Offices in Ottawa and Perth
(613) 722-1500

CONTACT US (613) 722-1500

Change in Pre-Judgment Interest Determined to be Retroactive

Change in Pre-Judgment Interest Determined to be Retroactive

Mann Lawyers

Posted April 27, 2015

We blogged about the change in the pre-judgment interest rate last month. As of January 1, 2015, the Insurance Act was amended to provide that the 5% pre-judgment rate set out in the Rules of Civil Procedure does not apply in motor vehicle accident cases. As a result, pre-judgment interest on general or non-pecuniary damages in motor vehicle accident cases will now be based on the rate that applies to all other damages. That rate is presently 1.3%.

A question arose as to whether the change was intended to be retroactive, that is, whether it was intended to be applied to motor vehicle accidents that occurred before January 1, 2015. The recent decision in Cirillo v. Rizzo has answered that question, at least for now. The court, in that case, concluded that while entitlement to pre-judgment interest is a substantive right (akin to the right to sue, for example), the mechanism for determining the amount of pre-judgment interest in a particular case is procedural in nature. Procedural amendments are presumed to apply retroactively and the court found that the change in the pre-judgment interest rate was intended to apply to all motor vehicle accident cases regardless of the date of the accident.

More Resources

Blog |
Family Law

By: 

Posted November 29, 2022

When a Court is charged with structuring a parenting arrangement leading up to trial, the bench is often faced with conflicting and untested evidence about[...]
Blog |
Employment, Labour, and Human Rights

By: 

Posted November 24, 2022

The Employment Standards Act, 2000, “ESA” has been amended to require that Ontario employers create an electronic monitoring policy per the requirements of Bill 88,[...]
Blog |
Commercial Litigation

By: 

Posted November 22, 2022

In Ontario, the Small Claims Court offers parties a more expedient, cost-effective process for litigating smaller value claims, in comparison to the processes of the[...]
Blog |
Business Law

By: 

Posted November 14, 2022

Private corporations governed under the Canada Business Corporations Act (“CBCA”) will soon be required to report certain information about individuals with significant control directly to[...]
Blog |
Environmental Law

By: 

Posted November 8, 2022

Biodiversity is immensely important to our ecosystem.  Species at risk face considerable threat to their continued existence, much of which results from human harm to[...]
Blog |
Estate Litigation, Wills, Trusts and Estates

By: 

Posted November 1, 2022

Disputes over funeral and burial arrangements can arise after the death of a loved one. These disputes may involve disagreements over the funeral arrangements, including[...]

Subscribe to Our Newsletter

"*" indicates required fields

Name*
Consent*
This field is for validation purposes and should be left unchanged.