The Court held the CBC’s refusal to pay interest was unreasonable in law: the statutory/regulatory scheme and established administrative policy constrain the corporation’s discretion; unilateral withholding of principal and interim payments pending litigation does not justify indefinite delay and does not create a right to set-off sufficient to avoid late payment supplements; the Federal Court’s quashing of the CBC’s refusals and direction to re-examine LPS claims was correct and is upheld.
The Federal Court quashed refusals by the Montreal Port Authority and CBC to pay late payment supplements on PILT amounts and remitted the matters for redetermination.
Payments in lieu of taxes (pilt)
Late payment supplements (lps)
Judicial review and reasonableness standard
Statutory interpretation of s 3(1.1)-(1.2) of the payments in lieu of taxes act
Application of interest and administrative charges regulations