Small Claims Court Canada
What’s the difference between Small Claims Court and other courts?
In Small Claims Court, the rules and procedures are less complicated and less formal so that people can more easily represent themselves. This is why it is often called “the people’s court.” It can also be more economical to go through Small Claims Court because people often don’t use a lawyer and because the fees for filing are usually less expensive.
The Judge in Small Claims Court is often experienced in working with self-represented parties and will not expect you to speak like a lawyer or argue legal technicalities.
Many government and court websites will provide information to the public which explains Small Claims Court, its procedures, and the paperwork required when suing someone.
What kind of cases can go through Small Claims Court?
There is always a maximum amount that can be claimed in Small Claims Court. It differs from province to province. While the amounts used to be much lower, like $5,000 or $10,000, these maximums are being raised over time. In some provinces, the amount is $20,000, and in some it is as high as $50,000.
One result of these increases is that even though people use Small Claims Court, they may be more likely to hire a lawyer to represent them. You may want to consider the pros and cons of hiring a lawyer to represent you in Small Claims Court, especially if you are suing a company or a rich person who will be hiring a lawyer.
If your claim is near the maximum limit, you may want to consider whether you should limit your claim to the maximum allowable amount and still proceed in Small Claims Court. For example, if you are suing your neighbour for $22,000 and the maximum allowable amount in your province in $20,000, you can still sue in Small Claims Court, but only for the $20,000. You are not allowed to then sue in another court for the remaining $2,000, nor are you allowed to sue again or break the lawsuit into two separate lawsuits to try to get the rest of the amount.
Typical claims in Small Claims Court include suing for damages, insurance claims, contract disputes, consumer claims (such as defective merchandise, poor workmanship, warranties) and failure to pay certain kinds of debts.
Generally speaking, you cannot sue in Small Claims Court for family matters, land title claims, libel or slander, false imprisonment and actions against someone who is bankrupt.
Should I or Shouldn’t I Sue?
Questions you should ask yourself include the following:
1) Can I settle without having to go to court?
2) Can someone help resolve the dispute by mediating or negotiating an agreement so I can avoid having to go to court?
3) Do I have the time and energy to spend preparing my case and arguing it in court?
4) Will I regret suing? Will I regret not suing?
5) Even if I went to court and won, is there a good chance the other person can pay me the judgment amount?
If you want to try to resolve the matter outside of court, consider doing the following. First, write a letter to the other party explaining your issue and telling them what you want (the amount of money and when you want it by, or, the performance of an action such as the return of an item and when you want it by). Keep a copy of this and any reply you may receive. If you do end up in Small Claims Court, you may be able to use this.
Offer to have the matter settled by a mediator. The mediator can sit down with both parties and help them work out an agreement. Several kinds of professionals provide mediation services, including lawyers, social workers and professionally trained mediators.
If you write a letter offering to settle the matter, mark the letter “Without Prejudice.” This means that you are not giving up your legal right to seek the full amount if the settlement is refused.
Keep in mind that even if you go to court and win, you may never be successful in collecting on a judgment, particularly if the losing party has no job, doesn’t own assets, or also owes other people money who may be in line before you.
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