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Legal Blog:
Mar
02
2020
Pre-judgment Interest Rate
Capital One Bank v. Carroll 2019 Ont SCJ (Div’l Ct)
The deputy judge had awarded court prejudgment interest rather than the contractual rate of interest set out in the MasterCard agreement and did so without reasons. The Divisional Court noted that the failure of reasons to explain why there were exceptional circumstances that would justify the refusal to award the contractual rate of interest was an error at law. The court ordered the contractual rate of interest.
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02
2020
Performance Bond
Hoopp Realty Inc v. Guarantee Company of North America 2019 Alta (C.A.)
Court of Appeal confirmed motion judge’s decision that the obligations of a performance bond emanated from both the contractor and the surety. Accordingly, even though the owner had lost its right of action against the contractor because of the expiry of a limitations period, the surety was still liable to the owner. The surety argued that allowing the claim would do indirectly what the owner could not do directly (i.e. although the contractor would not be directly liable to the owner, it would be liable under its indemnification of the surety. The court, by holding that the obligations of the contractor and the surety were coextensive, did not care. It held that when the contractor signed the bond, it exposed itself to liability to the surety for the claims and would not be home free until the owner had no further claims against the surety.
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