Garland v. Consumers' Gas: Getting Back Money You Shouldn't Have Paid

Garland v. Consumers' Gas Co., 2004 SCC 25, is the Supreme Court of Canada's leading decision on unjust enrichment.

What happened

Consumers' Gas charged customers a 5% late payment penalty on overdue bills. For customers who paid soon after the due date, that worked out to an annual interest rate far above the Criminal Code's limit on interest. Gordon Garland started a class action to get the penalties back.

What the court decided

The Supreme Court ordered the company to repay the penalties it collected after the lawsuit was started. It set out the test:

1. an enrichment of the defendant;
2. a corresponding deprivation of the plaintiff;
3. no juristic reason for the enrichment.

Before the lawsuit, the company could rely on regulatory approval of its rates. Once sued, it was on notice and could no longer rely on that.

Why it matters

Unjust enrichment can help when there is no contract to sue on, for example payments made by mistake or charges that were never lawful.

What it means for you

• If you paid money by mistake, or paid an unlawful charge, you may be able to recover it.
• Act promptly: limitation periods apply.

Sources

• Garland v. Consumers' Gas Co., 2004 SCC 25 (CanLII)
• Criminal Code, s. 347 (criminal interest rate)

Read next: The Andrews Trilogy: Canada's Cap on Pain and Suffering Damages

General Ontario legal information, not legal advice for your matter, and reading it does not create a retainer. Sources checked 15 October 2026: check the current law, forms and dates before you act.

Photos from Pexels: Papers marked paid and due beside a calculator · Using a calculator beside an invoice.

This article is general information for people in Ontario, not legal advice. Rules, forms and deadlines change, and every situation is different. Check the current rule or speak to a licensed legal professional before you act.