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Small Claims Court Rules: Litigation Process Concerns Including Procedural Mandates
Question: Why is it named Small Claims Court and not Simple Claims Court in Canada?
Answer: The Small Claims Court in Canada is designed to handle civil disputes involving amounts less than $35,000 efficiently and cost-effectively, but not necessarily more simply. Despite the lower monetary jurisdiction, cases can still involve complex legal proceedings requiring knowledge of both procedural and substantive law. The flexibility in the application of its rules, as confirmed in Kelava v. Spadacini, 2021 ONCA 428, ensures just resolutions while embodying principles of access to justice. Ready to navigate your legal challenge?
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It Is the Small Claims Court Rather Than the Simple Cases Court
It is called the Small Claims Court instead of the Simple Claims Court because lawsuits for amounts under $35,000 may be just as complicated, and perhaps more so, than many legal cases that are above the $35,000 limit of Small Claims Court (the limit of $35,000 became effective January 1 2020). Do note that the $35,000 limit applies exclusive of court costs, legal representation costs, and interest.
The Procedural Law
Just the same as with cases for sums beyond the $35,000 limit that are pursued in the higher court, a case in the Small Claims Court will involve the procedural law regarding the rules for the process of how a legal matter is conducted as well as the substantive law that applies to the actual legal issue in dispute. The procedural law is known as the Rules of the Small Claims Court which is essentially the general how to manual for the process of conducting a Small Claims Court case including what documents, being specific forms, are required as well as the step-by-step manner by which a legal case in the Small Claims Court occurs.
Interestingly, the Rules of the Small Claims Court may be applied very significantly flexibility as well as reference to the Rules of Civil Procedure, R.R.O. 1990, Regulation 194, whereas such flexibility is prescribed within the statute as well as confirmed within the case of Kelava v. Spadacini, 2021 ONCA 428 where it is respectively stated:
General Principle
1.03 (1) These rules shall be liberally construed to secure the just, most expeditious and least expensive determination of every proceeding on its merits in accordance with section 25 of the Courts of Justice Act.
Matters Not Covered in Rules
(2) If these rules do not cover a matter adequately, the court may give directions and make any order that is just, and the practice shall be decided by analogy to these rules, by reference to the Courts of Justice Act and the Act governing the action and, if the court considers it appropriate, by reference to the Rules of Civil Procedure.
[15] The Small Claims Court is a branch of the Superior Court of Justice. It handles nearly half of the civil disputes in the province. The court is meant to provide an efficient, cost-effective forum for the resolution of civil disputes involving less than $35,000. It hears cases in a summary way and “may make such order as is considered just and agreeable to good conscience”: The Courts of Justice Act, R.S.O. 1990, c. C.43, s. 25.
[16] In short, the court embodies the foundations of access to justice: informality, affordability, timely resolution, accessibility for self-represented people and active judicial engagement. By providing access to justice, the court has an important role in the administration of justice for the province.
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[18] The rules are to be read in their entire context having regard to their nature, purpose, scheme, and object. The Small Claims Court Rules, read in their entirety, emphasize facilitating access to justice. They begin with guidance as to their interpretation. Rule 1.03(1) provides:
These rules shall be liberally construed to secure the just, most expeditious and least expensive determination of every proceeding on its merits in accordance with section 25 of the Courts of Justice Act. O. Reg. 258/98, r. 1.03 (1). [Emphasis added]
[19] To further provide for the achievement of their objectives, the rules give broad discretion to the court. If the rules do not directly address a matter, the court may give directions and make “any order that is just”. In order to implement the order, the practice is to be decided by analogy to the Small Claims Court Rules. Then, “if the court considers it appropriate” the court may refer to the Rules of Civil Procedure. Rule 1.03(2) provides:
If these rules do not cover a matter adequately, the court may give directions and make any order that is just, and the practice shall be decided by analogy to these rules, by reference to the Courts of Justice Act and the Act governing the action and, if the court considers it appropriate, by reference to the Rules of Civil Procedure. O. Reg. 78/06, s. 3. [Emphasis added.]
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Learn More About Small Claims Court Rules...
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Additional Resources:
For sources of further helpful information regarding the rules of procedure and forms applicable to the Small Claims Court, see:
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Forms of the Small Claims Court