This archived statute consolidation is current to December 5, 1994 and includes changes enacted and in force by that date.

Court Order Interest Act

[RSBC 1979] CHAPTER 76

*[See the Note at end of this Act]

Contents
Section
Part 1 — Prejudgment Interest
  1.  Court order interest
  2.  Interest not awarded in certain cases
  3.  Default order
  4.  Payment into court
  5.  Interest included in judgment
  6.  Effective date
Part 2 — Post-judgment Interest
  7.  Interest rate
  8.  Court may vary rate
  9.  Interest deemed included in judgment

Part 1 — Prejudgment Interest

Court order interest

1.  (1) Subject to section 2, a court shall add to a pecuniary judgment an amount of interest calculated on the amount ordered to be paid at a rate the court considers appropriate in the circumstances from the date on which the cause of action arose to the date of the order.

(2) Notwithstanding subsection (1), where the order consists in whole or part of special damages, the interest on those damages shall be calculated

(a) on the total of the special damages incurred in the 6 month period immediately following the date on which the cause of action arose; and

(b) on the total of the special damages incurred in any subsequent 6 month period,

from the end of each 6 month period in which the special damages were incurred to the date of the order.

(3) For the purpose of calculating interest under subsection (2), and notwithstanding subsection (2), where the date of the order occurs

(a) before a date 6 months after the date on which the cause of action arose; or

(b) after the end of a 6 month period but before the end of the subsequent 6 month period,

interest shall be calculated from the date on which the special damages were incurred to the date of the order.

(4) Where part of an order represents income loss arising from personal injury or death and one or more payments have been made before the date of the order to replace, provide indemnification for, compensate for or protect against some or all of the income loss or for any other purpose related to the income loss, the amount of the income loss on which interest may be calculated under this section shall be reduced by the amount of each such payment as of the date of the receipt of the payment.

Historical Note(s): 1974-65-1; 1982-47-2, eff. April 1, 1992 (the date ss. 12 to 15* of the Interest Act (Canada) cease to have effect in B.C., per 1982-47-6 and S.C.1992-1-146); 1993-28-2.

Interest not awarded in certain cases

2.  The court shall not award interest under section 1

(a) on that part of an order that represents pecuniary loss arising after the date of the order;

(b) where there is an agreement about interest between the parties;

(c) on interest or on costs;

(d) where the creditor waives in writing his right to an award of interest; or

(e) on that part of an order that represents non-pecuniary damages arising from personal injury or death.

Historical Note(s): 1974-65-2; 1993-28-3.

Default order

3.  Where an order is obtained by default under an Act or the Rules of Court, the registrar of the court may exercise and carry out the powers and duties of the court under this Part.

Historical Note(s): 1974-65-3; 1982-47-3, eff. April 1, 1992 (the date ss. 12 to 15* of the Interest Act (Canada) cease to have effect in B.C., per 1982-47-6 and S.C.1992-1-146).

Payment into court

4.  Where a party pays money into court in satisfaction of a claim and another party does not accept the payment and obtains an order for an amount equal to or less than that paid into court, the court shall, notwithstanding section 1, award interest only as if the date of payment into court had been the date of the order.

Historical Note(s): 1974-65-4.

Interest included in judgment

5.  Interest added to an order for payment under this Part shall be included in the order for enforcement purposes.

Historical Note(s): 1974-65-5; 1982-47-3, eff. April 1, 1992 (the date ss. 12 to 15* of the Interest Act (Canada) cease to have effect in B.C., per 1982-47-6 and S.C.1992-1-146).

Effective date

6.  This Part does not apply to a cause of action that arose before June 1, 1974.

Historical Note(s): 1974-65-6; 1982-47-4, eff. April 1, 1992 (the date ss. 12 to 15* of the Interest Act (Canada) cease to have effect in B.C., per 1982-47-6 and S.C.1992-1-146).

Part 2 — Post-judgment Interest

Interest rate

7.  (1) In this section "interest rate" means an annual simple interest rate that is equal to the prime lending rate of the banker of the government.

(2) A pecuniary judgment shall bear simple interest from the later of the date the judgment is pronounced or the date money is payable under the judgment.

(3) During the first 6 months of a year interest shall be calculated at the interest rate as at January 1 and during the last 6 months interest shall be calculated at the interest rate as at July 1.

(4) Notwithstanding subsection (2), interest in respect of a judgment pronounced before the coming into force of this Part shall be calculated from the later of the date this Part comes into force or the date money is payable under the judgment.

Historical Note(s): 1982-47-5, eff. April 1, 1992 (the date ss. 12 to 15* of the Interest Act (Canada) cease to have effect in B.C., per 1982-47-6 and S.C.1992-1-146); 1982-46-11.

Court may vary rate

8.  Where the court of original jurisdiction considers it appropriate, it may, on the application of a person affected by or interested in a judgment, vary the rate of interest applicable under section 7 or fix a different date from which interest shall be calculated.

Historical Note(s): 1982-47-5, eff. April 1, 1992 (the date ss. 12 to 15* of the Interest Act (Canada) cease to have effect in B.C., per 1982-47-6 and S.C.1992-1-146); 1982-46-11.

Interest deemed included in judgment

9.  (1) Interest under this Part shall be deemed to be included in the judgment for enforcement purposes.

(2) A partial payment of a judgment shall be applied first to outstanding interest owed on the judgment,

Historical Note(s): 1982-47-5, eff. April 1, 1992 (the date ss. 12 to 15* of the Interest Act (Canada) cease to have effect in B.C., per 1982-47-6 and S.C.1992-1-146).

[Editorial Note(s): Sections 12 to 15 of the Interest Act (Canada) were renumbered as sections 11 to 14 in the Revised Statutes of Canada, 1985.]