Client says ex-mayoral candidate owes her $10K
‘It is my expectation that she will get the money that’s owed to her,’ Smith says
Almost one year after former Calgary mayoral candidate Bill Smith’s law practice closed, a client says she’s still owed $10,000 from the sale of her house — a claim the Law Society of Alberta has said it will investigate.
Last March, the law society declared Smith’s firm had been placed under a custodianship order by the Court of Queen’s Bench due to “health concerns” that prevented him from continuing to practise.
At the time, Smith had a number of active files and an open trust account placed in the care of another lawyer, according to court documents.
One of those files belonged to Chiara Fritzler, a Calgary mother who sought out Smith to handle the sale of her Glendale home in January 2018. After selling the home, Fritzler said she’s owed more than $10,000 that was held in trust while the deal was finalized.
“All of a sudden in the spring we heard from (a lawyer) saying, ‘I’m the custodian. Your money is gone. We’re doing everything we can,’” Fritzler recalled. “That was the start of it and since then it’s just been ongoing.”
Through a spokesperson, Smith told Postmedia he was only made aware of the complaint on Monday.
“I have reached out to the law society today to get details,” he said. “It is my expectation that she will get the money that’s owed to her.”
Smith ran an unsuccessful campaign to unseat Mayor Naheed Nenshi in 2017. The former president of the Alberta Progressive Conservative party raised more than $900,000 in the lead-up to the October election that saw him finish second with 44 per cent of the vote.
Four months after the election, Smith sustained a serious concussion in a weightlifting mishap that required hospitalization.
Fritzler said she met once with Smith before communications with his office faded out, apparently due to his injury.
Fritzler added that the loss of the funds was a financial blow for her and her husband, who both suffered job losses in recent years. Fritzler said her husband has since accepted a new, lower-paying job, but that she’s only been able to work sporadically. The stress has been made more acute with the couple welcoming a new baby 10 months ago.
The couple is now awaiting the outcome of the custodian’s review of Smith’s files. She has also filed a financial claim with the law society’s insurance fund.
“We’re absolutely in limbo,” Fritzler said.
Smith is listed as “non-practising” on the Law Society of Alberta website.
A law society spokesperson confirmed Tuesday it is looking into the matter.
“(W)e can confirm that we are currently reviewing Mr. Smith’s conduct as it relates to these allegations,” the society said in a statement.
Reached Monday, the lawyer who has taken over Smith’s practice declined to comment. Eugene Bodnar said the custodianship proceedings could conclude in a matter of weeks.
One of the roles of the custodian is “ensuring that the lawyer’s trust account is reconciled and that trust funds are paid out to the proper owners.”
It’s not yet known what the result of the custodianship proceeding will be. Fritzler and other clients waiting for funds may yet receive payouts from Smith’s trust account once the custodianship is discharged.
Smith came close to having his property seized in 2017 over a defaulted loan worth more than $24,000. At the time, Smith told reporters the default was the result of an oversight, the consequence of moving his law office without updating his banking notifications.
The former lawyer has been in the news most recently for his advocacy of a McMahon Stadium redevelopment project. That proposal envisions a new field house and adjoining practice facility, which would also serve as a new home for the Calgary Stampeders and University of Calgary Dinos.
All of a sudden in the spring we heard from (a lawyer) saying, ‘I’m the custodian. Your money is gone. We’re doing everything we can.