Court File and Parties
Court File No.: CV-19-00623015-0000 & CV-20-00653030-0000
Date: 2025-04-16
Court: Superior Court of Justice - Ontario
Plaintiff: Halime Khatoun Aghdasi
Defendants: Vahid Mehdizadeh Asiyaban and 2468692 Ontario Ltd.
Before: Julie Papageorgiou
Counsel:
Sean Pierce, for the Plaintiff
Matthew Sokolsky, for the Defendants
Heard: In Writing
Endorsement
Overview
[1] I awarded the plaintiff judgment in the amount of $241,000 in damages for the improper registration of a certificate of pending litigation in this matter. I also awarded $100,000 in punitive damages.
[2] This is my decision on interest.
[3] After the trial the defendant retained new counsel. I gave new counsel some time to address costs as well as interest. He did not provide any submissions on interest.
The Issues
[4] There are three issues:
- Issue 1: When does the obligation to pay interest begin?
- Issue 2: What is the appropriate interest rate?
- Issue 3: What is the post judgment interest to which the plaintiff is entitled?
Analysis
Issue 1: When does the obligation to pay interest begin?
[5] Section 128 of the Courts of Justice Act provides as follows:
Prejudgment interest
128 (1) A person who is entitled to an order for the payment of money is entitled to claim and have included in the order an award of interest thereon at the prejudgment interest rate, calculated from the date the cause of action arose to the date of the order. R.S.O. 1990, c. C.43, s. 128 (1).
[6] The plaintiff listed her property for sale in June 2019.
[7] She received an offer for $1,599,000 in June 2019 which she did not accept because she wanted to pursue the multiple offer strategy.
[8] The defendant brought an unsuccessful motion for a CPL on July 5, 2019, followed by a successful motion on July 25, 2019. It was then registered on July 29, 2019.
[9] I concluded that but for the CPL, the plaintiff would have sold the property in or around June 2019.
[10] The plaintiff argues that the cause of action pursuant to s. 103(4) of the Courts of Justice Act arose when the defendant improperly registered the certificate of pending litigation.
[11] I agree that the fact that the loss can only be quantified by reference to the actual sale in February 2021 does not change the date when the cause of action arose, or when she suffered her loss. Had she been able to sell the property in or around June 2019, she would have had the money that I found as damages.
[12] Therefore, the prejudgement interest runs from July 29, 2019 until July 17, 2024, the date of the judgment.
[13] As agreed by the plaintiff, the prejudgment interest only applies to the $241,000 and not the punitive award as per s. 129(4)(a).
Issue 2: What is the appropriate interest rate?
[14] The plaintiff commenced her claim in December 2020, the fourth quarter of 2020. Therefore, in the ordinary course, she would be entitled to statutory interest at the rate of 0.5% annually.
[15] The plaintiff provided an analysis of the dramatic increase in interest rates as follows:
| Year | First quarter | Second quarter | Third quarter | Fourth quarter |
|---|---|---|---|---|
| 2024 | 5.3% | 5.3% | 5.3% | N/A |
| 2023 | 4.0% | 4.8% | 4.8% | 5.3% |
| 2022 | 0.5% | 0.5% | 1.8% | 2.8% |
| 2021 | 0.5% | 0.5% | 0.5% | 0.5% |
| 2020 | 2.0% | 2.0% | 0.5% | 0.5% |
[16] Pursuant to s. 130(1) of the Courts of Justice Act, the court retains discretion to award higher rates “where it considers it just to do so.”
[17] Pursuant to s. 130(2), in exercising its discretion the court may take into account “changes in market interest rates.”
[18] In cases where interest rates have fluctuated significantly, courts have exercised the discretion pursuant to s. 130 to fix pre-judgment interest rates as an average of rates over the lifespan of the litigation to ensure the plaintiff is justly compensated for the value of the money wrongfully withheld from her: Couper v. Nu-Life Corp et al., 2016 ONSC 4104, paras 2-4; Waxman v. Waxman (Trustees of), (2003), 3 C.P.C. (5th) 121 at para 15; M.P.A.N. v. J.N., 2019 ONCJ 96, paras 170-186.
[19] The plaintiff has provided calculation that the average interest rate over the period is 3% and that this results in interest in the amount of $35,354.70.
[20] The defendant did not challenge these calculations and I accept them.
Issue 3: What is the post judgment interest to which the plaintiff is entitled?
[21] The applicable post judgment interest rate is as follows and I award it:
| Year | First quarter | Second quarter | Third quarter | Fourth quarter |
|---|---|---|---|---|
| 2024 | 7.0% | 7.0% | 7.0% | N/A |
[22] Unlike pre-judgment interest, which only applies to compensatory damages, post judgment interest applies to all “money owing under an order, including costs to be assessed or costs fixed by the court.”
Conclusion
[23] Therefore, I award prejudgment interest in the amount of $35,354.70, payable within 30 days.
[24] I award post judgment interest on the $241,000 damages, and the $100,000 damages and the costs award at the rate of 7% annually commencing June 17, 2024.
Julie Papageorgiou
Date: April 16, 2025