Year: 2016


Currently, in Canada, the case law varies from province to province on whether or not interest incurred from a litigation loan can be recovered by a successful Plaintiff. With the Supreme Court of Canada recently denying leave to appeal from a British Columbia Court of Appeal decision on this issue, it will likely remain that way for now.

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New Brunswick

The New Brunswick Court of Appeal has concluded that interest incurred on a litigation loan is a proper disbursement under the relevant legislation in that province and can be recovered under a costs award. This decision is binding on all of the lower courts in that province. While it is not binding on courts in other provinces, it can be persuasive authority.

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To date, the Ontario Court of Appeal has not weighed in directly on this issue, either way. Therefore, it is unclear where the courts stand on this issue in Ontario; however, a recent lower court decision shows a movement closer to British Columbia’s stance of non-recovery rather than New Brunswick’s.

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British Columbia

While there are previous decisions in British Columbia which awarded interest on litigation loans as a disbursement, they are no longer “good” law after the recent British Columbia Court of Appeal decision in Mackenzie v. Rogalsky which reflects the law as it currently stands in that province:

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