what a justice system

Another issue to be resolved relates to interest to be paid for Mr. McLeod’s time. In my reasons for judgment I allocated $3,000.00 for this times. This was an arbitrary amount. I believe $3,000.00 was fair compensation to McLeod. It would also be difficult to determine the interest because the time was accumulated over the life of the matter. I therefore, disallow interest on the $3,000.00.

Finally there is the matter of the interest cost incurred by Mr. McLeod to pay a portion of the appraisers fees. I am of the view that this is not an appropriate expense. The Province will be paying interest on the amount awarded which is sufficient and the appraiser and the lawyers should wait for their fees because they are almost guaranteed their reasonable fees under the legislation.

As I indicated earlier, I intend to give a global figure for legal and appraisal cost which I believe to be reasonable in this case. I find that $55,000.00 is an appropriate amount for legal fees. Added to that amount would be H.S.T. and the allowable expenses outlined above makes the total $72,825.06. I have considered the appraisal costs and conclude that the sum of $25,000.00 inclusive of expenses plus H.S.T. is reasonable and appropriate which makes a total appraisal account of $28,750.00.

Mr. Caldwell in his article “Forensic Expropriations “ says:

Notwithstanding that the client hopes to pass on all of the expert’s account to the expropriating authority, the authority is usually only responsible for paying all “reasonable” accounts of experts. There may be excess charges in the expert’s account which are not recoverable from the authority and which may well have to be borne by the client. This, too, needs to be stipulated in the retainer agreement. What is reasonable must be distinguished from what is excessive, i.e. not recoverable even from the client.

I found that the legal and appraisal cost were excessive. Consequently the cost not approved herein should not be recoverable from the McLeods.

DISPOSITION

I order the Province of New Brunswick pay the following to Richard Winslow McLeod and Shirley Lynn McLeod.

a) the sum of $362.25 on or before June 30, 2000.

b) the sum of $15, 228.84 on or before June 30, 2000.

c) the sum of $72,825.06 within a reasonable time.

d) the sum of $28,750.00 within a reasonable time.

________________________

George S. Rideout

Justice of the Court of Queen's Bench of New Brunswick

June 22, 2000