It is anticipated that the financial limit in Provincial Court will increase from $25,000 to $50,000 on August 1, 2014.
The expected increase should make it more economical for persons to advance claims for $25,000-$50,000, which exceed the Provincial Court's current jurisdiction, but are often not substantial enough to offset the additional costs associated with hiring a lawyer and advancing the action in the Court of Queen's Bench.
Until the regulations are amended, it is business as usual for claims $25,000 and below. But for those claims that are above $25,000, you have three options:
- you can file a Civil Claim in Provincial Court, and in doing so, abandon the portion of your claim which exceeds the $25,000 financial limit;
- you can file a Statement of Claim in the Court of Queen's Bench, notwithstanding the very real possibility that the legal expenses, costs and fees associated with the more rigorous Rules and procedures in the Court of Queen's Bench will significantly reduce the net recovery; or
- if your claim does not expire prior to August 1, 2014, you may consider waiting five more weeks to file in Provincial Court, where the costs of advancing an action will be considerably less than they would be if you proceed immediately in the Court of Queen's Bench.
Unfortunately, parties who have already filed their claim in Provincial Court and waived their entitlement to a claim in excess of $25,000 will likely not be permitted to increase the amount claimed after August 1, 2014. Similarly, parties who have already filed their claim in the Court of Queen's Bench are unlikely to obtain the Court's permission to transfer the matter to Provincial Court after the financial limit is increased.
Notwithstanding the anticipated increase, existing restrictions on the Provincial Court's jurisdiction to hear certain types of cases is likely to remain unchanged. Accordingly, you will only be able to make use of the increased limit, if your claim relates to:
- a debt;
- damages, including breach of contract;
- return of personal property; and/or
- specific performance or recission of a contract.
We will continue to monitor developments on this front and report accordingly.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.