The $50,000 Small Claims Limit Explained
Ontario's Small Claims Court hears civil claims up to a set dollar limit, currently $50,000. The limit is simple in principle, but the details about interest, costs, splitting claims and the kinds of claims the court can hear trip up many people.
- The limit is $50,000, not counting interest and costs.
- You cannot split one claim into several to stay under the limit, but you can abandon the part above the limit to stay in Small Claims Court.
- The court can award money or the return of personal property. It cannot order most non-money remedies such as an injunction.
- File in the court where the claim arose or where the defendant lives or carries on business.
What counts toward the limit
- The money you claim for debts, damages, breach of contract, unpaid invoices and similar claims.
- The value of personal property you want returned.
- Interest and costs are not counted, so a claim of $50,000 can end up with a higher total after interest and costs.
If your claim is bigger
If you are owed more than the limit you have two choices. You can start the action in the Superior Court of Justice, which has no such limit but different procedure and costs, or you can abandon the amount over $50,000 and proceed in Small Claims Court. Abandoning is final: you cannot later sue for the part you gave up. Splitting one dispute into two claims to avoid the limit is not allowed.
What the court cannot do
- It cannot hear claims about libel, slander or malicious prosecution.
- It cannot decide who owns land or award possession of real estate.
- It cannot generally order a person to do something or stop doing something, for example by injunction or specific performance.
- It cannot hear matters that the law gives to a tribunal, such as most landlord and tenant disputes, human rights applications or employment standards complaints, though related money claims may be possible in some cases.
Where to file
A claim is started in the Small Claims Court location where the cause of action arose, where the defendant lives or carries on business, or, in some cases, the court nearest to the defendant's address. If you file in the wrong place, the court can transfer the case. Choose the court carefully, as it affects travel, the pace of the case and the local procedure.
Before you file
- Add up what you are owed and how you calculated it.
- Check how old the claim is. Most civil claims must be started within two years of when you discovered them.
- Gather the contract, invoices, messages, photos and proof of payment.
- Send a short demand letter and give a deadline. It may resolve the matter, and it shows the court you tried.
Common questions
Can I sue for $55,000 in Small Claims Court?
Only by abandoning $5,000 and claiming $50,000. If you want the full amount, the Superior Court is the usual route.
Do I need a lawyer?
No. Parties can represent themselves, or be represented by a lawyer or a licensed paralegal.
This guide is general information for people in Ontario, not legal advice. Rules, forms and deadlines change, and every situation is different. Check the current rule or speak to a licensed legal professional before you act.
Not sure where you stand? A licensed paralegal can look at your documents and tell you your options.
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