Small Claims Courts the Busiest in Ontario
Resolving Disputes in Small Claims Court Seen as Efficient
Sep 14, 2009
Does somebody owe you money? Perhaps you loaned somebody some money, but they failed to repay you. Did you hire a contractor to do some work for you on your home, only to find that they did not only do a poor job but never held the qualifications to do this work in the first place? Did you purchase a vehicle from a dealer that was allegedly certified and safe to drive, only for you to learn on your first drive home that your engine is failing? These are all common legal issues people in Ontario encounter every day that can be resolved quickly and without the usual complex procedures of the higher courts. Moreover, you may even find yourself being sued by somebody else. Perhaps, you were a tenant and your former landlord is claiming you damaged your unit before you left. Perhaps, you contracted a friend to work for you and the work was done, but you failed to pay them what you said you would. Defending yourself in small claims court is relatively quick and inexpensive as well.
Primer on Suing and Being Sued in Small Claims Court in Ontario
The first step in starting a lawsuit in small claims court is filing a Plaintiff's Claim. Forms for this court are available on the Attorney-General's website. The Plaintiff can be just yourself, or it can be you and somebody else, or it can be a company that you own. The person you are suing is called the Defendant. There can be one Defendant or there can be more than one. Again, the Defendant can be an individual, more than one individual, a company or even a government, such as the city you live in. In your Plaintiff's Claim, you need to decide how much money the other party or parties owe you, and fill out the form to explain why you believe these parties owe you the money. You are supposed to attach documents and any other paperwork with your Plaintiff's Claim as part of the evidence that you want to prove in court against the parties you are suing.
At the present time, the amount of money you can sue for is a maximum of $10,000 in small claims court in Ontario. This amount is going up as of January 1, 2010, to $25,000. Your documents and the wording of your claim must support as much as possible as to why you think the Defendant or Defendants owe you the amount of money you are claiming. Don't automatically claim the maximum unless you can show your "damages" are at the maximum amount allowable. 'Damages" include all losses you feel you suffered, such as the money that the other party did not repay you, the cost of medical care and loss of income as a result of a slip and fall by the Defendant's store, or the actual cost of repairs for a vehicle that needed to be repaired to meet safety standards.
At this point, you file the Plaintiff's Claim in the small claims court. The rules of the court dictate which small claims court you need to file it in. The fee for filing a claim is $75.00. After the court receives and stamps your claim, you need to serve the claim on all of the parties you are suing. This can be done by handing a copy of the Claim to the person, by mailing a copy of the Claim to the person, by handing a copy over to somebody in the Defendant company that appears to be in charge of the company, as well as a few other ways in accordance to the rules. Once the Defendant receives the Claim, they generally have twenty days to file a Defence. In the Defence, a Defendant can admit the Claim and draft a proposal to satisfy the Claim, deny the Claim in part or in full and defend it, or sue a third party who the Defendant really feels is responsible for the problem you have. Sometimes the Defendant may choose to sue you if they feel that you had some responsibility in the conflict you are claiming and they also feel they suffered damages.
What Happens Next?
The court will set down a date for a Settlement Conference before a Deputy Judge. All Parties and their representatives, if any, must attend, but not witnesses. During this meeting, which is confidential and off the record, the parties attempt to settle the matter, as well as address some procedural matters (such as adding another party or asking for additional time to submit final documents). If a settlement cannot be reached, the endorsement (or court record) is marked for Trial. The Plaintiff must file and pay the necessary fee (currently at $100) if they want to move the matter to Trial. By then, both parties should have all the documents and names of witnesses the other side wishes to use at Trial.
Representation in Small Claims Court in Ontario
In some cases, people can competently represent themselves in small claims court. However, as the maximum amount increases to $25,000, the types of cases going to this court will increase in complexity and often require many witnesses, including expert witnesses. It is advisable for a potential participant to seek legal advice in any event. One can seek this type of assistance through a lawyer or through a licensed paralegal, all of whom are listed in a directory provided on the website of the Law Society of Upper Canada. There are some circumstances where a representative does not need to be a lawyer or paralegal, but these are specifically outlined by the Law Society and are adhered to strictly. Your representative can advise you on your matter, handle some steps such as a Motion Hearing or handle your entire case, including taking it to Trial.
