Monday, August 19, 2013

Compound interest appropriate for breach of trust damages

Bronson v. Hewitt, 2013 BCCA 367:

At para. 17 of his supplementary endorsement, the motion judge explained why he awarded compound interest:

Courts of equity have always exercised the power to award compound interest whenever a wrongdoer deprives a company of money which it uses in its business. On general principles it should be presumed that had the business not been deprived of the money, it would have made the most beneficial use of it available to it. Alternatively, it should be presumed that the wrongdoer made the most beneficial use of it. [Internal citations omitted.]

I agree. I would simply add that this court has consistently approved of the trial court's exercise of discretion to award compound interest for breach of fiduciary duty or breach of trust: see Kooner v. Kooner, 2006 CarswellOnt 5884 (C.A.), at para. 2; Waxman v. Waxman2008 ONCA 426 (CanLII), 2008 ONCA 426, at para. 5; and Brock v. Cole(1983), 40 O.R. (2d) 97 (Ont. C.A.), at p. 103.  [At paras. 56-7.]

No comments: