Offices in Ottawa and Perth
(613) 722-1500

CONTACT US (613) 722-1500

Share on twitter
Share on facebook
Share on linkedin

Change in Pre- Judgment Interest: Retroactive or Not?

Share on twitter
Share on facebook
Share on linkedin
Share on email

Change in Pre- Judgment Interest: Retroactive or Not?

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 |
Employment, Labour, and Human Rights

By: 

Generally, the Employment Standards Act, 2000 (“ESA”) has been interpreted to protect non-unionized employees from “temporary” lay offs unless their employment contract permits such a[...]
Blog |
Business Law

By: 

Posted October 20, 2021

On October 19, 2021, the new Ontario Business Registry System launched. This new online registry now enables businesses and not-for-profit corporations to directly access services[...]
Blog |
Environmental Law

By: 

Posted October 14, 2021

In the decision of Greenpeace Canada (2471256 Canada Inc. v. Ontario (Minister of the Environment, Conservation and Parks), 2021 ONSC 4521, released September 3, 2021,[...]
Blog |
Employment, Labour, and Human Rights

By: 

Posted October 1, 2021

This blog continues our exploration of the potential employment law consequences stemming from the degree of control a party exerts within a variety of business[...]
Blog |
Personal Injury

By: 

Posted September 27, 2021

Personal Injury lawyers and their clients are all too familiar with the carnage and suffering caused by impaired drivers.  Canada has the worst rate of[...]
Blog |
Bankruptcy and Insolvency, Business Law

By: 

Posted September 24, 2021

As is noted by the Court of Appeal in McEwen (Re), released August 12, 2021, referred to here as “Traders”, the BIA is a complete[...]

Subscribe to Our Newsletter

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