Helo Enterprises Ltd. v. Standard Trust Co. (Liquidators of)
- Citation
- [1996] 1 SCR 183
- Status
- Judgment
- Jurisdiction
- Canada
- Court
- Supreme Court of Canada
- Decision
- 21 February 1996
- Posture
- Appeal / Supreme Court of Canada Decision on Appeal From the British Columbia Court of Appeal
- Language
- English
More details
- Court
- Supreme Court of Canada
- Decision
- 21 February 1996
- Posture
- Appeal / Supreme Court of Canada Decision on Appeal From the British Columbia Court of Appeal
- Language
- English
On this page
Professional case brief
Research organized from the available case record
01
Holding and result
Broker's fees paid by mortgagors do not constitute interest and therefore are not included when determining whether an interest rate is criminal; because the interest rate calculated without those fees was not criminal, the mortgage and participation agreements were not void and the Court of Appeal's decision was affirmed; the appeal was dismissed with costs.
Court disposition
Appeal dismissed with costs; judgment of the British Columbia Court of Appeal affirmed.
Orders
- Appeal dismissed with costs.
02
Material facts
Parties
Helo Enterprises Ltd.
Appellant Counsel: David W. Scott; J. A. Donald BohunErnst & Young Inc., Liquidators for the Standard Trust Company in Liquidation
Respondent Counsel: William Kaplan; Scott A. Turner03
Procedural history
Posture
Appeal / Supreme Court of Canada Decision on Appeal From the British Columbia Court of Appeal
04
Questions and positions
Legal issues
- 01
Whether broker's fee paid by mortgagors constitutes 'interest' under applicable law
- 02
Whether broker's fee must be included in calculation of interest rate for criminal liability (usury)
- 03
Whether mortgage and participation agreements are void and unenforceable due to excessive interest
- 04
Whether the British Columbia Court of Appeal's decision should be affirmed
Party arguments
- Applicant
- Appellant argued that broker's fees paid by mortgagors should be treated as interest and included in the calculation of the effective interest rate, rendering the mortgage and participation agreements criminally usurious and therefore void and unenforceable.
- Respondent
- Respondent (liquidators) argued that broker's fees are not 'interest' and therefore are not included in calculating the interest rate; the effective interest rate (calculated without such fees) is not criminal and the agreements are enforceable.
05
Court’s reasoning
Legal principles
- 01
Helo Enterprises Ltd. v. Standard Trust Co. (Liquidators of), [1996] 1 S.C.R. 183
Broker's fees retained by mortgagors are not 'interest' and are excluded from rate-of-interest calculations.
- 02
Helo Enterprises Ltd. v. Standard Trust Co. (Liquidators of), [1996] 1 S.C.R. 183
If the interest rate calculated excluding non-interest charges is not criminal, the agreement is not void for usury.
06
Ratio, limits and disposition
Ratio decidendi
Broker's fees paid by mortgagors do not constitute interest and therefore are not included when determining whether an interest rate is criminal; because the interest rate calculated without those fees was not criminal, the mortgage and participation agreements were not void and the Court of Appeal's decision was affirmed; the appeal was dismissed with costs.
Court disposition
Appeal dismissed with costs; judgment of the British Columbia Court of Appeal affirmed.
- Appeal dismissed with costs.
Source and reliance status
Supreme Court of Canada · 21 February 1996
This page organises the available record for research. Confirm quotations, current status, and subsequent treatment against the official source before relying on the case.
Judgment reading view
Judgment text
The complete available source text.
Supreme Court of Canada
Judgment· 21 February 1996
Helo Enterprises Ltd. v. Standard Trust Co. (Liquidators of) Collection Supreme Court Judgments Date 1996-02-21 Report [1996] 1 SCR 183 Case number 23924 Judges La Forest, Gérard V.; L'Heureux-Dubé, Claire; Sopinka, John; Gonthier, Charles Doherty; McLachlin, Beverley; Iacobucci, Frank; Major, John C. On appeal from British Columbia Subjects Action Priorities and hypothecs Notes SCC Case Information: 23924 Decision Content Helo Enterprises Ltd. v. Standard Trust Co. (Liquidators of), [1996] 1 S.C.R. 183 Helo Enterprises Ltd. Appellant v. Ernst & Young Inc., Liquidators for the Standard Trust Company in Liquidation Respondent Indexed as: Helo Enterprises Ltd. v. Standard Trust Co. (Liquidators of) File No.: 23924. 1996: February 21. Present: La Forest, L'Heureux‑Dubé, Sopinka, Gonthier, McLachlin, Iacobucci and Major JJ. on appeal from the court of appeal for british columbia Mortgages ‑‑ Interest ‑‑ Broker's fees ‑‑ Broker retained by mortgagors and paid for services ‑‑ Broker's fee not interest and not included in determination of rate of interest ‑‑ Interest rate (calculated without fees) not criminal. Interest ‑‑ Meaning of term ‑‑ Broker retained by mortgagors and paid for services ‑‑ Broker's fee not interest. APPEAL from a judgment of the British Columbia Court of Appeal (1993), 87 B.C.L.R. (2d) 118, 39 B.C.A.C. 61, 64 W.A.C. 61, 108 D.L.R. (4th) 415, allowing an appeal
from an order of Hardinge J. declaring mortgage and participation agreements void and unenforceable. Appeal dismissed. David W. Scott and J. A. Donald Bohun, for the appellant. William Kaplan and Scott A. Turner, for the respondent. The judgment of the Court was delivered orally by 1 La Forest J. ‑‑ We are all of the view that the appeal should be dismissed for the reasons given by Southin J.A. in the British Columbia Court of Appeal. The appeal is accordingly dismissed with costs. Judgment accordingly. Solicitors for the appellant: Amicus Law Centre, Victoria. Solicitors for the respondent: Blake, Cassels & Graydon, Vancouver.
Case-aware research
Ask AI about this case
The judgment and available research above are public. New questions open in a separate private conversation grounded in this case.