Canada Case Law

Gagnon v. The King

Court

Tax Court of Canada

The declared dividend was a deliberate, taxpayer‑authored, foreseeable tax planning step and therefore did not constitute an unforeseeable impossibility; the appellants could have relied on the statutory non‑calculation/prior‑year methods to avoid risk; accordingly the assessed arrears interest under s.161(2) and the penalty under s.163.1 (in Mr. Gagnon’s case) were correctly imposed and the appeals are dismissed.

Source excerpt

• Installment payments
• Interest on arrears
• Penalty for deficient instalments
• Foreseeability
• Tax planning

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C.J.H. v. Q.T.

Court

Supreme Court of British Columbia

The court awarded retroactive child support and interest, and allowed limited retroactive s. 7 expenses for C.E.Q.H. and Jason, while disallowing several claimed categories.

• Retroactive child support
• Section 7 expenses (extraordinary/medical)
• Stepchild support
• Interest on arrears
• Parenting/decision-making
• Relocation

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Djuric v. Dellorusso

Court

Supreme Court of Nova Scotia

The court held that substantial child support arrears existed prior to the March 2001 variation order; the 2001 variation order addressed prospective support only and did not expunge pre‑2001 arrears; the Limitations of Actions Act does not bar enforcement of child support arrears; arrears are enforceable because the father failed to prove a material change in circumstances; the court modified accumulated interest: interest at 8% then 7% applied until Jan 1, 2002, thereafter interest accrues only for periods when the variation order was registered for enforcement (no interest during withdrawa…

Source excerpt

• Child support arrears
• Variation order interpretation
• Confirmation of provisional order
• Maintenance enforcement
• Interest on arrears
• Limitation of actions

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Innotech Aviation v. Skylink Express Inc.

Court

Supreme Court of Nova Scotia

Court held that (1) mitigation does not arise because Applicant elected to keep the lease alive and sue for rent; (2) the contractual interest rate of 18% p.a. (1.5% monthly) is enforceable because Respondent led no evidence to show it was unconscionable or a penalty; and (3) clause XII(C) permits recovery of solicitor-client costs in the commercial context and the parties will be held to their bargain subject to the statutory/common law requirement that costs be reasonable and subject to taxation if disputed.

Source excerpt

• Lease breach
• Mitigation
• Liquidated damages vs penalty
• Interest on arrears
• Contractual costs (solicitor-client)
• Taxation of costs

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Woodford v. Horne

Court

Supreme Court of Nova Scotia

The court upheld the parties’ negotiated income calculation in the CRO as the fairest method, held the 2013 class action payment constituted an "extra draw" under the CRO and must be included in the father's 2013 income (father’s income 2013 = 561,972; 2014 = 446,022), declined to impute income to the father for dividends or to the mother for reduced hours (mother’s reduced hours are required for child care/medical needs), found the Table child support amount not inappropriate and ordered that post‑secondary university expenses and the younger child's private school fees are shareable s.7 exp…

Source excerpt

• Variation of corollary relief order
• Calculation of income for child support
• Non‑recurring income
• Imputation of income
• Section 7 expenses
• Table amount deviation

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North Vancouver (District) v. Babyeats

Court

Supreme Court of British Columbia

The court granted summary judgment for the District of North Vancouver on a lease debt claim after the defendants filed no evidence in response to the application.

• Summary judgment
• Lease enforcement
• Set-off defence
• Interest on arrears
• Termination and re-letting
• Costs

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Kennedy v. Kennedy

Court

Supreme Court of British Columbia

Father sought to vary child support arrears after an income drop. The court reduced arrears by one year, cancelled accrued interest, and left the original support order in place.

• Variation of child support
• Arrears reduction/cancellation
• Income imputation
• Guideline income
• Interest on arrears
• Costs

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Jensen v. Jensen

Court

Supreme Court of British Columbia

Child support arrears reduction application dismissed. The court found no gross unfairness in leaving arrears in place, imputed income, refused to cancel interest, and awarded the claimant costs.

• Arrears
• Imputation of income
• Reduction or cancellation of arrears
• Interest on arrears
• Family maintenance enforcement
• Child-support-arrears

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Gluska v. Gluska

Court

Supreme Court of British Columbia

The court cancelled child-support arrears owed before September 1, 2004, but otherwise upheld and recalculated arrears, ordered ongoing support, and set monthly repayment of arrears.

• Variation of support orders
• Arrears cancellation
• Set-off and offsets
• Application of federal child support guidelines
• Enforcement by family maintenance enforcement program
• Interest on arrears

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Director of Maintenance Enforcement v. Timmermans

Court

Supreme Court of British Columbia

The court dismissed an appeal in a maintenance-enforcement dispute, holding that a 2005 German judgment fixed the arrears and left no enforceable balance in B.C. for interest.

• Interjurisdictional support orders
• Maintenance enforcement
• Interest on arrears
• Registration of foreign orders
• Choice of law
• Res judicata

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