International Law

C.A. Finds that Award for Loss of Competitive Advantage Does Not Attract Prejudgment Interest

In our February 2, 2007 post about Cerilli v. City of Ottawa, we noted that the trial judge had awarded prejudgment interest on damages for loss of competitive advantage. We noted that in at least one other case, the trial judge had taken a different approach and had not allowed interest on that head of damages.

Today, the Court of Appeal’s decision in this case was released. The Court allowed the defendant’s appeal on this point and ruled that the award for loss of competitive advantage did not bear prejudgment interest. The Court accepted the submission of counsel for the City of Ottawa, that such an award “falls within s. 128(4)(a) of the Courts of Justice Act representing pecuniary loss arising after the date of the order” and that “[t]he award for loss of competitive advantage looked entirely to the future”. Accordingly, the award of prejudgment interest was set aside.

Full post as published by Cavanagh Williams on January 17, 2008 (boomark / email).