Small Claims Court in Ontario hears claims of up to $50,000 for money owed or for the return of personal property. It is designed to be accessible: the procedure is simplified, parties may represent themselves, and a case can be heard far more quickly and cheaply than in the Superior Court. The limit rose from $35,000 to $50,000 on October 1, 2025, which widens the range of disputes that belong there. Knowing the limit, how a claim moves through the process, and what you can recover in costs will tell you whether this is the right forum for your dispute.
The Monetary Limit in Small Claims Court in Ontario
The jurisdiction of the Small Claims Court is set by regulation under the Courts of Justice Act. Under O. Reg. 626/00, the maximum amount of a claim in the Small Claims Court is now $50,000, exclusive of interest and costs. That figure was raised effective October 1, 2025; for most of the preceding period the limit was $35,000, so older articles and advice circulating online are out of date.
The same regulation sets the appeal threshold. For the purposes of the relevant clauses of section 31 of the Act, the prescribed amount is $5,000, which is the floor below which an appeal is not available.
If your claim exceeds $50,000, you have a choice. You can sue in the Superior Court of Justice, or you can abandon the excess and bring the claim in Small Claims Court for the maximum. Abandoning the excess is a real decision, not a formality, since you cannot later come back for the rest. Where the claim is well above the limit, the Superior Court’s Simplified Procedure under Rule 76 applies to claims of $200,000 or less and is the usual route. If you have been sued in the Superior Court rather than in Small Claims Court, the documents and deadlines are different; see what to do when you’re served with a statement of claim.
Small Claims Court handles claims for money owed and for the recovery of possession of personal property. Typical cases include unpaid invoices and loans, breach of contract claims, and renovation and contractor disputes. It does not grant injunctions, deal with title to land, or decide family law matters.
How a Small Claims Case Proceeds
A claim begins with a Plaintiff’s Claim setting out what happened and what is sought, filed with supporting documents. The defendant is served and files a Defence, typically within twenty days of service. A defendant who does not respond can be noted in default, and the plaintiff may obtain default judgment without a trial.
Where a defence is filed, the case is scheduled for a settlement conference before a judge. This is the most useful and most underestimated step in the process. The judge reviews the dispute with the parties, identifies the real issues, gives a candid view of the strengths and weaknesses, and attempts to broker a resolution. A large proportion of claims end here. Anyone attending a settlement conference having thought only about their own case, and not about the answer to it, is wasting the opportunity.
If the matter does not settle, it proceeds to trial, where evidence is given and witnesses may be called and cross-examined. The rules of evidence are applied more flexibly than in the Superior Court, but the burden remains on the plaintiff to prove the claim on a balance of probabilities, and documents still matter more than recollection.
Costs, and Why Winning Is Not the Same as Being Made Whole
Costs in this court are deliberately constrained. Section 29 of the Courts of Justice Act provides that an award of costs shall not exceed 15 per cent of the amount claimed, or the value of the property sought to be recovered, unless the court considers it necessary in the interests of justice to penalise a party or a party’s representative for unreasonable behaviour in the proceeding.
That cap cuts both ways. It limits your exposure if you lose, which makes the court genuinely accessible. It also means that if you win, you will not recover anything close to the full cost of a lawyer. On a claim of $20,000, costs are generally capped around $3,000. For many disputes that arithmetic favours self-representation, or limited-scope assistance from counsel rather than full representation.
There is also the question that should be asked before any of this: can the defendant pay? A judgment is not money. Enforcing it through garnishment, a writ of seizure and sale, or an examination in aid of execution takes further time and expense, and a defendant with no assets and no income produces a judgment worth precisely nothing. Our guide to debt recovery in Ontario walks through the enforcement tools.
What to Do if You Are Bringing or Defending a Small Claim
Assemble your documents first, not later. Contracts, invoices, receipts, photographs, texts and emails decide these cases. A clear chronology with the supporting document attached to each step is worth more than any argument.
Watch the limitation period. In most cases you have two years from the day the claim was discovered, and that deadline applies in Small Claims Court exactly as it does anywhere else.
Send a clear demand letter before filing. It sometimes resolves the matter, and it demonstrates reasonableness if the case proceeds. Be realistic about settlement, and weigh any offer against the cost cap, the time involved, and the risk of collecting nothing.
Even where you intend to represent yourself, an hour of advice at the outset on whether the claim is worth bringing, which court it belongs in, and what you must prove is usually money well spent.
If you are considering a claim or have been served with one, George Habib, civil litigation lawyer at Habib Legal Counsel, will give you a straight assessment of your position. Visit HabibLC.com or call anytime at 647-648-2164 — George Habib and his firm are ready to help.
George Habib | Habib Legal Counsel | Civil Litigation | 647-648-2164 | Contact us
