Introduction
Receiving a Plaintiff’s Claim from the Ontario Small Claims Court can be alarming. For many individuals and businesses, being served with court documents is an unfamiliar experience. The immediate reaction is often panic, frustration, or uncertainty about what happens next. Some defendants believe that the claim has no merit and therefore decide to ignore it. Others assume that they will have plenty of time to respond. Unfortunately, both assumptions can create serious problems.
A Plaintiff’s Claim does not mean that the plaintiff has proven their case. It also does not mean that the defendant will ultimately be found liable. However, once a claim has been issued and served, there are procedural steps that must be taken within prescribed timelines. Understanding those obligations early can significantly affect the outcome of the case.
Why This Issue Matters
Ontario Small Claims Court currently has jurisdiction over claims for money or the recovery of personal property valued at up to $50,000, exclusive of interest and costs.¹ Many claims involve:
- Unpaid invoices;
- Breach of contract allegations;
- Property damage disputes;
- Construction disputes;
- Unpaid loans;
- Landlord and tenant matters occurring after a tenancy has ended;
- Business disputes; and
- Consumer claims.
While Small Claims Court is designed to be more accessible than higher courts, the Rules of the Small Claims Court still impose procedural requirements that parties must follow.² A defendant who fails to respond appropriately may face significant consequences, including the possibility of default judgment. Even where a defendant has a strong defence, failing to comply with procedural requirements can place them at a significant disadvantage.
Common Mistakes Made by Defendants
Ignoring the Claim
One of the most common mistakes is assuming that a claim will simply disappear if ignored. Once properly served, a Plaintiff’s Claim requires a response within the applicable timeline.³ Failing to respond may allow the plaintiff to seek default judgment.
Waiting Until the Last Minute
Many defendants delay gathering documents, identifying witnesses, or reviewing the allegations until deadlines are approaching. This often results in unnecessary stress and incomplete preparation.
Failing to Preserve Evidence
Relevant evidence may include:
- Contracts;
- Emails;
- Text messages;
- Photographs;
- Invoices;
- Receipts;
- Banking records; and
- Witness information.
Documents that seem unimportant at the beginning of a dispute may later become critical evidence.
Assuming the Truth Will Automatically Prevail
Many parties believe that because they are “right,” they do not need to prepare thoroughly. Courts decide cases based upon admissible evidence, credibility, and legal principles—not simply on which party feels morally justified.
Underestimating the Importance of Procedure
Procedural mistakes can have serious consequences. Even a strong defence may be weakened if deadlines are missed, evidence is not properly organized, or required documents are not filed.
Legal Decision on the Issue
Facts
In Mountain View Farms Ltd. v. McQueen, the Ontario Court of Appeal considered the importance of procedural fairness and the circumstances under which a default judgment should be set aside.⁴ The defendant had failed to properly participate in the litigation process, resulting in judgment being obtained. The Court was required to consider whether the interests of justice favoured allowing the matter to proceed on its merits.
The Decision
The Court emphasized that litigation should generally be decided on its merits whenever reasonably possible.⁵ However, the Court also recognized that procedural rules exist for a reason. Parties are expected to comply with deadlines and court requirements. When determining whether relief should be granted from a procedural default, courts consider factors such as:
- The explanation for the default;
- Whether the motion was brought promptly;
- Whether there is an arguable defence; and
- Potential prejudice to the opposing party.⁶
Why the Decision Matters
Many defendants mistakenly believe that missing a deadline can easily be fixed later. The reality is that correcting procedural mistakes often requires additional motions, additional expense, and additional uncertainty.
The decision highlights an important practical principle:
- Defendants should take court proceedings seriously from the moment they are served.
- While courts generally prefer to decide cases on their merits, there is no guarantee that a procedural error will be forgiven.
- Responding promptly and appropriately is almost always preferable to attempting to repair mistakes later.
Practical Considerations
A defendant who receives a Plaintiff’s Claim may wish to carefully review the allegations and gather relevant documents as soon as possible. In many cases, useful documents include:
- Contracts;
- Correspondence;
- Invoices;
- Receipts;
- Banking records;
- Photographs;
- Text messages; and
- Witness information.
Defendants may also wish to create a chronology of events while their recollection remains fresh. Disputes often arise months or years after the underlying events occurred. Memories fade, documents become difficult to locate, and witnesses become harder to contact. Early organization frequently assists both legal representatives and self-represented parties in understanding the strengths and weaknesses of a case.
Defendants should also appreciate that not every claim is solely about whether money is owed. Many disputes involve issues of credibility, contractual interpretation, documentary evidence, mitigation, limitation periods, or procedural compliance. A careful assessment of the claim at an early stage may help identify issues that could become important later in the proceeding.
Conclusion
Being sued in Ontario Small Claims Court can be stressful, but receiving a Plaintiff’s Claim does not mean that the plaintiff will automatically succeed. The most important step is to take the claim seriously and address it promptly. The Ontario courts have repeatedly emphasized the importance of deciding cases on their merits. However, courts also expect parties to comply with procedural requirements and litigation deadlines. The decision in Mountain View Farms Ltd. v. McQueen illustrates that procedural mistakes can have significant consequences and may require additional litigation to correct. Individuals and businesses facing a Small Claims Court proceeding may benefit from obtaining legal advice regarding their specific circumstances and available options.
Disclaimer
This article is provided for general informational purposes only and does not constitute legal advice. Every case is unique and the outcome of any particular matter will depend upon its specific facts and circumstances. Reading this article does not create a paralegal-client, lawyer-client, or solicitor-client relationship. If you require legal advice regarding your situation, you should obtain professional legal assistance.
Footnotes
- Courts of Justice Act, RSO 1990, c C.43, s. 23(1), as amended.
- Rules of the Small Claims Court, O Reg 258/98.
- Rules of the Small Claims Court, O Reg 258/98, Rule 9.01.
- Mountain View Farms Ltd. v. McQueen, 2014 ONCA 194.
- Mountain View Farms Ltd. v. McQueen, 2014 ONCA 194 at paras. 47–52.
- Mountain View Farms Ltd. v. McQueen, 2014 ONCA 194 at paras. 53–58.