Corpex (1977) Inc. v. The Queen in right of Canada

Corpex (1977) Inc. v. The Queen in right of Canada

Because s.35 of the Federal Court Act bars awarding interest against the Crown absent a contract or statute and the contract did not provide for interest in this case, and because the applicant conceded that under Supreme Court Act s.52 and Federal Court Act s.40 the Crown may pay interest at the Interest Act s.3 rate from the trial judgment date, the proper legal effect is to vary the prior judgment so interest runs from November 20, 1978 (the date of the trial judgment).

Citation
[1982] 2 SCR 674
Parties
Applicant on Re Hearing: Her Majesty The Queen in right of Canada; Respondent on Re Hearing: Corpex (1977) Inc.
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
17 May 1983
Procedural Posture
Motion for Re Hearing (rule 51) / Re Hearing Before Supreme Court of Canada; Motion Granted and Original Judgment Varied
Outcome
Motion for re-hearing granted and prior judgment varied.
Legal Topics
Crown Liability for Interest, Interest on Judgments, Interpretation of Federal Court Act S.35 and S.40, Supreme Court Act S.52, Re Hearing Procedure
Source Language
English
Public Law Contract Law Civil Procedure Government Liability Crown Liability for Interest Interest on Judgments Interpretation of Federal Court Act S.35 and S.40 Supreme Court Act S.52 +1 more

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Parties

Her Majesty The Queen in right of Canada

Applicant on Re Hearing

Corpex (1977) Inc.

Respondent on Re Hearing

Procedural Posture

Motion for Re Hearing (rule 51) / Re Hearing Before Supreme Court of Canada; Motion Granted and Original Judgment Varied

Legal Issues

  1. 1 Whether interest against the Crown should run from date action was instituted or from date of trial judgment
  2. 2 Whether s.35 of the Federal Court Act prohibits awarding interest against the Crown in absence of a contract or statute
  3. 3 Whether the Crown may pay interest under Supreme Court Act s.52 and Federal Court Act s.40 at the rate in Interest Act s.3

Ratio Decidendi

Because s.35 of the Federal Court Act bars awarding interest against the Crown absent a contract or statute and the contract did not provide for interest in this case, and because the applicant conceded that under Supreme Court Act s.52 and Federal Court Act s.40 the Crown may pay interest at the Interest Act s.3 rate from the trial judgment date, the proper legal effect is to vary the prior judgment so interest runs from November 20, 1978 (the date of the trial judgment).

Court Disposition

Motion for re-hearing granted and prior judgment varied.

Orders

  • The November 23, 1982 judgment is varied by substituting the words 'with interest at the rate prescribed in s. 3 of the Interest Act from November 20, 1978, the date of the trial judgment' for the words 'with interest at the legal rate from December 5, 1974'.
  • Applicant shall pay the costs of the motion for a re-hearing and the re-hearing.