SCC (Small Claims Court)

Purpose

Small Claims Court in Ontario serves a specific purpose within the province's judicial system. It provides a simplified, accessible, and cost-effective forum for individuals and businesses to resolve minor disputes without the need for extensive legal procedures. The key purposes of Small Claims Court in Ontario include:

1. Resolving Minor Disputes: Small Claims Court handles cases involving claims for money or property valued up to $35,000 (as of the most recent update). Common cases include unpaid debts, breach of contract, personal injury, property damage, and disputes between landlords and tenants.

2. Accessibility: The court is designed to be user-friendly, allowing individuals to represent themselves without the need for a lawyer, although legal representation is permitted. The procedures are less formal and complex compared to higher courts.

3. Speed and Efficiency: The Small Claims Court process is generally faster than proceedings in higher courts. The goal is to resolve disputes in a timely manner, which helps reduce backlog in the judicial system.

4. Cost-Effective: Filing fees and other costs associated with Small Claims Court are relatively low, making it an affordable option for individuals and small businesses seeking to resolve disputes.

5. Encouraging Settlements: The process often encourages parties to reach a settlement before the case goes to trial. This can be done through negotiation, mediation, or other alternative dispute resolution methods.

Overall, the purpose of Small Claims Court in Ontario is to provide an accessible and efficient legal venue for resolving minor disputes, ensuring that justice is accessible to everyone, regardless of their financial resources.

What can Small Claims Courts do for you?

Small Claims Court in Ontario offers a variety of remedies and resolutions for people involved in minor disputes. Here’s what the Small Claims Court can do for individuals and businesses:

1. Monetary Compensation: The court can order one party to pay another party a sum of money as compensation. This is common in cases involving unpaid debts, breach of contract, or damages resulting from personal injury or property damage.

2. Return of Property: If a dispute involves the wrongful withholding of property, the court can order the return of that property to its rightful owner.

3. Enforcement of Agreements: The court can enforce agreements between parties, such as contracts. If one party fails to fulfill their obligations under a contract, the court can order them to do so or provide compensation.

4. Judgment with Interest: The court can award a judgment that includes interest on the amount owed from the date the claim was filed until it is paid in full.

5. Garnishment Orders: If a defendant does not voluntarily pay a judgment, the court can issue a garnishment order. This allows the successful party to collect the money directly from the defendant's wages or bank account.

6. Payment Plans: The court can set up a payment plan for the defendant to pay off the amount owed over time if they are unable to pay the full amount immediately.

7. Mediation: While not always a direct action of the court, Small Claims Court often encourages or facilitates mediation between parties, which can lead to a mutually agreed-upon settlement before the case goes to trial.

8. Default Judgment: If the defendant does not respond to a claim or appear in court, the court can issue a default judgment in favor of the plaintiff, granting the relief sought.

9. Cost Awards: The court can award the successful party their costs related to bringing the claim, such as filing fees, service fees, and sometimes even limited legal fees.

Overall, Small Claims Court in Ontario provides a practical and efficient way for individuals and businesses to resolve disputes, enforce legal rights, and obtain compensation or the return of property without the need for more complex and costly litigation in higher courts.

Further Reading

1. https://www.cbc.ca/news/canada/nova-scotia/go-public-small-claims-court-1.7024214

   • The article discusses the challenges faced by a Nova Scotia man who won $20,000 in small claims court against a contractor but has been unable to collect the money even after seven years.

2. https://www.ontario.ca/page/suing-someone-small-claims-court

   • The article provides a comprehensive guide on how to sue someone in Ontario's Small Claims Court for amounts up to $35,000, detailing the steps involved, costs, and what to expect throughout the process.