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1993 c38; 1996 cJ-1.1 s193; 2001 cN-3.1 s2; 2013 c16 s25




Short title

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

1983 c81 s1

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        2. In this Act

             (a)  "court" means

                      (i)  the Provincial Court of Newfoundland and Labrador , and

                     (ii)  the Supreme Court of Newfoundland and Labrador ;

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

             (c)  "judgment" includes an order of a court;

             (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; 2001 cN-3.1 s2

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Pre-judgment interest

        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;

             (c)  on exemplary or punitive damages;

             (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, 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; 2013 c16 s25

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Calculation of pre-judgment interest

        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

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Post-judgment interest

        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.

             (3)  For the purpose of this section, interest shall not be calculated on interest.

1983 c81 s5; 1996 cJ-1.1 s193

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Interest rate published

        6. The Minister of Justice shall determine and publish in the Gazette interest rates in accordance with the regulations.

1983 c81 s6; 1993 c38 s1

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Interest part of judgment

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

1983 c81 s7

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        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)  delegating to the Minister of Justice the authority to prescribe the rate of interest.

1983 c81 s8; 1993 c38 s2

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Act binds Crown

        9. The Crown is bound by this Act.

1983 c81 s9