Increase in the Small Claims Limit: Implications and Opportunities

The monetary limit for Small Claims Court increases periodically to continue to make justice more accessible and efficient for individuals and small businesses. The limit will increase again on October 1, 2025 to $50,000.

Why the Change?

1. Access to Justice: By raising the monetary threshold, more individuals and small businesses can resolve their disputes in a cost-effective manner. This change is particularly beneficial for those who might otherwise be deterred by the high costs of traditional litigation.

   
   

2. Efficiency: Small claims courts are typically faster than higher courts. Increasing the limit gives more litigants access to this faster means of dispute resolution. Litigants with claims over $50,000 may even consider waiving the excess amount to access the faster process.

   
   

3. Economic Considerations: The previous limit of $35,000 no longer reflects the current economic realities. Adjusting the limit ensures that the Small Claims Court remains relevant and effective.

What else is Changing?

Beyond increasing the maximum amount of a claim, the new limit will also impact the limit on awards of costs in the Small Claims Court. Such awards are generally capped at 15 percent of the amount claimed. Therefore, unsuccessful litigants may now be on the hook for costs awards up to $7,500.

The minimum amount of a claim that may be appealed to the Divisional Court will increase from claims exceeding $3,500 to claims exceeding $5,000. Litigants bringing claims for $5,000 or less should be aware that the decision of the Small Claims Court will be final.

Contact a lawyer at Small Claims Solutions today

Have questions about a possible claim or legal deadline? Reach out for a consultation and let’s talk about your options. You can contact us here, or send an email to info@smallclaimssolutions.ca, or give us a call 437-290-5200. We look forward to assisting you!