Ontario Small Claims Court – Entering a New Era This October!

Ontario Small Claims Court – Entering a New Era This October!

As of May 1st, 2025, a regulation was filed amending the monetary jurisdiction of the Ontario Small Claims Court. The limit will increase from $35,000.00 to $50,000.00, effective October 1st, 2025. Following the lead of Alberta and Saskatchewan, Ontario has decided to increase its Small Claims Court’s monetary limit to enhance access to justice. More recently, the Ontario Small Claims Court had a limit of $25,000.00 in 2010, which increased to $35,000.00 in 2020. The latest increase allows Ontarians to bring their civil litigation matters through Small Claims Court, with claims now capped at $50,000.00.

What Does This Mean?

The Ontario Small Claims Court covers a wide range of civil suits, including claims for unpaid invoices, recoverable debts, damages such as pain and suffering, personal injury suits, consumer protection violations, slander, defamation, and even avenues to seek damages for employment disputes. Civil claims initiated in the Ontario Small Claims Court can have a value up to $50,000.00. So, matters meeting this threshold would fall under the Small Claims jurisdiction, thereby expanding the scope of claims that qualify for processing in this level of the court in Ontario.

Who Can Represent Me?

One of the key reasons for increasing the monetary jurisdiction of Ontario’s Small Claims Court is to improve access to justice. Since 2007, paralegals licensed by the Law Society of Ontario have been permitted to practice in Small Claims Court. While litigants can choose to self-represent, it is often discouraged, as self-represented parties may make clerical errors, lack the legal understanding to properly draft pleadings, fail to serve documents correctly, and struggle to meet court requirements. While lawyers can still practice in Small Claims Court, it is increasingly becoming a paralegal’s playground—in the best way. Paralegals often offer more affordable and specialized services, allowing Ontarians to access competent and cost-effective representation.

How Does it Affect an Ongoing Action?

If you have an ongoing action in the Ontario Small Claims Court and pleadings have not yet closed (this occurs 30 days before the hearing date), you may be able to amend your claim to $50,000.00. Alternatively, individuals may be able to transfer their Ontario Superior Court matter to Small Claims Court, which may offer a more cost-effective approach in terms of filing fees and legal representation.

Takeaways:

As of October 1st, 2025, you will be able to initiate a claim in Ontario Small Claims Court for up to $50,000.00. This change offers a more cost-effective and streamlined approach to civil litigation. While lawyers are still able to practice in Small Claims Court, these changes will allow paralegals to take on more cases and clients, helping to provide Ontarians with affordable legal representation.

This increase represents a significant step toward enhancing access to justice in Ontario’s legal landscape. It gives legal representatives and litigants confidence in the province’s ability to evolve and serve its citizens effectively. The change is expected to have positive ripple effects throughout Ontario’s judicial system, offering more accessible options for resolving disputes.

If you have a matter in Ontario Small Claims Court and wish to increase your principal claim amount, or if you want to initiate a claim over $35,000.00 within the new $50,000.00 limit, AJ Murray Legal Services is here to help. Please book a free 15-minute consultation with one of our licensed paralegals so we can help you take the next step toward effectively resolving your legal dispute.