The Small Claims Court jurisdiction will increase to $50,000, from the current $35,000, on October 1, 2025. As of that date, plaintiffs in Ontario may start an action in the Small Claims Court for monetary compensation of up to $50,000, exclusive of interest and costs.
While this change will expand access to the Small Claims Court for new plaintiffs, it may also have an effect on existing claims. Plaintiffs in existing Small Claims Court actions will be able to amend their claim to increase their request for monetary compensation up to the new limit of $50,000. On the other hand, Plaintiffs in existing Superior Court actions for $50,000 or less should consider trying to transfer their action to Small Claims Court, particularly to avoid potential adverse cost consequences.
Small Claims Court Jurisdiction
The Small Claims Court is a branch of the Superior Court of Justice that has jurisdiction over any action for the payment of money or the recovery of personal property of value up to a prescribed amount. The prescribed amount is increased from time to time. The maximum amount of a claim in the Small Claims Court is presently $35,000. As of October 1, 2025, that limit will be increased to $50,000.
The Small Claims Court is legislated to hear and determine legal claims in a summary manner. It has several procedural features that encourage a more timely and efficient resolution of claims in contrast to actions commenced in Superior Court. These features include mandatory settlement conferences, fewer procedural steps, fewer interim motions before trial, and more liberal rules for the admission of evidence at trial. Increasing its jurisdiction to $50,000 will expand access to the Small Claims Court for new plaintiffs starting October 1, 2025.
Amending Existing Claims
The Small Claims Court is permissive about amending claims. Subject to some exceptions, a plaintiff may amend their claim any time up to 30 days before trial by simply filing an amended claim with the court clerk. Neither a court order nor the consent of the other parties is required.
After the Small Claims Court jurisdiction is increased to $50,000, existing plaintiffs should consider whether to amend their claims to seek compensation up to the new limit. This might apply if, for example, a plaintiff having suffered a loss higher than $35,000 (the current limit) opted to forego additional compensation in order to bring their action in the Small Claims Court. This may also apply if a plaintiff's losses have increased since the date their claim was first issued. In either case, it is advisable for existing plaintiffs to consider amending their claims on or after October 1, 2025 to seek the maximum amount of compensation they can, commensurate with their actual losses.
Transferring from Superior Court to Small Claims Court
Plaintiffs with existing claims in the Superior Court of Justice for $50,000 or less should also pay attention to the upcoming change to the Small Claims Court jurisdiction limit. These plaintiffs should assess whether their claim will fall within the new Small Claims Court jurisdiction as of October 1, 2025. If so, they should consider taking steps to try to transfer their claim to the Small Claims Court.
Existing Superior Court actions can be transferred to the Small Claims Court before trial by filing a simple requisition with the courthouse. In this case, however, the action can only be transferred with the consent of all of the other parties. Moreover, the claim must be limited to the payment of money or recovery of personal property. Actions that include other relief, such as injunctive or declaratory relief, fall outside the jurisdiction of the Small Claims Court regardless of the total monetary compensation sought. If the claim does fall within the jurisdiction of the Small Claims Court, one of the first steps to take is evidently to request the consent of all the other parties.
Cost Consequences
Legal costs are an important consideration in deciding whether to transfer an action from Superior Court to Small Claims Court. In Superior Court, plaintiffs are generally entitled to recover a portion of their legal costs if successful. However, in the event a plaintiff is successful in Superior Court but recovers an amount within the monetary jurisdiction of the Small Claims Court, then the Court is expressly authorized to order that the plaintiff recover no costs at all. Furthermore, if the Court determines that a plaintiff sought certain relief only for the purpose of bringing their action in Superior Court instead of Small Claims Court, then the court may in fact order the plaintiff to pay costs. This should discourage plaintiffs from maintaining an action in Superior Court for the sole purpose of recovering more costs than they would in the Small Claims Court. It should encourage plaintiffs to transfer their claims to the Small Claims Court if possible.
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.
