Offices in Ottawa and Perth
(613) 722-1500

CONTACT US (613) 722-1500

Change in Pre- Judgment Interest: Retroactive or Not?

Change in Pre- Judgment Interest: Retroactive or Not?

By:

Mann Lawyers

Posted August 24, 2015

We blogged about the change in the pre-judgment interest rate in March and April of this year.  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 1.0%.

In a recent Ottawa case that is apparently now on its way to the Court of Appeal, Justice Toscano-Roccamo held that the reasoning of the Judge in Cirillo v. Rizzo (which held that the change in rates applied retroactively to accidents before January 1, 2015) was not persuasive and that both entitlement to pre-judgment interest and the specific rate at which interest was calculated was a substantive right that could not be interfered with in a retroactive fashion in the absence of specific statutory language providing the change was to be applied retroactively.  Thus, according to her Honour the change in the interest rate should apply prospectively and only affect persons injured in motor vehicle accidents that occurred after January 1, 2015.

We will have to await the decision of the Court of Appeal for Ontario for a final determination of this question.

More Resources

Blog |
Business Law
By: 

Posted September 25, 2023

This is the second blog addressing the new requirement for private Ontario corporations to maintain a register of individuals with significant control over the corporation[...]
Blog |
Estate Litigation
By: 

Posted September 11, 2023

Losing a loved one is never easy and dealing with the administration of their estate can be a challenging and complex process, no matter the[...]
Blog |
Construction Law
By: 

Posted September 7, 2023

As detailed in another post, Ontario’s Construction Act creates a scheme for the quick resolution of construction disputes via an “interim adjudication”. However, there has[...]
Blog |
Commercial Litigation
By: 

Posted August 29, 2023

Specific performance refers to the Court-ordered remedy that the parties must proceed with completing a real estate transaction. The recent Court of Appeal decision of[...]
Blog |
Estate Litigation
By: 

Posted August 22, 2023

A will is a legal document that outlines a testator’s wishes for the distribution of their property after they die. Section 4(2) of the Succession[...]
Blog |
Business Law
By: 

Posted August 15, 2023

Throughout their small business journey, sole proprietors need to wear a wide variety of hats. On any given day, they can be all at once[...]

Subscribe to Our Newsletter

"*" indicates required fields

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