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.