Court monitor finds 'no concerns' about Kenora, Ont., lawyer Doug Keshen; complaint hearings continue

The Law Society of Upper Canada will continue its hearings into a Kenora, Ont., lawyer's dealings with residential school survivors into the new year.

Doug Keshen is facing allegations that he violated the Law Society of Upper Canada's guidelines for lawyers acting in residential school cases.

The Law Society of Upper Canada received complaints that Keshen arranged high-interest loans for clients, secured against anticipated residential school settlement funds, which is prohibited by the Indian Residential Schools Settlement Agreement.

Keshen denies that he violated the guidelines. 

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A Superior Court ruling in July revealed that a Court Monitor had "no concerns" about Keshen's competency.

The Monitor's "investigation revealed that the clients had received their full awards and that Mr. Keshen had not received any personal benefit with respect to the loan advances he made or that third party lenders had made. Rather, Mr. Keshen lost money, several thousand dollars, because he simply forgave some of his loans to his clients," Justice J. Perell wrote in his decision.

The court ruling dealt with who should pay for the investigation of Keshen's case. Canada wanted Keshen to pay for the investigation. Keshen argued he should not pay. 

The court ruled there would be no payment of costs to either party.

'Stain of allegations'

Keshen also sought a court order that would release a public statement "clearing the stain of the allegations of wrongdoing." 

"The court is not in the public relations business, and it will be up to the reader of these Reasons for Decision to make their own decision about the Keshen Affair," Justice Perell wrote. "I would anticipate that these Reasons will go some distance in removing the stain on his reputation but that is a by-product and not the purpose of these Reasons for Decision."

Perell also noted that the ruling could not resolve the debate around whether Keshen had violated his professional obligations to the Law Society.

Its hearings into Keshen's conduct began in June. Hearings scheduled for this week were "vacated," according to a spokesperson for the Law Society.

Proceedings will resume Oct. 14-20 in Kenora, with additional dates booked in 2017.