The Crown breached its fiduciary duty in 1886 by making an improvident sale of the appellant's timber rights.
The trial judge valued the timber rights at $31,600 and awarded simple interest adjusted for inflation, denying the appellant's claim for equitable compensation including compound interest.
The Court of Appeal upheld the valuation but allowed the appeal on compensation, finding that the trial judge erred in failing to compensate the appellant in equity for its lost opportunity to have the funds invested.
The Court held that an award of equitable compensation including compound interest is not barred by the Crown's historic immunity from paying interest, and ordered a new hearing to determine the appropriate compensation.
