Toronto’s Small Claims Court offers an accessible and cost effective way for individuals and businesses to resolve civil disputes involving amounts up to 35,000 dollars. Although the process is designed to be simpler than higher courts, many people are unsure which types of cases actually qualify. Understanding what the court can and cannot hear is essential before starting a claim. Powell Litigation assists clients throughout the Toronto Small Claims Court process and provides clear guidance on how to pursue the compensation they deserve.
Understanding the Purpose and Scope of Small Claims Court
Small Claims Court is part of the Ontario Superior Court of Justice. Its primary purpose is to provide a faster and more accessible forum for resolving civil disputes. While the process is streamlined, the court has strict jurisdictional limits. It can only address claims for money owed or the return of personal property valued at 35,000 dollars or less.
Because Small Claims Court focuses on straightforward financial disputes, it is widely used by individuals, contractors, landlords, tenants, and small businesses who want a practical and efficient way to resolve legal issues without the complexity or cost of higher court proceedings. For an overview of how long these matters typically take, you can review our guide on how long a Small Claims Court case takes to resolve.
1. Contract Disputes
One of the most common types of cases filed in Toronto’s Small Claims Court involves disputes over contracts. These disputes occur when one party fails to meet obligations that were agreed upon. Typical examples include:
- Unpaid invoices
- Failure to deliver goods or services
- Breach of payment terms
- Poor workmanship or incomplete work
Small businesses, tradespeople, and independent contractors frequently rely on Small Claims Court to recover money owed under written or verbal contracts. Clear documentation is extremely important, and preparing invoices, estimates, emails, and agreements early can strengthen a claim.
2. Property Damage Claims
The court also hears claims involving damage to personal property. These claims often arise from negligence or accidental harm. Common examples include:
- Damage caused by a contractor
- Vehicle damage not covered by insurance
- Damage caused by a neighbour or tenant
- Loss or destruction of valuable items
Claimants typically seek reimbursement for the cost of repairs or the fair market value of the damaged property. Evidence such as photographs, repair estimates, and witness statements can significantly impact the outcome.
3. Unpaid Rent or Other Landlord Tenant Financial Disputes
Although the Landlord and Tenant Board handles most residential landlord tenant issues, Small Claims Court still plays a role in certain financial disputes. These may include:
- Claims for unpaid rent after a tenant has moved out
- Claims for property damage caused by a tenant
- Claims for unpaid utility charges
It is important to distinguish between eviction related issues, which belong before the Landlord and Tenant Board, and financial claims, which may fall under the jurisdiction of Small Claims Court once the tenancy has ended.
4. Return of Personal Property
The court can order the return of personal property valued at 35,000 dollars or less. These cases are often filed when:
- Someone refuses to return items loaned to them
- A business retains property after a dispute
- A former landlord withholds personal belongings
If the property cannot be returned, the court may order the defendant to pay its fair market value instead. Clear evidence of ownership and value helps support these claims.
5. Consumer Issues and Defective Products
Consumers routinely use Small Claims Court to pursue compensation related to defective or faulty products, misleading sales practices, or incomplete services. Examples include:
- Faulty appliances or electronics
- Misrepresented services or products
- Repairs completed improperly
- Failure to honour warranties
Consumers can strengthen their claims with receipts, warranties, service records, and expert assessments. The Government of Ontario also provides helpful guidance on consumer protection laws through the Ontario consumer rights portal, which can support claimants in gathering information before filing.
6. Employment Related Wage Claims
Small Claims Court can be used to pursue unpaid wages, unpaid bonuses, and other financial amounts stemming from employment disputes. These claims must be strictly about money owed and not about reinstatement or other employment rights. In some cases, employees may also have the option to file complaints with the Ministry of Labour, depending on the circumstances.
7. Loan and Promissory Note Disputes
Disputes involving unpaid personal loans are frequently heard in Small Claims Court. Whether the loan was formalized in writing or agreed to verbally, claimants can seek repayment as long as they provide sufficient evidence. Promissory notes, bank transfers, and written acknowledgments of debt are particularly helpful in these cases.
8. Professional Service Disputes
When a professional such as a designer, consultant, photographer, or technician fails to provide services as promised, Small Claims Court can order compensation. These cases often involve incomplete work, poor quality services, or missed deadlines. Plaintiffs can recover the cost of hiring someone else to complete the work or the value of the damages caused.
What Cases Cannot Be Filed in Small Claims Court?
There are limitations to the court’s jurisdiction. Small Claims Court does not handle:
- Claims above 35,000 dollars
- Family law matters
- Criminal matters
- Evictions or residential tenancy disputes during an active tenancy
- Cases involving land ownership or real property title
Real estate ownership disputes must be brought before the Superior Court of Justice. For those interested in understanding how more complex real estate matters proceed in Toronto, the City of Toronto offers zoning and planning information through its planning and development portal.
Why Many People Choose Small Claims Court
Small Claims Court remains one of the most accessible legal forums in Ontario. It provides:
- Lower filing fees
- Simplified procedures
- Faster scheduling compared to higher courts
- A strong emphasis on settlement
Even with simplified procedures, disputes can still take time, especially if parties are unprepared or the evidence is complex. For insight into expected timelines, review our guide on how long Small Claims Court cases usually take.
The Role of Legal Representation
While individuals are allowed to represent themselves, having an experienced litigation lawyer can make the process more efficient and increase the likelihood of a successful outcome. A lawyer can help with:
- Identifying the correct type of claim
- Drafting clear and persuasive documents
- Gathering strong evidence
- Preparing for settlement conferences
- Presenting the case at trial
Powell Litigation has significant experience navigating Toronto’s Small Claims Court and provides tailored guidance to help clients pursue their cases confidently.
Considering Filing a Claim? Powell Litigation Can Help
If you are unsure whether your dispute qualifies for Small Claims Court, Powell Litigation can assess your situation and explain your options. Our team assists with everything from initial claim preparation to settlement negotiations and trial representation.
For more information about how Small Claims Court works in Toronto, visit our main service page on Toronto Small Claims Court representation.
Final Thoughts
Toronto’s Small Claims Court provides a practical and efficient forum for resolving many financial and contractual disputes. Understanding which types of cases qualify can help you protect your rights and pursue a fair outcome. Whether you are recovering unpaid debt, resolving a service dispute, or seeking compensation for property damage, Powell Litigation is ready to assist you through every step of the process.