Biggs v. Freehold Loan and Savings Co.

Biggs v. Freehold Loan and Savings Co.

The principal sum accelerated by the default clause is not an "instalment in arrear" within the meaning of the printed proviso that imposes nine percent interest on instalments in arrear; absent an express stipulation for interest on the principal after its due date, only the statutory six percent interest is recoverable.

Citation
(1901) 31 SCR 136
Parties
Appellant (plaintiff): Samuel C. Biggs; Respondent (defendant): The Freehold Loan and Savings Company
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
19 February 1901
Procedural Posture
Mortgage / Appeal to Supreme Court of Canada From the Court of Appeal for Ontario
Outcome
Appeal allowed; judgment of the Court of Appeal discharged; judgment entered that only six percent per annum interest is recoverable on the principal after the due date.
Legal Topics
Rate of Interest, Instalments, Construction of Mortgage Provisions, Default and Acceleration, Sale by Mortgagee in Possession
Source Language
English
Priorities and Hypothecs Mortgage Law Contract Law Remedies in Equity Rate of Interest Instalments Construction of Mortgage Provisions Default and Acceleration +1 more

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Parties

Samuel C. Biggs

Appellant (plaintiff)

The Freehold Loan and Savings Company

Respondent (defendant)

Procedural Posture

Mortgage / Appeal to Supreme Court of Canada From the Court of Appeal for Ontario

Legal Issues

  1. 1 Whether the principal sum accelerated by a default clause becomes an "instalment in arrear" under the printed proviso so as to attract a 9% interest charge after the due date
  2. 2 Whether, in the absence of an express stipulation for interest on principal after the contractual due date, a higher contractual rate can be inferred from the form clauses used
  3. 3 Whether compound interest on unpaid instalments or insurance premiums is recoverable under the mortgage wording

Ratio Decidendi

The principal sum accelerated by the default clause is not an "instalment in arrear" within the meaning of the printed proviso that imposes nine percent interest on instalments in arrear; absent an express stipulation for interest on the principal after its due date, only the statutory six percent interest is recoverable.

Court Disposition

Appeal allowed; judgment of the Court of Appeal discharged; judgment entered that only six percent per annum interest is recoverable on the principal after the due date.

Orders

  • Appeal allowed
  • Judgment of the Court of Appeal for Ontario discharged