What Are the Key Stages in a Legal Conflict for Canadian Charities?

Conflicts happen in all organizations, including charities. When a disagreement gets serious, it might lead to a legal conflict. Understanding the stages of a legal conflict can help your charity navigate the process better. Here’s a clear and detailed guide on the key stages of a legal conflict for Canadian charities.

1. Pre-Litigation/Investigation

Before going to court, a conflict usually starts with an event or disagreement. It’s often easier, quicker, and cheaper to solve the issue without legal action. For example, if the dispute is over a sum of money less than $10,000, legal action might cost more than resolving the issue out of court.

Steps to Take in Pre-Litigation:

1. Cease and Desist or Demand Letter:
   • Have a charity lawyer write and send a letter to the other party. This gives them a chance to correct their actions before going to court.
   • This step shows that your charity tried to solve the conflict.
2. Record Keeping:
   • Save all written communications, such as emails, text messages, and letters.
   • These records can be crucial later in the process.

2. Pleadings

If the conflict cannot be resolved out of court, the next step is filing a lawsuit. The process begins with the plaintiff (the person bringing the lawsuit) filing a complaint.

Key Components of Pleadings:

1. Filing a Complaint:
   • The complaint is written by a lawyer and includes the facts of the case, the harm done, the laws broken, and the desired outcome.
2. Defendant's Response:
   • Motion to Dismiss: The defendant can request the dismissal of the case on grounds such as the non-violation of the law or the late filing of the complaint.
   • Filing an Answer: If the motion to dismiss is not filed, the defendant must respond to each allegation in the complaint.

3. Discovery

After pleadings, the court sets a deadline for the discovery phase. Discovery is the process of gathering information from the other party and can be long and detailed.

Types of Discovery Methods:

1. Depositions:
   • Live questioning under oath (often done via video conferencing platforms like Zoom, Google Meet, or Microsoft Teams).
2. Requests for Digital Information:
   • Asking for emails, texts, and social media messages.
3. Interrogatories:
   • Written questions that must be answered under oath.
4. Requests for Admissions:
   • Asking the other party to confirm or deny facts of the case.
5. Witness Information:
   • Gathering information from witnesses which can be crucial for building a case.

4. Settlement

Many cases reach a settlement before going to trial. Settlements can provide a quicker, less risky, and less costly resolution. They can also be less stressful, avoiding the publicity of a trial.

Settlement Process:

1. Proposing a Settlement:
   • One party proposes a resolution amount and justifies it based on the case facts and their argument.
2. Negotiation:
   • The parties negotiate directly or through a mediator.
3. Final Agreement:
   • Once a settlement is agreed upon, it is final and cannot be appealed.

5. Trial or Summary Judgment

If a settlement isn’t reached after discovery, the case may go to trial or one party may file a motion for summary judgment.

Trial Process:

1. Summary Judgment:
   • A request for the court to rule without a trial if the facts are clear and the law favors one side. Some claims may be resolved this way while others go to trial.
2. Trial:
   • Both parties present their evidence and arguments in court.
   • The trials can be presided over by either a judge or a jury, based on the specific circumstances.

Navigating a legal conflict with your charity can be complex, but understanding these stages can help your charity prepare and respond effectively. Each conflict is unique, so having experienced legal counsel is essential. If your charity faces a legal issue, consult an experienced lawyer who specializes in charity law to guide you through the process and advocate for your interests.

By understanding these stages and preparing accordingly, your charity can handle legal conflicts more efficiently and focus on fulfilling its mission.

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