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Interest is not Interest … When it is a Penalty

Posted in Litigation

The following Canadian Appeals Monitor post by Martin Boodman be of interest to readers of this blog:

Interest is not Interest … When it is a Penalty

In Diamantopoulos v. Construction Dompat Inc., 2013 QCCA 929, a construction contract specified a late payment interest rate of 24% per annum and a legal/collection fees charge of 20% on the amount due. The Québec Court of Appeal characterized these clauses jointly as “penal”, excessive and abusive, and reduced the charges to a single, global interest rate of 15%. The court exercised its discretion under article 1623 C.C.Q., which permits judicial … Continue Reading

“Antrim Truck Centre Ltd. v. Ontario (Transportation)”: When the Value of a Truck Stop Becomes a Public Infrastructure Cost

Posted in Litigation, Municipal

 For 26 years, Antrim Truck Centre Ltd. (Antrim) operated a truck stop on Highway 17. Then in 2004, the Province constructed a new highway, and forever altered Highway 17. No longer could motorists access the truck stop – its business was lost and the market value of its land was permanently impacted. Antrim sought compensation from the Province based on the legal principle of “injurious affection.” And the Supreme Court granted it.[1] It upheld a decision of the Ontario Municipal Board, awarding Antrim $393,000.

The Supreme Court of Canada (Court) set out a legal framework for injurious affection and … Continue Reading