Big Changes for Small Claims: Ontario Increases Limit to $50,000

A significant amendment to Ontario's Small Claims Court Jurisdiction has increased the monetary upper limit for claims in the Small Claims Court, and any subsequent appeals, from $35,000.00 to $50,000.00 as of October 1, 2025. For litigants with claims at or below this new threshold, this change provides a more accessible forum to the Ontario Superior Court of Justice.

What does this change mean?

Historically, any claim for an amount greater then $35,000.00 would be filed in the Ontario Superior Court of Justice. Now with the amendment to the Small Claims jurisdiction, only claims above $50,000.00 can be commenced at the Ontario Superior Court of Justice, and any monetary claim for less than that should be started at the Small Claims Court.

For existing claims in the Small Claims Court, litigants may amend their pleadings to claim up to $50,000.00, and for claims at the Ontario Superior Court of Justice below $50,000.00, litigants can attempt to have their claims transferred to the Small Claims Court.

Procedural differences between Ontario Superior Court of Justice and Small Claims Court

In the Ontario Superior Court of Justice, litigants typically begin with professionally drafted pleadings that set out the positions of the parties. Before a trial can take place, parties engage in an extensive discovery process, which can include the production of large volumes of documentary disclosure and examinations for discovery where parties answer questions under oath. Any disagreements over procedure are resolved through motions and hearings, each requiring significant legal preparation and cost. The complexity and length of this process naturally leads to substantially higher costs in legal fees and disbursements, though successful litigants can typically expect 60-80% of their legal costs to be awarded by the Court, subject to the trial judge’s discretion.

In contrast, the Small Claims Court is designed for accessibility and efficiency, with a significantly less formal process. The court uses simplified rules and plain-language forms, making the process much easier to navigate for cost-conscious, self represented litigants. The timelines are typically faster, with an upfront evidence model. After the exchange of pleadings, the Court will schedule a mandatory settlement conference, in which, parties will meet with a deputy judge to encourage early resolution. Failing settlement, the matter proceeds to a trial. The cost to take a matter to trial is usually less in the Small Claims Court because of the reduction in both procedural steps and formality. Although the Small Claims Court appears to be a much more attractive forum for claims, litigants need to be aware of the limit on recovery of costs at the Small Claims Court, which is still capped at 15% of the amount claimed, subject to the discretion of the deputy judge at trial. 

The increase of the Small Claims Court limit to $50,000 is an important change to be aware of for litigants in Ontario. It makes the efficient, accessible, and cost-effective process of the Small Claims Court available for an increased scope of civil disputes, allowing individuals and businesses to pursue their claims in a manner that is proportional to the amount at stake, removing many of the barriers associated with the more formal Ontario Superior Court of Justice procedures.