Carpenter v. Whistler & Down

Carpenter v. Whistler & Down

The FMCA applies to the U.S. dollar components of the award and requires pre-judgment interest to be calculated using the foreign prime rates described in the Regulations (IMF Table 60p); the defendants failed to demonstrate the 'compelling circumstances' required by s.2(2)(b) to justify displacing the prescribed rates, and failure to plead the FMCA does not preclude its application.

Citation
2005 BCSC 296
Parties
Plaintiffs: Kenneth Carpenter and Janice Carpenter; Defendants: Whistler Air Services Ltd. & David B. Down
Court
Supreme Court of British Columbia
Jurisdiction
Canada
Judgment Date
4 March 2005
Procedural Posture
Civil Damages (foreign Currency) / Supplementary Reasons for Judgment on Pre Judgment Interest Calculation
Outcome
Application granted in part: FMCA and Regulations govern calculation of pre-judgment interest on the U.S. dollar components; defendants' requests to restrict to COIA rates or to substitute a corrected rate denied; plaintiff awarded costs of the application.
Legal Topics
Pre Judgment Interest, Foreign Money Judgment, Foreign Money Claims Act, Court Order Interest Act, Interest Rate Calculation, Regulatory Rates (imf Table 60p)
Source Language
English
Civil Procedure Tort and Damages Statutory Interpretation Foreign Currency Judgments Pre Judgment Interest Foreign Money Judgment Foreign Money Claims Act Court Order Interest Act +2 more

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Parties

Kenneth Carpenter and Janice Carpenter

Plaintiffs

Whistler Air Services Ltd. & David B. Down

Defendants

Procedural Posture

Civil Damages (foreign Currency) / Supplementary Reasons for Judgment on Pre Judgment Interest Calculation

Legal Issues

  1. 1 Whether the Foreign Money Claims Act (FMCA) applies to calculation of pre-judgment interest on damages measured in a foreign currency
  2. 2 Whether the plaintiff is restricted to Court Order Interest Act (COIA) rates because COIA was pleaded
  3. 3 Whether s.2(2)(b) of the FMCA permits displacing the prescribed foreign rate where its application would be 'unjust'

Ratio Decidendi

The FMCA applies to the U.S. dollar components of the award and requires pre-judgment interest to be calculated using the foreign prime rates described in the Regulations (IMF Table 60p); the defendants failed to demonstrate the 'compelling circumstances' required by s.2(2)(b) to justify displacing the prescribed rates, and failure to plead the FMCA does not preclude its application.

Court Disposition

Application granted in part: FMCA and Regulations govern calculation of pre-judgment interest on the U.S. dollar components; defendants' requests to restrict to COIA rates or to substitute a corrected rate denied; plaintiff awarded costs of the application.

Orders

  • Pre-judgment interest on the U.S. dollar portion of the award (totaling US$158,000) shall be calculated in Canadian dollars pursuant to the Foreign Money Claims Act and Foreign Money Claims Regulation using the foreign prime rates published in Table 60p of the International Monetary Fund.
  • Defendants' request to calculate interest under the Court Order Interest Act Registrar rates or to substitute a corrected rate is dismissed.