This is page numbers 115 - 148 of the Hansard for the 12th Assembly, 7th Session. The original version can be accessed on the Legislative Assembly's website or by contacting the Legislative Assembly Library. The word of the day was chairman.

Topics

Bill 3: An Act To Amend The Judicature Act
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 134

Stephen Kakfwi

Stephen Kakfwi Sahtu

Thank you, Mr. Chairman. I have on my right, Mr. Mark Aitken from the legislative division, Department of Justice.

Bill 3: An Act To Amend The Judicature Act
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 134

The Chair John Ningark

Mahsi. Qujannamiik. General comments from the floor on Bill 3. There is a call to go clause by clause. Mr. Whitford.

General Comments

Bill 3: An Act To Amend The Judicature Act
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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Tony Whitford

Tony Whitford Yellowknife South

Thank you, Mr. Chairman. Mr. Chairman, I had a chance to try to explain this to constituents who asked about it and it is kind of a complicated bill for a simple solution. I would like to ask the Minister if he would be able to, in simple terms, explain how this is going to benefit the average individual of the Northwest Territories. Is this good for the people and in what way, in 10 words or less?

Bill 3: An Act To Amend The Judicature Act
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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The Chair John Ningark

Thank you. Mr. Minister.

Bill 3: An Act To Amend The Judicature Act
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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Stephen Kakfwi

Stephen Kakfwi Sahtu

Mr. Chairman. Mr. Aitken is going to give us a couple of examples on the types of action that it could involve and how it is going to benefit the people who initiate the actions.

Bill 3: An Act To Amend The Judicature Act
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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The Chair John Ningark

Mr. Aitken, you have the floor.

Bill 3: An Act To Amend The Judicature Act
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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Aitken

Thank you, Mr. Chairman. This bill does two things, it changes the regime for prejudgment interest which is the rate of interest that applies from the time a cause of action to the day of judgment. That's the first thing it does. The second thing it does is it sets up a new regime for the determination for the termination of post-judgment interest which arises from the day of judgment to the time that a judgment is paid.

Presently, with respect to pre-judgment interest, the rate of interest is determined at one time from the time the cause of action arises. So, if that happens at a time when interest rates are very high, say 16 or 17 per cent, that will continue to be the rate of pre-judgment interest until the time of judgment, regardless of what happens to interest rates in the interim. So, if interest rates fall from 17 per cent down to five per cent or six per cent, the defendant will still be liable to pay the rate of 17 per cent for the entirety of that period which, as you can see, would result in some unfairness to the defendant.

Similarly, if the cause of action arises at a time of historical low interest rates and the interest rates subsequently climb, the plaintiff would be prejudiced because the rate of interest would be fixed at the one time.

What this bill does with respect to pre-judgment interest is allows for flexibility. The rate of interest will be determined at six-month periods, so the rate of interest over a number of years will adjust with the general ebb and flow of interest rates in Canada.

With post-judgment interest, it was previously fixed and is now fixed according to the Interest Act at five per cent. For the past number of years, this hasn't been a problem but, historically, interest rates are considerably higher than five per cent so a successful plaintiff is, in fact, prejudiced because the rate of interest that they are earning on the amount of the judgment doesn't reflect the amount of interest which is available in the market place. This bill will enable the Northwest Territories to assume jurisdiction for the determination of that interest rate and provides that the rate of post-judgment interest will be determined in the exact same manner as the prejudgment interest rate which I described to you. Thank you very much, Mr. Chairman.

Bill 3: An Act To Amend The Judicature Act
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 134

The Chair John Ningark

Thank you. Further general comments on Bill 3. Are we ready to go clause by clause?

Bill 3: An Act To Amend The Judicature Act
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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Some Hon. Members

Agreed.

---Agreed

Clause By Clause

Bill 3: An Act To Amend The Judicature Act
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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The Chair John Ningark

Okay. Bill 3, An Act to Amend the Judicature Act. Clause 1.

Bill 3: An Act To Amend The Judicature Act
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 134

Some Hon. Members

Agreed.

---Agreed

Bill 3: An Act To Amend The Judicature Act
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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The Chair John Ningark

Thank you. Clause 2.

Bill 3: An Act To Amend The Judicature Act
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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Some Hon. Members

Agreed.

---Agreed

Bill 3: An Act To Amend The Judicature Act
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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The Chair John Ningark

On page 3, clause 3.

Bill 3: An Act To Amend The Judicature Act
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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Some Hon. Members

Agreed.

---Agreed

Bill 3: An Act To Amend The Judicature Act
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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The Chair John Ningark

Thank you. Clause 4.

Bill 3: An Act To Amend The Judicature Act
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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Some Hon. Members

Agreed.

---Agreed

Bill 3: An Act To Amend The Judicature Act
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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The Chair John Ningark

Thank you. Clause 5.

Bill 3: An Act To Amend The Judicature Act
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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Some Hon. Members

Agreed.

---Agreed

Bill 3: An Act To Amend The Judicature Act
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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The Chair John Ningark

The bill as a whole?

Bill 3: An Act To Amend The Judicature Act
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 135

Some Hon. Members

Agreed.

---Agreed

Bill 3: An Act To Amend The Judicature Act
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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The Chair John Ningark

Does the committee agree that Bill 3, An Act to Amend the Judicature Act, is now ready for third reading?

Bill 3: An Act To Amend The Judicature Act
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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Some Hon. Members

Agreed.

---Agreed

Bill 5: An Act To Amend The Maintenance Act
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 135

The Chair John Ningark

Thank you. Bill 3 is now ready for third reading. We will move on to Bill 5, An Act to Amend the Maintenance Act. Mr. Minister, are you ready for the opening remarks of the bill?

Minister's Introductory Remarks

Bill 5: An Act To Amend The Maintenance Act
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 135

Stephen Kakfwi

Stephen Kakfwi Sahtu

Mr. Chairman, the bill before you today contains a proposed amendment to the Maintenance Act to allow common-law spouses to apply for support payments.

Under the Maintenance Act a judge may order one spouse to pay maintenance to the other spouse. In a decision of the Northwest Territories Supreme Court in October 1991, the word "spouse" was interpreted by the court to exclude a common-law spouse. The proposed amendment to the Maintenance Act would allow applications for support for common-law spouses to be brought during the relationship or within two years of the break-up of the relationship.

Although the Department of Justice is developing draft legislation on broad reforms to family law, there has been more urgency in the call for reform on this support issue. Under the proposed amendment to the Maintenance Act, a man or a woman who has been cohabiting with a partner for at least two years may apply for spousal support. If the partners have not been living together for a full two years, but have a child together and are living in a relationship of some permanence, then a partner may also apply for spousal support.

Under the bill, a common-law spouse would have two years from the date of separation to start an application for support. This is to provide a common-law spouse with enough time to decide whether support is necessary and also to provide some certainty for a spouse who may not know whether a former spouse will claim a right to support. The bill would also allow common-law spouses to enter into written agreements so that the new support obligations would not apply to them. Thank you, Mr. Chairman.