Ontario Small Claims Court is Increasing Cap from $25,000 to $35,000

Ontario Small Claims Court is Increasing Cap from $25,000 to $35,000 Malcolm MacKillop

Part I

Starting January 1, 2020, litigants will be able to bring claims of up to $35,000 in the Ontario Small Claims Court.

Currently, claims in the Small Claims Court are capped at $25,000 and cases worth more than that must be filed in the Ontario Superior Court of Justice.

In a news release from the Ministry of the Attorney General, the Ontario government says the goal of increasing the Small Claims Court’s monetary claim limit is to reduce wait times in the Ontario Superior Court. The Ontario government hopes the change will also increase access to justice, as the Small Claims Court allows claimants to use more affordable representation such as paralegals and law students.

In addition to these changes, the minimum amount of a claim that can be appealed to the Divisional Court will also increase from $2,500 to $3,500.

These changes will be beneficial to employers dealing with low stakes wrongful dismissal litigation. Â At times, employers are tasked with defending wrongful dismissal cases in the Ontario Superior Court that are valued at $35,000, or less, in which the cost of litigation far exceeds the cost of settlement (regardless of the merits of the case). This is primarily due to the number of procedural steps required before a matter proceeds to trial in the Ontario Superior Court.

These Steps Include:

Document discovery Examinations for discovery Mandatory mediation Motions Attendance at a pre-trial conference.