Small Claims Court: from the first demand to collecting the judgment.

What Small Claims Court can decide

Small Claims Court is a branch of the Superior Court of Justice. It hears two kinds of cases: claims for payment of money and claims for the return of personal property, where the amount or the value of the property is within the court's monetary limit.

Since October 1, 2025, that limit is $50,000 (it was $35,000 before). The limit applies to the amount claimed, not counting interest and costs. If your loss is larger, you can either abandon the excess and stay in Small Claims Court, or sue in the regular Superior Court, where procedure is more complex and the costs risk is higher. Abandoning the excess is permanent: you cannot later sue for the difference.

Limitation periods: the deadline before the deadline

Under Ontario's Limitations Act, 2002, most claims must be started within two years of the day you knew, or reasonably should have known, that you suffered a loss caused by the other party and that a court proceeding was the appropriate way to remedy it. There is also an absolute outer limit of 15 years from the act or omission, regardless of when it was discovered.

If the limitation period expires, the claim is usually lost, however strong the evidence. Negotiation, demand letters and promises to pay do not, on their own, stop the clock. A written acknowledgment of a debt or a part payment can restart it for some debts, but this needs individual advice.

Before you file: four checks

1. Who exactly are you suing?Use the correct legal name. A sole proprietor is sued personally (with the business name), a partnership in its partners' names or firm name, and a corporation by its exact registered name. A corporate profile search confirms the name and registered office. Suing the wrong entity can make a judgment worthless.
2. Which court office?Under rule 6.01, the claim is filed in the territorial division where the cause of action arose or where the defendant (or one of the defendants) lives or carries on business, or at the court location nearest to where the defendant lives or carries on business. A claim started in the wrong place can be ordered to be tried elsewhere, causing delay.
3. How much, and how is it calculated?Break the amount into its parts: the principal, any contractual interest, pre-judgment interest, and other losses. Each part needs a document or explanation that supports it.
4. Have you made a clear demand?A demand letter is not legally required for most claims, but it sets out the amount, gives a deadline and often leads to payment or settlement. It also becomes evidence that you acted reasonably.

Starting the claim

The plaintiff starts the case by filing a Plaintiff's Claim (Form 7A), either online or at the court office, and paying the filing fee. The claim must state, in plain language, who the parties are, what happened, what you want and why the defendant is responsible. Attach copies of the key documents you rely on, such as the contract or invoice. If a document is not attached, the claim must explain why.

Serving the claim

The issued claim must be served on every defendant within six months after it is issued. The court can extend that time. The Rules set out the permitted methods: personal service; sending it to an individual's home by registered mail or courier with a signature confirming receipt; or another alternative to personal service, such as leaving it in a sealed envelope with an adult member of the household and mailing or couriering a second copy the same or next day. Special rules apply to corporations that cannot be found at their recorded address. Service is proved by an Affidavit of Service (Form 8A), or by a lawyer's or paralegal's Certificate of Service (Form 8B); without proof of service you cannot have a defendant noted in default.

If you are the defendant

A defendant has 20 days after being served to serve a Defence (Form 9A) on every other party and file it, with proof of service, with the clerk. Missing this deadline allows the plaintiff to have you noted in default. Once noted in default, you cannot file a defence or take any other step (other than a motion to set the default aside) without the court's permission or the plaintiff's consent.

Within the defence, you can:

• dispute all or part of the claim and explain why;
• admit all or part of the claim and propose terms of payment;
• raise a set-off (an amount the plaintiff owes you); and
• start your own claim against the plaintiff or another person by filing a Defendant's Claim (Form 10A), within 20 days after filing your defence or later with the court's permission.

Default judgment and how to set it aside

If the claim is for a fixed amount (a debt or liquidated demand), the clerk can sign default judgment. If the amount needs to be assessed, the plaintiff must prove damages at a motion or an assessment hearing. A defendant can bring a motion to set aside a noting in default or default judgment. Under rule 11.06 the court must be satisfied that there is a meritorious defence and a reasonable explanation for the default, and that the motion was brought as soon as reasonably possible. Delay weakens that request.

The settlement conference

A settlement conference is held in every defended action, within 90 days after the first defence is filed (rule 13.01). Each party and their representative must participate. It is a private, informal meeting with a judge or deputy judge, often held by video. It is not a trial: no one gives sworn evidence, what is discussed is confidential until the action is disposed of, and the judge who conducts the conference will not preside at the trial. A party who needs someone else's approval to settle must have that person reachable by telephone throughout.

The purpose is to resolve or narrow the issues, confirm the evidence and witnesses and make sure each side understands the strengths and weaknesses of the case. The judge can make orders about the conduct of the action, such as adding parties, ordering production of documents, changing the place of trial or ordering costs.

Offers to settle and negotiation

A written offer to settle can be made at any time. Under rule 14.07, if an offer is served at least seven days before trial, is not withdrawn and does not expire before trial, and the judgment is at least as favourable to the party who made it, the court may award that party up to twice the costs otherwise payable (excluding disbursements). A well-timed reasonable offer therefore puts real pressure on the other side. Offers that are not accepted are not disclosed to the trial judge until liability and relief have been decided.

A settlement can include terms a trial judgment cannot: a payment schedule, return of property on a set date, confidentiality, or a mutual release. Any settlement should be written, signed and specific about amounts, dates and what happens on default.

Preparing for trial

If the case does not settle, a party pays the fee to fix a trial date. Trials are usually short and the judge decides on the evidence presented on that day.

• Chronology: a one-page, dated sequence of events connecting the agreement, performance, breach, notice and loss.
• Exhibits: numbered copies of each document for the judge, the other party and the witness, with originals available.
• Witnesses: people with first-hand knowledge. A witness who may not attend voluntarily can be served with a Summons to Witness (Form 18A), which must be served personally at least 10 days before the trial date together with the prescribed attendance money.
• Interpreters: a party who calls a witness who needs an interpreter must arrange a qualified interpreter, unless the interpretation is between English and French and provided by the Ministry of the Attorney General.
• Damages: a clear calculation showing each amount, the evidence for it and the steps taken to reduce (mitigate) the loss.
• Law: the legal basis of the claim or defence and any case law relied on, briefly.

Messages and photographs should be organized and printed, not shown on a phone. Translations of documents in another language, such as Persian, should be done by a qualified translator with a translator's affidavit or declaration.

Evidence that wins small claims

After judgment: getting paid

A judgment does not collect itself. If the debtor does not pay voluntarily, the creditor uses the enforcement tools in the Rules:

Post-judgment interest runs on the unpaid amount. The debtor can ask the court for terms of payment, and the court can make a consolidation order where a debtor has several Small Claims judgments against them.

Court fees

Fees are set by O. Reg. 332/16 under the Administration of Justice Act. The amounts below are from the current regulation; check it on the day you file. A "frequent claimant" is one who has already filed 10 or more claims in the same court office in the calendar year.

A person who cannot afford the fees can ask for a fee waiver.

Appeals

A final Small Claims order can be appealed to the Divisional Court only where the amount in dispute, excluding costs, is above the prescribed amount, which rose from $3,500 to $5,000 on October 1, 2025. The appeal must be started within 30 days after the order. Appeals to the Divisional Court are outside a standard paralegal licence, so we refer appeal matters to a lawyer and help with the transfer of the file.

Frequently asked questions

Official sources

• Government of Ontario: Small claims court: suing someone
• Government of Ontario: Small claims court fees
• Rules of the Small Claims Court, O. Reg. 258/98
• Small Claims Court – Fees and Allowances, O. Reg. 332/16
• Limitations Act, 2002
• Courts of Justice Act

This guide is general legal information about Ontario law as of the date above. It is not legal advice for your situation. Laws, forms and fees change; check the official sources before you act.