.

$31,500: The income threshold for a single person seeking criminal legal aid in Manitoba, which hasn’t quite kept up with economic realities. The CCLA is challenging what it calls systemic underfunding of criminal legal aid in the province, arguing that the result is false guilty pleas, wrongful convictions, and compromised trials, contrary to the Charter right to a fair trial.

0: The social assistance now extended to people without immigration status under Ontario’s two main programs. The province acted to reverse a tribunal ruling, which had granted assistance to a man who overstayed his temporary status.

15%: The tax rate John Tavares says applies to his US$15.25-million signing bonus. The CRA took the position it was ordinary employment income, subject to a higher rate (and an extra $8 million in tax). The former Leafs captain spent Tuesday testifying in the Tax Court about his 2018 free agency. One tax commentator warns that a CRA win could push future free agents toward American teams.

FROM OUR COMMUNITY

A single oak drawer pulled open from a card catalogue, packed with filed index cards, its brass label plate typed AI USE CASES.

Our members are filling a shared bank of AI prompts & skills. And to get everyone in the sharing mood, we’ve turned it into a contest — every shared use case gives our members a chance to win $250.

Next Friday, our members are sitting down for a virtual coworking session. Science says that body doubling is an incredible motivator. So once a month, we get together, share what we’re working on, put our heads down, and work. It’s a great way to clear that non-billable pile we’ve been putting off for months.

Not a member yet? Inn Laws is a vetted peer community of entrepreneurial lawyers, from firm owners to associates. If you want to build a better practice alongside sharp peers, apply to join.

THINGS NOT TO DO 😤

Don’t hire “experts” who delegate their whole job to AI.

When plaintiffs sued 3M over a Houston explosion that killed three people, 3M turned to an expert engineer with ChatGPT.

The plaintiffs saw red flags during discovery, which suggested AI use, so they demanded the expert turn over his prompts. And what they got back was astounding:

Create an exceptional expert witness report [and show] how 3M is 0% at fault for the explosion…

Josh Autenrieth of Knighthawk Engineering, prompting his way to disaster

3M tried to avoid bringing the expert to court. But the plaintiffs called him themselves, got an adverse witness ruling, and let the fireworks unfold. The expert explained his whole process in front of a jury, and admitted that ChatGPT wrote 80–95% of his final report.

The plaintiffs won. As for the engineer, he probably doesn’t need to worry too much about future expert witness mandates.

Dylan Gibbs

That’s all for today. Govern yourself accordingly. If someone sent you this email, subscribe here.

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