By David Smith, Partner, Certified Specialist in Corporate and Commercial Law
The Partnerships Act of Ontario permits certain professionals to practice as limited liability partnerships, known by its initials as an ‘LLP’. This is common for accounting and legal firms.
There are currently 16 partners of Barriston LLP. The partnership must register its name under the Business Names Act and comply with insurance requirements mandated by the Law Society of Upper Canada. As the name suggests, the partnership carries on the practice of law with a degree of limited liability. As partners we are not personally liable for the negligent acts of another partner. We are liable only for our own actions and for those whom we supervise and/or control. Each partner is individually insured for professional malpractice.
Notwithstanding the limiting of liability as between the partners, the firm itself continues to be liable for the negligence of all of its partners, associates and employees and, accordingly, there is no reduction or limitation on the liability of the firm as a partnership. All of the firm’s assets remain at risk. Due to the size of our firm and the transactions for which we provide legal services, Barriston LLP carries substantial excess liability insurance coverage.