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

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), 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), 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.