Post on 23-Dec-2015
LIABILITY ISSUES FOR LIABILITY ISSUES FOR ROTARY CLUBSROTARY CLUBS
Risk ManagementRisk Management
2004 District 7810 Conference2004 District 7810 Conference
G.R.BASQUE, Q.C.G.R.BASQUE, Q.C.
MONCTON ROTARY CLUBMONCTON ROTARY CLUB
May 15 2004May 15 2004
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Housekeeping:Housekeeping:
Only scratching the surfaceOnly scratching the surface No time to go into any depth on any subjectNo time to go into any depth on any subject Do not consider this as legal adviceDo not consider this as legal advice Specific advice will depend on specific Specific advice will depend on specific
situationsituation Congrats to Convention Committee for their Congrats to Convention Committee for their
initiativeinitiative Don’t shoot the messengerDon’t shoot the messenger
This is why people hate lawyers!This is why people hate lawyers! Something to think aboutSomething to think about
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WHAT! I’m being sued?WHAT! I’m being sued?
Society is increasingly litigiousSociety is increasingly litigious People more and more prepared to suePeople more and more prepared to sue
Even CanadiansEven Canadians
People are more aware of their rightsPeople are more aware of their rights Lawyers take “shotgun approach”Lawyers take “shotgun approach”
““Deep pockets” thinkingDeep pockets” thinking Cost of defence can outstrip damagesCost of defence can outstrip damages No “charitable” exemption in CanadaNo “charitable” exemption in Canada
SUED FOR WHAT?
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Potential LiabilitiesPotential Liabilities
Weekly meetingsWeekly meetings Food poisoningFood poisoning InjuryInjury Theft of goodsTheft of goods Defamation by a speaker / memberDefamation by a speaker / member Human Rights violationHuman Rights violation Sexual harassment by a memberSexual harassment by a member
Hotel / Restaurant staffHotel / Restaurant staff Club staffClub staff Other memberOther member
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Potential LiabilitiesPotential Liabilities Youth exchangeYouth exchange
Injury or deathInjury or death In the course of a Rotary activityIn the course of a Rotary activity On the way to the meeting in Rotarian’s vehicleOn the way to the meeting in Rotarian’s vehicle In a host family vehicle, at the host’s home, on a host family In a host family vehicle, at the host’s home, on a host family
activityactivity DUI, swimming pool accident, etc.DUI, swimming pool accident, etc.
Serious illnessSerious illness Accusation of assault on the student by a RotarianAccusation of assault on the student by a Rotarian
Host parent / siblingHost parent / sibling Accusation of harmful activity by the studentAccusation of harmful activity by the student
Against a Rotarian or a Rotarian’s familyAgainst a Rotarian or a Rotarian’s family Against a third partyAgainst a third party
Improper supervisionImproper supervision Pregnancy, STDs, alcohol, drugs, criminal activityPregnancy, STDs, alcohol, drugs, criminal activity
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Potential LiabilitiesPotential Liabilities
Group study exchangeGroup study exchange Injury or deathInjury or death Serious illnessSerious illness Improper conduct by a RotarianImproper conduct by a Rotarian Improper conduct by the exchange Improper conduct by the exchange
membermember Criminal Criminal TortTort OtherOther Against a Rotarian’s familyAgainst a Rotarian’s family Against a third partyAgainst a third party
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Potential LiabilitiesPotential Liabilities
EmployeesEmployees TerminationTermination Constructive dismissalConstructive dismissal Harassment by officer or directorHarassment by officer or director Source deductions for C.P.P., E.I. and income tax not Source deductions for C.P.P., E.I. and income tax not
remitted to Revenue Canadaremitted to Revenue Canada Motor vehicle accident of a Rotarian in the course Motor vehicle accident of a Rotarian in the course
of doing work for the Clubof doing work for the Club DUIDUI
Contracts or checks not signed properlyContracts or checks not signed properly Overreaching in contractsOverreaching in contracts
Potential liability to membersPotential liability to members
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Potential LiabilitiesPotential Liabilities Fundraising or other club activitiesFundraising or other club activities
Failure to meet commitmentsFailure to meet commitments Debts to funding partnersDebts to funding partners Injury during the activityInjury during the activity Injury as a result of the activityInjury as a result of the activity
Food poisoningFood poisoning Defective productDefective product Host liability issuesHost liability issues
Accident with DUI as a result of consumption at the Accident with DUI as a result of consumption at the activityactivity
DefamationDefamation Human Rights violationsHuman Rights violations Privacy issuesPrivacy issues Environmental problems caused by the activityEnvironmental problems caused by the activity
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Potential LiabilitiesPotential Liabilities Privacy issuesPrivacy issues
Now a major consumer concernNow a major consumer concern Are you privacy compliant?Are you privacy compliant?
Web siteWeb site FilesFiles Information collected during fundraising activitiesInformation collected during fundraising activities
Canada: PIPEDA; US: Safe Harbor LegislationCanada: PIPEDA; US: Safe Harbor Legislation ““Commercial Activity means any particular Commercial Activity means any particular
transaction, act or conduct or any regular course of transaction, act or conduct or any regular course of conduct that is of a commercial character, including conduct that is of a commercial character, including the selling, bartering or leasing of donor, the selling, bartering or leasing of donor, membership or other fundraising lists”membership or other fundraising lists”
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Potential LiabilitiesPotential Liabilities
Director’s liabilitiesDirector’s liabilities Source deductionsSource deductions G.S.T. \ Sales taxesG.S.T. \ Sales taxes Certain wages due to employeesCertain wages due to employees Breach of statutory obligationsBreach of statutory obligations
Filing annual returns, tax returns, etc.Filing annual returns, tax returns, etc. Breach of common-law obligationsBreach of common-law obligations
CARE, SKILL, PRUDENCE, DILIGENCE, CARE, SKILL, PRUDENCE, DILIGENCE, HONESTY, AND GOOD FAITHHONESTY, AND GOOD FAITH
Exceeding authority in bylawsExceeding authority in bylaws
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Liability SolutionsLiability Solutions
IncorporateIncorporate Unincorporated association means potential Unincorporated association means potential
liability for individual membersliability for individual members Insurance cannot cover everythingInsurance cannot cover everything
InsuranceInsurance Blanket liability and/or specified perilsBlanket liability and/or specified perils Motor vehicle (excess)Motor vehicle (excess) Directors’ liabilityDirectors’ liability HealthHealth
Students, exchange membersStudents, exchange members Have a broker do an insurance reviewHave a broker do an insurance review
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Liability SolutionsLiability Solutions Weekly meetingsWeekly meetings
Insure location has insuranceInsure location has insurance Is it wheelchair accessible?Is it wheelchair accessible?
Rotarians and host families who interact Rotarians and host families who interact with students and exchange memberswith students and exchange members Should be screenedShould be screened Consider police checksConsider police checks Should there be training?Should there be training?
How to handle difficult casesHow to handle difficult cases Alcohol issuesAlcohol issues Should they enter into a “contract”?Should they enter into a “contract”? Should you ever be one-on-one?Should you ever be one-on-one?
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Liability SolutionsLiability Solutions
Structural safeguardsStructural safeguards Don’t leave coat check, valuable Don’t leave coat check, valuable
equipment, etc. unattendedequipment, etc. unattended Policy issuesPolicy issues
Code of conductCode of conduct State unequivocally principles of mutual State unequivocally principles of mutual
respect, zero tolerance of harassment, etc.respect, zero tolerance of harassment, etc. Fixed term contracts for employeesFixed term contracts for employees Make sure Revenue Canada is paid first, Make sure Revenue Canada is paid first,
employees secondemployees second
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Liability SolutionsLiability Solutions
Careful of the contracts you take onCareful of the contracts you take on Understand how contracts and Understand how contracts and
cheques are to be signed:cheques are to be signed: ““Your Rotary Club Inc.Your Rotary Club Inc.
Per: PresidentPer: President
Per: Treasurer”Per: Treasurer”
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Liability SolutionsLiability Solutions
Director’s liabilityDirector’s liability InsuranceInsurance
None available for environmental issues!!None available for environmental issues!! Indemnity clause in bylawsIndemnity clause in bylaws Annual ratification motionAnnual ratification motion Stay within authority of bylawsStay within authority of bylaws Understand director’s obligationsUnderstand director’s obligations
Get a lawyer to do a session for youGet a lawyer to do a session for you Declare conflicts of interestDeclare conflicts of interest Watch statutory obligationsWatch statutory obligations
Remittances, annual returns, environmentRemittances, annual returns, environment Not just for your CV: Read your materials! Go to Not just for your CV: Read your materials! Go to
meetings!meetings!
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Liability SolutionsLiability Solutions
Report environmental issues, if they happenReport environmental issues, if they happen Deal with harassment issues immediatelyDeal with harassment issues immediately Deal with Human Rights issues immediately Deal with Human Rights issues immediately Have a lawyer do a “liability check-up”Have a lawyer do a “liability check-up” Do a “privacy check-up”Do a “privacy check-up”
Are your databanks secure?Are your databanks secure? Electronic and paperElectronic and paper
Are your files secureAre your files secure Members’ financial informationMembers’ financial information
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FORBES ROTH BASQUEFORBES ROTH BASQUEL A W Y E R S - A V O C A T SL A W Y E R S - A V O C A T S
P.O. Box 480P.O. Box 480
Suite\Pièce 300 – 814 MainSuite\Pièce 300 – 814 Main
Moncton (N.B.)Moncton (N.B.)
E1C 8L9E1C 8L9
Tel: 506 857 4880Tel: 506 857 4880
Fax: 506 857 0151Fax: 506 857 0151
grbasque@forbesrothbasque.nb.cagrbasque@forbesrothbasque.nb.ca