Legal Blog

Interest Contrary to Interest Act

North Perimeter v. 6625844 Manitoba Ltd. 2021 Man QB

Judge granted an award in favour of general contactor against owner. The general’s invoices specified interest at 1.5% per month. The judge held that the rate did not comply with s. 4 of the Interest Act because it did not translate the monthly rate to a yearly rate (i.e. a monthly rate of 1.5% per month is more than 18% per year), The judge limited the interest to the 5% rate specified in the Act. Ontario law would not have allowed any interest other the CJA interest because nothing in the contract itself dealt with interest.

Written by Jonathan Speigel, the founding partner of Speigel Nichols Fox LLP, leads the litigation and construction practices.