FAQ Civil Litigation and Small Claims Court

Ontario Small Claims Court is a branch of the Superior Court of Justice that hears civil disputes involving claims for money, recovery of personal property, or enforcement of certain rights where the amount claimed does not exceed $50,000, excluding interest, costs, and disbursements.

Small Claims Court is intended to provide a more accessible and efficient process than higher courts while still requiring parties to comply with procedural rules, deadlines, and evidentiary requirements.

Small Claims Court commonly hears disputes involving:

• Unpaid invoices and accounts receivable
• Breach of contract claims
• Construction disputes
• Unpaid loans
• Promissory notes
• Property damage claims
• Debt collection matters
• Consumer disputes
• Unpaid services
• Real estate deposit disputes
• Defamation claims within the Court’s monetary jurisdiction
• Enforcement of certain Landlord and Tenant Board orders

Not every dispute belongs in Small Claims Court. Determining the correct legal forum is often an important first step.

Ontario Small Claims Court currently has jurisdiction over claims of $50,000 or less, excluding interest, costs, and disbursements.

Where a claim exceeds $50,000, a plaintiff may choose to abandon the excess amount and proceed in Small Claims Court or commence proceedings in the Superior Court of Justice.

In many cases, the basic limitation period is two years from the date the claim was discovered or reasonably ought to have been discovered.

However, limitation periods can be complex. Certain claims may be subject to shorter deadlines, longer deadlines, or special statutory limitation periods. Missing a limitation period may permanently bar a claim.

Potentially, yes.

Many legally enforceable agreements are oral agreements. The challenge is often proving the terms of the agreement. Emails, text messages, invoices, payment records, witness testimony, and the conduct of the parties may all help establish the existence of a contract.

Strong evidence may include:

• Written contracts
• Emails and text messages
• Invoices and receipts
• Bank records
• Photographs and videos
• Witness testimony
• Business records
• Expert reports
• Inspection reports

Courts decide cases based on evidence, not assumptions. Well-organized documentary evidence often plays a significant role in the outcome of litigation.

After the claim is issued by the Court, it must be served on the defendant. The defendant then has an opportunity to file a Defence.

If the matter is disputed, the case may proceed to a settlement conference and, if unresolved, ultimately to trial.

If a defendant fails to file a Defence within the prescribed time, the plaintiff may be entitled to seek default judgment.

However, obtaining default judgment still requires compliance with court procedures and supporting documentation.

Yes.

Corporations can sue and be sued in Small Claims Court. It is important to identify the correct legal entity before commencing litigation.

Many claims encounter difficulties because the wrong corporation or business name was identified.

Potentially.

Corporations are generally separate legal entities. However, there are circumstances where personal liability may be alleged.

Determining whether an individual should be named as a defendant often requires careful legal analysis.

A Settlement Conference is a court proceeding held before trial.
Its purposes generally include:

• Exploring settlement opportunities
• Narrowing the issues in dispute
• Reviewing the evidence
• Assisting parties with trial preparation
• Encouraging efficient resolution

Many cases resolve at or shortly after the Settlement Conference stage.

Potentially.

The Court may award costs, including filing fees, service expenses, witness expenses, and a portion of legal fees. However, successful parties are not automatically entitled to recover every dollar spent on litigation. Cost awards are discretionary and depend on the circumstances of the case.

Court has authority to award costs in the amount of up to 15% of the amount claimed. In some circumstance, costs could reach the maximum of 30% of the amount claimed.

It depends. There is no guarantee of a settlement before trial, but many cases do settle prior to trial. Settlement may occur before litigation begins, after pleadings are exchanged, during settlement negotiations, at the settlement conference, or even shortly before trial.

There is no standard timeline.

The duration of a case depends on factors such as court scheduling, complexity, availability of witnesses, settlement discussions, motions, and procedural issues.

Some cases resolve within months while others take considerably longer.

In most civil cases, the plaintiff must prove the claim on a balance of probabilities.

This means the Court must conclude that the plaintiff’s version of events is more likely than not.

Witness testimony can be extremely important.

Independent witnesses are often particularly persuasive because they may have no personal interest in the outcome of the case.

Credibility, consistency, and reliability often influence how the Court assesses witness evidence.

Yes.

Electronic communications are frequently relied upon in civil litigation. They may assist in proving agreements, admissions, timelines, payment arrangements, and communications between the parties.

Important electronic evidence should be preserved as early as possible.

Courts assess credibility and reliability.

Judges and deputy judges may consider inconsistencies, documentary evidence, witness testimony, prior statements, plausibility, and overall conduct when determining which evidence to accept.

Strong documentary evidence often assists in resolving credibility disputes.

Potentially.

Property damage claims frequently involve motor vehicles, rental properties, construction projects, equipment, and personal property.

Photographs, repair invoices, estimates, expert opinions, and witness evidence may assist in proving both liability and damages.

Yes.

Businesses commonly use Small Claims Court to recover unpaid invoices, consulting fees, professional fees, construction invoices, and other contractual debts.

Accurate records, invoices, contracts, and communications can significantly strengthen such claims.

A motion is a request asking the Court to make an order before trial.

Motions may address procedural issues, disclosure disputes, amendments to pleadings, production of documents, setting aside default judgments, or other matters that arise during litigation.

At trial, each party has an opportunity to present evidence, call witnesses, cross-examine opposing witnesses, and make legal submissions.

The judge or deputy judge will then assess the evidence, determine the facts, apply the law, and render a decision.

Winning a judgment does not automatically result in payment.

If the judgment debtor does not voluntarily satisfy the judgment, additional enforcement steps may be necessary.

Collection is often a separate process from obtaining judgment.

Enforcement options may include:

• Garnishment of wages
• Garnishment of bank accounts
• Writs of seizure and sale
• Judgment debtor examinations
• Other enforcement remedies available under Ontario law

The most effective enforcement strategy depends on the debtor’s financial circumstances and available assets.

Although Small Claims Court is designed to be accessible, civil litigation remains governed by rules, deadlines, evidence requirements, procedural obligations, and legal principles.

Professional representation may assist with:

• Assessing the strengths and weaknesses of a claim
• Identifying limitation period concerns
• Drafting claims and defences
• Gathering and organizing evidence
• Conducting settlement negotiations
• Preparing for settlement conferences
• Conducting trials
• Enforcing judgments

Early legal advice may help avoid costly mistakes, identify risks, improve case preparation, and increase the likelihood of achieving a successful outcome.