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The court assessed damages after default judgment, awarding US$50,000 for misrepresentation and US$60,750 for breach of contract, with costs at Scale B.
The court assessed damages after default judgment, held no service of the damages application was required on the defaulting defendant, and ordered payment of US$63,825 equivalent in Canadian dollars.
Supplementary reasons on trust remedies, damages, currency and costs after a lengthy trial. The court rejected aggravated and punitive damages, fixed the proceeds award in Canadian dollars, and ordered special and increased costs.
The court awarded costs to the plaintiffs under Tariff A scale 2 totalling $24,250 CAD (set amount $12,250 plus $2,000 per trial day), declined to deduct the $5,000 holdback when calculating costs because the merits award exceeded $90,000 and the holdback was akin to trust funds, refused to reduce tariff costs under Rule 77.07, awarded disbursements of $7,038.89, allowed expert fees subject to limiting one expert's travel claim from six to four charged days, set prejudgment interest at 2.5% for general damages and 5% for special damages and reduced the special-damages base to $35,000 for inte…
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The court held the Foreign Money Claims Act applied to enforcement of a U.S. judgment, requiring conversion into Canadian dollars on the statutory conversion date.
Master Scarth granted pre-judgment interest on $28,000 from November 8, 2002 to September 21, 2007, and post-judgment interest thereafter.
The court held that Rule 37(23) double costs were available by converting the U.S. judgment at the judgment date, not at later payment.
The Court applied Imperial Oil: for the purposes of paragraph 20(1)(f) each element of a computation denominated in foreign currency must be converted to Canadian dollars at the conversion rate in effect on the relevant date; accordingly the appeal is allowed, the Tax Court decision is set aside and the matter is remitted to the Minister for reassessment in accordance with these reasons.
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