Legal in AB

AB Legal Intel

Monday, June 8, 2026
4 min read
15 stories

Welcome to your daily briefing on legal developments in AB. Today we're covering 15 key stories including updates on alberta legal headlines, alberta legal updates, background & context. Let's dive in.

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3

Background & Context

3 stories

3.1

The IOLTA mistake that ends careers.

Client trust funds and the firm's operating funds must never commingle, even temporarily, even with the intent to "fix it later." Bar audits look for two things first: (1) any check or transfer that touches both accounts, (2) negative balances on any specific client's ledger. Both are presumptive misappropriation regardless of intent.

Why It Matters

Trust-account violations produce some of the harshest discipline in professional regulation, including suspension and disbarment. The technicality has no defense based on good intentions.

3.2

Arbitration clauses that survive judicial review.

Arbitration clauses are most often struck down for procedural unconscionability — surprise placement, font that hides them, or no opportunity to negotiate — rather than substantive issues. A clause that is conspicuous, separately initialed, and accompanies a clear written notice of waiver of jury trial survives review in most jurisdictions.

Why It Matters

A void arbitration clause means the dispute lands in court, often with discovery and jury exposure that the clause was meant to prevent. Drafting discipline at contract formation is cheap; defending the clause years later is not.

3.3

Why your non-compete clause may be unenforceable in AB.

Enforceability of employee non-competes varies dramatically by state and is trending toward narrower enforcement nationally. Common defects include geographic scope broader than the employer's actual market, duration longer than necessary to protect a legitimate interest, and lack of consideration beyond continued employment.

Why It Matters

An overbroad non-compete is often unenforceable in its entirety, not just blue-penciled down — meaning the employer gets no protection at all. A narrower, defensible clause protects more than an aspirational one.

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Issue Summary

DateJun 8, 2026
Stories15
Sections3
Read Time4 min
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