Hi, thanks everyone for replying. We have been told innumerable times that we could not change the status of the application, our lawyer told us we could not apply under common law on an outland application if he was living here but she also said and did many other incorrect things. Sigh.
This has become messy and complicated but I think it's worth attempting the ADR/IAD and it the ARD gets rejected then we reapply. This process has shown me that we are already, in our hearts, already wedded and that the piece of paper is far less traumatic to live with than living apart. We became engaged and have decided to proceed with the marriage regardless of Immigration as that is what is now right for us.
Some of the utilities were set up by him (phone service, internet) and in his name but we changed those so as not to violate the law. He has a spousal credit card, in on and uses my medical benefits and is my policy beneficiary. I have family and friends who can state that he has been living here.
I'm thinking that that a very unnecessary, costly and only marginally valuable lesson has been learned.
Yes, I think the refusal is based on false information from an unscrupulous lawyer and, because of that, I think that proving the relationship is a commitment is worth the ADR process.
There is something in the (appeal) letter that frightens me due to my lack of understanding:
"If the Appeal Division finds that an applicant is not a member of the family class, the Appeal Division will not have jurisdiction to consider the appeal."
How is that possible? How is the IAD to determine that he is family class until after considering the appeal? I´m not wording this well at all but it seems like a catch-22, and not in our favor. I think the relationship being valid is easily provable but I still don´t understand how the Appeal Division can find that an applicant is not a member of the family class, before considering the appeal and so not have jurisdiction to consider the appeal.