1. Check whether this court can give you the remedy you need
Small Claims Court deals with claims for money or the return of personal property with a total value of $50,000 or less, excluding interest and costs. This limit took effect on October 1, 2025. Examples include an unpaid invoice, a personal loan, defective work or damaged belongings. A strong sense that something was unfair is not enough: identify the agreement or legal duty, what went wrong, and the loss it caused.
This is not the route for a divorce, criminal charge, eviction order, or an order simply requiring someone to stop doing something. Residential tenancy issues may belong at the Landlord and Tenant Board. Employment, human rights and construction disputes can involve other forums, overlapping remedies, election rules or special deadlines. Get advice before choosing between proceedings.
Official reference: Ontario: civil claims, suing and being sued
2. Check the limitation period before negotiating
Many Ontario civil claims have a two-year limitation period measured from discovery, including when a reasonable person should have discovered the claim. It is not automatically two years from the invoice, the last conversation or the date you learned the law. Exceptions, suspensions, special notice requirements and an ultimate limitation period can change the answer.
Write down the event, when you first knew about the loss and responsible person, and why court proceedings became appropriate. Preserve the supporting records. A demand letter, complaint or ongoing negotiation does not by itself stop the limitation clock. If a deadline may be close, obtain advice promptly rather than waiting for a reply.
Official reference: Limitations Act, 2002
3. Identify the right parties and court location
Use legal names, not just a store sign, website name or social-media account. Check whether the agreement was with a corporation, a sole proprietor, a partnership or an individual. Keep a business search and the contract identifying the other party. An owner or director is not automatically personally responsible for a corporation’s debt.
Venue depends on Rule 6, including where the cause of action arose or where a defendant resides or carries on business. The nearest courthouse to your home is not automatically correct. Check jurisdiction and service carefully for a defendant outside Ontario, a minor, a person under disability or a government defendant.
Official reference: Ontario: making a claim
4. Compare the practical options
Estimate filing, service, hearing, representation and enforcement expenses. Winning a judgment does not guarantee payment: a debtor may have no reachable income or assets, or may be insolvent. Consider a clear demand, a payment arrangement or mediation where appropriate. Set a realistic settlement range without allowing deadlines to expire.
If your loss exceeds the court limit, compare a Superior Court claim with permanently abandoning the excess to remain in Small Claims Court. Do not split one cause of action into smaller lawsuits to bypass the limit. Seek advice before giving up part of your claim.
Official reference: Rules of the Small Claims Court, O. Reg. 258/98
Your next-step checklist
Use this list as you work. Check marks apply to this visit only.
Questions about this step
Is the Ontario Small Claims Court limit still $35,000?
No. The limit increased to $50,000 on October 1, 2025, excluding interest and costs. Check the current rules when starting a claim.
Does a demand letter extend my deadline to sue?
Not by itself. Negotiation does not automatically suspend a limitation period. Get advice if the deadline is approaching.
Sources for this guide
Where to go next
Need help with your next step?
Ask about available assistance, scope and fees. Include any urgent court deadline.
General information for Ontario, not advice about your case. Legislation, court orders and current court directions govern. Get help with your situation.