Bank of Nova Scotia v. Dunphy Leasing Enterprises Ltd., [1994] 1 S.C.R. 552

Dunphy Leasing Enterprises Ltd., S. & D. Rent‑A‑Car Ltd. and 106315 Canada Inc. Appellants

v.

The Bank of Nova Scotia Respondent

and

Borrowers' Action Society, Canadian Bankers' Association, T. Eaton Co. and Canadian Tire Acceptance Ltd. Interveners

Indexed as: Bank of Nova Scotia v. Dunphy Leasing Enterprises Ltd.

File No.: 22819.

1994: March 18.

Present: Lamer C.J. and La Forest, L'Heureux‑Dubé, Sopinka, Gonthier, Cory and McLachlin JJ.

on appeal from the court of appeal for alberta

Interest ‑‑ Calculation of interest rate ‑‑ Non‑mortgage loans ‑‑ Lender prescribing interest at stated annual rate but calculating, collecting or compounding interest rate on more frequent basis ‑‑ Whether Court of Appeal erred in finding nominal annual interest rate applicable and s. 4 of Interest Act not applicable ‑‑ Interest Act, R.S.C., 1985, c. I‑15, s. 4.

Contracts ‑‑ Non‑mortgage loans ‑‑ Calculation of interest rate ‑‑ Interpretation of contract.

Statutes and Regulations Cited

Interest Act, R.S.C., 1985, c. I‑15, s. 4.

APPEAL from a judgment of the Alberta Court of Appeal (1991), 1991 ABCA 351, 120 A.R. 241, 8 W.A.C. 241, 83 Alta. L.R. (2d) 289, [1992] 1 W.W.R. 577, allowing an appeal from a judgment of Power J. (1990), 1990 5931 (AB KB), 105 A.R. 161. Appeal dismissed.

Bradley J. Willis and Peter Knaak, Q.C., for the appellants.

W. Ian C. Binnie, Q.C., and Valerie Prather, for the respondent.

Margaret Cowtan, for the intervener Borrowers' Action Society.

Roderick A. McLennan, Q.C., and Michelle G. Crighton, for the intervener Canadian Bankers' Association.

Gerald A. Verville, Q.C., and Jeffrey H. Mayan, for the intervener T. Eaton Co.

Kenneth C. Cancellara, Q.C., and S. John Page, for the intervener Canadian Tire Acceptance Ltd.

The judgment of the Court was delivered orally by

Lamer C.J. ‑‑ Mr. Willis, you gave the very difficult case you had the best possible day in Court a barrister can. Unfortunately we cannot accede to your arguments.

Essentially this case rests upon the interpretation of a contract and the statutory interpretation of s. 4 of the Interest Act, R.S.C., 1985, c. I‑15. Both matters were carefully considered by the Court of Appeal and we feel that we cannot usefully add to the reasons below, with which we are in substantial agreement.

The appeal is accordingly dismissed with costs in this Court only.

Judgment accordingly.

Solicitors for the appellants: Cleall, Pahl, Edmonton.

Solicitors for the respondent: Bennett, Jones, Verchere, Calgary.

Solicitor for the intervener Borrowers' Action Society: Margaret Cowtan, Calgary.

Solicitors for the intervener Canadian Bankers' Association: McLennan, Ross, Edmonton.

Solicitors for the intervener T. Eaton Co.: Milner, Fenerty, Edmonton.

Solicitors for the intervener Canadian Tire Acceptance Ltd.: Cassels, Brock & Blackwell, Toronto.