Canada Interest Act - Preliminary Background Paper 2007

FOOTNOTES

* I would like to thank Jennifer Babe for her input on this project. I would also like to acknowledge the research assistance provided by University of Western Ontario law students Marie Bruchet, Heather Dawe and Ruth Trask.

[1] R.S.C. 1985, c. I-15 [hereafter Interest Act or Act].

[2] Constitution Act, 1867 (U.K.), 30 & 31 Vict., c. 3, s. 91(19). For a rationale for the inclusion of a federal of interest power see Lynch v. The Canada North-West Land Co. (1891), 19 S.C.R. 204 at p. 212.

[3] S.C. 1880, 43 Vict., c. 42, ss. 1-4 (adding present day ss. 6, 8,10); R.S.C. 1886, c. 127, ss. 1-8 (adding present day ss. 2, 3); S.C. 1897, 60-61 Vict., c. 8 (adding present day s. 4); S.C. 1900, 63-64 Vict., c. 29, s. 1 (reducing default rate to 5%).

[4] J. Ziegel, “Is Canadian Consumer Law Dead?” (1994-95), 24 C.B.L.J. 417 at p. 421.

[5] Mary Ann Waldron, “The Federal Interest Act: It Sure is Broke, But is it Worth Fixin’?” (1997) 29 C.B.L.J. 161 at p. 162.

[6] Search conducted August 3, 2008. The statistic does not include appeals. The number would be higher if appellate decisions were considered.

[7] B. Ziff, Principles of Property Law, 3rd ed., (Toronto: Carswell, 2000) at p. 406.

[8] Interest Act, s. 2 [emphasis added].

[9] Mary Ann Waldron, “The Federal Interest Act: It Sure is Broke, But is it Worth Fixin’?” (1997), 29 C.B.L.J. 161 at p. 174.

[10] J. Ziegel, “Bill C-44: Repeal of the Small Loans Act and Enactment of a New Usury Law” (1981), 59 Can. Bar Rev. 188 at pp. 190-191.

[11] Board of Trustees of Lethbridge Northern Irrigation District v. I.O.F., [1940] A.C. 513 (P.C.); Report on Consumer Credit (Special Joint Committee of the Senate and House of Commons on Consumer Credit and the Cost of Living, February 1967) at pp. 37-38.

[12] R.S.C. 1886, c. 127, s. 1. Asconi Building Corporation and Vermette v. Vocisano, [1947] S.C.R. 358 at p. 369.

[13] See e.g. Asconi Building Corporation and Vermette v. Vocisano, [1947] S.C.R. 358 at p. 369; Board of Trustees of Lethbridge Northern Irrigation District. v. I.O.F., [1940] A.C. 513 (P.C.); Construction St-Hilaire Ltée. v. Immeubles Fournier Inc., [1975] 2 S.C.R. 2; Bank of Nova Scotia v. Dunphy Leasing Enterprises Ltd., [1992] 1 W.W. R. 577 (Alta C.A.) affd [1994] 1 S.C.R. 552; Ontario (Attorney General) v. Barfried Enterprises Ltd., [1963] S.C.R. 570.

[14] [1998] 3 S.C.R. 112 at para 23. See also Metropolitan Trust Co. of Canada v. Twin Grand Developments Ltd. [1995] 10 W.W.R. 576 (Sask. C.A.).

[15] R.S.C. 1886, c. 127, s. 2; S.C. 1858, 22 Vict., c. 85, s. 5.

[16] S.C. 1900, 63-64 Vic., c. 29, s. 1.

[17] Plenderleith v. Parsons (1907), 14 O.L.R. 619 at p. 622 (H.C.). See also British Canadian Loan and Agency Co. v. Farmer (1904), 15 Man. R. 593 (K.B.).

[18] (1987), 38 D.L.R. (4th) 575 (Alta. C.A.) affd [1994] 1 S.C.R. 552

[19] Mary Ann Waldron, The Law of Interest in Canada (Toronto: Thomson, 1992) at p. 80.

[20] [1980] 2 S.C.R. 283 at p. 290.

[21] I.A.C. Ltd. v. Guerrieri (1982), 139 D.L.R. (3d) 352 (Ont. C.A.). See also P.E.I. Potato Marketing Board v. Martin (1983), 44 Nfld. & P.E.I.R. 289 (S.C.); Huber v. Commcorp Financial Services Inc., [1996] 7 W.W.R. 506 (Sask. Q.B.); Toronto-Dominion Bank v. F.G. Connolly Ltd. (1982), 56 N.S.R. (2d) 289 (T.D.); Monashee Petroleums Ltd. v. Pan Cana Resources Ltd. (1986), 70 A.R. 277 (Q.B.) affd on other grounds (1988), 85 A.R. 183 (C.A.); McLeod Young Weir Ltd. v. Nunziata, [1991] O.J. No. 701 (Gen. Div.).

[22] Mary Ann Waldron, The Law of Interest in Canada (Toronto: Thomson, 1992) at p. 82.

[23] [1977] 1 S.C.R. 200 at p. 211 citing Toronto Railway Co. v. City of Toronto, [1906] A.C. 117 (P.C.). See also Pizzey Estate v. Crestwood Lake Ltd. (2004), 236 D.L.R. (4th) 177 (Ont. C.A.).

[24] [1980] 2 S.C.R. 283.

[25] Ibid., at pp. 189-190. See also Merck & Co. v. Apotex Inc (2006) 276 D.L.R. (4th) 686 (F.C.A.) at para. 143.

[26] (2004), 236 D.L.R. (4th) 177 (Ont. C.A.) at para. 37 (Emphasis added).

[27] Mary Ann Waldron, The Law of Interest in Canada (Toronto: Thomson, 1992) at p. 83.

[28] Senate Debates (7 May 1880) at p. 559.

[29] Senate Debates (7 May 1880) at p. 559.

[30] Mary Ann Waldron, “Sections 6 and 7 of the Canada Interest Act: Curiouser and Curiouser” (1984), 62 Can. Bar Rev. 146 at pp. 147-148.

[31] C. Shnier, “Calculated Half-Yearly Not in Advance: An Analysis of Canadian Mortgage Interest Practice” (1987), 42 R.P.R. 21 at pp. 29, 31-32.

[32] House of Commons Debates (31 March 1880) at p. 964.

[33] House of Commons Debates (31 March 1880) at p. 964.

[34] Interest Act, s. 6.

[35] Kilgoran Hotels Ltd. v. Samek, [1968] S.C.R. 3 at p. 5. See also Saskatchewan Co-operative Financial Services Ltd. v. Tarel Hotel Ltd. (1995), 125 Sask. R. 1 (C.A.); Farm Credit Corp. v. Lacombe Nurseries Ltd. (1992), 89 D.L.R. (4th) 732 (Alta. C.A.).

[36] [1917] 2 W.W.R. 18 (Alta. S.C. (A.D.)) revd (1917), 55 S.C.R. 409 cited in Standard Reliance Mortgage Corp. v. Stubbs (1917), 38 D.L.R. 435 at para 4 (S.C.C.). See also London Loan and Savings Co. of Canada v. Meagher [1930] S.C.R. 378; Asconi Building Corporation and Vermette v. Vocisano, [1947] S.C.R. 358.

[37] Mary Ann Waldron, “Can Canadian Commercial Law Be Rehabilitated? A Question of Interest” (1992), 20 C.B.L.J. 357 at p. 365.

[38] [1930] S.C.R. 378 at p. 382. Strict interpretation may be the result of the dire consequences of a breach: no interest. See Mary Ann Waldron, “Sections 6 and 7 of the Canada Interest Act: Curiouser and Curiouser” (1984), Can. Bar. Rev. 146 at p. 178; 504119 Ontario Ltd. v. Income Trust Co., [1990] O.J. No. 1120 (Ont. C.A.); Pittao v. Radovanov (1992), 34 A.C.W.S. (3d) 508 (Ont. Ct. (Gen. Div)).

[39] Canadian Mortgage Investment Co. v. Cameron (1917), 55 S.C.R. 409 at p. 414.

[40] As summarized by Inhat et al. v. Weston et al. (1978), 89 D.L.R. (3d) 595 (Ont. C.A.) at p. 596.

[41] Beechy Savings and Credit Union v. Warwaruk [1993] 1 W.W.R. 765 (Sask. Q.B.) at para. 11.

[42] LexisNexis Quicklaw search July 30, 2007. See also Mary Ann Waldron, The Law of Interest in Canada (Toronto: Thomson, 1992) at p. 101.

[43] G. Mullings and S.P. Shao, Mathematics for Management and Finance (Toronto: Gage, 1979) at p. 418 cited in Mary Ann Waldron, The Law of Interest in Canada (Toronto: Thomson, 1992) at p. 101.

[44] Mary Ann Waldron, The Law of Interest in Canada (Toronto: Thomson, 1992) at p. 101.

[45] See e.g. Re Brown (1928), 61 O.L.R. 602 (S.C. A.D.); Commonwealth Savings Plan Ltd., v. Triangle ‘C’ Cattle Co. Ltd. (1966), 56 D.L.R.(2d) 453 (B.C.C.A.); Edmonton Savings & Credit Union Ltd. v. Trison Developments Ltd. (1988), 90 A.R. 213 (Q.B.).

[46] (1930), 65 O.L.R. 613 (S.C. A.D.).

[47] Ibid., at p. 615. The term has also been considered in Inhat v. Weston (1978), 89 D.L.R. (3d) 595 (Ont. C.A.); Greymac Trust Co. v. Gould (1983), 30 R.P.R. (Ont. S.C. Master).

[48] See Farm Credit Corp. v. Lacombe Nurseries Ltd (1992), 89 D.L.R. (4th) 732 (Alta. C.A.).

[49] [1988] B.C.J. No. 1788 (C.A.).

[50] Ibid., at para 5.

[51] W. Traud, ed, Falconbridge on Mortgages 5th ed. (Toronto: Canada Law Book, loose-leaf) at p. 33-8.

[52] [1968] S.C.R. 3 at p. 5.

[53] Ibid., at p. 6.

[54] Mary Ann Waldron, The Law of Interest in Canada (Toronto: Carswell, 1992) at p. 104; Mary Ann Waldron, “Sections 6 and 7 of the Canada Interest Act: Curiouser and Curiouser” (1984), 62 Can. Bar Rev. 146 at pp. 152-153.

[55] [1975] 1 S.C.R. 266.

[56] Ibid., at para. 4.

[57] See e.g. Xenobar Inc. v. Seel Mortgage Investment Corp. (1993), 33 R.P.R. (2d) 243 (Ont. Ct. (Gen. Div.)) affd [1997] O.J. No. 1384 (C.A.); Saskatchewan Co-operative Financial Services Ltd. v. Tarel Hotel Ltd. (1995), 125 Sask. R. (C.A.); Blerot v. Attorney General of Canada (2001), 203 Sask. R. 73 (C.A.); Paragon Properties (Finance) Ltd. v. Matthews (1996), 185 A.R. 158 (Q.B.); Farm Credit Corp. v. Miller (1992), 126 A.R. 335 (Q.B.); Lacroix v. Bank of Montreal (2004), 28 R.P.R. (4th) 285 (Ont. S.C.J.) at para 17.

[58] House of Commons Debates (31 March 1880) at p. 964.

[59] Mary Ann Waldron, The Law of Interest in Canada (Toronto: Carswell, 1992) at p. 105.

[60] Ibid; Mary Ann Waldron, “The Federal Interest Act: It Sure is Broke, But is it Worth Fixin’?” (1997) 29 C.B.L.J. 161 at p.170.

[61] (1917), 55 S.C.R. 422.

[62] Ibid., at p. 424. See also Lynch v. Elford Estates Ltd. (1986), 6 B.C.L.R. (2d) 69 (S.C).

[63] Mary Ann Waldron, The Law of Interest in Canada (Toronto: Carswell, 1992) at p. 98.

[64] (1917) 55 S.C.R. 422 at p. 426.

[65] Ibid. at pp. 429-430.

[66] [1960] O.J. No. 108 (C.A.). See also McGoran v. Cowan, [1973] 3 O.R. 557 (H.C.J.).

[67] Ibid. Cf. Paragon Properties (Finance) Ltd. v. Matthews, [1996] A.J. No. 323 (Q.B. Master).

[68] Stoodley v. Co-Operative Trust Co. of Canada, [1983] S.J. No. 64 (Q.B.).

[69] Mary Ann Waldron, “Section 347 of the Criminal Code: A Deeply Problematic Law” (Proceedings of the Uniform Law Conference of Canada Annual Meeting, Yellowknife, 2002) at p. 4. See Ontario (Attorney General) v. Barfried Enterprises Ltd., [1963] S.C.R. 570.

[70] Mary Ann Waldron, The Law of Interest in Canada (Toronto: Carswell, 1992) at p. 99- 100.

[71] [1930] S.C.R. 378.

[72] See also Asconi v. Building Corp. and Vermette v. Vocisano [1947] S.C.R. 358; Mutual Finance Corporation v. Jost, [1933] O.W.N. 17 (H.C.J.); Desrochers v. Soules (1956), 6 D.L.R. (2d) 293 (Ont. H.C.J.); Commonwealth Savings Plan Ltd. v. Triangle “C” Cattle Co. (1966), 56 D.L.R. (2d) 453 (B.C.C.A.); Balaji Apartments Ltd. v. Manufacturers Life Insurance Co. (1979), 100 D.L.R. (3d) 695 (Ont. H.C.J.); North America Life Assurance Co. v. Milobar, [1977] A.J. No. 127 (Q.B.); Gilks and Gilks v. Rocca Group Limited (1977), 20 N.B.R. (2d) 1 (S.C.); Vercer Mortgage Investments Ltd. v. Batley (1984), 54 B.C.L.R. 374 (S.C.); Stendel v. Edelman (1990), 30 Q.A.C. 202.

[73] Mary Ann Waldron, “Sections 6 and 7 of the Canada Interest Act: Curiouser and Curiouser” (1984), Can. Bar. Rev. 146 at p. 162.

[74] Mary Ann Waldron, The Law of Interest in Canada (Toronto: Carswell, 1992) at p. 29, 99- 100.

[75] See Reliant Capital Ltd. v. Silverdale Development Corp. (2006), 270 D.L.R. (4th) 717 (B.C.C.A.).

[76] See Chu v. Columbia River Ranches Ltd. (1986), 10 B.C.L.R. (2d) 72 (S.C.).

[77] H. Irwin, “Interest Obligations in Real Estate Transactions: A Researcher’s Guide” (1984), 23 Alta. L. Rev. 204 at p. 213; Mary Ann Waldron, “The Federal Interest Act: It Sure is Broke, But is it Worth Fixin’?” (1997) 29 C.B.L.J. 161 at p. 177.

[78] Mary Ann Waldron, “The Federal Interest Act: It Sure is Broke, But is it Worth Fixin’?” (1997) 29 C.B.L.J. 161 at p. 178.

[79] Senate Debates (28 April 1880) at p. 404.

[80] House of Commons Debates (31 March 1880) at p. 963.

[81] House of Commons Debates (31 March 1880) at p. 963.

[82] House of Commons Debates (31 March 1880) at p. 963.

[83] Reliant Capital Ltd. v. Silverdale Development Corp. (2006), 270 D.L.R. (4th) 717 (B.C.C.A.) at paras. 68-69.

[84] Ibid.

[85] Beauchamp v. Timberland Investments Ltd. (1983), 4 D.L.R. (4th) 485 (Ont. C.A.) at para 12. See also Tomell Investments Ltd. v. East Marstock Lands Ltd. [1975] 1 S.C.R. 974.

[86] [1975] 2 S.C.R. 2

[87] [1975] 2 S.C.R. 2 at para. 12. See also Mastercraft Properties Ltd. v. El Ef Investments Inc. (1993), 14 O.R. (3d) 519 (C.A.) at para. 4.

[88] [2000] 7 W.W.R. 46 (B.C.C.A.) at para. 97; Patrician Land Corp. v. Dillingham Construction Ltd. (1985), 36 R.P.R. 136 (Alta. C.A.) at p. 139; Macdonald v. Muncey [1980] A.J No. 590 (Alta. Q.B. Master) at para. 12.

[89] (2006), 270 D.L.R. (4th) 717 (B.C.C.A.) at para. 53.

[90] Red’s Camp Ltd. v. Red’s Camp (71) Ltd. (1991), 96 Sask. R. 52 at para. 36.

[91] Coupland Acceptance Ltd. v. Walsh, [1954] S.C.R. 90; Beauchamp v. Timberland Investments Ltd. (1983), 4 D.L.R. (4th) 485 (Ont. C.A.); Pacific Playground Holdings Ltd. v. Endeavour Developments Ltd. (2002), 1 R.P.R. (4th) 280 (B.C.S.C.); N.B.Y. Enterprises Inc. v. Duffin, [2006] O.J. No. 982 (S.C.J.).

[92] See Levy v. Booksban, [1931] 2. D.L.R. 1007 (Ont. S.C.); Tapio v. Kajander, [1965] 1 O.R. 431; Glinert v. Kosztowniak (1972), 25 D.L.R. (3d) 390 (Ont. S.C.); Standard Mortgage Co. Ltd. v Naayer, [1978] 5 W.W.R. 385 (Man. Q.B); Parkhill v. Moher (1977), 17 O.R. (2d) 543 (H.C.J.); Dickson v Bluestein (in trust) (1990), 2 O.R. (3d) 131 (Gen. Div.).

[93] Ann Warner La Forest, Anger and Honsberger Law of Real Property, 3rd ed, (Toronto: Canada Law Book, loose-leaf) at p. 33-28; Adams Properties Ltd. v. Sherwood Estates Ltd. (1976), 144 D.L.R. (3d) 562 (B.C.C.A.); Beauchamp v. Timberland Investments Ltd. (1983), 4 D.L.R. (4th) 485 (Ont. C.A.); 459745 Ontario Ltd. v. Wideview Holdings Ltd. (1987), 59 O.R. (2d) 361 (H.C.J.).

[94] N.B.Y. Enterprises Inc. v. Duffin, [2006] O.J. No. 982 (S.C.J.)

[95] B. Ziff, Principles of Property Law, 3rd ed., (Toronto: Carswell, 2000) at p. 407.

[96] (1981), 121 D.L.R. (3d) 150 (Ont. H.C.J.). W. Traub, ed., Falconbridge on Mortgages, 5th ed., (Toronto: Canada Law Book, loose-leaf) at p. 33-14. See also Re Pover, [1984] B.C.J. No. 832 (S.C.); Westbank Warehousing Ltd. v. Van den Heuvel, [1984] B.C.J. No. 224 (S.C.); Chu v. Columbia River Ranches Ltd. (1986), 10 B.C.L.R. (2d) 72 (S.C.); Vohra Enterprises Ltd. v. Creative Industrial Corp., [1988] B.C.J. No. 159 (S.C.).

[97] Paragon Capital Corp. v. 395342 Alberta Ltd. (2004), 350 A.R. 370 (Q.B.); Great-West Life Assurance Co. v. Royal Pacific Hotels Ltd., [1987] B.C.J. No. 2950. L’Industrielle, Compagnie De Gestion Inc. v. Kings Mount Holdings Ltd. (1988), 26 B.C.L.R. (2d) 246 (C.A.).

[98] Reliant Capital Ltd. v. Silverdale Development Corp. (2006), 270 D.L.R. (4th) 717 (B.C.C.A.) at para. 56; 164618 Canada Inc. v. Cie Montréal Trust, [1998] A.Q. No. 3059 (C.A.); Paragon Capital Corp. v. 395342 Alberta Ltd. (2004), 350 A.R. 370 (Q.B.); Dillingham Construction Ltd. v. Patrician Land Corp., (1985) 36 R.P.R. 136 (Alta. C.A.).

[99] Reliant Capital Ltd. v. Silverdale Development Corp. (2006), 270 D.L.R. (4th) 717 (B.C.C.A.) at para. 37.

[100] In contrast to a waiver of interest as in Weirdale.

[101] See e.g. Dillingham Construction Ltd. v. Patrician Land Corp. (1985) 36 R.P.R. 136 (Alta. C.A.); Annis v. Annis [1984] O.J. No. 467 (H.C.J.); Macdonald v. Muncey [1980] A.J. No. 590 (Q.B. Master); T.F.P. Investments Inc. (Trustee of) v. Beacon Realty Co. (1994), 114 D.L.R. (4th) 541 (Ont. C.A.). However, cf. Pemberton Realty Corp Ltd. v. Carter (1975), 58 D.L.R. (3d) 478 (B.C.S.C.); Equirex Leasing Corp. v. Clark, [2005] B.C.J. No. 1974 (S.C.).

[102] Saperstein v. Royal Trust Corp. of Canada (1988), 24 B.C.L.R. (2d) 114 (C.A.).

[103] Mastercraft Properties Ltd. v. El Ef Investments Inc. (1993), 14 O.R. (3d) 519 (C.A.); O’Shanter Development Co. v. Gentra Canada Investments Inc. (1995), 25 O.R. (3d) 188 (Div. Ct.). Cf. Citizens Trust Co. v. Vyas (1996), 2 R.P.R. (3d) 30 (B.C.S.C.).

[104] Canadian Imperial Bank of Commerce v. Sovereign Life Insurance Co. (1997), 35 B.C.L.R. (3d) 1 (C.A.).

[105] First Island Financial Services Ltd. v. 557596 B.C. Ltd., [2002] B.C.J. No. 2318 (S.C.).

[106] N.B.Y. Enterprises Inc. v. Duffin, [2006] O.J. No. 982 (S.C.J.).

[107] 164618 Canada Inc. v. Cie Montréal Trust, [1998] A.Q. No. 3059 (C.A.).

[108] Vancouver City Savings Credit Union v. 535401 B.C. Ltd. (2001), 44 R.P.R. (3d) 274 (B.C.S.C.).

[109] N.B.Y. Enterprises Inc. v. Duffin, [2006] O.J. No. 982 (S.C.J.) at para. 25.

[110] [2000] 7 W.W.R. 46 (B.C.C.A.) at para. 100. See also Reliant Capital Ltd. v. Silverdale Development Corp. (2006), 270 D.L.R. (4th) 717 (B.C.C.A.); Raintree Financial Ltd. v. Bell (1993), 82 B.C.L.R. (2d) 28 (S.C.). Cf. T.D. Trust Co. v. Guinness (1995), 12 B.C.L.R. (3d) 102 (S.C.).

[111] (1995), 12 B.C.L.R. (3d) 102 (S.C.).

[112] Ibid., at para. 20 (emphasis added). See also Langley Lo-Cost Builders Ltd. v. 474835 B.C. Ltd. [2000] 7 W.W.R. 46 (B.C.C.A.) at para. 99; 746628 B.C. Ltd. v. 674566 B.C. Ltd. (2006), 56 B.C.L.R. (4th) 140 (S.C.) at para. 6.

[113] Reliant Capital Ltd. v. Silverdale Development Corp. (2006), 270 D.L.R. (4th) 717 (B.C.C.A.) at 89.

[114] Ibid., at paras. 88-89 citing Langley [2000] 7 W.W.R. 46 (B.C.C.A.) at para. 97.

[115] Mary Ann Waldron, The Law of Interest in Canada (Toronto: Carswell, 1992) at p. 91; Litowitz v Standard Life Assurance Co. (Trustee of) (1996), 30 O.R. (3d) 579 (C.A.) at para. 7.

[116] House of Commons Debates (31 March 1880) at p. 964.

[117] Ibid.

[118] Senate Debates (28 April 1880) at pp. 404-405. Section 10 may also have been a response to the inadequacies of the common law See D. Stevens, “Case Comment: Potash v. Royal Trust Co. (1985), 33 R.P.R. 122 at p. 123

[119] S.C. 1890, c. 34, s. 1. See House of Commons Debates (1 May 1890) at p. 4266.

[120] Litowitz v Standard Life Assurance Co. (Trustee of) (1996), 30 O.R. (3d) 579 (C.A.) at para. 7.

[121] Mary Ann Waldron, “Section 10 of the Interest Act: All the King’s Men” (1988), 13 C.B.L.J. 468 at pp. 473-474.

[122] Alberta Law Reform Institute, Mortgage Remedies in Alberta, Report No. 70, (June 1994) at p. 66.

[123] Mary Ann Waldron, “Section 10 of the Interest Act: All the King’s Men” (1988), 13 C.B.L.J. 468 at p. 473-474; Mary Ann Waldron, The Law of Interest in Canada (Toronto: Carswell, 1992) at pp. 91-92; Potash v. Royal Trust Co., [1986] 2 S.C.R. 351 at para.13.

[124] [1986] 2 S.C.R. 351.

[125] Ibid., at para. 32.

[126] Ibid., at para. 43.

[127] Ibid., at para. 43.

[128] Litowitz v. Standard Life Assurance Co. (Trustee of) (1996), 30 O.R. (3d) 579 (C.A.) at para. 8.

[129] Mary Ann Waldron, The Law of Interest in Canada (Toronto: Carswell, 1992) at pp. 92-93. See e.g. 233467 B.C. Ltd. v. Montreal Trust of Canada (1994), 115 D.L.R. (4th) 124 (B.C.C.A.).

[130] Litowitz v. Standard Life Assurance Co. (Trustee of) (1996), 30 O.R. (3d) 579 (C.A.).

[131] Ibid., at para. 14.

[132] Ibid., at para 15.

[133] Ibid., at para 11.

[134] Ibid.

[135] Pedahbun Lodge v. Canada Mortgage and Housing Corp, [2007] O.J. No. 135 (S.C.J.).

[136] Litowitz v. Standard Life Assurance Co. (Trustee of) (1996), 30 O.R. (3d) 579 (C.A.). See also Sachs v. Manufacturers Life Insurance Co. (2000), 33 R.P.R. (3d) 305 (Ont. S.C.J.).

[137] S.C. 1897, 60-61 Vict., c. 8., s. 2.

[138] The default rate established in 1897 was 6%. This was reduced to 5% in 1900. S.C. 1900, 63-64 Vict., c. 29, s.1.

[139] House of Commons Debates (16 June 1897) p. 4253. See also Senate Debates (3 June 1897) at p. 461.

[140] Senate Debates (8 June 1897) at p. 525.

[141] Senate Debates (8 June 1897) at p. 521.

[142] House of Commons Debates (16 June 1897) at p. 4255.

[143] Ibid.

[144] T.N.T. Canada Inc. v. Parmalat Dairy and Bakery Inc., [2004] O.J. No. 74 (S.C.J.) at para. 145; Elcano Acceptance Ltd. v. Richmond, Richmond, Stambler and Mills (1991), 3 O.R. (3d) 123 (C.A.).

[145] Mitsui & Co. Ltd. v. Ocelot Industries Ltd., [1986] 3 W.W.R. 337 (Alta. C.A.) at para. 6.

[146] [1985] 1 S.C.R. 271 at p. 287.

[147] Ibid.

[148] Elcano Acceptance Ltd. v. Richmond, Richmond, Stambler and Mills (1991), 3 O.R. (3d) 123 (C.A.) at para. 4.

[149] Niagara Air Bus Inc. v. Camerman (1991), 3 O.R. (3d) 108 (C.A.).

[150] Re Bearcat Explorations Ltd. (2004), 368 A.R. 339 (Q.B.) (s. 4 not intended to protect sophisticated borrowers); T.N.T. Canada Inc. v. Parmalat Dairy and Bakery Inc., [2004] O.J. No. 74 at para. 149 (no exception for sophisticated parties); Zanny Ltd. v. Vero-Kim Developments Inc. (1994), 47 A.C.W.S. (3d) 160 (Ont. Ct. (Gen. Div.)) (s.4 available to protect corporations and individuals);

[151] See e.g. Kobi’s Cabinets Ltd. v. Canada Permanent Trust Co. (1980), 115 D.L.R. (3d) 256 (Ont. C.A.); Banerjee v. Spilchen (1985), 42 Sask. R. 162 (C.A.); B. & B. Rentals and Sales Ltd. v. Curtis Lee Ltd., [1986] M.J. No. 506 (Q.B.); Industries Super-Métal Inc v. Sécurité, Cie d’assurances générales, (1988) 14 Q.A.C. 74; Golder Associates Ltd. v. Mill Creek Developments (2004), 48 B.L.R. (3d) 241 (B.C.S.C.).

[152] Sunnyside Nursing Home v. Builders Contract Management Ltd., [1990] 5 W.W.R. 289 (Sask. C.A.) at p. 299. See e.g. Cadinha v. Chemar Corp., [1995] B.C.J. No. 755 (S.C.) (Interest expressed as “interest…at the rate of ten per cent per annum calculated on the basis of a 360 day year” has been held to violate s. 4 leaving the lender with the default rate of 5%.).

[153] G. Ross & A. Posno, “Taking an Interest in Interest” (1993), 2 Nat’l Real Prop. L. Rev. 1 at p.8.

[154] Mel Kitzul Ltd. v. John Wilfort Construction Ltd., [1976] A.J. No. 200 (S.C.). Cf. Thomson v. Thomson (1926), 59 O.L.R. 661 (C.A.); Dunn v. Malone (1903), 6 O.L.R. 484 (H.C.J.).

[155] Cruikshank v. Murphy Campbell Co. (1958), 13 D.L.R. (2d) 250 (B.C.S.C.); Re Federal House Furnishings & Outfitters, [1954] O.W.N. 701 (S.C.)

[156] I.A.C. Ltd. v. Guerrieri (1982), 139 D.L.R. (3d) 352 (Ont. C.A.) at para. 17.

[157] Mary Ann Waldron, “Section 4 of the Interest Act: Truth in Lending” (1990), 48 Advocate 697 at p. 698.

[158] [1986] 3 W.W.R. 337 (Alta. C.A.) at paras. 10-12.

[159] Urichuk v. Code Hunter (1986), 68 A.R. 128 (C.A.); Monashee Petroleums Ltd. v. Pan Cana Resources Ltd., (1986), 70 A.R. 277 (Q.B.) affd (1988), 85 A.R. 183 (C.A.); Mansfield Tek Inc. v. Triple Five Corp. (1996), 180 A.R. 268 (Q.B.).

[160] Mary Ann Waldron, The Law of Interest in Canada (Toronto: Carswell, 1992) at p. 109. Industries Super-Métal Inc v. Sécurité, Cie d’assurances générales du Canada (1988), 14 Q.A.C. 74; Aluminex Extrusions Ltd. v. Double “D” Glass Ltd. (1987), 22 B.C.L.R. (2d) 220 (S.C.).

[161] Sunnyside Nursing Home v. Builders Contract Management Ltd., [1990] 5 W.W.R. 289 (Sask. C.A.).

[162] T.N.T. Canada Inc. v. Parmalat Dairy and Bakery Inc., [2004] O.J. No. 74 (S.C.J.) at para. 145; Hyundai Auto Canada v. Computer Associates Canada Ltd., [1999] O.J. No. 384 (Ont. Ct. (Gen. Div.)).

[163] Wilgosh v. Good Spirit Acres Ltd., 2007 SKCA 43 at para 8.

[164] [1992] 1 W.W.R. 577 (Alta. C.A.) affd [1994] 1 S.C.R. 552.

[165] Ibid., at para. 101. See also Mary Ann Waldron, “Does the Consumer Win or Lose? Bank of Nova Scotia v. Dunphy Leasing Enterprises Ltd.” (1992), Can. Bar. Rev. 357. See also Upper Yonge Ltd., Mustang Financial Corp. Ltd. and Auroraborealis Inc. v. Canadian Imperial Bank of Commerce (1990), 75 O.R. (2d) 98 (H.C.J.); Mchugh v. Forbes (1991), 4 O.R. (3d) 374 (C.A.).

[166] [1992] 1 W.W.R. 577 (Alta. C.A.) affd [1994] 1 S.C.R. 552.

[167] Ibid. at para. 101.

[168] Ibid.

[169] Mary Ann Waldron, The Law of Interest in Canada (Toronto: Carswell, 1992) at p. 110-112; Mary Ann Waldron, “The Federal Interest Act: It Sure is Broke, But is it Worth Fixin’?” (1997) 29 C.B.L.J. 161 at pp. 165-166. For a thorough examination the calculation of interest see E. Maynes, S. Pincus, C. Robinson, “Calculating Periodic Interest” (1991), 17 C.B.L.J. 415.

[170] (1994), 118 D.L.R. (4th) 238 (Ont. Ct. (Gen. Div.)) affd (1995), 26 O.R. (3d) 95 (C.A.).

[171] Ibid. at para. 43.

[172] (1981), 33 B.C.L.R. 127 (C.A.); Movsesian v. Saswan Construction Inc. (1991), 7 B.C.A.C. 232 (C.A.); Canadian Fracmaster Ltd. v. Grand Prix Natural Gas Ltd. (1990), 109 A.R. 173 (Q.B.); Tower Paint & Laboratories Ltd. v. Stainco Edmonton (1983), 46 A.R. 229 (Q.B. Master).

[173] (1991), 79 D.L.R. (4th) 154 (Ont. C.A.).

[174] Ibid. at 11.

[175] Blerot v. General Motors Acceptance Corp. of Canada Ltd. (1992), 102 Sask. R. 131 (Q.B.).

[176] (1994), 118 D.L.R. (4th) 238 (Ont. Ct. (Gen. Div.)) affd (1995), 26 O.R. (3d) 95 (C.A.).

[177] Ibid. at p. 256-257.

[178] Prince Albert Co-operative Assn v. Rybka (2006), 289 Sask. R. 92 (C.A.).

Next Annual Meeting

2018 Conference (Centennial)

Delta Hotel

Québec City, QC

August 12 - 16, 2018