The Court of Appeal for Ontario allowed an appeal by BridgePoint Financial Services, setting aside a motion judge's order that reduced interest payable on litigation loans obtained by Rudolf Steinberg.
The motion judge had found the loans not unconscionable but granted a "modest amount of relief" due to COVID-19 related delays.
The Court of Appeal held that once the loans were found not unconscionable under the Unconscionable Transactions Relief Act, there was no legal basis to vary the interest.
It emphasized that courts cannot rewrite contracts or relieve parties from improvident bargains, and that COVID-19 delay, while "legitimate" did not justify reducing contractual interest.
The court also noted procedural unfairness as the basis for the reduction was not argued by the respondent.
