Court Ordered Interest Allowed on Unpaid Special Damages
It is well established that a litigant in a BC injury claim is entitled to court ordered interest on successful special damages claims. ¬†What about special damages that are¬†owing¬†but have have not yet been paid? ¬†Is interest recoverable on these? ¬†Reasons for judgement were released last week addressing this topic and the answer is yes.
In last week’s case (Thibeault v. MacGregor) Mr. Justice Weatherill provided the following analysis:
¬†¬†¬†¬†¬†I agree with Mr. Walton that the plaintiff is entitled to interest pursuant to the¬†Court Order Interest Act¬†(COIA) on the special damages I have awarded, even though the charges for physiotherapy have not yet been paid.¬† The relevant section of the COIA provides:
(1)¬†Subject to section 2, a court must 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)¬†Despite subsection (1), if the order consists in whole or part of special damages, the interest on those damages must be calculated from the end of each 6¬†month period in which the special damages were¬†incurred¬†to the date of the order on the total of the special damages incurred
(a)¬†in the 6 month period immediately following the date on which the cause of action arose, and
(b)¬†in any subsequent 6 month period.
¬†¬†¬†¬†¬†Black‚Äôs Law Dictionary,¬†9th ed. defines ‚Äúincur‚ÄĚ as ‚Äú[to] suffer or bring on oneself (a liability or expense)‚ÄĚ.¬† The plaintiff became liable for the cost of her physiotherapy payments when she either attended or missed her appointments.