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Forest Oil Corp. v. Canada

T-3041-89

Gibson J.

17/2/98

7 pp.

Interest-Plaintiff obtaining judgment for repayment of overpayment of tax assessed under Petroleum and Gas Revenue Tax Act (PGRT Act)-Gibson J. reserving jurisdiction on interest issue if parties unable to agree thereon-PGRT Act, s. 18(3) providing interest shall be paid where amount in respect of overpayment refunded to taxpayer-Amount in dispute not "refunded"-Reasons indicating amount payable by reason of constructive trust, obligation to disburse funds held in constructive trust-S. 18(3) not applicable-Crown Liability and Proceedings Act, s. 31(2), 31.1(2) (providing for pre- and post-judgment interest on judgments against Crown at such rate as Court considers reasonable in circumstances) apply-S. 31(2) limited by s. 31(6), providing no interest can be awarded under s. 31 for period before day on which section coming into force (February 1, 1992)-Plaintiff entitled to pre-judgment interest only from February 1, 1992-Relevant circumstances including plaintiff's tardiness in not filing 1983 return until 1988-Such delay ultimate cause of litigation-Plaintiff author of own misfortune-Appropriate rate of pre-judgment interest 0%-Plaintiff not considered to have delayed in seeking satisfaction of judgment since day delivered-Reasonable rate for post-judgment interest 5% to run from date of judgment to date of payment-Petroleum and Gas Revenue Tax Act, R.S.C., 1985, c. P-12, s. 18(3)-Crown Liability and Proceedings Act, R.S.C., 1985, c. C-50 (as am. by S.C. 1990, c. 8, s. 21), ss. 31(2) (as am. idem, s. 31), (6) (as am. idem), 31.1(2) (as enacted idem).

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