Understanding Civil Litigation and Small Claims Court in Canada

Civil litigation is the legal process used to resolve disputes between individuals, businesses, or organisations when a criminal charge is not involved. In Canada, Small Claims Court provides an accessible and cost-effective way to resolve many of these disputes.

What Is Small Claims Court?

Small Claims Court is designed to handle civil disputes involving monetary claims or the return of personal property. In Ontario, as of October 2025, the monetary limit for Small Claims Court was increased from $35,000 to $50,000. In British Columbia, the limit is $35,000. Claims exceeding these limits must be filed in a higher court, though a claimant can waive the excess amount to remain in Small Claims Court.

When Would You Use Small Claims Court?

Common types of disputes heard in Small Claims Court include:

The Small Claims Court Process

1. Deciding to Sue

Before filing, consider whether the dispute can be resolved through negotiation or mediation. Also consider whether the person you are suing has the means to pay if you win.

2. Filing a Claim

A claim must generally be filed within two years of the incident. You file a claim form with the appropriate courthouse — usually in the jurisdiction where the event occurred or where the defendant lives or operates their business. Filing fees in Ontario are $108 for infrequent claimants.

3. Serving the Defendant

The defendant must be formally served with a copy of the claim. You cannot serve it yourself — it must be delivered by someone else.

4. The Defendant's Response

The defendant has 20 days to respond. If they admit the claim, they may propose a payment plan. If they dispute it, the matter proceeds to a settlement conference. If no defence is filed, you can request a default judgment.

5. Settlement Conference

Both parties attend a conference with a judge to share evidence and attempt to reach a resolution. For smaller claims, the judge may decide the case at this stage with both parties' consent.

6. Trial

If no agreement is reached, the case goes to trial. Both parties present evidence, call witnesses, and make arguments. The judge renders a decision either in court or in a written judgment.

7. Enforcement

If you win and the defendant does not pay, you must initiate a separate process to collect — which can include wage garnishment or seizure of assets.

Costs

Filing fees, service costs, and potential witness expenses add up. The losing party may be ordered to pay some of the winning party's costs. Fee waivers are available for those who cannot afford court fees.

How a Personal Legal Service Plan Can Help

A Personal Legal Service Plan gives you access to a lawyer who can assess the strength of your case, help you prepare documents, explain the process, and represent your interests — whether you are suing or being sued.