The B.C. Law Society is investigating allegations of overbilling by Liberal Senator Mobina Jaffer and her son for allegedly charging a Catholic missionary order fees of $6.7 million for work they did between 2000 and 2004.

Law society spokesman Brad Daisley said Tuesday an investigation into fees charged by Jaffer and her son Azool Jaffer-Jeraj to the Oblates of Mary Immaculate began three years ago but was put on hold to await the outcome of a lawsuit by the order against the pair.

In 2005 the Oblates launched a B.C. Supreme Court action against them saying they had breached the billing principle with "unreasonably high and unjustifiable" rates of $450 an hour for Jaffer and of $200 an hour for her son who was only called to the bar in 2000.

Some of the billing was in excess of 24-hours a day, it was claimed.

The Oblates had hired the firm Dohm, Jaffer and Jeraj to handle litigation that arose from abuse claims made against members of the order by former residents of Aboriginal residential schools.

Daisley said the suit between the parties has now been "settled amicably" so the law society was able to proceed with its own investigation.

"Often we put our investigations on hold until litigation has been resolved," he said.

Daisley said the investigation was prompted by the documents filed in court.

Investigators will be talking to Jaffer and Jaffer-Jeraj "to get their side of the story", he said.

If the investigation discloses incorrect billing practices it was possible the matter could result in a disciplinary hearing.

"At this stage that's a hypothetical outcome. We are just beginning the investigation," said Daisley.

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Law society opens investigation into Liberal senator's accounts
Last Updated: Monday, January 21, 2008 | 9:24 PM ET
CBC News

Liberal Senator Mobina Jaffer is under investigation by the Law Society of British Columbia for allegedly overbilling one of her legal clients, including charging for 30 hours of work in a single day, CBC News has learned.

Liberal Senator Mobina Jaffer is being investigated for allegedly overcharging one of her clients, who received more than $6 million in legal bills. Liberal Senator Mobina Jaffer is being investigated for allegedly overcharging one of her clients, who received more than $6 million in legal bills.
(Parliamentary website)

Jaffer has been called before the law society to account for more than $6 million in legal bills charged to her former client, a Catholic missionary order known as the Oblates of Mary Immaculate.

Brad Daisley, a spokesman for the law society, said it opened the ethics investigation because "lawyers have a duty of honesty and integrity."

The Oblates, whose B.C. headquarters are based in New Westminster, fired Jaffer and her son, Azool Jaffer-Jeraj, three years ago after receiving bills of $6.7 million. They had hired the Jaffers to defend them against dozens of claims of abuse in residential schools.

The Oblates also sued the Jaffers, saying they billed "for more hours than there are in the day."

CBC News has obtained forensic accounting reports filed during the lawsuit showing that Jaffer, on one occasion, billed 30 hours on a single day. Twenty-seven of those hours were for "finalizing accounts" — which means preparing bills.

Her total bill for that one day was more than $13,000. The total tab for billing alone came to $52,000, according to the reports.

The Jaffers settled the lawsuit out of court in December; however, the law society said the case still requires an investigation.

"On its face, that's out of line," Daisley said when asked about the billing for 30 hours in one day.

Forensic accounting reports show Azool Jaffer-Jeraj, shown here, once billed for 32.4 hours in a day.Forensic accounting reports show Azool Jaffer-Jeraj, shown here, once billed for 32.4 hours in a day.
(The Gold Award Society website)

The accounts obtained by the CBC also showed that Jaffer's son once billed for 32.4 hours in a day, at the end of a week in which he claimed an average of 20 hours of work a day.

Jaffer also appeared to have billed the Oblates for 10 hours of work on Dec. 17, 2003 — the same day she flew to Washington, D.C., to give a speech to the Sudan Forum of the U.S. Institute for Peace, according to the senator's January 2004 newsletter.

The accounts showed that the Jaffers billed multiple times for the same work.

In a letter written to Jaffer's firm, Dohm Jaffer & Jeraj, in 2004, the Oblates said they were "alarmed" at the amount in the bills they had received.

"Because we had no idea whether or not these charges were realistic, we consulted other lawyers that we know," the letter said. "They too found the charges high."

The Oblates, who take a vow of poverty, declined to be interviewed.

Jaffer also refused to discuss the case, saying her settlement with the Oblates is "all confidential."

The CBC's Terry Milewski reported that before settling with the Oblates, both Jaffer and her son were examined under oath. Jaffer said then that billing for more than 24 hours a day was "an error."

Born in Uganda in 1949, Jaffer was appointed to the Senate in 2001 by then-prime minister Jean Chrétien. She sits on numerous committees, including the senate's internal economy, official languages and human rights committees.

Daisley said Jaffer's case is unusual because the law society settles most disputes over lawyers' bills without such an investigation.

"A lawyer has a duty not to charge an excessive fee and a lawyer has a duty of honesty and integrity and the allegations here do raise those issues so it becomes a matter for the law society to look into."

The society's investigation is expected to take months. Potential penalties range from a reprimand to fines or even disbarment.