1. What Is Pre Judgment Interest In Ontario?

Pre judgment interest in Ontario refers to the interest that accrues on a monetary award from the date the cause of action arose until the date of judgment. It is governed by the Courts of Justice Act and aims to compensate plaintiffs for being deprived of the use of their money.

2. How Does The Calculator Work?

The calculator uses the pre judgment interest formula:

Where:

• \( Principal \) — The original amount of money ($)
• \( Rate \) — The annual interest rate (expressed as a decimal)
• \( Days \) — The number of days for which interest is calculated

Explanation: This formula calculates the simple interest that would accrue on a principal amount over a specified number of days at a given annual rate.

3. Importance Of Pre Judgment Interest Calculation

Details: Accurate calculation of pre judgment interest is crucial for proper compensation in legal proceedings. It ensures that plaintiffs receive appropriate compensation for the time value of money they were deprived of during the litigation process.

4. Using The Calculator

Tips: Enter the principal amount in dollars, the annual interest rate as a decimal (e.g., 0.05 for 5%), and the number of days. All values must be valid (principal > 0, rate ≥ 0, days ≥ 1).

5. Frequently Asked Questions (FAQ)

Q1: What is the legal basis for pre judgment interest in Ontario?
A: Pre judgment interest in Ontario is governed by section 128 of the Courts of Justice Act, which provides for interest on damages for non-pecuniary loss.

Q2: How is the interest rate determined?
A: The interest rate is set by regulation under the Courts of Justice Act and may vary depending on the type of case and the time period involved.

Q3: Are there any exceptions to pre judgment interest?
A: Yes, the court has discretion to disallow interest or allow interest at a different rate in certain circumstances, such as when the plaintiff has delayed the proceedings.

Q4: Does this calculator account for compound interest?
A: No, this calculator uses simple interest calculation as typically applied to pre judgment interest in Ontario courts.

Q5: Should I consult a lawyer for accurate pre judgment interest calculations?
A: While this calculator provides a basic estimate, for legal proceedings it's always recommended to consult with a legal professional for accurate calculations that consider all relevant factors.