S.M. 1986-87, c. 39
The Judgment Interest and Discount Act
(Assented to September 10, 1986)
HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Manitoba, enacts as follows:
In this Act
"bank rate" means the minimum rate at which the Bank of Canada makes short-term advances to the chartered banks; ("taux d'escompte")
"future damages" means damages to compensate for pecuniary losses to be incurred or expenditures to be made after judgment is delivered in a proceeding; ("dommages-intérêts futurs")
"judgment" means a judgment of a court for the payment of money or a judgment that money is owing and includes an order of a court, but does not include a judgment or order imposing a fine or penalty
(i) for committing an offence against an enactment of Canada or Manitoba, or
(ii) for being in contempt of a court or of any order or judgment of a court; ("jugement")
"prejudgment interest rate" in respect of a quarter means, subject to subsection 2(2), the bank rate at the end of the first day of the quarter, rounded off to the nearest. 5%; ("taux d'intérêt antérieur au jugement")
"principal sum" means the money value of a judgment prior to the awarding of interest under this Act or the discounting of the judgment in accordance with this Act; ("capital" )
"quarter" means the 3-month period beginning January 1, April 1, July 1 or October 1 in any year; ("trimestre")
"special damages" means expenses incurred or income lost before judgment is delivered in a proceeding. ("dommages-intérêts spéciaux")
Publication of prejudgment interest rate.
After the first day of each quarter, the registrar of the Court of Queen's Bench shall
(a) determine the prejudgment interest rate for the quarter; and
(b) cause to be published in the gazette
(i) during the first 10 years after this Act comes into force, a table showing the prejudgment interest rate determined pursuant to clause (a) and the prejudgment interest rate for each preceding quarter since the coming into force of this Act,
(ii) during any subsequent year, a table showing the prejudgment interest rate determined pursuant to clause (a) and the prejudgment interest rate for each quarter during the preceding 10 years.
Initial prejudgment interest rate.
The prejudgment interest rate for the quarter beginning July 1, 1986 is 9% per annum.
Subject to the other provisions of this Act, a court which delivers a judgment shall award the person receiving the judgment interest on the principal sum, at the prejudgment interest rate in effect for the quarter during which the loss or damage in respect of which the judgment is awarded occurred, which interest shall be calculated without compounding from the date of the loss or damage to the date the judgment is delivered.
Where any part of the principal sum was paid into court before judgment in satisfaction of the claim and was not accepted by the person who has been awarded the judgment, the court shall award interest on that part of the principal sum, at the prejudgment interest rate in effect for the quarter during which the loss or damage in respect of which the judgment is awarded occurred, which interest shall be calculated without compounding from the date of the loss or damage to the date the money was paid into court.
For purposes of making an award pursuant to subsection (1) or (2), where any part of the principal sum is compensation for special damages, all the special damages shall be deemed to have occurred on the date of the original loss or damage in respect of which the judgment is awarded.
For purposes of making an award pursuant to subsection (1) or (2), where any part of the principal sum is compensation for non-payment of money owing under a contract and the money became payable on a date other than the date of the loss or damage in respect of which the judgment is awarded or the contract specifies a date on which interest for non-payment begins to accrue, the court
(a) shall award interest on that part of the principal sum at the prejudgment interest rate in effect for the quarter during which the money became payable or the interest began to accrue; and
(b) shall calculate the interest on that part of the principal sum from the date the money became payable or the interest began to accrue to, as the case may be, the date the judgment is delivered or the money was paid into court.
Where in the opinion of the court, having regard to changes in the bank rate prior to the judgment or the payment of the money into court, it would be unfair to any party to the proceeding to award interest in accordance with subsections (1) to (4), the court may, with respect to all or any part of the principal sum,
(a) award interest at a lower or higher rate than the prejudgment interest rate applicable pursuant to those subsections; or
(b) award interest for a period other than the period, determined pursuant to those subsections.
The court shall not make a specific award of interest pursuant to section 3 in respect of any part of a principal sum that is compensation for non-pecuniary loss or damage but shall, in fixing that part of the principal sum, include appropriate compensation for loss of the opportunity to invest that part of the principal sum between the date of the loss or damage in respect of which the judgment is awarded and the date the judgment is delivered.
Exclusions from principal sum.
When awarding interest under this Act, the court shall exclude from the principal sum
(a) future damages;
(b) exemplary or punitive damages;
(c) any amount by which the liability of any person in the proceeding has been reduced pursuant to section 33 of The Manitoba Public Insurance Corporation Act; and
(d) costs awarded in the proceeding.
Deduction from special damages.
For purposes of calculating an award of interest under this Act, the court shall deduct any amount referred to in clause (1)(c) from the award of special damages in the proceeding.
No interest shall be awarded under this Act
(a) on a judgment given by consent, unless agreed to by the parties; or
(b) where there is a valid agreement between the parties respecting prejudgment interest or compensation; or
(c) where the payment of prejudgment interest or compensation is otherwise provided by law.
It is not necessary to claim interest under this Act in the pleadings of any proceeding.
The amount of any possible award of interest under this Act shall not be considered in determining whether a claim may be dealt with under The Court of Queen's Bench Small Claims Practices Act.
Where any part of a principal sum is compensation for future damages, the court shall discount the value of the future damages by 3%, which is hereby deemed to be the percentage difference between the long-term rate of return on safe, but productive, investments and the long-term rate of general price inflation.
The Crown is bound by this Act.
Subject to section 13, this Act applies to judgments delivered on or after the day this Act comes into force but no interest shall be awarded under any section of this Act, except section 13, for any period prior to that day.
Deemed dates for calculations.
For purposes of applying subsection (1),
(a) any reference in this Act to a quarter preceding the quarter during which this Act comes into force shall be deemed to be a reference to the quarter during which this Act comes into force; and
(b) any reference in this Act to a day preceding the day this Act comes into force shall be deemed to be a reference to the day this Act comes into force.
For purposes of enforcing any judgment, the value of the judgment shall incorporate the value of any interest awarded under this Act and any discounting of the judgment in accordance with this Act.
Interest is payable in all cases in which it is now payable by law or in which it has been usual for a jury to allow it.
On the trial of an issue, or an assessment of damages, upon a debt or sum certain, payable by virtue of a written instrument at a time certain, interest may be allowed from the time when the debt or sum became payable.
When allowable after demand of payment.
Where a debt or sum certain is payable otherwise than by virtue of a written instrument at a time certain, interest may be allowed from the time when a demand of payment was made in writing, informing the debtor that interest would be claimed from the date of the demand.
In actions for the conversion of goods or for trespass de bonis asportatis, the jury, or the judge if the case is tried without a jury, may give interest in the nature of damages over and above the value of the goods at the time of the conversion or seizure, and in actions on policies of insurance may give interest over and above the money recoverable thereon.
This section applies to judgments delivered between July 11, 1985 and the day prior to the day this Act comes into force.
Reference in Continuing Consolidation.
This Act may be referred to as chapter J8 of the Continuing Consolidation of the Statutes of Manitoba.
This Act comes into force on the day it receives the royal assent.