NWT Small Claims Interest Calculation and Cost Awards

Interest Adds Up — If You Know How to Claim It

When the Territorial Court of the Northwest Territories awards a judgment, the amount is not just the principal sum you claimed. Pre-judgment interest accrues from the date the money was owed until judgment day. Post-judgment interest runs from judgment until the debtor actually pays. And the judge can award costs — filing fees, service expenses, and other disbursements — on top of the principal.

Understanding these components changes what your claim is actually worth.

Pre-Judgment Interest

Pre-judgment interest is governed by Part 9 of the Judicature Act (R.S.N.W.T. 1988, c. J-1). It compensates the claimant for being kept out of their money while the case moved through the system.

The default rate is the Bank of Canada prime rate during the relevant period. For a liquidated claim, interest accrues from the date the cause of action arose until judgment. For an unliquidated claim, it accrues from the date you gave the other party written notice of your claim until judgment.

If your contract specifies a different interest rate (for example, an invoice with "2% per month on overdue balances"), you can claim the contractual rate instead. Bring the contract to court and point to the clause. The judge will enforce contractual interest rates if they are proven in evidence.

Calculating Pre-Judgment Interest

For a $10,000 claim with a Bank of Canada prime rate of 5.00% and a wait of 18 months from the cause of action to judgment:

$10,000 × 5.00% × (18 ÷ 12) = $750 in pre-judgment interest

State your interest claim in Form 1 (Statement of Claim). You do not need to calculate the exact amount at filing — the form has a section for interest, and the judge calculates the final figure at judgment based on the actual period.

The judge has discretion to adjust or disallow pre-judgment interest if the claimant caused unreasonable delay in prosecuting the claim.

Post-Judgment Interest

An unsatisfied judgment bears post-judgment interest from the later of the date judgment was pronounced and the date payment is due under the judgment, until the debtor pays in full. The Bank of Canada prime rate applies unless the judge specifies otherwise.

You do not need to file anything extra to claim post-judgment interest. It is built into the judgment. When you file for enforcement (Writ of Execution, Garnishee Summons, or Payment Hearing), include the accrued post-judgment interest in the total amount owing.

Cost Awards

The judge can award costs to the successful party. In the Territorial Court, cost awards typically cover:

• Filing fees — the $55 Statement of Claim fee, the $25 Default Judgment application fee, or any other filing fees you paid during the proceeding
• Service costs — process server charges or Sheriff's Office fees (Schedule B includes $0.50 per kilometre for travel)
• Witness expenses — conduct money and travel allowances paid to compel witness attendance via Form 16
• Enforcement fees — costs of issuing Writs of Execution or Garnishee Summonses after judgment

Cost awards are discretionary. The judge decides what is reasonable based on the outcome and the conduct of the parties.

Form 19 and Cost Consequences

If you served a Form 19 Offer to Settle that the other side rejected, and the trial result is equal to or less favourable than your offer, the judge can award you enhanced costs from the date of the offer forward. This is the strongest cost tool in the Civil Claims Rules — it punishes unreasonable refusal to settle.

What You Cannot Recover

The Territorial Court generally does not award:

• Legal fees for a lawyer — you can hire one, but the court does not typically order the losing side to pay your legal bills in small claims
• Lost wages for attending court — time away from work is your own cost
• Travel expenses to attend hearings — unless you were the witness (not the party) and conduct money was ordered

Track Your Expenses From Day One

Keep receipts for every disbursement: the filing fee, certified mail for the demand letter, process server invoices, the $25 enforcement application fees. If you win, hand the judge a one-page summary of costs with the receipts attached.

The NWT Small Claims Filing Guide includes a worked interest calculation example and a deadline calendar that tracks interest accrual dates alongside procedural milestones. It helps you build the cost claim as you go, so nothing gets missed at the hearing.

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