On January 1, 2020, changes were implemented to the Simplified Procedure under Rule 76 of the Ontario Rules of Civil Procedure, as well as in Small Claims Court. The changes were brought to increase access to justice for individuals and businesses by reducing the cost of resolving disputes.
New Limit in Small Claims Court
From now on, all claims of $35,000 or less are brought to Small Claims Court, an increase from the previous $20,000 limit. The small claims process is much more streamlined than a proceeding in Superior Court – after pleadings are closed, the parties schedule a settlement conference, and if a matter does not settle, a hearing is scheduled. Starting an action in Small Claims Court is also less risky for the potential plaintiff – if a plaintiff loses, the worst-case scenario is that this plaintiff will have to pay 15% of the award, a maximum of $5,250 in Costs to the other party. This limited risk can be attractive to plaintiffs with limited resources.