Law Society panel weighs penalties for Diamond

Toronto personal injury lawyer Jeremy Diamond is asking a disciplinary panel to reject the argument that he receive a short suspension for misleading advertising, arguing it would be “unduly harsh” and unfairly impact the 50 other lawyers at his namesake firm.

“A fine … is a serious penalty, is an appropriate penalty and would be proportionate to the misconduct,” his lawyer, Brian Greenspan, argued Tuesday after reiterating that a reprimand, as previously agreed upon with Law Society lawyers, was the most just sanction.

In 2021, Diamond admitted before the disciplinary panel that between 2013 and 2017, he improperly marketed personal injury legal services that he did not provide, failing to disclose “clearly and prominently” that Diamond & Diamond referred thousands of potential clients to other lawyers for fees.

Greenspan and law society prosecutors agreed a reprimand was the most appropriate penalty. But tribunal chair Malcolm Mercer indicated a harsher punishment was warranted. That prompted Diamond to attempt to rescind his plea, triggering more legal proceedings.

On Tuesday, the long-running saga entered the penalty phase.

Prosecutor Tushar Pain suggested to the three-member panel that Diamond receive a “short” suspension in light of the panel’s earlier rejection of a reprimand.

“If not effectively penalized, misconduct of this kind has the potential to encourage misconduct by others,” Pain said.

Holly Chapman, another Law Society prosecutor, told the panel a suspension is a more appropriate penalty than a fine, which could reach a maximum of $100,000 — a “drop in the bucket” for Diamond, who spends millions on advertising. Imposing “just a fine” would also send the wrong message that a licensee who has money can buy his way out of a suspension, she argued.

Greenspan argued that even a 30day suspension could have unintended consequences for the firm’s other lawyers.

It would be next to impossible for Diamond to comply with the Law Society guidelines pertaining to suspended lawyers and paralegals, he said.

Those guidelines require them to cease marketing in any fashion, necessitating the removal even of a door sign.

“These are guidelines for lawyers practising when I began the practice of law, or even before that,” said Greenspan, one of Canada’s best known lawyers, who received his law degree in 1971.

“Attempting to purge Jeremy from the firm’s online marketing would not only be extremely complicated, but the negative impact of doing so on the firm would be profound,” according to an affidavit filed with the Law Society by Diamond’s law partner and wife, Sandra Zisckind.

It would take at least two to three months, at great expense, to ensure his compliance with the applicable guidelines, Zisckind added.

For instance, the firm years ago paid to place advertisements featuring Jeremy in restrooms around the province and “we have no idea how many such ads remain in place, and no obvious way to find out or to have them removed.”