Small Claims or Superior Court? Where to Sue in Ontario
Monetary limits, costs exposure, and a practical decision framework
Before any question of strategy, evidence, or timing, a plaintiff in Ontario has to answer a threshold question:
“Which court do I sue in—and is court even the right forum for this dispute?”
The answer is driven primarily by the monetary value of the claim, but the honest version of that number—what you can actually prove and actually collect—matters more than the number you would like to plead. Choosing the wrong track adds months or years of procedure, exposes you to adverse costs, and in some cases means the tribunal simply has no jurisdiction to hear you.
This article sets out the three tracks in Ontario civil courts, the cost and procedure trade-offs of each, the jurisdiction split between the courts and the Landlord and Tenant Board, and a worked example showing how the decision is made in practice.
1. The Three Tracks in Ontario Civil Courts
Ontario divides money claims into three procedural tracks. The thresholds are set by the Courts of Justice Act and its regulations and by the Rules of Civil Procedure, and both were last raised on January 1, 2020.
| Track | Claim Value | Key Features |
|---|---|---|
| Small Claims Court | Up to $35,000 | Simplified forms, settlement conference, short trials, self-representation viable |
| Superior Court — Simplified Procedure (Rule 76) | Up to $200,000 | Limited discovery, five-day trial cap, capped recoverable costs |
| Superior Court — Ordinary Procedure | Above $200,000 | Full discovery, mandatory mediation in Toronto, longest timelines |
Both monetary thresholds are measured exclusive of interest and costs. The value that governs is the amount you claim—which is why an honest valuation of the claim, discussed below, is a strategic decision and not an afterthought.
2. Small Claims Court: Up to $35,000
The Small Claims Court is a branch of the Superior Court of Justice. Cases are heard mostly by deputy judges—experienced lawyers appointed to preside—under the Rules of the Small Claims Court, a deliberately simplified rulebook.
Its practical advantages are significant for modest claims:
- Lower cost: filing fees are modest, pleadings are short forms, and there are no examinations for discovery
- Faster: a mandatory settlement conference comes early, and trials typically run hours, not weeks
- Self-representation is viable: individuals and corporations can appear without counsel, and licensed paralegals may represent parties
The trade-off is limited costs recovery. Under section 29 of the Courts of Justice Act, an award of costs for legal representation in Small Claims Court generally cannot exceed 15 percent of the amount claimed, unless the court penalizes unreasonable conduct. On a $35,000 claim, that is a maximum of $5,250—so even a winning party absorbs most of what they spend on counsel. This is the structural reason many Small Claims litigants proceed self-represented or with limited-scope legal advice, a dynamic we examine in our article on how litigation lawyer fees work in Toronto.
Small Claims judgments are enforceable like any other court judgment—by garnishment, writ of seizure and sale, and examination of the debtor.
3. Superior Court Simplified Procedure: Up to $200,000
Claims above $35,000 and up to $200,000 must generally proceed in the Superior Court of Justice under the simplified procedure in Rule 76 of the Rules of Civil Procedure. The rule exists to keep mid-sized claims proportionate. Its main features:
- Oral examinations for discovery are capped at three hours per party
- Trials are capped at five days
- Jury trials are generally not available
- Recoverable costs are capped at $50,000, plus $25,000 in disbursements
The simplified procedure still requires proper pleadings, affidavits of documents, mediation where mandatory, and a pretrial conference. It is faster than the ordinary procedure, but it is real litigation: most parties in this track retain counsel, because the amounts at stake and the costs exposure justify it.
The Supreme Court of Canada's decision in Hryniak v Mauldin, 2014 SCC 7, pushed Ontario courts toward proportionality—resolving cases by summary judgment where a trial is not genuinely required. In simplified-procedure cases with clean documentary records, a summary judgment motion can shorten the path to judgment considerably.
4. Ordinary Procedure: Above $200,000
Claims over $200,000 proceed under the ordinary procedure: full documentary and oral discovery, mandatory mediation in Toronto, Ottawa, and Windsor under Rule 24.1, pretrial conference, and trial. This is the track for complex commercial disputes, multi-party construction claims, and significant real estate litigation.
The cost of the ordinary procedure is measured in time as much as money. In Toronto, straightforward actions resolve in roughly 6 to 12 months, but matters that proceed through discovery, mediation, and trial commonly take three years or more. We set out the stages and realistic durations in our Toronto civil litigation timeline guide.
If your claim genuinely exceeds $200,000, there is no shortcut into a cheaper track—but proportionality tools such as summary judgment, focused pleadings, and early mediation can compress the timeline. This is where experienced Toronto civil litigation counsel earns its fee: not by filing more paper, but by choosing which procedural steps actually move the case toward judgment or settlement.
5. Valuing Your Claim Honestly—and Abandoning the Excess
The track is chosen by the amount claimed, so the valuation of the claim is the first strategic decision in the lawsuit. Two principles govern it:
- Plead what you can prove. Damages must be supported by evidence—invoices, contracts, appraisals, expert reports. An inflated claim does not increase recovery; it increases your costs exposure and undermines credibility at mediation and trial.
- You may abandon the excess. A plaintiff with a claim slightly above $35,000 may expressly abandon the portion over the limit to sue in Small Claims Court. The abandoned amount is lost permanently. What you cannot do is split one claim into several actions to fit each under the limit.
When Abandoning the Excess Makes Sense
Abandoning $5,000 to $10,000 of a claim is often rational when the saved legal fees and the year or more of saved time exceed the abandoned amount—particularly where the defendant's ability to pay is uncertain, since a larger judgment against a debtor who cannot pay is worth no more than a smaller one. Conversely, where liability is strong, the defendant is solvent, and the excess is substantial, the simplified procedure usually justifies its added cost.
6. Costs Exposure: Ontario's Loser-Pays Rule
Ontario courts ordinarily order the losing party to pay part of the winner's legal costs. The usual scale, partial indemnity, covers a fraction of actual fees; elevated costs can be ordered against parties who behave unreasonably or who rejected a settlement offer and then did worse at trial. Formal offers to settle carry defined costs consequences under Rule 49 of the Rules of Civil Procedure, and the Small Claims Court has its own offer rules with similar effect.
Two practical consequences follow:
- Suing is never free of downside. A plaintiff who loses a simplified-procedure action can face a costs award in the tens of thousands of dollars on top of their own fees.
- The Small Claims 15 percent cap cuts both ways: it limits what you recover if you win, but it also limits what you pay if you lose. For a risk-averse party with a modest claim, that cap is itself a reason to choose Small Claims Court.
Any honest forum decision therefore weighs three numbers: the realistic judgment, the legal fees to get there, and the adverse costs if you lose.
7. Limitation Periods: The Same Clock Runs in Every Court
Choosing a forum does not extend your deadline. Under the Limitations Act, 2002, the basic limitation period is two years from the day the claim was discovered or ought to have been discovered, subject to an ultimate limitation period of 15 years. The two-year clock applies equally in Small Claims Court and the Superior Court.
- Basic limitation period: 2 years from discovery
- Ultimate limitation period: 15 years from the act or omission
- Shorter special deadlines exist: for example, a construction lien must be preserved within 60 days under the Construction Act
- Appeals: the deadline to appeal a judgment is generally 30 days
If a limitation deadline is close, the forum question must not delay filing. A claim issued in the wrong court can usually be transferred; a claim issued after the limitation period expires is usually dead.
8. Landlord and Tenant Disputes: LTB or the Courts?
The most common jurisdictional trap in Ontario is the split between the courts and the Landlord and Tenant Board (LTB). The Residential Tenancies Act, 2006 assigns most residential tenancy disputes—evictions, rent arrears, maintenance, deposits—to the LTB, not the courts. A residential landlord who sues a current tenant in Small Claims Court for a matter within the Board's jurisdiction will typically be told to start again at the LTB.
- Residential tenancies: start at the LTB. Its monetary jurisdiction is capped at the Small Claims limit of $35,000.
- Arrears above the cap: where unpaid rent or damage exceeds what the Board can award, a Superior Court action may be available—we analyze this scenario in our article on rent arrears over $50,000.
- Commercial tenancies: the Commercial Tenancies Act applies and disputes go to the courts, not the LTB.
Because the RTA jurisdiction line turns on facts—the nature of the tenancy, whether the tenant is still in possession, the relief sought—landlords with significant claims should have the forum assessed before filing anywhere. Our landlord and tenant litigation practice deals with exactly this boundary.
9. A Worked Example: The $42,000 Unpaid Invoice
Assume a renovation contractor is owed $42,000 on a completed project. The homeowner disputes some deficiencies but the documentary record—contract, invoices, photographs—is strong. The contractor has two realistic options:
Option A: Abandon $7,000, Sue for $35,000 in Small Claims
Judgment realistically within about a year. Legal spend is modest, and self-representation or paralegal representation is viable. Costs recovery is capped near 15 percent, but adverse costs exposure is capped too. Net position if successful: roughly $35,000 less what was spent to get there, with $7,000 given up permanently.
Option B: Sue for $42,000 Under the Simplified Procedure
Full claim preserved, and a portion of legal fees is recoverable if successful. But the matter now involves pleadings, affidavits of documents, discovery, and likely 18 to 24 months. Legal fees can meaningfully exceed the $7,000 differential, and losing brings a real adverse costs award.
On these facts, Option A is often the better commercial decision: the $7,000 abandoned is less than the likely difference in fees and time. The calculus reverses if the debt were $60,000, if the homeowner were clearly solvent, or if a construction lien deadline under the Construction Act changed the strategy entirely. The point is not that Small Claims is always right—it is that the forum decision is an arithmetic and evidence problem, not a matter of instinct.
10. Decision Framework: Five Questions Before You File
- What can I prove, in dollars? Value the claim on evidence, not grievance. This number selects the track.
- Does a tribunal have exclusive jurisdiction? Residential tenancy matters generally belong at the LTB; construction lien claims follow the Construction Act's own procedure and deadlines.
- Is my limitation period safe? Two years from discovery is the default; some deadlines are far shorter.
- Can the defendant pay? A judgment is only worth what can be collected. Enforcement prospects can justify choosing the cheaper forum.
- What is my downside if I lose? Compare adverse costs exposure across the tracks, not just your own fees.
Where the answers point in different directions—a strong $45,000 claim against a defendant of uncertain means, for example—a short consultation before filing is usually cheaper than a procedural correction after it.
Frequently Asked Questions
What is the monetary limit of Ontario Small Claims Court?
The Small Claims Court can award up to $35,000, excluding interest and costs. The limit has been $35,000 since January 1, 2020. If your claim is worth more, you may abandon the excess to stay in Small Claims Court, but you cannot divide one claim into several actions to fit under the limit.
Can I recover my legal fees if I win my lawsuit in Ontario?
Only partially. Ontario follows a loser-pays principle, but a typical partial indemnity costs award covers a fraction of actual legal fees, not all of them. In Small Claims Court, section 29 of the Courts of Justice Act generally caps costs for legal representation at 15 percent of the amount claimed. Under the Superior Court simplified procedure, recoverable costs are capped at $50,000 plus $25,000 in disbursements.
Do I need a lawyer for Small Claims Court in Ontario?
No. Small Claims Court is designed so that self-represented parties and licensed paralegals can conduct proceedings. Many claimants handle straightforward debt or contract matters themselves. Legal advice is still valuable for pleading the claim correctly, assessing limitation periods, and preparing for the settlement conference, particularly where the facts are disputed.
How long do I have to start a lawsuit in Ontario?
The basic limitation period under the Limitations Act, 2002 is two years from the day you discovered, or ought to have discovered, the claim, subject to an ultimate limitation period of 15 years. Some claims have much shorter deadlines. For example, a construction lien must be preserved within 60 days under the Construction Act. The limitation period is the same whether you sue in Small Claims Court or the Superior Court.
Can I sue my residential tenant in court for unpaid rent?
Usually not as a first step. The Residential Tenancies Act, 2006 gives the Landlord and Tenant Board jurisdiction over most residential tenancy disputes, and the Board's monetary jurisdiction is capped at the Small Claims Court limit of $35,000. Where arrears exceed that cap, or the Board cannot take jurisdiction, a court proceeding may be available. Commercial tenancy disputes go to the courts, not the Board.
What happens if I sue for more than $35,000 in Small Claims Court?
The court cannot award more than $35,000, excluding interest and costs. A plaintiff may expressly abandon the portion of a claim above $35,000 to bring it within the court's jurisdiction, but the abandoned amount is lost and cannot be claimed later. Splitting a single claim into multiple actions to evade the limit is not permitted.
Where do I appeal a Small Claims Court judgment?
A final order of the Small Claims Court may be appealed to the Divisional Court where the amount in dispute exceeds $3,500, and the appeal must generally be commenced within 30 days of the order. Appeals from Superior Court judgments also carry a 30-day deadline. Appeal routes are technical, so deadlines should be confirmed for the specific order in question.
References & Resources
- Courts of Justice Act, R.S.O. 1990, c. C.43 — Small Claims Court jurisdiction and costs (s. 23, s. 29, s. 31)
- Rules of Civil Procedure, R.R.O. 1990, Reg. 194 — Simplified procedure (Rule 76), offers to settle (Rule 49), mandatory mediation (Rule 24.1)
- Rules of the Small Claims Court, O. Reg. 258/98
- Limitations Act, 2002, S.O. 2002, c. 24, Sched. B
- Residential Tenancies Act, 2006, S.O. 2006, c. 17
- Ontario Superior Court of Justice — Small Claims Court
- Landlord and Tenant Board (Tribunals Ontario)
- Canadian Legal Information Institute (CanLII) — Free access to Canadian court decisions, including Hryniak v Mauldin, 2014 SCC 7
Disclaimer: This article is provided for general informational purposes only and does not constitute legal advice. Every legal matter is unique, and the outcome depends on the specific facts and circumstances of your case. If you are facing a legal issue, please contact a qualified litigation lawyer to discuss your situation. Nothing in this article creates a solicitor-client relationship between you and Starkman & Zhang Lawyers.
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About the Author
Calvin Zhang
Commercial Litigation Lawyer · Starkman & Zhang Lawyers
Regularly appears before the Ontario Superior Court on commercial and civil disputes. Bilingual — English, Mandarin, and Cantonese.
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