Revised Statutes of Newfoundland 1990 Chapter J-2

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Revised Statutes of Newfoundland 1990

CHAPTER J-2

AN ACT RESPECTING THE AWARD OF INTEREST ON JUDGMENTS OF THE COURTS OF THE PROVINCE
Analysis

1. Short title

2. Definitions

3. Pre-judgment interest

4. Calculation of pre-judgment interest

5. Post-judgment interest

6. Interest rate published

7. Interest part of judgment

8. Regulations

9. Act binds Crown

Short title

1. This Act may be cited as the Judgment Interest Act.

1983 c81 s1

2. In this Act

(a) "court" means

(i) the Provincial Court of Newfoundland, and

(ii) the Supreme Court of Newfoundland;

(b) "interest rate" means the rate of interest published in the Gazette as required by section 6;

(d) "judgment debt" includes a sum of money or costs, charges or expenses made payable under a judgment of a court in a civil proceeding; and

(e) "monetary loss" does not include pain and suffering, physical inconvenience and discomfort, social discredit, injury to reputation, mental suffering, injury to feelings, loss of amenities and of expectation of life or loss of society of spouse or child.

1983 c81 s2; 1986 c42 Sch B

3. (1) Where a person obtains a judgment for the payment of money or a judgment that money is owing, the court shall award interest on the judgment calculated in accordance with this Act.

(2) The court shall not award interest

(a) on that part of a judgment that represents monetary loss arising after the day of judgment and that is identified by the court;

(b) on interest awarded under this Act;

(d) on an award of costs in the action;

(e) on money and interest on that money, borrowed by a party in respect of damages described in subsection 4(2);

(f) on money that is paid into court and accepted in satisfaction of a claim;

(g) where the judgment is given on consent, unless agreed to by the parties;

(h) where there is an agreement between the parties respecting interest; or

(i) where interest is payable by another rule of law.

(3) Where it is proven to the satisfaction of the court that it is just to do so having regard to the circumstances, the court may, with respect to the whole or a part of the amount for which judgment is given,

(a) refuse to award interest under this Act; or

(b) award interest under this Act at a rate or for a period or both other than a rate or period determined under section 4.

(4) In a jury trial, the judge shall exercise the powers of the court under this Act.

(5) In the case of a default judgment, the Registrar of the Supreme Court or a clerk of the Supreme Court or a clerk of the Provincial Court shall award interest calculated in accordance with this Act, but shall not exercise discretion granted to the court under subsection (3).

1983 c81 s3; 1986 c42 Sch B; 1990 c62 s15

4. (1) The court shall for purposes of section 3 calculate interest under this Act from the day the cause of action arises to the day of judgment at the rate determined by averaging the interest rates in effect during that period.

(2) Where a judgment includes damages for expenses incurred or income lost, the court shall

(a) determine the total of those damages sustained within the 3 month period beginning on the day the cause of action arose and within each subsequent 3 month period; and

(b) calculate interest from the last day of each 3 month period described in paragraph (a) to the day of judgment, on the total of the damages sustained within the 3 month period, at the interest rate in effect on the last day of the 3 month period.

(3) Where a party pays money into court in satisfaction of a claim and another party does not accept the payment and obtains a judgment for an amount less than or equal to the amount paid into court, the court shall award interest

(a) from the day the cause of action arose to the day of payment into court calculated in accordance with this Act; and

(b) from the day of payment into court to the day of judgment in an amount equal to the actual interest earned on the portion of the money paid to court that is equal to the amount of the judgment.

1983 c81 s4

5. (1) Notwithstanding that the entry of judgment may have been suspended by a proceeding in an action, including an appeal, every judgment debt bears interest from the day on which it is payable under the judgment until it is satisfied.

(2) Interest for the purposes of subsection (1) shall be calculated at the interest rate in effect on the last day of each 3 month period beginning on the day on which the judgment debt is payable under the judgment.

1983 c81 s5

6. The Lieutenant-Governor in Council shall determine and publish in the Gazette interest rates in accordance with the regulations.

1983 c81 s6

7. For the purpose of enforcing a judgment, interest awarded under this Act is included in the judgment.

1983 c81 s7

8. The Lieutenant-Governor in Council may make regulations

(a) respecting the method of determining and the frequency of publishing interest rates and the periods with respect to which the interest rates are in effect; and

(b) prescribing the rate of interest.

1983 c81 s8

9. The Crown is bound by this Act.

1983 c81 s9