Effective October 1, 2025, Ontario increased the Small Claims Court monetary limit from $35,000 to $50,000, exclusive of interest and costs. This new limit also applies to Landlord and Tenant Board (“LTB”) Orders, which can be enforced through the Small Claims Court. The legislative update further increased the minimum amount required to appeal certain Small Claims outcomes from $3,500 to $5,000. These changes intend to expand the public’s access to a faster, more streamlined, and less costly forum for dispute resolution.
What is Small Claims Court (and why this update matters)?
The Ontario Small Claims Court, often called the “People’s Court,” is designed to provide a more efficient and cost-effective way of litigating disputes between civilians compared to the higher Courts. The Ontario Small Claims Court has jurisdiction to hear actions to repay money or recover personal property. With the damages cap now at $50,000, more Ontario litigants and civilians can now make use of the small claims court.
Impact of the Limit Increase and its Effect on Certain Disputes
This update applies to the following:
- Unpaid invoices or contract disputes (for vendors, freelancers, small businesses);
- Consumer disputes (e.g. services not delivered, defective work, cancelled contracts, etc.);
- Property damage or negligence claims;
- Certain Employment related monetary claims; and
- LTB monetary orders that may be enforced through the Small Claims Court
How this Update Might Affect Your Case
If you have an ongoing or potential new action for damages up to $50,000, it is prudent to consider how the increase impacts your litigation strategy.
- Potential New Claims: Small Claims Court vs Superior Court of Justice
For new claims up to $50,000, consider the appropriate forum to commence proceedings. While Small Claims actions are generally cheaper and faster than higher Courts, costs awards (for legal fees) are considerably lower. With few exceptions, the Small Claims Court is generally limited to awarding trial costs of 15% of the total amount claimed (e.g., 15% x $50,000 max limit = $7,500). The Superior court provides an opportunity to receive larger costs awards, but the process is usually longer and more expensive.For claims that marginally exceed $50,000, you might consider abandoning your interest in any amounts that exceed $50,000 and proceeding in Small Claims Court. That said, the best forum isn’t only about the dollar amount. Complexity, urgency, evidence issues, enforcement risk, and the defendant’s resources are all factors that should inform your decision. It is best to seek legal counsel before deciding. - Existing Small Claims Actions: Amend or Transfer
For existing Small Claims actions under the previous limit of $35,000, you should consider amending your claim up to the new $50,000 limit to properly reflect actual losses. Amendments are governed by Rule 12 of the Rules of the Small Claims Court.For existing Superior Court Claims around $50,000, you should consider transferring your claim to the Small Claims Court. Only cases that fall within the Small Claims jurisdiction (monetary disputes and personal property recovery) are eligible for transfer.Amending or transferring your claim is not an automatic process. Various factors (including the value of the claim, stage of proceedings, procedural requirements, and potential costs) should be evaluated before making this decision.
Conclusion
The practical takeaway for individuals, small businesses, landlords/tenants, and employees, is that more claims now be adjudicated in Small Claims Court, which can meaningfully change strategy, timelines, and cost-benefit decisions.
How Addo Law PC Can Help
Addo Law helps clients make smart litigation decisions early, before cost and momentum lock you into the wrong path. If you’re dealing with a dispute of up to $50,000, Addo Law can help you:
- assess whether Small Claims Court is the right forum,
- quantify and structure your claim (including interest and provable damages),
- evaluate amendment/transfer options for existing proceedings, and
- pursue resolution efficiently through negotiation, settlement conference, or trial.
If you have questions about this limit increase or how the changes might affect you, you can email Mark Addo at markaddo@addolawpc.ca or call Addo Law P.C. at 647-368-6558.
This post is for general information only and is not legal advice. If you need advice about your specific circumstances, speak with a lawyer.
Author: By Lera Nwineh