Ontario Raises Small Claims Court Limit to $50,000
As of October 1, 2025, Ontario's Small Claims Court monetary limit increased from $35,000 to $50,000 under Ontario Regulation 42/25. This is one of the most significant changes to civil litigation in Ontario in recent years. For individuals, small businesses, contractors, and commercial parties with civil disputes, the change materially affects which court to use, how much litigation will cost, and how quickly disputes can be resolved.
This article explains exactly what changed, which disputes now qualify, how to decide between Small Claims Court and Superior Court, and the strategic implications for both plaintiffs and defendants.
Claims for money up to $50,000 can now use the faster, simpler, and less expensive Small Claims Court process. Plaintiffs with claims modestly above $50,000 can abandon the excess to stay in Small Claims Court. The change affects litigation strategy, settlement dynamics, and cost exposure for both sides of a civil dispute.
The change at a glance
What is Ontario Small Claims Court?
Small Claims Court is a branch of the Ontario Superior Court of Justice that handles civil claims for money up to the prescribed limit. It is designed to be accessible, efficient, and less expensive than a full Superior Court action. Parties can represent themselves, the rules of evidence are applied more flexibly, and the timelines from filing to trial are significantly shorter than in a standard civil action.
The court does not handle family law matters, criminal charges, or claims for non-monetary relief such as injunctions. It is a money court: the plaintiff must be seeking a specific dollar amount, not an order requiring someone to do something or stop doing something.
The simplified procedure makes Small Claims Court attractive for a wide range of disputes that previously required more expensive Superior Court proceedings. With the limit now at $50,000, the range of disputes that qualify has expanded significantly.
Small Claims Court vs Superior Court: which should you use?
Small Claims Court
- Claims up to $50,000
- No formal discovery process
- Simplified evidence and disclosure rules
- Shorter timelines to trial
- Lower cost exposure if unsuccessful
- Costs generally capped at 15% of the claim
- Accessible to self-represented parties
- Deputy judges preside
Superior Court of Justice
- Claims above $50,000 (no upper limit)
- Full discovery of documents and examinations
- Formal pleadings and procedural rules
- Longer timelines to trial
- Higher cost exposure if unsuccessful
- Costs awarded on a partial indemnity or full indemnity basis
- Legal representation strongly recommended
- Superior Court judges preside
Disputes now eligible for Small Claims Court
The increase to $50,000 brings many more civil disputes into Small Claims Court jurisdiction. Common claims that now qualify include:
Breach of contract
Unpaid invoices, service agreements, construction disputes, and supply contracts where the claim for damages is $50,000 or less. Many commercial disputes that previously required Superior Court action now fall within Small Claims jurisdiction.
Debt recovery
Loan repayment claims, unpaid accounts, and outstanding balances. Creditors with claims up to $50,000 can now pursue recovery through the faster Small Claims process rather than commencing a standard action in Superior Court.
Property damage and negligence
Claims for damage to property, slip and fall accidents, and other negligence-based claims where the quantified damages are $50,000 or less. The simplified evidence rules in Small Claims Court can make these claims more accessible and affordable to pursue.
Commercial landlord-tenant disputes
Commercial lease disputes involving money claims up to $50,000, including unpaid rent, damage claims, and deposit disputes. These proceed in Small Claims Court rather than the Landlord and Tenant Board, which has no jurisdiction over commercial tenancies.
Employment money claims
Claims for unpaid wages, commissions, bonuses, or other employment-related money claims up to $50,000 where the employee chooses to pursue a civil claim rather than an employment standards complaint.
Consumer and professional disputes
Claims against service providers, contractors, professionals, and businesses for defective services or goods where the financial loss is $50,000 or less. The increased limit makes these claims significantly more viable to pursue.
Claim value and forum: quick reference
| Claim value | Recommended forum | Notes |
|---|---|---|
| Under $35,000 | Small Claims Court | Well within the limit; streamlined process applies |
| $35,001 to $50,000 | Small Claims Court | Now within the new limit as of October 1, 2025 |
| $50,001 to $60,000 | Consider abandoning excess | Giving up $10,000 or less may be worth access to Small Claims process |
| Over $60,000 | Superior Court (Simplified Procedure) | Simplified Procedure applies to claims up to $200,000 |
| Over $200,000 | Superior Court (full action) | Full discovery and formal civil procedure applies |
Not sure which court is right for your claim?
The decision between Small Claims Court and Superior Court affects your costs, timelines, and the strength of your position. Achkar Law can assess your claim and advise on the best forum and strategy. See our civil litigation page for more on how we help.
Speak With a Litigation Lawyer Or call us: 1-800-771-7882Strategic considerations for plaintiffs and defendants
The new limit changes the calculus for both sides of a civil dispute in Ontario.
For plaintiffs
You now have the option to file many more claims in Small Claims Court rather than Superior Court, with significantly lower legal costs and faster resolution. For claims that were previously just above $35,000, the new limit eliminates the need to choose between an expensive Superior Court action and abandoning a significant portion of your claim.
Where your claim is modestly above $50,000, the decision whether to abandon the excess requires careful analysis. Factors to consider include the certainty of proving the full amount, the defendant's ability to pay, whether discovery would be important to your case, and the relative cost of Small Claims versus Superior Court proceedings.
For defendants
Expect significantly more claims to be brought against you in Small Claims Court. The absence of formal discovery means you will have less access to the plaintiff's evidence before trial, and the shorter timelines require faster preparation. Responding quickly and strategically from the outset is more important than ever in Small Claims proceedings.
Defendants in Small Claims Court can bring a defendant's claim (counterclaim) against the plaintiff, and can also bring in third parties where relevant. The same $50,000 limit applies to these claims.
Settlement strategy
The lower cost exposure in Small Claims Court changes settlement dynamics. Because the financial consequences of losing are more limited and the litigation costs are lower, parties may have different incentives around settlement than they would in a Superior Court action. Both plaintiffs and defendants should factor the new cost and risk profile into their settlement analysis.
Have an existing Superior Court claim that now falls under $50,000?
Depending on the stage of your proceeding, a transfer to Small Claims Court may be possible. Get advice before assuming your case must stay in Superior Court.
Call: 1-800-771-7882 Speak With a LawyerPractical takeaways
Frequently asked questions
What is the Small Claims Court limit in Ontario in 2025?
As of October 1, 2025, the Small Claims Court monetary limit in Ontario is $50,000, increased from $35,000 under Ontario Regulation 42/25. Claims for money up to $50,000 can now be filed in Small Claims Court, which offers a faster, simpler, and less expensive process than the Superior Court of Justice.
Can I reduce my claim to fit within the Small Claims Court limit?
Yes. A plaintiff whose claim exceeds $50,000 can abandon the excess and limit their claim to $50,000 in order to proceed in Small Claims Court. By doing so, you give up the right to recover amounts above $50,000, but you gain access to the streamlined and less expensive Small Claims process. This is often worth considering where the claim is only modestly above the limit.
What types of claims can be brought in Ontario Small Claims Court?
Small Claims Court handles civil claims for money up to $50,000, including breach of contract, unpaid invoices, debt recovery, property damage, negligence claims, and commercial landlord-tenant disputes. It does not handle family law matters, criminal charges, or claims for non-monetary relief such as injunctions or specific performance.
What is the difference between Small Claims Court and Superior Court in Ontario?
Small Claims Court handles civil money claims up to $50,000 with simplified procedures, no formal discovery, lower costs, and faster timelines. The Superior Court of Justice handles larger claims and more complex matters with full discovery, formal pleadings, and longer timelines. For claims between $50,000 and $200,000, the Simplified Procedure in Superior Court applies.
What happens to existing lawsuits after the limit increase?
Cases already commenced in Superior Court before October 1, 2025 are not automatically transferred. Depending on the stage of the proceeding and the claim value, parties may be able to seek a transfer to Small Claims Court. Legal advice is recommended before attempting to transfer an existing case.
Do I need a lawyer for Small Claims Court in Ontario?
You are not required to have a lawyer in Small Claims Court. However, legal advice is strongly recommended, particularly for claims approaching $50,000, for defendants facing a claim, and for anyone unfamiliar with court procedure. A litigation lawyer can assess whether Small Claims Court is the right forum, draft your claim or defence, and represent you at the settlement conference and trial.
Need help with a Small Claims Court matter or civil dispute in Ontario?
Whether you are filing a claim, defending one, or deciding which court is right for your dispute, Achkar Law's civil litigation team can assess your situation, advise on the best forum and strategy, and represent you through to resolution.
Call us at 1-800-771-7882 or fill out the form below and we will be in touch.