Small Claims

Ontario’s Small Claims Court serves as a vital and more accessible branch of the Superior Court of Justice, designed to efficiently resolve civil disputes involving claims of $35,000 or less. This streamlined forum allows individuals and businesses to seek monetary compensation or the recovery of personal property without the often complex and costly procedures of the regular Superior Court. Understanding the legal matters within Small Claims Court is crucial for anyone considering or facing a claim.

Jurisdiction and Types of Claims

The fundamental principle of Small Claims Court is its monetary jurisdiction, currently capped at $35,000, excluding interest and court costs. This limit applies to the total amount claimed. If your claim exceeds this amount, you generally have two options: abandon the portion exceeding $35,000 to proceed in Small Claims Court, or pursue the matter in the Superior Court of Justice under its regular civil procedure rules, which can be more complex and expensive.

Small Claims Court hears a wide array of civil disputes, including but not limited to:

• Debt claims: Unpaid loans, outstanding invoices for goods or services, and recovery of rent arrears. For instance, a contractor who hasn’t been paid for completed renovations or a landlord seeking unpaid rent can pursue their claim here.
• Breach of contract: Situations where one party fails to fulfill their obligations under a legally binding agreement. This could involve a dispute over a service not rendered as promised or goods not delivered according to the contract.
• Property damage: Claims seeking compensation for damage caused to personal property. A common example is a dispute between neighbours over damage to a fence or a claim against a dry cleaner for ruined clothing.
• Personal injury: Claims for minor injuries resulting from negligence, such as a slip and fall where the damages (including medical expenses and lost wages) fall within the $35,000 limit. More significant personal injury cases typically proceed in the Superior Court.
• NSF (non-sufficient funds) cheques: Recovering money from dishonoured cheques.
• Recovery of personal property: Seeking the return of specific items wrongfully withheld, provided their value is $35,000 or less.

It’s important to note that Small Claims Court generally does not handle matters involving:

• Defamation (libel and slander)
• Malicious prosecution
• Certain types of land disputes
• Family law matters (divorce, custody, support)
• Most landlord and tenant disputes (which are primarily handled by the Landlord and Tenant Board)

Starting a Claim: The Plaintiff’s Role

The party initiating the lawsuit is called the plaintiff. To start a claim, the plaintiff must file a Plaintiff’s Claim (Form 7A) with the Small Claims Court. This form requires detailed information, including:

• The full legal names and addresses of all parties involved (plaintiff(s) and defendant(s)).
• A clear and concise explanation of the events leading to the claim, including what happened, where, and when.
• The specific amount of money being claimed or a detailed description and value of the personal property sought.
• The legal basis for the claim (e.g., breach of contract, negligence).
• The annualized pre-judgment interest rate being claimed, if applicable.

The Plaintiff’s Claim can be filed online through the Small Claims Court E-Filing Service portal or in person at any Small Claims Court office in the relevant jurisdiction. The appropriate court location is usually where the cause of action arose or where the defendant resides or conducts business. A filing fee is required to issue the claim.

Once the claim is issued by the court, the plaintiff is responsible for serving a copy of the issued claim and any supporting documents on each defendant within six months of the claim being issued. Service must be done according to the Rules of the Small Claims Court, which typically involves personal service or an acceptable alternative. Proof of service, usually in the form of an Affidavit of Service (Form 8A), must then be filed with the court.

Responding to a Claim: The Defendant’s Role

The party being sued is the defendant. Upon being served with a Plaintiff’s Claim, the defendant has 20 days to file a Defence (Form 9A) with the court and serve a copy on the plaintiff. The Defence outlines the defendant’s reasons for disputing the plaintiff’s claim. Failure to file a Defence within the stipulated timeframe can lead to the plaintiff obtaining a default judgment against the defendant without further notice.

A defendant may also choose to file a Defendant’s Claim (Form 10A) if they believe the plaintiff owes them money or property related to the original claim. This is essentially a counterclaim. The defendant must serve this claim on the plaintiff, who then has 20 days to file a Defence to Defendant’s Claim (Form 11A).

The Court Process: Settlement Conference and Trial

After the Defence is filed, the court typically schedules a Settlement Conference. This is a mandatory meeting between the parties and a judge or a referee aimed at exploring potential settlements and resolving some or all of the issues in dispute. Parties with full knowledge of the facts and authority to settle should attend, along with any legal representatives. Disclosure of relevant facts and evidence is expected at this stage.

If the matter is not resolved at the Settlement Conference, it proceeds to Trial. A different judge usually presides over the trial. At trial, both the plaintiff and the defendant present their evidence, including witness testimony and documents, to support their respective positions. The Rules of Evidence in Small Claims Court are generally less strict than in Superior Court, but the fundamental principles of relevance and admissibility still apply.

Parties are responsible for ensuring their witnesses are present at trial, potentially through a Summons to Witness (Form 15A) issued by the court. After hearing all the evidence, the judge will issue a judgment, which may be delivered on the day of the trial or at a later date.

Legal Representation

While Small Claims Court is designed to be accessible to individuals representing themselves, parties have the option to hire a lawyer or a paralegal licensed by the Law Society of Ontario to represent them. Legal representation can be particularly beneficial in complex cases, when navigating legal procedures seems daunting, or when the opposing party has legal counsel.

A lawyer or paralegal can assist with:

• Preparing and filing court documents.
• Serving documents correctly.
• Developing a legal strategy.
• Gathering and presenting evidence.
• Negotiating settlements.
• Representing you at the Settlement Conference and Trial.
• Understanding and applying the Rules of the Small Claims Court and relevant legal principles.

While the successful party in Small Claims Court can typically recover some of their costs, including a limited amount for legal fees (generally up to 15% of the amount claimed), it’s crucial to weigh the potential benefits of legal representation against the associated expenses.

Offers to Settle

Throughout the Small Claims Court process, either party can make a formal Offer to Settle (Form 14A) to the other party. If the receiving party rejects the offer and the offering party ultimately obtains a judgment that is as favorable as or more favorable than their offer, the court may award the offering party increased costs, potentially up to 30% of the claim, encouraging settlement and avoiding unnecessary trials.

Enforcing a Judgment

Winning a judgment is only the first step. If the losing party (the judgment debtor) does not voluntarily pay the amount ordered, the winning party (the judgment creditor) must take steps to enforce the judgment. Small Claims Court itself does not typically enforce its orders. The judgment creditor has various enforcement options available, such as:

• Garnishment of wages or bank accounts: Obtaining a court order requiring a third party (e.g., the debtor’s employer or bank) to pay a portion of the debtor’s funds directly to the creditor.
• Writ of Seizure and Sale of Personal Property: Authorizing a sheriff to seize and sell the debtor’s personal assets to satisfy the judgment.
• Writ of Seizure and Sale of Land: Involving the seizure and potential sale of the debtor’s real property (this is a more complex process).
• Examination Hearing: Requiring the debtor to appear in court to provide information about their assets and income, which can help the creditor determine the best enforcement method.

Enforcement procedures have their own rules and fees associated with them

Conclusion

Ontario’s Small Claims Court provides a valuable forum for resolving less complex civil disputes efficiently and at a lower cost than traditional litigation. Understanding the court’s jurisdiction, the procedural steps involved in starting and defending a claim, the role of settlement efforts, and the available enforcement mechanisms is essential for anyone navigating this system. While self-representation is an option, seeking legal advice or representation from a lawyer or paralegal can be beneficial, particularly in more intricate cases, to ensure your rights are protected and you navigate the legal process effectively.