The appellant, an expropriated owner, had land taken for highway purposes by the respondent.
Arbitrators fixed compensation and awarded compound interest based on 90-day finance company paper rates.
The respondent argued that s. 3 of the Interest Act limited the rate to 5% simple interest.
The Supreme Court of British Columbia held the rate was limited to 5% but could be compounded.
The Court of Appeal held it was limited to 5% simple interest.
The Supreme Court of Canada allowed the appeal, holding that where a statute provides for interest and remits the rate to an adjudicator, the rate is 'fixed by law' within the meaning of s. 3 of the Interest Act, and thus the 5% limit does not apply.
The arbitrators' award of compound interest was restored.
