Small Claims Court raised to $35,000
The following excerpts are taken from In the Radar newsletter.
Small Claims Court limit raised to $35,000
As of January 1, 2020, Ontario's Small Claims Court has the power to deal with claims of up to $35,000. Before that date, the maximum was $25,000.
What Small Claims Court can deal with?
Small Claims Court deals with most types of "civil" claims. This means that a person may be able to sue in Small Claims Court if, for example:
someone owes them money
someone has taken, lost, or damaged their property
someone broke a contract with them, such as a contract to do repairs or renovations
an employer fired them
they bought something that was defective or was not what it was advertised to be
Deciding to sue
A person who has a claim might choose not to go to court. Here are some reasons why a person may not want to sue:
They'll have to pay court fees, unless they qualify for a fee waiver.
If they lose, the court could order them to pay some or all of the legal costs of thedefendant.
It may take a long time, even over a year, and involve a lot of work, especially for someone who does not have a lawyer.
If the claim is successful, it can be difficult to collect the money if the defendant is not willing to pay what the court ordered.
Other options
Depending on the type of legal problem, there may be options other than going to Small Claims Court. And it's almost always a good idea to try other ways to solve the problem before going to court. For example, a person might try to find a solution by talking to the other person or by using mediation.
Here are more options other than going to court:
A person can send what's often called a "demand letter" to someone who owes them money. The letter explains what they're asking for and why.
A worker who's covered by Ontario's Employment Standards Act may be able to make a claim to the Ministry of Labour.
If the claim involves discrimination, a person may be able to make a claim to the Human Rights Tribunal of Ontario.
Someone who bought something from a door-to-door salesperson may want tocomplain to the Ministry of Government and Consumer Services.
Claims over $35,000
Small Claims Court can deal with claims of up to $35,000.
A claim for more than $35,000 has to be filed in Superior Court. It's very hard to do this without a lawyer. Someone who decides to sue in Superior Court needs to try to get legal help.
If someone is owed more than $35,000, they can sue in Small Claims Court if they're willing to give up the amount over $35,000. For example, someone who's owed $40,000 might choose to give up their right to $5,000 of that and sue in Small Claims Court for $35,000.
Claims filed before January 1, 2020
If someone filed a claim in Superior Court for $35,000 or less before January 2020, it may be transferred to Small Claims Court if:
the person suing and the defendant agree to this, or
the court makes a transfer order.
Getting legal help
Small Claims Court is meant to be easy enough for people to sue without hiring a lawyer or paralegal. But it may be useful to get legal help before starting a case in Small Claims Court.
For example, people may want to get:
legal advice about their options
legal advice about the strength of their case and the evidence that can help them prove their case in court
legal advice about which court to go to if the claim is over $35,000
help with the court process, for example, filling out forms,
Help for people with low incomes
People with low incomes might be able to get help from Pro Bono Ontario.
In Ottawa and Toronto, Pro Bono Ontario provides duty counsel lawyers at Small Claims Court. Duty counsel lawyers give advice and can sometimes help people represent themselves in court.
Pro Bono Ontario also has a legal advice hotline. People can get up to 30 minutes of free legal advice and help about Small Claims Court by calling 1-855-255-7256.