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The Law Society of Upper Canada says it will investigate the circumstances surrounding the bankruptcy of X-Copper Services Inc.
The paralegal firm, best know for fighting traffic tickets and impaired driving charges, closed down earlier this year leaving thousands of clients without representation in court.
In a news release the law society says its investigation will "allow us to determine if any disciplinary action is warranted."
Documents obtained by CBC News from Industry Canada in late May showed that X-Copper owed almost $2 million in unpaid debts when it filed for bankruptcy. The company had offices in a number of communities including Toronto, Barrie and Ottawa.
At the time it closed its doors it had about 6,000 to 7,000 active cases in the legal system and each client had paid anywhere from $300 to $1,000 as a deposit, depending on the complexity of the case.
"The law society is also concerned that clients of X-Copper are provided with their legal service. It has been actively recovering client files and other material containing client information. Clients are being guided as to the steps they need to take to guard their legal rights. Law society staff has been assigned to help former clients through the various steps required to obtain new legal representation, to recover their files, or to approach the court to reopen their case," said the news release.
The law society says, among other things, it will try to recover any money "for clients who paid for services they did not receive."
Some believe the bankruptcy of X-Copper is linked to a series of reforms instituted by the Ontario government to regulate the entire paralegal industry.
New rules came into effect in May, imposing licensing and financial requirements on the firms.
The new rules include the establishment of a trust account for clients' money that a paralegal firm cannot access until the work is done.
