You want to file a lawsuit against a person or business, but you have limited means or you simply want to keep the costs low? The Small Claims Court may be a good place to start your claim.
First consider the type of lawsuit you want to bring
For example, in a case where you want to stop your neighbour from coming onto your property, the Small Claims Court will be unable to provide you with a remedy. However, if you want to sue the same neighbour for the damage they have caused by coming onto your property, the Small Claims Court may be able to award you a sum of money for the damage. Generally, the Small Claims Court’s jurisdiction is limited to awarding a sum of money for the damage that was caused to you or your property.
Then consider the amount you want to claim
The maximum amount you can claim in the Small Claims Court was recently increased to $35,000 on January 1, 2020. This means that if you have a claim against someone that is of $35,000 or less (before adding costs and interest), you are able to bring your matter in the Small Claims Court to seek a remedy.
Even if your claim is above the court-imposed limit of $35,000, you may still be able to bring your claim in the Small Claims, however, you must abandon any amount in excess of the monetary limit.
Faster and cheaper process
Bringing your lawsuit in the Small Claims Court may be more cost-efficient and faster than a suit in other civil courts. Indeed, the Small Claims Court operates faster than the Superior court where a case may linger for years. The pandemic we are currently experiencing and the suspension of normal activity for many courts will lead to additional delays for lawsuits. Still, the Small Claims Court is likely to provide a faster process and the costs associated with litigation are also much lower in comparison to the potential costs of litigation in Superior court, for example.
Other considerations
Assessing the limitation period is another important step of any lawsuit you want to bring. The limitation period is the length of time during which a Plaintiff may bring their claim. Once this period expires, the courts have no jurisdiction and your claim will likely be dismissed. Generally, in Ontario, you must bring your lawsuit within two years of when you first discovered/learned about the problem giving rise to your claim. As of March 16, 2020, the two-year limitation period was suspended by the government due to the pandemic of coronavirus. The suspension operates until September 14, 2020. This suspension will allow many plaintiffs more time to file their claim, especially if the 2-year deadline was approaching its end when the Covid-19 pandemic started.
Even before starting a case in Small Claims Court, you may want to consider other avenues such as sending a demand letter. A demand letter is not a court action and does not start a claim. It is, however, a notice to the defendant that you may pursue legal action if they do not remedy the situation they put you in. You can always retain Camara Law Firm at any stage of your case to help you prepare documents, negotiate and/or go to trial.
