Case information
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36123
Krayzel Corporation, et al. v. Equitable Trust Company (now continued as Equitable Bank), et al.
(Alberta) (Civil) (By Leave)
Docket
Judgments on applications for leave to appeal are rendered by the Court, but are not necessarily unanimous.
| Date | Proceeding | Filed By (if applicable) |
|---|---|---|
| 2016-12-19 | Appeal closed | |
| 2016-12-19 | Discontinuance of the bill of costs | Krayzel Corporation |
| 2016-10-31 | Bill of costs, (proof of service and filing fee missing)(proof of service and filing fee received November 3, 2016), Completed on: 2016-11-03 | Krayzel Corporation |
| 2016-10-28 | Response to the bill of costs, (Letter Form), Original and service missing - Original recv'd Oct 31/16 and Proof of service recv'd Nov. 8/16., Completed on: 2016-11-08 | Equitable Trust Company (now continued as Equitable Bank) |
| 2016-07-29 | Formal judgment sent to the registrar of the court of appeal and all parties | |
| 2016-07-29 | Notice of deposit of judgment sent to all parties | |
| 2016-07-28 |
Decision on the motion for a re-hearing of the appeal, CJ Abe Cro Mo Ka Wa Ga Côt Br, UPON APPLICATION by the respondent for a re-hearing of the appeal heard by this Court on November 12, 2015; AND THE MATERIALS FILED having been read; IT IS HEREBY ORDERED THAT: The motion is dismissed with costs to the appellants, Krayzel Corporation and Mr. Neil John Richardson, in accordance with the Tariff of fees and disbursements set out in Schedule B of the Rules of the Supreme Court of Canada. Dismissed, with costs |
|
| 2016-07-28 | All material on motion for a re-hearing of the appeal submitted to Justices, CJ Abe Cro Mo Ka Wa Ga Côt Br | |
| 2016-06-27 | Response to the motion for a re-hearing of the appeal, (Letter Form), Completed on: 2016-06-27 | Lougheed Block Inc., Hugh Daryl Richardson, Heritage Property Corporation |
| 2016-06-20 | Correspondence (sent by the Court) to, Neil Richardson, re: representation at this Court | |
| 2016-06-15 | Reply to the response to the motion for a re-hearing of the appeal, (Book Form) | Equitable Trust Company (now continued as Equitable Bank) |
| 2016-06-14 | Correspondence received from, Mr. Neil Richardson, re: copy of Justice Romaine's Decision dated June 29, 2012 - appeared on behalf of defendants. | Neil John Richardson |
| 2016-06-10 | Response to the motion for a re-hearing of the appeal, (Book Form), Completed on: 2016-06-10, (Electronic version due on 2016-06-17) | Krayzel Corporation |
| 2016-06-09 | Response to the motion for a re-hearing of the appeal, (Letter Form), on behalf of Mr. Neil John Richardson only, Completed on: 2016-06-09 | Neil John Richardson |
| 2016-06-09 | Correspondence received from, (Letter Form), Neil Richardson- He will represent himself and Lougheed Block Inc., et al. | Neil John Richardson |
| 2016-05-30 | Correspondence received from, Counsel for the Appellant - Krayzel Corp.- new counsel will be Mr. Gavin S. Fitch, Q.C. | Krayzel Corporation |
| 2016-05-26 | Motion for a re-hearing of the appeal, (Book Form), Completed on: 2016-05-26 | Equitable Trust Company (now continued as Equitable Bank) |
| 2016-05-09 | Formal judgment sent to the registrar of the court of appeal and all parties | |
| 2016-05-09 | Judgment on appeal and notice of deposit of judgment sent to all parties | |
| 2016-05-06 |
Judgment on the appeal rendered, CJ Abe Cro Mo Ka Wa Ga Côt Br, The appeal from the judgment of the Court of Appeal of Alberta (Calgary), Numbers 1201-0249-AC and 1201-0254-AC, 2014 ABCA 234, dated July 22, 2014, heard on November 12, 2015, is allowed with costs in this Court and in the courts below. The 25 percent per annum rate of interest set by the Second Renewal Agreement is void. The interest rate in force under the Second Renewal Agreement as of February 1, 2009 shall be set at the higher of 7.5 percent and the prime interest rate plus 5.25 percent. Abella, Moldaver and Côté JJ. are dissenting. Allowed, with costs |
|
| 2015-11-24 | Transcript received, 82 pages | |
| 2015-11-12 | Judgment reserved OR rendered with reasons to follow | |
| 2015-11-12 |
Hearing of the appeal, 2015-11-12, CJ Abe Cro Mo Ka Wa Ga Côt Br Judgment reserved |
|
| 2015-11-12 | Respondent's condensed book, (Book Form), Filed in Court | Equitable Trust Company (now continued as Equitable Bank) |
| 2015-11-12 | Appellant's condensed book, (Book Form), Filed in Court | Krayzel Corporation |
| 2015-11-10 | Correspondence received from, M.-F. Major re: request for one reserve seat | Equitable Trust Company (now continued as Equitable Bank) |
| 2015-11-09 | Notice of appearance, G. Scott Watson and Megan V. Stoker will be appearing and Mr. Watson will make oral arguments | Krayzel Corporation |
| 2015-11-02 | Correspondence received from, (Letter Form), Ms. Major re: correction to paragraph 34 of their factum (sent to the Court), (Electronic version filed on 2015-11-02) | Equitable Trust Company (now continued as Equitable Bank) |
| 2015-10-27 | Notice of appearance, (Letter Form), Francis Price, Q.C. and Daina Young will appearing and Mr. Prices will make oral arguments | Equitable Trust Company (now continued as Equitable Bank) |
| 2015-10-27 | Appeal perfected for hearing | |
| 2015-10-22 | Respondent's book of authorities, (Book Form), Completed on: 2015-10-22 | Equitable Trust Company (now continued as Equitable Bank) |
| 2015-10-22 | Respondent's factum, (Book Form), Completed on: 2015-10-22, (Electronic version filed on 2015-10-22) | Equitable Trust Company (now continued as Equitable Bank) |
| 2015-10-02 | Notice of hearing sent to parties, (revised) | |
| 2015-10-02 |
Appeal hearing scheduled, 2015-11-12, (previously scheduled for December 4, 2015) Judgment reserved |
|
| 2015-09-29 | Correspondence received from, the appellant, re: scheduling | Krayzel Corporation |
| 2015-09-29 | Correspondence received from, the respondent, re: scheduling. | Equitable Trust Company (now continued as Equitable Bank) |
| 2015-09-11 | Certificate of counsel (attesting to record), (Letter Form), (Electronic version filed on 2015-09-09) | Krayzel Corporation |
| 2015-09-09 | Appellant's record, (Book Form), (4 volumes), Completed on: 2015-09-14, (Electronic version filed on 2015-09-09) | Krayzel Corporation |
| 2015-09-09 | Appellant's book of authorities, (Book Form), Completed on: 2015-09-09, (Electronic version filed on 2015-09-09) | Krayzel Corporation |
| 2015-09-09 | Appellant's factum, (Book Form), Completed on: 2015-09-09, (Electronic version filed on 2015-09-09) | Krayzel Corporation |
| 2015-08-14 | Correspondence received from, the respondent. re: tentative hearing date. | Equitable Trust Company (now continued as Equitable Bank) |
| 2015-08-13 | Correspondence received from, the appellants. re: tentative hearing date. | Krayzel Corporation |
| 2015-08-07 | Correspondence received from, the appellants. re: tentative hearing date. | Krayzel Corporation |
| 2015-08-07 | Correspondence received from, the respondent. re: tentative hearing date. | Equitable Trust Company (now continued as Equitable Bank) |
| 2015-06-24 | Correspondence received from, the respondent. re: tentative hearing date. | Equitable Trust Company (now continued as Equitable Bank) |
| 2015-06-24 | Correspondence received from, the appellants. re: tentative hearing date. | Krayzel Corporation |
| 2015-06-18 | Notice of appeal, (Letter Form), Completed on: 2015-06-18, (Electronic version filed on 2015-06-18) | Krayzel Corporation |
| 2015-06-15 | Letter advising the parties of tentative hearing date and filing deadlines (Leave granted) | |
| 2015-05-22 | Copy of formal judgment sent to Registrar of the Court of Appeal and all parties | |
| 2015-05-22 | Judgment on leave sent to the parties | |
| 2015-05-21 |
Judgment of the Court on the application for leave to appeal, The motion for an extension of time to serve and file the application for leave to appeal is granted. The motion to file a joint leave application is granted. The application for leave to appeal from the judgment of the Court of Appeal of Alberta (Calgary), Numbers 1201-0249-AC and 1201-0254-AC, 2014 ABCA 234, dated July 22, 2014, is granted with costs in the cause. The motion to file separate appeal submissions is dismissed. Granted, with costs in the cause |
|
| 2015-05-21 |
Decision on the miscellaneous motion Granted |
|
| 2015-05-21 |
Decision on motion to extend time to file and /or serve the leave application Granted |
|
| 2015-01-26 | All materials on application for leave submitted to the Judges, CJ Wa Ga | |
| 2015-01-26 | Submission of miscellaneous motion, CJ Wa Ga | |
| 2015-01-26 | Submission of motion to extend time to file and/ or serve the leave application, CJ Wa Ga | |
| 2014-11-07 | Applicant's reply to respondent's argument, (Book Form), Completed on: 2014-11-07, (Electronic version filed on 2014-11-14) | Krayzel Corporation |
| 2014-10-30 | Notice of name | Equitable Trust Company (now continued as Equitable Bank) |
| 2014-10-30 | Certificate (on limitations to public access) | Equitable Trust Company (now continued as Equitable Bank) |
| 2014-10-30 | Respondent's response on the application for leave to appeal, (Book Form), Completed on: 2014-11-03 | Equitable Trust Company (now continued as Equitable Bank) |
| 2014-10-27 | Correspondence received from, Megan Stoker re: return of CA order form | Krayzel Corporation |
| 2014-10-09 | Notice of miscellaneous motion, (Included in the motion to extend the time to file and or serve the application for leave to appeal), Motion to file jointly two decisions, Completed on: 2014-10-09 | Krayzel Corporation |
| 2014-10-09 | Letter acknowledging receipt of an incomplete application for leave to appeal and without formal Court of Appeal order | |
| 2014-10-09 | Motion to extend the time to file and or serve the application for leave to appeal, (Letter Form), Completed on: 2014-10-09, (Electronic version filed on 2014-10-09) | Krayzel Corporation |
| 2014-10-03 | Correspondence received from, Megan Stoker re: Change of address | Krayzel Corporation |
| 2014-09-30 | Application for leave to appeal, (Book Form), Amended Notice filed 2014-10-09, Final CA order missing - Rec'd on 2015-05-08, Completed on: 2015-05-11, (Electronic version filed on 2014-10-02) | Krayzel Corporation |
| 2014-09-29 | Notice of name | Krayzel Corporation |
| 2014-09-29 | Certificate (on limitations to public access) | Krayzel Corporation |
| 2014-09-29 | Book of authorities, (Book Form) | Krayzel Corporation |
Parties
Please note that in the case of closed files, the “Status” column reflects the status of the parties at the time of the proceedings. For more information about the proceedings and about the dates when the file was open, please consult the docket of the case in question.
Main parties
| Name | Role | Status |
|---|---|---|
| Krayzel Corporation | Appellant | Active |
v.
| Name | Role | Status |
|---|---|---|
| Equitable Trust Company (now continued as Equitable Bank) | Respondent | Active |
And Between
| Name | Role | Status |
|---|---|---|
| Lougheed Block Inc., Hugh Daryl Richardson, Heritage Property Corporation | Appellant | Active |
| Richardson, Neil John | Appellant | Active |
v.
| Name | Role | Status |
|---|---|---|
| Equitable Trust Company (now continued as Equitable Bank) | Respondent | Active |
Counsel
Party: Krayzel Corporation
Counsel
Gavin S. Fitch, Q.C.
3300, 421-7th Avenue SW
Calgary, Alberta
T2P 4K9
Telephone: (403) 294-7090
FAX: (403) 265-8263
Agent
400 - 411 Roosevelt Avenue
Ottawa, Ontario
K2A 3X9
Telephone: (613) 780-2012
FAX: (613) 688-0271
Email: cbaxter@conwaylitigation.ca
Party: Lougheed Block Inc., Hugh Daryl Richardson, Heritage Property Corporation
Counsel
Neil Richardson
3300, 421-7th Avenue SW
Calgary, Alberta
T2P 4K9
Telephone: (403) 294-7090
FAX: (403) 265-8263
Agent
400 - 411 Roosevelt Avenue
Ottawa, Ontario
K2A 3X9
Telephone: (613) 780-2012
FAX: (613) 688-0271
Email: cbaxter@conwaylitigation.ca
Party: Richardson, Neil John
This party is not represented by counsel.
Party: Equitable Trust Company (now continued as Equitable Bank)
Counsel
3200 - 10180, 101 ST NW
Edmonton, Alberta
T5J 3W8
Telephone: (780) 497-3388
FAX: (780) 429-3044
Email: fprice@rmrf.com
Agent
100- 340 Gilmour Street
Ottawa, Ontario
K2P 0R3
Telephone: (613) 695-8855 Ext: 102
FAX: (613) 695-8580
Email: mfmajor@supremeadvocacy.ca
Summary
Keywords
None.
Summary
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 - Mortgages - Rate of interest - Whether proper interpretation of s. 8 of Interest Act, R.S.C. 1985, c. I-15 prohibiting mortgage drafting that has effect of imposing a penalty rate on amounts in arrears, despite not being structured as a penalty - Whether s. 8 of Act requires a large and liberal reading - Whether s. 8 of Act prohibits a clause that increases interest rate shortly before maturity - Whether s. 8 of the Act prohibits a clause that imposes a higher interest rate on default, but is structured as a discount for prompt payment.
The Lougheed Block Inc. (“LBI”) owned a heritage office building in downtown Calgary. The mortgage principal amount was $27 million. When it matured in June 2008, the borrower and the lender entered into two successive renewal agreements. The First Renewal Agreement was effective August 1, 2008. It made the 25 percent interest rate effective one month before maturity and would apply equally to arrears and money owing that is not in arrears.
When the First Renewal Agreement matured on March 1, 2009, LBI failed to repay. The lender, Equitable Trust Company (“Equitable”) offered a Second Renewal Agreement and it was executed April 28, 2009. The essence of the Second Renewal Agreement was the imposition of a 25 percent interest rate. The principal amount owing would be reduced in the event of timely monthly payments and repayment of principal by the end of the term.
Following the execution of the Second Renewal Agreement, Equitable gave LBI written notice of default and demanded payment of the total amount owing based on the interest rate of 25 percent.
Some of the appellants sought a declaration that the 25 percent interest rate was contrary to s. 8 of the Interest Act, R.S.C. 1985, c. I-15. The Master found the First and Second Renewal Agreements violated s. 8 of the Act. The trial judge allowed the appeal finding s. 8 had not been violated. A majority of the Court of Appeal dismissed the appeal. The dissent allowed the appeal in part finding the Second Renewal Agreement violated s. 8.
Lower court rulings
Court of Queen’s Bench of Alberta
0901-08221, 2012 ABQB 411
Appeal from Master’s decision with respect to interest provisions of the First Renewal Agreement and the Second Renewal Agreement allowed
Court of Appeal of Alberta (Calgary)
1201-0254-AC, 1201-0254-AC, 2014 ABCA 234
Appeal dismissed
Memorandums of argument on application for leave to appeal
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Factums on appeal
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