Transport North American Express Inc. v. New Solutions Financial Corp., [2004] 1 S.C.R. 249, 2004 SCC 7

New Solutions Financial Corporation Appellant

v.

Transport North American Express Inc. Respondent

Indexed as: Transport North American Express Inc. v. New Solutions Financial Corp.

Neutral citation: 2004 SCC 7.

File No.: 29355.

2003: October 16; 2004: February 12.

Present: Iacobucci, Major, Bastarache, Arbour, LeBel, Deschamps and Fish JJ.

on appeal from the court of appeal for ontario

Contracts — Interest — Criminal rate — Illegality — Severability — Section 347 of Criminal Code prohibiting effective annual interest rate in excess of 60 percent — Contract found to contravene prohibition — Offending interest rate read down so that contract provided for maximum legal rate of interest — Whether “notional severance” available as remedy in cases arising under s. 347 — Whether application of notional severance appropriate in this case — Criminal Code, R.S.C. 1985, c. C‑46, s. 347.

The appellant and the respondent entered into a credit agreement pursuant