Small Claims Court circa 2010 was relatively simple. Litigants could self-represent, write their own pleadings, and plead their case. The stakes were smaller – capped at $10,000.00.
In 2010, the Small Claims Court limit increased to $25,000.00. In 2020 it rose again, to $35,000. Now, come October 2025 the limit will increase (along with the stakes) to $50,000.00. This is a considerable amount of money and will be applicable to many disputes. Small Claims Court is supposed to be a simple, expeditious, and economical litigation stream. But is it really that simple? Small Claims has historically been thought of as a do-it-yourself legal arena, but with a $50,000 limit, you may want to reconsider the do-it-yourself approach.
How Does Small Claims Court Work?
Small Claims Court is a branch of the Superior Court of Justice and is very much real court. However, it is intentionally designed to handle smaller claims. It does this by providing simple and clear procedures targeted for a person without legal training. The purpose in doing so is to increase access to justice.
The Small Claims Court monetary limit is exclusive of costs and interests. As long as the principal amount claimed is at or below the limit, the action can proceed in this court. If the claim is slightly above the limit, consideration should be given to reduce the claim to bring the action in this court as the cost savings of this court may outweigh the amount forfeited.
Anyone wishing to make a claim can download or print the relevant forms, file their completed forms online, and pay the applicable fees. The Plaintiff’s Claim (Form 7A) commences the action and allows a claimant to state their version of events, what relief they are claiming (damages, unpaid rent, the remainder of a breached contract, etc.), and any relevant evidence.
After the Plaintiff’s Claim is filed, it will need to be served on the Defendant. The Defendant then has an opportunity to respond to the claim by filing a Defence (Form 9A). The Defence states the Defendant’s side of the story and their evidence. Should the circumstances arise, the Defendant can file a counterclaim to sue the Plaintiff in response, which is in the form of a Defendant’s Claim (Form 10A). Alternatively, the Defendant can admit to the claim and choose to work out payment terms with the Plaintiff. If the Defendant does not respond at all, after 20 days they may be noted in default by the Plaintiff, and the Court can order them to pay the full amount of the Claim.
If a Defence if filed, the Court will schedule a settlement conference. A settlement conference is intended to bring the parties together in an attempt to resolve the issues before a trial. The parties must exchange witness lists, along with any additional evidence, before the settlement conference.
If the case does not settle at the conference, the Plaintiff can subsequently request a trial by filing a Request to Clerk to schedule a trial and paying the applicable fee. Much like other litigation processes, the goal of the system is to resolve matters before trial wherever possible. Negotiations can always continue while trial preparation is underway.
Why Hire a Lawyer for Small Claims Court Matters?
The litigation system can be incredibly complicated, even in Small Claims Court. Managing deadlines, structuring your pleading, negotiating strategically, and preparing for and advocating at trial are all in the expertise of the skilled litigator. A lawyer understands these systems intimately well, and can help clients prepare while saving them time, stress, and potentially even money.
For $10,000 or less, a lawyer, despite being an effective solution, may not be the economical solution. Most individuals will choose to advocate for themselves at that point or perhaps retain the services of a paralegal in private practice.
A claim for $50,000.00, however, demands an effective resolution. As noted, the Small Claims Court is a court, with binding, enforceable judgments. The judgments may be enforced through wage garnishment, and/or the forced seizure and sale of personal property or land, including someone’s home. Practically speaking, the judgment will prevent the sale or purchase of a home until the obligation to the creditor is paid.
The Bottom Line
Navigating litigation is complicated and technical, even before getting into the legal arguments. A Small Claims Court matter is often best left to the professionals. We are proud to advocate for our clients in any venue and work hard to ensure that they get the best results, with the fewest headaches. Contact our office today to set up a consultation.