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Practice Management
Starting your own Business
Business Plan – O-S Paralegal Services
Presented to: Mr. Ron Fallis Presented by: Ms. Gabriela Otero-Soca
September 1, 2010
Practice Management – Business Plan 2
Instructor: Ron Fallis September 1, 2010 Student: Gabriela Otero-Soca
Table of Contents Paralegal Description and Governance 3
Executive Summary 5
Mission Statement 6
Vision Statement 6
Value Statement 6
O-S Paralegal Services – sole proprietorship 6
Industry Overview 7
Our Position in the Industry ................................................................................................................................. 8
Services 9
Summary Convictions – Criminal Law ................................................................................................................... 9
Small Claims Court Matters ................................................................................................................................. 9
Landlord and Tenant Tribunal .............................................................................................................................. 9
Ontario Human Rights Tribunal .......................................................................................................................... 10
Other Services ................................................................................................................................................... 10
Marketing Plan 11
Spanish Community in the GTA .......................................................................................................................... 11
The facts of Paralegal services vs. demand ......................................................................................................... 11
Operating Plan 13
Location ............................................................................................................................................................ 13
Facilities ............................................................................................................................................................ 13
Business Legal Structures ................................................................................................................................... 13
Organizational Chart – Internal .......................................................................................................................... 13
Organizational Chart – External Resources ......................................................................................................... 13
Human Resources.............................................................................................................................................. 13
Equipment ........................................................................................................................................................ 13
Suppliers ........................................................................................................................................................... 13
Standard Operating Procedures ......................................................................................................................... 13
Sample of O-S Paralegal Services Office Procedures ........................................................................................... 13
Financial Plan 14
Funding requirements ....................................................................................................................................... 14
Financial statements ......................................................................................................................................... 14
Financial statement analysis .............................................................................................................................. 14
Practice Management – Business Plan 3
Instructor: Ron Fallis September 1, 2010 Student: Gabriela Otero-Soca
Paralegal Description and Governance
“Paralegal is a term that is used in most jurisdictions to describe a non-lawyer paraprofessional who assists lawyers in their legal work. This is true in the United States and many other countries. However, in Ontario, Canada, paralegals are licensed by the Law Society of Upper Canada, giving paralegals an independent status in this jurisdiction.
Paralegals are not the same in every country. In Ontario, Canada, paralegals are licensed and regulated the same way that lawyers are. A paralegal license allows for the paralegal to provide permitted legal services to the public and appear before certain lower level courts and administrative tribunals.”
The Paralegal profession in Ontario, Canada is governed by the Law Society of Upper Canada under the legislation passed by the Ontario Legislature in 2004 Access to Justice Act, 2006. This statute gives the Law Society the authority to set the standards for the requirements all paralegals must achieve in order to commence the licensing process to provide legal services to the public residing in Ontario.
Paralegals are required to notify their clients of the limitations they have in providing legal advice compared with lawyers; however, they are encouraged to inform their clients that the level of ethical behavior and competence are equal to the ones provided by lawyers. One of the nine rules from the Paralegal Rules of Conduct (Paralegal Rules), most specifically, Rule 3: Duty to the Client, covers the relationship between client and paralegal, these includes: confidentiality, conflicts of interest, advising clients, advocacy, competence, withdrawn from representation and preservation of client property.
Providing legal services to the public is a privilege and a responsibility, to ensure these are met, the Law Society has developed the above mentioned Paralegal Rules, to assist paralegals in providing consistent legal advice, and By-Law 4 of the Act lists the permissible areas in which paralegals can provide to the public independent legal advice, these are:
1. Statutory Accidents Benefits Schedule (SABS) claim (excluding a claim of an individual who has or appear to have a catastrophic impairment within the meanings of SABS)
2. Small Claim Courts, including claims for damages or return of property worth $25,000 or less 3. In the Ontario Court of Justice under the Provincial Offences Act for quasi-criminal matters involving
Highway Traffic Act Compulsory Automobile Insurance Act Liquor Licence Act Trespass to Property Act Environmental Protection Act Occupational Health and Safety Act Blind Persons Rights Act Municipal by-laws
4. In a summary conviction court under the Criminal Code for hybrid offences where the Crown Attorney has elected to proceed by way of summary conviction and ‘true’ summary conviction matters where the maximum penalty is a $5,000 fine or imprisonment up to a maximum of six months or both for offences such as
Practice Management – Business Plan 4
Instructor: Ron Fallis September 1, 2010 Student: Gabriela Otero-Soca
Indecent acts, public nudity, or prostitution Causing disturbance, vagrancy, or cruelty to animals Assault, possession of a weapon, or mischief regarding property Theft under $5,000 or possession of stolen property under $5,000 Farud, forgery, or making false statements
5. Before a tribunal established under an Act of the Legislature of Ontario or under an Act of Parliament such as
Financial Services Commission of Ontario (FSCO) Workplace Safety and Insurance Bond (WSIB) Workplace Safety and Insurance Appeals Tribunal (WSIAT) Landlord and Tenant Board Ontario Human Rights Commission (OHRC) Human Rights Tribunal of Ontario Social Benefits Tribunal Assessment Review Board Ontario Municipal Board (OMB) Ontario Labour Relations Board (OLRB) Alcohol and Gaming Commission of Ontario Agriculture, Food and Rural Affairs Appeal Tribunal Health Professions Appeal and Review Board Ontario Highway Transport Board Ontario Parole and Earned Release Board
Practice Management – Business Plan 5
Instructor: Ron Fallis September 1, 2010 Student: Gabriela Otero-Soca
Executive Summary
O-S Paralegal Services – 305 Melita Avenue – Toronto, Ontario – M6G 3K1
416 533 2506 [email protected] www.O-SParalegal.ca
Ms. Gabriela Otero-Soca, Licensed Paralegal
O-S Paralegal Services will be establishing the paralegal services in March 2011. It will be a sole proprietorship
business with the mission to service the GTA community, concentrating in the Spanish Speaking communities.
The services rendered will be within the scope of permissible services as regulated by the Law Society of
Canada; such as summary conviction (criminal law), small claims court, boards and tribunals (administrative
law) – landlord and tenant, human rights- and mediation. Our business is proud to be familiarized with
appropriate legislation and relevant tribunal and court rules; the knowledge and understanding of these
procedures are imperative to provide excellent client service and in return maintain a good client base and
obtain good referrals. The most effective marketing strategy.
O-S Paralegal Services will have a conservative marketing plan, promoting the business in the established
Spanish Communities, local newspapers and a weekly radio show.
O-S Paralegal Services firmly believes in the benefit of mediation – 85% of disputes get resolved outside of
court and tribunals; judges, justice of peace and adjudicators welcome the increase number of out-of-court
settlement, thus, the opportunity to provide mediation services. Within a year of the business operation, Ms.
Otero-Soca will be enrolled in the mediation program instructed at York University, to obtain the mediation
designation and provide a valuable service to the community.
Paralegal services are increasingly becoming popular, retainer fees are more affordable than lawyers retainer
fees, attracting a large percentage of the legal need market. Paralegal fees oscillate between $60 to $150 per
hour, compared to lawyers retainer fees which are over $200 per hour.
The paralegal business is thriving; for example, at present, there are estimated 560 licensed paralegals in the
GTA area; in 2009, there were 26,960 cases filed in the Toronto small claims court– these numbers provide an
excellent incentive to pursue this career.
It is a fact that disputes will not be obsolete; hence, the need of legal representation has a durable presence in
our society. Non-criminal matters are constantly occurring; paralegals services have a long ‘shelf-life’.
O-S Paralegal Services
Practice Management – Business Plan 6
Instructor: Ron Fallis September 1, 2010 Student: Gabriela Otero-Soca
Mission Statement O-S Paralegal Services is committed to provide our clients professional and ethical legal representation, inside
or outside of a court or tribunal, through proper matter consultation, analysis and appropriate legal research,
to enable our clients to decide on the best option to implement.
Vision Statement Our vision is to maximize our legal efforts in accommodating the best interests of our clients and to lessen
their upheaval caused by procedural issues.
Value Statement Our value is to ensure servicing our community through the professional and ethical standards regulated by
the Law Society of Upper Canada and the Paralegal Society of Ontario.
O-S Paralegal Services – sole proprietorship
O-S Paralegal Services is a sole proprietorship paralegal firm; formed in Date, Month and Year, by Ms. Gabriela
Otero-Soca, Licensed Paralegal. Ms. Otero –Soca graduated from the Algonquin Academy Career Paralegal
Program in 2010. Prior to becoming a paralegal, Ms. Otero-Soca had over fifteen years in the private sector, in
which she acquired extensive experience in project management, finance and communications; this skill set
strategically positions her ability to conduct effective interviews with clients and witnesses, her prudence to
offer solutions within the budgetary parameters and her responsibility in meeting application time lines are
evident from the offset.
Ms. Otero-Soca is a member of the Law Society of Upper Canada, the Paralegal Society of Ontario and
Canadian Centre for Policy Alternatives. Her passion for jurisprudence in defense and advocacy has enticed
community members to offer her seats at boards of directors to assist them in reaching efficient decisions. As
an avid community member, her approach to all sorts of issues is candid and sympathetic; she recognizes the
pressure that certain issues may impose to her clients, whether individual or corporations; as a result, her
focus is to ensure her clients of the paralegal duties to clients under the Paralegal Rules of Conduct, most
importantly of the Rule of Confidentiality (Rule 3.03), which cites:
“A paralegal shall, at all times, hold in strict confidence all information concerning the business and affairs of a client acquired in the course of their professional relationship and shall not disclose any such information unless expressly or impliedly authorized by the client or required by law to do so”
Practice Management – Business Plan 7
Instructor: Ron Fallis September 1, 2010 Student: Gabriela Otero-Soca
Industry Overview
In the XXI century, mostly in the Westernized world, communities count with Councilor representation to
bring forward community concerns to the parliamentarian house members. As such, based on communities
concerns, new legislation have been developed to satisfy communities demands, traditionally lawyers were
the only alternative to represent layperson in any interpretation of the law in all sort of disputes in and
outside of courts; however, as issues of different kind increased, for example matters of summary
convictions; mediations and small claims court, so were the need for justifying disbursing high legal fees for
matters of lesser legal consequences; thus, the community enticed a gap on the current economy for the
need of affordable representation for laypersons and/or companies in need of fair and competent legal
representation to satisfy the community demands. Hence, Paralegal services the most adequate solution.
Paralegals have made their own niche in Ontario. Throughout the regulation of the Law Society of Upper
Canada, paralegals competency does not envy – within the permissible scope of work – lawyers’ expertise,
in fact, because of the parameters in which paralegals are allowed to perform, they have increasingly
became experts in their own practices of law, becoming more popular to the communities demands.
Ms. Patricia Knight writes on her textbook ’Ethics and Professional Practice for Paralegals’ Second Edition,
about the governance of the paralegal profession in Ontario; effective May 1, 2007, the Law Society Act was
amended to make the Law Society of Upper Canada the regulator for our profession. Paralegal licensees
(P1) are permissible to perform legal services independently within the province of Ontario in small claim
courts, summary convictions, statutory boards and tribunals, provincial offences court, statutory accident
benefits schedule matters under specific sections of the Insurance Act and mediation. Licensed paralegals
are authorized to provide legal advice on legal interests, rights, or responsibilities with a respect to a
proceeding, making decisions about service and filing of documents relating to a proceeding; conducting
examination for discovery; document drafting for use in a proceeding – or assisting someone else to do so.
The paralegal profession has increasingly positioned itself in the market due to the high demand on less
intricate legal matters, where retaining the expertise of a lawyer is not justifiable. Members of our
provincial communities would undoubtedly benefit from the legal services and affordable retainer fees
provided by paralegals. Thus, my mandate to fulfill this economic need. Through competent legal services,
proper marketing representation, and referrals, I predict that by 2015, paralegals will be the most sought
solution to popular claims at most affordable retainer fees.
Extract from: “Understanding the Law”, 1990 - Steven Talos, M.A, Michael Liepner, Gregroy Dickinson B.A. LL.B. Ed.D “Law as a Legal System – Law may be perceived as a legal system. The law comprises a network of agencies, institutions, and procedures developed to perform a specific function. If asked what comes to mind when you think about the law, you might suggest the police, courts or jails. Each of these has a role to play within the context of a larger legal structure. The police branch of the law enforcement system empowered to exercise certain functions assigned by the law. The courts are institutions forming a branch of the judicial system intended to settle disputes and impose sanctions according to the law. Jails are institutions forming a branch of the penal system, established to carry out the sanctions set down in law and imposed by courts. Therefore, the law as a legal system encompasses facilities, institutions and agencies, and procedures involved in operating the law.
Practice Management – Business Plan 8
Instructor: Ron Fallis September 1, 2010 Student: Gabriela Otero-Soca
Our Position in the Industry
During my research, currently in the area of Toronto (by Postal Code), there are the following numbers of
licensed paralegals:
M1 – Scarborough – 118 licensed paralegals*
M2 - North York – 171 licensed paralegals*
M3 - Don Mills and Downsview – 152 licensed paralegals*
M4 - Central Toronto, Beaches, Summerhill - 88 licensed paralegals*
M5 – Downtown core – including Danforth - 269 licensed paralegals – 105 only private practice
M6 – Upper Downtown – 124 licensed paralegals – 73 only private practice
700 licensed paralegals – 560 working independently
*Not all in private practice – an estimated a 20 percent employed by the private or public sectors.
The current market seems to be favourable for 2011 paralegal licensees in the GTA area to establish their
businesses, due to the increase claims in tribunal and small claims court.
For instance:
In2009, the Ontario Residential Housing Commission heard a total of 85,840 cases a 6.5% increase from
2008; in the area of Toronto South and North were 31% of the total cases = 26,381 cases.
From April 1, 2008 to December 31, 2008, the Ontario Human Rights Commission heard a total of over
30,000 complaints.
In 2008-2009, the Small Claims Court in Toronto - 45 Sheppard Avenue Filed 15,512 cases – Events heard
were 25,369.
In 2009, Provincial Offences – specifically out of 2.8 million Traffic Tickets issued in 2009 - 428,651 or
15.34% of these tickets were cancelled. There are over a third of tickets to represent.
Mediation – 85% of disputes are settled out of court or tribunal proceeding in various areas of the law –
encouraged by judges, justice of peace and adjudicators, in fact in Ontario is mandatory in accident
benefits which are large percentage of the paralegal permissible area of law.
In support for the above analysis, there is also the statistically information posted in the Canadian
Employment site, under the National Occupational Classification (NOC) site, where it is evident the increase
need of paralegal services in the province of Ontario. Please refer to the analysis extracted from the NOC:
According to the Labour Force Survey, self-employment in 2008 for this occupation was 4.1%. The
percentage of self-employed workers in Canada for 2008 was 15% compared to 12% in 2000.
National Outlook – 10-Year Occupational Projection (2009-2018)
Over the period of 2009-2018, an occupation will be in excess demand (a shortage of workers) if the
projected job openings (arising from expansion demand and replacement demand) are greater than the
projected job seekers. For Paralegals, Social Services Workers And Occupations In Education And Religion,
N.E.C., over the period of 2009-2018, job openings are expected to total 133,623.
It is expected that 115,719 job seekers will be available to fill these job openings.
Practice Management – Business Plan 9
Instructor: Ron Fallis September 1, 2010 Student: Gabriela Otero-Soca
Services Summary Convictions – Criminal Law
Offences where maximum penalty is $5,000 fine or imprisonment up to a maximum of six months for offences such as:
Indecent acts, public nudity, or prostitution Causing disturbance, vagrancy, or cruelty to animals Assault, possession of a weapon, or mischief regarding property Theft under $5,000 or possession of stolen property under $5,000 Farud, forgery, or making false statements
Small Claims Court Matters
Claim up to $25,000 plus costs and interest
Wrongful Dismissal and Employment disputes
A method to recover money owing when other attempts have failed
Prepare and issue your Plaintiffs Claim or Defendant’s Claim with the Small Claims Court
Conduct Corporate Searches and Business Name Searches for Claims where the Defendant is a company
Serve the Defendant(s) with the issued Claim
Prepare a defence for a Defendant’s Claim
Represent you at Trial
Note a Defendant in Default and obtain judgment through a Default Judgment or Assessment
Enforce your judgment through a Judgment Debtor Examination, Writ of Seizure and Sale , or Garnishment
Court Representation: o Drafting and filing of Claims, Defense's and Defendant’s Claims
• Attendance at Pre-Trials / Settlement Conferences • Preparation and attendance on Motions • Preparation and attendance at Trials • Appeals to Divisional Court
Landlord and Tenant Tribunal
Collection of overdue rent, termination of tenancy, eviction.
Time is of the essence to protect your investment.
Representation before the Ontario Landlord and Tenant
Tribunal Prepare and serve Notices
File Application with the Landlord and Tenant Tribunal
Prepare and provide legal representation at the Landlord and Tenant Tribunal
Obtain results either by way of Mediation or Litigation.
Enforce Tribunal Orders through Sheriff and/or Small Claims Court.
Practice Management – Business Plan 10
Instructor: Ron Fallis September 1, 2010 Student: Gabriela Otero-Soca
Ontario Human Rights Tribunal
OHR Commission – April 1 2008 to December 31 2008 – Complaints were completed 2,090
Mediation – Cases: 682 – Monetary Damages $ 5,594,662.76 – Average: $ 8,203.32
Conciliated – Cases: 713 – Monetary Damages $ 6,256.525.53 – Average: $ 8,774.93
Cases Settled – 1395 – Monetary Damages $ 11,851.188.29 – Average: $ 8,495.48
Dismissed on preliminary objections – 46
Withdrawn by Compliant by various reasons – 665
Pro forma income: Average: $ 8,490 (10 cases $2,000/case = $20,000) Other Services Statutory Accident and Benefits
Document Preparation
Process Serving
Mediation
Practice Management – Business Plan 11
Instructor: Ron Fallis September 1, 2010 Student: Gabriela Otero-Soca
Marketing Plan
Spanish Community in the GTA
Aliddesa Women’s Centre – Bloor West
Parkdale Community Centre – King and Dufferin Area
Uruguayan Community Centre – North of Toronto
Chilean Community Centre – Davenport Region
Colombian Community Centre – Toronto Area
Unveiled markets
O-S Paralegal Services has the support of various Hispanics communities centres due to the involvement in
the GTA Hispanic community. Gabriela has volunteered in diverse community projects for the past decade,
thus, her reputation has made a positive impact in the community for her passion to fairness and justified
causes. Gabriela’s diligent approach to legislation has made her a respected member of our community,
she will never promise nor will stop from her beliefs within the Paralegal Rules of Conduct; nevertheless,
she will maintain her advocacy approach to the levels permitted by the Act, by challenging what is to be fair
on the eyes of the behold within the stipulated laws.
The facts of Paralegal services vs. demand
There are a number of licensed paralegals in the GTA; however not all are independent legal services
providers. In our community a number of paralegals seek employment in legal firms; others have a
tendency to promote independent legal services in different areas of the permissible scope of law practice,
as such, one would think the paralegal field could be saturated promptly, in fact, the legal field in the
permissible areas of paralegals is yet to be explored due to the increasingly claims and population offences
which most citizens believe to have no affordable claim; thus, there is a huge niche under the Charter of
Rights to allow offended citizens to exercise their right by either applying to the justice of law or defend
themselves. Thus, our profession to be of imperative need to advocate – once upon a time – unaffordable
and “luxurious” peoples’ rights, and have an impact for a better society. Statics Canada 2001, shows a
population of Spanish speaking in Toronto of 140,000, a number that has increased due to the fact that
most immigrant do not blend with the English speaking communities, deserving services catering to their
legal right needs.
Politics - Sergio Marchi – Former MP. Born in Argentina. - Osvaldo Nunez – Former MP. Born in Chile. - Pablo Rodriguez – MP for Honore-Mercier. Born in Argentina. - Vic Toews – MP for Provencher. Born in Paraguay - Joseph Facal – Former minister in Quebec. Born in Uruguay. - Cesar Palacio, First Hispanic person elected to Toronto City Council. Born in Ecuador.
Practice Management – Business Plan 12
Instructor: Ron Fallis September 1, 2010 Student: Gabriela Otero-Soca
Advertising
Web-based
- Own web site
Print Advertising
- TorontoHispano.com - TorontoDominicano.com - Ecuadorian Professionals in Canada - Colombians in Canada - Article on Pablo Rodriguez, only Hispanic MP - Hispanics in CanadaManagement Plan
Media Advertising
- Radio - Ondas Hispanas - Voces Latinas
- TV - Program in OMNI - Program in TLN
Practice Management – Business Plan 13
Instructor: Ron Fallis September 1, 2010 Student: Gabriela Otero-Soca
Operating Plan Location Facilities Business Legal Structures Organizational Chart – Internal Organizational Chart – External Resources Human Resources Equipment Suppliers Standard Operating Procedures
Sample of O-S Paralegal Services Office Procedures **DRAFT SAMPLE OF THE TABLE OF CONTENTS FOR THE FIRM’S STANDARIZED OFFICE PROCEDURES**
SOP01: Finance Department SOP01.01 – Banking Instructions SOP01.01.1 - Personal Account SOP01.01.2 - General Account SOP01.01.3 - Trust Account SOP01.02 –Accounting Instructions SOP01.02.1 - Account Receivables SOP01.02.2 - Account Payables SOP01.03 – Payroll Instructions SOP01.03.1 – Forms SOP01.04 – Financial Plan SOP01.04.1 – Budget SOP01.04.2 – Financial statement SOP02: Marketing Department SOP02.01 – Company Methodology SOP02.01.1 - Mission Statement SOP02.02 – Company and Forms SOP03: Operating Plan SOP03.01 – Legal Structures SOP03.01.1 – Business model (sole-proprietorship) SOP03.02.1 – Documentation SOP03.02 - Human Resources SOP03.02.1 – Interviewing Process FRM03.01.1 – Interviewing Questionnaire Admin FRM03.01.2- Interviewing Questionnaire Legal SOP03.02.2 – Contracting Process FRM03.02.1 – Employee Contract SOP03.02.3 – Work Performance FRM03.02.1 – Work Performance Template FRM03.02.2 – Supervisor Recommendation SOP03.03 – Governance – Organizational Chart
Practice Management – Business Plan 14
Instructor: Ron Fallis September 1, 2010 Student: Gabriela Otero-Soca
Financial Plan Funding requirements Financial statements Financial statement analysis
Sample Start Up and estimate revenue for one year for defined services
Estimated Start Up - Year One End Revenue: $ 43,000
Conservative Numbers for an estimated hourly base of $100 to $150 per hour
Estimated revenue from Small Claims Court $ 8,000 (53 billable hours per year)
Estimated revenue from Administrative Law $ 15,000 (100 billable hours per year)
Estimated revenue from Mediation and other Legal advice services $ 20,000 (133 billable hours per year)
Operating Expenses Q1 (3 months pro forma)
Rent $ 3,000
Promotion $ 750
Depreciation $ 200
Insurance $345 (3 months)
Accounts Payable $1,500 (3 months)
FINANCIAL MODEL – 1st Quarter
*** Outstanding: complete financials – need further research in summarily and administrative law ****
Q 1 January February March
Starting Capital $ 30,000
Cash in: Service ~ $ 10,750
Cash out: Rent
Accounts Payable
Promotion
Gas
E & O
Membership/Licensees
$ 1000
$ 350
$ 250
$ 150
$ 115
$ 50
$ 1000
$ 350
$ 250
$ 150
$ 115
$ 50
$ 1000
$ 350
$ 250
$ 150
$ 115
$ 50
Total Cash out $ 1,950 $ 1,950 $ 1,950
Q1 $ 5,745
