Small Claims Court

Areas of Practice

Small claims court in Ontario is a legal venue where individuals and businesses can resolve disputes over a limited amount of money. The court is designed to be a simpler, faster, and more affordable alternative to traditional litigation. It is meant for cases where the amount in dispute is $35,000 or less.

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Filing a small claims court claim and trying to navigate the civil justice system can be complicated. Our job is to help you navigate the challenges of the civil justice system.

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There is no problem too big or too small for us to handle. At every stage of the process, we strive to provide you with the best resolution in the shortest time possible.

A comprehensive range of legal services is offered by Cordaie Paralegal Services through satellite offices throughout Ontario. For clients who are owed money or seeking damages, our firm provides civil litigation services. As an experienced civil litigation team, we can handle cases of any complexity.


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Those seeking representation in Small Claims Court can turn to our firm for assistance. Any Small Claims Court matter, including breaches of contract, non-payments, and damages, can be handled by our firm. We are here to help you through this difficult time with our knowledge of the legal system and years of experience.


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Small Claims Court

We can help you make things right if you are owed money, have suffered damages, or are trying to repossess an item. Both individuals and businesses can benefit from our services. It is possible to sue in Ontario Small Claims Court for money or the return of personal property valued at up to $35,000, excluding interest and costs. 

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Small Claims Court Claims Must Fall into One of Two Categories: 


  1. A claim for damages; or 
  2. Amount due under a contract

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You can still file a claim in Small Claims Court even if you do not have any written documentation. As it is your word against theirs, it will be more difficult to prove. As long as the facts of the case and how the case is presented in court are in order, success is still possible. 


If the problem first appeared more than two years ago, you cannot file a Small Claims Court complaint. It is also imperative to choose the right courthouse to file your action in. Consider, for instance, where your claim occurred and where the defendant lives or operates.

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Small Claims Court

Some important things you should know about Small Claims Court.

Sometimes It's Not Worth the Risk

Small Claims Court is not always worth the time or money. Counterclaims against plaintiffs must be accepted as a risk. It is possible that the court will not reimburse you for your legal fees or costs even if you win your claim. Enforcing a court order is another issue. A court judgment does not guarantee that you will receive the money owed to you. Even though you agree on a mutual payment arrangement, you might be lucky enough to be able to work with the debtor to pay the debt. Otherwise, you may need to request a court examination hearing.


In general, an examination hearing will provide you with the necessary information to enforce a garnishment. As an example, you may learn the name of the debtor's employer(s), where they bank, and if they have assets. Garnishing wages or bank accounts would be possible with this information. 


The good news is that Small Claims Court is not the only option available. Among them is sending a demand letter to the debtor demanding payment. You may receive full payment, reach a settlement with the debtor, or set up a payment plan as a result. A mediator is also an option that you should consider. No matter what path you choose, Cordaie Paralegal Services can assist you.

A lawsuit Can Be Filed in the Following Situations

Injuries and Damages Claims


  • Breach of contract
  • Disputes in business
  • Damage caused by dry cleaners
  • Damage to property
  • Fraud
  • Personal Injuries
  • Product with a defect



People Owe You Money


  • Accounts that have not been paid (delivered only)
  • NSF payments that do not clear
  • Contractual breach
  • Disputes in business
  • Loans that have not been paid
  • Rent that has not been paid
  • Wages that have not been paid

Default Judgment for Liquidated Damages

It is possible to be quite specific about the amount that the defendant owes you if you have a liquidated claim. A bounced check, for instance, or an amount specified in a signed lending agreement may entitle you to money from the defendant. You can request a default judgment, which is good news. Nevertheless, the defendant may not pay you, so be prepared. It is solely your responsibility to collect the money.


Default Judgment for Non-liquidated Damages

Non-liquidated damages must be presented to a judge. In contrast to liquidated damages, this is a more challenging claim. To establish the amount of your non-liquidated damages, you will need proof such as records or witnesses or both.


There are different ways in which we can request a default judgment on your behalf. Ultimately, the judge will decide how much you should receive. Evidence and the law will guide their decision.


A Few Claims Would Fall Under a Non-liquidated Damages Scenario.

  • You are suing someone because they damaged your property or injured you 
  • Subpar work is the reason for your lawsuit 
  • You are suing your employer for severance pay


Defendant's Payment Terms Are Unacceptable

In response to the plaintiff's claim, the defendant has 20 days to file a defence. In their defence, the defendant may recommend payment conditions if they agree with the entirety or part of the claim. Thus, if they pay only part of the sum in one payment, they can choose how much to pay you each week or month.


If you disagree with the terms of payment, you have 20 days to request terms of payment hearing where a court will determine what reasonable payment conditions are. Unless you request this hearing within 20 days, you automatically agree to the defendant's payment conditions.


The Payment Terms Might Be Objectionable if: 

  • You believe is that it will take too long for you to receive the money you are owed.
  • It takes too long for you to receive your payments, and you feel the payments should be increased.


Sue Your Former Employer in Small Claims Court

You may be able to claim against your employer if you were fired or quit your job. A claim regarding employment standards may be eligible for submission to the Ministry of Labour. Additionally, you may be able to sue them in the Small Claims Court. If, however, your former employer owes you money, you cannot seek it from the court and the Ministry - you must choose only one.


The maximum amount you can sue in Small Claims Court is $35,000. The amount beyond this will either have to be waived or represented by a lawyer.


Getting Sued in Small Claims Court

There is a maximum awardable amount of $35,000 in Small Claims Court. Within two years of discovering the issue, the plaintiff must file a claim. You (the defendant) will receive a document with the information you need. There will be information about who is suing you, their claims, and the damages they are seeking. 


Three Options Are Available to You in This Scenario:

  1. The assertion is disregarded.
  2. Provide an answer to the claim 
  3. File a counterclaim


It is not a wise idea to ignore a claim. The court will conclude that you agree with the plaintiff's request if you disregard it. Without hearing your story, the court may order you to pay or transfer property to the plaintiff.


Responding to a claim requires filing and serving a defence within 20 days of receiving it. Your defence can include your side of the story. In response to the plaintiff's allegations, you can accept them in their entirety, in part, or not at all. There are also other options, such as filing a Defendant's Claim (counterclaim). 


Defaulting in a Small Claims Court Case

When a "Plaintiff's Claim" is served on you, it means you are being sued in Small Claims Court. Upon receiving this document, you have 20 days to respond by submitting a defence. Should you fail to do so, the court will presume that you owe the plaintiff money. The plaintiff can request a default notice from the court.


If you wish to participate in the case, you must submit a defence in a timely answer. If you fail to do so, a court order may be issued. This means you may be ordered to pay the plaintiff money. It is common for plaintiffs to request a default decision.


It's not all bad news, though. Defendants can seek nullification of default judgments. You will have additional time to present your defence as a result of this action. To do this, you must submit an affidavit to the court. You will have the option of explaining why you could not submit your defence on time to the court. Include any supporting evidence you have.

Losing a Small Claims Court Case & Unable to Pay

You would become the debtor if your small claims lawsuit fails. The creditor prevails. The court will typically order you to pay the creditor or return the property. Currently, both the debtor and the creditor are involved.


You should contact the creditor as soon as possible if you are unable to pay. It depends on the situation whether the creditor will give you some latitude with an instalment payment plan. Since post-judgment interest is permitted by the court, your debt will probably increase. Additionally, if you fail to make payments, the creditor may petition the court for assistance in enforcing the judgment.


Your bank account may be garnished or a portion of your income may be deducted. Your property may also be seized by the court.


There may also be an examination hearing where the creditor would require you to defend your financial standing. The Small Claims Court allows appeals if you lose.

The Process of Enforcing a Court Order to Regain Property

Rather than paying you, the court can order someone to return your property, which you can enforce. The first step is to contact the person who has your items as soon as possible. Many debtors will return property once there is a court order. Ensure that all correspondence with the debtor is in writing. You may need your records as proof in the future, so keep all of them.


If they refuse, get a Writ of Delivery. A debtor's property can be seized by law enforcement officers and delivered to creditors. The court may grant permission to take other personal property if the enforcement officer is unable to locate it. It may be challenging for self-represented clients to navigate this process, but we are here to assist you at every step.


Investigating the Debtor's Finances

You learn about the debtor's financial situation, assets, and ability to pay at an examination hearing.


An examination hearing may be necessary if:

  • Debtors have not paid what they owe you according to a court order
  • You're considering filing a garnishment order


You must provide a Certificate of Judgment before being granted an examination hearing in another city. In order to request a hearing, you must complete an application process.

The Process of Garnishing a Debtor's Bank Account

You might request that money be deducted from the debtor's bank account or income if they fail to pay you. In the event the debtor has not paid you despite a court order requiring them to do so, a garnishment application can be filed. In cases where the Notice of Garnishment is issued outside of the original court, a Certificate of Judgment is required. 


There are, however, strict limits on how much money can be taken and which is off-limits. A bank account with co-owners, for example, has different rules. We are only a phone call or email away if you'd like to learn more about this process.


A Claim That Exceeds $35,000 Has Several Options

It should be noted that the $35,000 maximum applies to the actual claim rather than per defendant. Therefore, if more than one defendant claims a loss, the final amount must be divided among them. The total amount of the claim cannot exceed $35,000. It is also not allowed to file more than one claim. If the amount owing is $40,000, you cannot make two separate claims - one for $35,000 and one for $5,000. This is not allowed in Small Claims Court.


There are two options available to you at this point. 

(1) If you are willing to waive the amount exceeding the $35,000 (maximum allowable amount), our team can file a Small Claims Court action for you. You must waive your right to claim any excess money in the future through any court action.


(2) If your claim exceeds $35,000, you must hire a lawyer. In Ontario, a paralegal cannot represent a client in Small Claims Court if the claim exceeds $35,000.

The Proper Name of the Defendant

It is the plaintiff's responsibility to ensure that the legal name of the defendant is stated on the claim. Individuals and businesses are both subject to this rule. If you are successful in your claim, the court order will state the name or business exactly as you have written it. The order cannot be enforced against a defendant whose spelling is incorrect. 


Small Claims Court cases also face the issue of determining who to sue based on where liability lies under the law. Vicarious liability, for example, holds companies liable for the conduct of their employees during work hours.


At Cordaie Paralegal Services, we can help you identify an individual or company that may be liable. Obtaining the right legal name for your claim is also a service our team offers. As part of our services, we also identify the owner of privately held companies.

Enforcing the Court Order

Despite of a favourable judgment, there is no guarantee that you will receive any payment. There is a possibility that the debtor will not be able or unwilling to pay you.


A Judgment Can Be Enforced in a Few Different Ways.

(1) Garnishment means taking money from the debtor's bank account or wages and giving it to you

(2) If you learn the debtor has assets, you may be able to recover them by issuing a writ of seizure and sale. The asset(s) would be seized and auctioned off at an auction. The proceeds would be used to pay off the outstanding debt. Despite of these steps, you may still end up with a deficit. There are high costs associated with these situations, and you are responsible for covering them.


Consider the debtor's financial situation before deciding how to enforce the judgment. 


Here Are a Few Options:

  • Consult your local credit bureau.
  • If they own assets or property, they can apply to an enforcement office or land registry office; 
  • Request an examination hearing.


In general, an examination hearing provides you with the necessary information to enforce a garnishment. A debtor's employer(s), bank account(s), and assets are some examples of information you may learn. A garnishment of the debtor's wages or bank accounts would be possible with this information. It is also possible for the debtor to disclose their debts, expenses, and reasons for not paying. As a result of reviewing this information, the judge may order the debtor to make payment by a certain date.


Alternative Options

To avoid losing even more money in a Small Claims Court lawsuit, we recommend you consider other options first. The negotiation process could begin with a letter explaining why you think the debtor owes you money and how much. As emotions seem to be running high, we recommend that our firm handle your communications. It may be possible to reach an agreement without going to court.


Mediation helps you and the debtor communicate. In this process, we do not make any decisions but rather encourage a compromise that works for both parties. Both parties must agree to attend sessions for this to work. A mediator cannot favour one party over another. We cannot represent you from a legal standpoint if we act as mediators. A different law firm would have to provide you with independent legal advice.


By arbitrating, we remain neutral and decide about your case. Essentially, it's like attending court, but in a more formal setting. Both parties sign an agreement confirming their agreement to abide by the arbitrator's decision. Both sides are legally bound by the decision. Before making a decision, the arbitrator must take into account all the evidence. No evidence can be excluded that would not be excluded by the court. 


The cost of arbitration is generally higher than that of mediation, but it is cheaper than the cost of appearing in court. Per the Arbitration Act, all arbitrators must follow the rules.

Frequently Asked Questions

Here are answers to some common questions. 

Small Claims Court

  • In Small Claims Court, what types of claims can be brought?

    A Small Claims Court is a court that is used as a means of recovering money that is owed under a contract, such as one for goods or services. 


    The court may also use this process to pursue damages claims, such as those relating to personal injury, property damage, and fraud. 


  • How does the process of bringing a claim to Small Claims Court work?

    The first step is to file a claim. To file a lawsuit, certain paperwork must be completed, the defendant must be served, and filing fees must be paid. Afterward, the defendant may wish to dispute your claim, so you must wait for their response.


    If the defendant disputes the claim, you will be asked to attend a settlement conference with the defendant and the judge. This will enable you to resolve the matter. After the settlement conference, a trial is the next step if no agreement is reached.


    If your claim is successful at trial, the court will order the defendant to pay you. Appeals may be available if you believe the judge made a serious error in the decision.


  • Is there a fee associated with filing a Small Claims Court case?

    These steps can cost anywhere between $89 and $320. You may be able to waive your filing fees if you cannot afford them and request a fee waiver if you have difficulty affording them.


    You may incur other expenses in addition to filing fees. You may have to pay for the travel expenses for your witnesses for them to attend court. In addition, you may need to hire an interpreter if you believe there will be a language barrier between the parties.


    Depending on the outcome of the case, a judge may order the defendant to pay part of the costs. It is possible that if you lose, you will have to pay your costs and some of the defendant's costs as well.


  • Does it make sense to sue?

    If you are considering suing, you should take several factors into account.


    Would you consider the amount worth it? 

    In light of the cost of filing fees and the time and effort required to see a claim through to the end, it may not be worth your time if the amount you are seeking is small. 


    Would you be willing to wait for a certain amount of time? 

    As a general rule, small claims cases can take anywhere from six to 18 months from the time of filing to the time of trial.


    How about sending a demand letter? Have you tried it? 

    Demand letters are informal letters sent to the (would-be) defendant before filing a claim to see if the matter can be resolved out of court. If you are trying to submit a claim, you may be required to send one first. For only $49 plus HST and disbursements, we can send one on your behalf.


    What is the strength of your case? 

    You must have evidence to support your claim. A written record, such as a contract, invoice, or email, tends to be more persuasive than a verbal one. Evidence should be first-hand information from you, not "hearsay" information from someone else (unless they are attending as a witness).


    What is the name of the person you are suing? 

    You should use the corporate name of the business if you are using it. To enforce a judgment, it is critical to have the right business name or corporate name.


    Do you know if the limitation period has expired? 

    The statute of limitations for bringing a claim in Ontario is two years. After discovering a loss, you have two years to file a claim. If you are claiming damages as a result of an injury, you usually have two years from the date the injury occurred. The two-year period only applies if the claim is based on an unpaid invoice (i.e. when the overdue payment occurred).


    Are you ever going to get paid? 

    Getting paid does not automatically follow your victory in court. Post-judgment execution steps include garnishing wages or registering a judgment against a defendant's property to enforce a judgment. It is possible, however, that you will spend more money trying to force the defendant to pay you than you end up recovering if the defendant does not have property or means to do so.


  • Would it be possible to settle out of court rather than file a lawsuit?

    In some cases, alternative dispute resolution methods may be available to you depending on the terms of an applicable agreement or the subject matter of the claim. 


    Some of these may be:

    • The process of negotiating with another party to reach an agreement
    • A neutral third party facilitates a resolution through mediation
    • Arbitration, in which a neutral third party (an arbitrator) decides the matter.

  • Is Small Claims Court something you need a paralegal for?

    It is still possible for Small Claims Court issues to be technically complex and include unique evidence challenges. 


    Small Claims parties don't need to hire a paralegal. However, you can choose to do so to ensure all relevant procedures and deadlines are met. 


SELF-REPRESENTATION ISN'T EASY

What You Should Know

While Small Claims Court in Ontario offers a simpler and more affordable alternative to traditional litigation, there are some pitfalls to be aware of when representing yourself in court. Without legal representation, it can be difficult to navigate the complex legal system and understand the rules of evidence.


One of the main pitfalls of self-representing is the risk of losing your case due to a lack of knowledge or experience. You may not know how to properly present evidence, cross-examine witnesses, or argue your case effectively. This can result in a default judgment against you or a decision that is not in your favor.


Another pitfall of self-representing is the emotional toll it can take on you. Going to court can be stressful and overwhelming, especially if you are not familiar with the process. You may feel intimidated by the other party or by the judge, which can impact your ability to present your case effectively.


Lastly, self-representing can be time-consuming and may take away from other important aspects of your life. Preparing for court, attending settlement conferences, and going to trial can all take up a significant amount of time and energy.


Overall, while Small Claims Court in Ontario can be a cost-effective and efficient way to resolve disputes, it is important to weigh the benefits against the potential pitfalls of self-representing. Consider seeking legal representation to ensure that your case is presented effectively and to alleviate some of the stress and burden of going to court.

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