Supplementary reasons on pre-judgment interest for defamation damages. The court awarded interest on general and punitive damages and excluded aggravated damages.
The Court awarded pre-judgment interest at Registrar rates and decided several costs issues after trial, including double costs for Continental’s unaccepted offer.
Leave to appeal the costs decisions was refused because the trial judge properly exercised his discretion; however Zesta was entitled to pre-judgment interest on the damages award against Christie and his company from the date of conversion at the rate of 4%, and Zesta was awarded modest appellate costs of $5,000 inclusive.
The court directed procedures and limited remedies consistent with the main judgment: a consenting insolvency practitioner may be appointed by filing consent and a conforming draft order; Mr. Horwich is to have a first charge and be paid by the receiver; Michael Casey was appointed as referee (subject to consent) limited to accounting for revenues and expenses under the R.W. Armstrong contract; third-party disclosure is to be left to the referee's motion and judgment; respondents must produce statements within prescribed deadlines and communications with the referee must include all parties;…
Defendants were largely successful; tariff assessment using Scale 2 with 19 trial days produced $54,750 which the court reduced by 10% to reflect plaintiff's limited success resulting in $49,275; disbursements substantiated and adjusted to $27,111.57 after specific disallowances and proportional reductions; pre-judgment interest limited to four years at 2.5% because plaintiff caused undue delay by persisting in claims inconsistent with earlier sworn statements and conduct; return of $25,000 paid into court ordered to defendants; plaintiff awarded $10,000 damages with interest for four years.
The Court of Appeal will not interfere with the trial judge's discretionary award of costs and determination of pre-judgment interest because the judge applied correct legal principles, considered the parties' submissions (including the principle of substantial contribution), and his exercise of discretion was not plainly wrong; therefore both the appeal and cross-appeal are dismissed and each party bears its own costs in this Court.
Supplementary reasons on fiduciary-duty damages, interest, and punitive damages. The court fixed general damages at $195,000, declined to reduce interest, and limited RBC’s punitive liability.
Majority held Crown was negligent in failing to terminate and/or restrict H. after serious complaints in July 1976, that negligence was a proximate and reasonably foreseeable cause of the subsequent abuse (discoverability did not negate causation), aggravated damages against Crown were not supported by evidence of malice and were deleted, punitive damages were appropriate against Crown on managerial recklessness/complicity grounds and awarded by majority, pre-judgment interest is payable from discoverability (November 1992), and costs and awards were adjusted accordingly.