December.2.2014

INTEREST ON OUT-OF-POCKET DISBURSEMENTS NO LONGER RECOVERABLE: B.C. COURT OF APPEAL

The British Columbia Court of Appeal has made a strong ruling regarding the recoverability of interest on out-of-pocket disbursements (MacKenzie v Rogalasky, 2014 BCCA 446). The Court was unanimous in deciding that out-of-pocket interest expenses incurred to finance disbursements are not recoverable by successful parties. In the attached Briefing Note, Alexander D.C. Kask and Taylor-Marie Young explain how the Court arrives at its conclusion based on the wording of Rule 14-1(5); how the Court has rejected the emerging access to justice rationale relied on by other Canadian appellate courts; and whether the decision may in fact invite scrutiny by the Supreme Court of Canada.

Taylor-Marie Young

Taylor-Marie Young

Taylor-Marie joined Guild Yule LLP in 2013 as a summer student. She is currently completing her articles with the firm and will be called to the bar in 2015. She earned her Juris Doctor at Thompson Rivers University in 2014, where she had the honour of becoming that law school’s first-ever Law Society Gold Medalist. Prior to Law School, she completed a Bachelor of Journalism Degree from TRU and a Master’s Degree in Linguistics from the University of Victoria.