Direct answer: Ontario Small Claims Court generally handles claims for money or the return of personal property valued at up to $50,000, excluding interest and legal costs. Claims exceeding $50,000 are generally brought in the Superior Court of Justice. However, the amount of money involved is not the only consideration. The remedy being requested, the complexity of the dispute, and the applicable court procedures can also affect where a case should be filed.
Choosing the correct court at the beginning of a dispute can help avoid unnecessary expenses, procedural complications, and delays.
What Is the Difference Between Small Claims Court and Superior Court in Ontario?
The primary difference between the two courts is the monetary value of the claim. Small Claims Court is intended to provide a more streamlined process for lower-value civil disputes. The Superior Court of Justice has broader authority and handles higher-value claims, more complicated litigation, and cases involving certain remedies that Small Claims Court cannot grant.
| Factor | Ontario Small Claims Court | Superior Court of Justice |
|---|---|---|
| Claim Value | Up to $50,000, excluding interest and legal costs | Generally more than $50,000 |
| Available Remedies | Payment of money or the recovery of personal property | Broader remedies, including certain declarations and injunctions |
| Procedural Rules | Rules of the Small Claims Court | Rules of Civil Procedure |
| Discovery Process | More limited, with no traditional examination for discovery process | May include documentary discovery and examinations for discovery |
| Typical Cases | Unpaid debts, unpaid invoices, property damage, contract disputes, and claims involving personal property | Commercial disputes, shareholder claims, complex contract cases, injunctions, and higher-value lawsuits |
| Overall Formality | A more streamlined and accessible process | A more formal and procedurally demanding process |
What Types of Cases Can Be Filed in Ontario Small Claims Court?
Ontario Small Claims Court can hear civil claims involving the payment of money or the recovery of personal property when the total value does not exceed $50,000, excluding interest and costs.
Common examples include:
- Unpaid invoices for goods or services
- Loans that have not been repaid
- Property damage claims
- Breach of contract disputes
- Consumer disputes
- Unpaid rent or other debts, where the court has jurisdiction
- Claims involving defective work
- Disputes over the return of personal property
For example, a business seeking payment of a $30,000 outstanding invoice may be able to pursue the debt in Small Claims Court. Similarly, an individual who paid a contractor $20,000 for work that was never completed may be able to bring a claim seeking compensation.
Although the process is intended to be more accessible than Superior Court litigation, Small Claims Court cases still involve formal rules, filing requirements, deadlines, evidence, and legal arguments. Learn more about the process by visiting Powell Litigation’s Toronto Small Claims Court lawyer page.
What Types of Cases Go to the Superior Court of Justice?
Civil claims seeking more than $50,000 are generally brought in the Superior Court of Justice. The Superior Court can also hear cases involving certain legal remedies or issues that fall outside the authority of Small Claims Court, regardless of the amount of money involved.
Superior Court cases may involve:
- High-value breach of contract claims
- Complex business and commercial disputes
- Shareholder and partnership disputes
- Construction litigation
- Professional negligence claims
- Real estate disputes
- Multi-party litigation
- Applications for injunctions
- Claims seeking declarations or other non-monetary remedies
For instance, a company seeking $500,000 in damages arising from the breach of a commercial agreement would generally commence its lawsuit in the Superior Court of Justice. A business seeking an injunction to prevent another party from taking a particular action may also need to proceed in Superior Court.
Powell Litigation represents individuals and businesses in a broad range of Toronto civil litigation matters, including contract, commercial, construction, and business disputes.
Does Every Claim Over $50,000 Follow the Same Superior Court Process?
No. A civil action brought in Superior Court may proceed under the ordinary procedure or, in qualifying cases, Ontario’s simplified procedure.
The simplified procedure under Rule 76 of the Rules of Civil Procedure generally applies to claims involving $200,000 or less, excluding interest and costs. It is intended to reduce some of the time and expense associated with a traditional Superior Court action.
Although simplified procedure cases are still heard in Superior Court, they may involve:
- Limits on examinations for discovery
- A more restricted trial format
- Specific timelines and procedural requirements
- Limits on recoverable legal costs
A claim does not become a Small Claims Court matter simply because it qualifies for simplified procedure. Small Claims Court and simplified procedure are distinct processes governed by different rules.
How Does the Small Claims Court Process Work?
A Small Claims Court case generally begins when the plaintiff prepares and files a Plaintiff’s Claim explaining what happened, why the defendant is legally responsible, and what compensation or property the plaintiff is seeking.
The usual stages may include:
- Filing the claim: The plaintiff files the required court documents and pays the applicable filing fee.
- Serving the defendant: The defendant must receive the claim in accordance with the court’s service rules.
- Filing a defence: The defendant may dispute some or all of the claim by serving and filing a Defence.
- Settlement conference: If the claim is defended, the parties generally attend a settlement conference to identify the issues and explore a possible resolution.
- Motions or other procedural steps: Additional court appearances may be required depending on the case.
- Trial: If the dispute does not settle, the parties present their evidence and arguments at trial.
- Judgment and enforcement: A successful party may still need to take enforcement steps if the judgment is not paid voluntarily.
The settlement conference is an important stage of the Small Claims Court process. It gives the parties an opportunity to discuss the dispute with a judge and determine whether an agreement can be reached without a trial.
How Does a Superior Court Lawsuit Work?
Superior Court litigation is generally more involved. The exact process depends on the nature of the dispute, the applicable procedural track, the number of parties, and the issues being contested.
A Superior Court action may include:
- Pleadings: The plaintiff files a Statement of Claim, and the defendant may respond with a Statement of Defence.
- Documentary discovery: Each side discloses relevant documents in its possession, control, or power.
- Examinations for discovery: Parties may be questioned under oath before trial.
- Motions: A party may ask the court to decide a procedural or substantive issue before trial.
- Expert evidence: Expert reports may be necessary in cases involving technical, financial, medical, or professional issues.
- Mediation: The parties may participate in mandatory or voluntary mediation, depending on the location and type of case.
- Pre-trial conference: The parties meet with a judge to discuss settlement and prepare the case for trial.
- Trial: Witnesses testify, evidence is introduced, and the court determines the outcome.
Many Superior Court cases settle before trial. Negotiations, mediation, and strategic settlement offers can occur at almost any point during the litigation process.
Is Small Claims Court Always Faster and Less Expensive?
Small Claims Court is intended to offer a more efficient and cost-effective forum than a traditional Superior Court action. Its procedures are generally less extensive, discovery is limited, and trials are often shorter.
However, Small Claims Court is not automatically quick or inexpensive. The time and cost required to resolve a case can depend on:
- Whether the defendant files a defence
- The number of witnesses involved
- The amount and complexity of the evidence
- Whether expert evidence is needed
- The number of motions or procedural disputes
- The court’s scheduling availability
- Whether the parties are willing to negotiate
A contested Small Claims Court matter can still require significant preparation. Likewise, a complex-looking Superior Court case may settle relatively early if the parties are able to negotiate an acceptable resolution.
Can You Choose Small Claims Court for a Claim Worth More Than $50,000?
A plaintiff may choose to abandon the portion of a claim exceeding the Small Claims Court limit in order to proceed in Small Claims Court.
For example, someone with a claim valued at $60,000 may decide to limit the claim to $50,000. However, giving up part of a claim is a significant decision. The plaintiff may lose the ability to recover the abandoned amount later.
Before reducing a claim to fit within Small Claims Court jurisdiction, it is important to compare the potential savings in time and expense with the amount that would be surrendered.
Can a Small Claims Court Case Be Transferred to Superior Court?
Jurisdictional and procedural issues can sometimes arise after a case has already been filed. A party may discover that the claim exceeds the court’s authority, involves a remedy Small Claims Court cannot grant, or should have been commenced under a different procedure.
Moving, discontinuing, or restarting a claim can involve additional court filings, costs, limitation-period concerns, and strategic consequences. This is one reason it is important to evaluate the appropriate court before commencing legal proceedings.
What Happens if You File in the Wrong Court?
Starting a case in the wrong court can result in delays and unnecessary expense. Depending on the circumstances, the claim may need to be amended, transferred, discontinued, or commenced again.
Filing in the wrong court may also affect:
- The remedies available to you
- The amount you may recover
- The applicable procedural deadlines
- The evidence and discovery available
- Your exposure to an adverse costs award
- Whether the claim is filed before the applicable limitation period expires
The value of a case is also not always obvious at the beginning. Damages may involve more than the amount of an unpaid invoice or immediate financial loss. A proper assessment may need to account for lost profits, additional expenses, property loss, interest, and other legally recoverable damages.
Are Legal Costs Different in Small Claims Court and Superior Court?
Both courts can order an unsuccessful party to contribute toward the successful party’s legal costs. However, the cost rules and potential exposure differ.
Small Claims Court generally places tighter limits on the legal costs that can be awarded. In Superior Court, cost awards can be more substantial because the litigation process may involve extensive legal work, discovery, motions, experts, and a longer trial.
A court-ordered costs award does not necessarily reimburse the successful party for every dollar spent. The amount depends on the applicable rules, the outcome of the case, settlement offers, the parties’ conduct, and the court’s discretion.
Do You Need a Lawyer for Small Claims Court or Superior Court?
Individuals are generally permitted to represent themselves in both Small Claims Court and the Superior Court of Justice. However, being legally permitted to represent yourself does not mean doing so will be advisable in every case.
A civil litigation lawyer can assist by:
- Determining whether you have a legally viable claim or defence
- Identifying the correct court and procedural track
- Calculating and documenting damages
- Preparing pleadings and court materials
- Collecting and organizing evidence
- Recognizing potential limitation-period issues
- Negotiating a settlement
- Preparing witnesses and presenting the case at trial
Legal guidance may be particularly valuable when a dispute involves a substantial amount of money, complicated contracts, multiple parties, technical evidence, or a request for urgent court relief.
How Do You Decide Which Ontario Court Is Right for Your Case?
The amount being claimed is the starting point, but it should not be the only factor considered. Before deciding where to file, consider the following questions:
- What is the total value of the damages?
- Are you seeking money, personal property, an injunction, or another remedy?
- How complicated are the legal and factual issues?
- Will documentary discovery or examinations for discovery be important?
- Will expert evidence be required?
- Are there multiple plaintiffs or defendants?
- How much could the litigation reasonably cost?
- Is there a limitation period approaching?
- Are negotiation or mediation realistic alternatives?
The most appropriate process is not necessarily the one with the fewest steps. It is the process that gives you a fair opportunity to present the claim, obtain the necessary evidence, and pursue an appropriate remedy.
Frequently Asked Questions About Small Claims Court and Superior Court
What is the maximum amount you can sue for in Ontario Small Claims Court?
Ontario Small Claims Court can generally hear claims for money or the return of personal property valued at up to $50,000, excluding interest and costs. Claims above that amount are generally brought in the Superior Court of Justice unless the claimant abandons the amount exceeding the Small Claims Court limit.
Is Small Claims Court part of the Superior Court of Justice?
Yes. Small Claims Court is a branch of the Ontario Superior Court of Justice. However, it has its own monetary jurisdiction, procedures, court forms, and rules.
Can Small Claims Court issue an injunction?
Small Claims Court primarily provides remedies involving the payment of money or the recovery of personal property. A party seeking an injunction or certain other equitable remedies will generally need to proceed in the Superior Court of Justice.
Can a business use Ontario Small Claims Court?
Yes. Businesses may bring or defend Small Claims Court proceedings. Common business claims involve unpaid invoices, breach of contract, defective services, damaged property, and unpaid loans.
Is a settlement conference required in Small Claims Court?
If a defendant files a defence disputing the claim, the parties will generally be required to participate in a settlement conference. The conference is intended to narrow the issues, encourage settlement, and help the parties prepare for trial if the case is not resolved.
What is Ontario’s simplified procedure?
Simplified procedure is a Superior Court process generally used for qualifying civil claims of $200,000 or less, excluding interest and costs. It remains a Superior Court proceeding but limits or streamlines certain litigation steps.
Speak With an Ontario Civil Litigation Lawyer
Choosing between Small Claims Court and the Superior Court of Justice requires more than comparing the value of a claim to the court’s monetary limit. The appropriate venue may also depend on the remedy being sought, the evidence required, the number of parties, the complexity of the dispute, and the overall litigation strategy.
Powell Litigation represents individuals and businesses in Small Claims Court and Superior Court proceedings throughout Ontario. Our lawyers can assess your dispute, explain the procedures that may apply, and help you determine an appropriate way to move forward.
Contact Powell Litigation to request a consultation with an Ontario civil litigation lawyer.
This article provides general legal information and does not constitute legal advice. Court rules, monetary limits, procedures, and filing requirements may change. Advice regarding a particular claim will depend on its specific facts and circumstances.