Case information

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Case summaries are prepared by the Office of the Registrar of the Supreme Court of Canada (Law Branch). Please note that summaries are not provided to the Judges of the Court. They are placed on the Court file and website for information purposes only.

Interest Arbitrator awarding compound interest to holder of forest licence interest as part of compensation for expropriation British Columbia Supreme Court confirming arbitrator’s order on compound interest Court of Appeal finding no basis to intervene with lower court’s affirmation of arbitrator’s order on compound interest Whether the pre judgment interest provisions in the Court Order Interest Act, R.S.B.C. 1996, c. 79, apply to the appellant’s claim Whether expropriation principles allow an award of compound interest to the appellant despite the statutory prohibition in the Court Order Interest Act Whether there is an equitable jurisdiction in British Columbia to award compound interest despite the statutory prohibition Court Order Interest Act If there is such an equitable jurisdiction, whether it should be exercised in the appellant’s favour.

Teal Cedar Products Ltd. held a forest licence entitling it to harvest annually a stipulated volume of timber from a specified area in British Columbia. In 1993, Her Majesty the Queen in Right of the Province of British Columbia as represented by the Ministry of Forests imposed a moratorium on harvesting for the purpose of considering the creation of a new provincial park. In 1995, part of the area at issue was used to create a new provincial park and logging became prohibited within the park boundaries. The respondent’s allowable annual cut (the “AAC”) under its harvesting licence was ultimately reduced in 1999. The respondent’s claim for compensation for partial expropriation as a result of the AAC reduction was thereafter submitted to arbitration, which resulted in the Award (i) dismissing the respondent’s claim for losses suffered prior to the reduction in its AAC and (ii) awarding compensation after that period totalling $6.35 million plus compound interest and actual reasonable legal costs agreed upon by the parties on an indemnity basis totalling $1.02 million.