Picture a renovation that stops halfway. The homeowner will not pay the last invoice until the work is fixed. The contractor says the work is fine and the money is owed. Both of them end up asking the same question: can this go to Small Claims Court, and who can help me with it?

In Ontario, the answer is often yes. Since 1 October 2025 the Small Claims Court has heard claims of up to $50,000. That covers many disputes over unfinished work, deficient work and unpaid invoices. Below is what the court can hear, the one rule about the limit that catches people out, what happens after a claim is served, and who can represent you, whichever side you are on.

What Small Claims Court can hear

The court's powers come from section 23(1) of the Courts of Justice Act. It hears two kinds of action:

  • an action for the payment of money, where the amount claimed does not exceed the prescribed amount, "exclusive of interest and costs"; and
  • an action to recover possession of personal property, where the property's value does not exceed the prescribed amount.

The prescribed amount is set by regulation. Section 1(1) of O. Reg. 626/00 says: "The maximum amount of a claim in the Small Claims Court is $50,000." The limit used to be $35,000. O. Reg. 42/25 replaced it with $50,000, in force from 1 October 2025.

For a renovation dispute, that usually means a claim for money. A homeowner might claim what it cost to have another trade finish or repair the work. A contractor might claim an unpaid balance on an invoice. The second kind of action, recovering personal property, can matter too: for example, tools or materials one side says the other is holding.

Where a claim starts matters too. Under section 23(1.1) of the Act, an action within the Small Claims Court's jurisdiction cannot be started in the Superior Court of Justice except with that court's leave. So a dispute that fits under $50,000 generally begins in Small Claims Court.

A claim cannot be split to fit under the limit

Rule 6.02 of the Rules of the Small Claims Court is short and firm: "A cause of action shall not be divided into two or more actions for the purpose of bringing it within the court's jurisdiction."

In practice, if one renovation contract went wrong and the loss is above $50,000, you cannot file two claims of half the amount each to keep both in Small Claims Court. Note, though, that the limit is measured on the amount claimed, not counting interest and costs (Courts of Justice Act, s. 23(1)(a)).

How to start a claim in Small Claims Court

A claim starts when the plaintiff files a plaintiff's claim (Form 7A) with the clerk (r. 7.01(1)). Under rule 7.01(2), the claim must be written in concise, non-technical language and set out:

  • the full names of the parties;
  • the nature of the claim, with reasonable detail, including the date, place and nature of what happened;
  • the amount claimed and what you are asking the court to order;
  • your address, telephone number and email if you are acting for yourself, or your representative's details if you have one; and
  • the address where you believe the defendant can be served.

If the claim is based in whole or in part on a document, a copy must be attached, or the claim must explain why it is unavailable (r. 7.01(2), para. 2). In a contractor dispute, the contract, the quote and the invoices are often the documents the claim rests on. Gathering them early makes the claim easier to write and easier to follow.

What happens after the claim is served

The defence: 20 days

A defendant who wants to dispute the claim must, within 20 days of being served, serve a defence (Form 9A) on every other party and file it with the clerk, with proof of service (r. 9.01). The defence must give the reasons the defendant disputes the claim, again in concise, non-technical language (r. 9.02(1)).

If a defendant does not file a defence within the time allowed, the clerk may note the defendant in default when the plaintiff asks (r. 11.01(1)). That is why a claim that arrives in the mail should not sit in a drawer.

The defendant's own claim

Contractor disputes often run both ways. A homeowner sues over deficient work, and the contractor says the homeowner still owes the balance. Rule 10.01(1) lets a defendant make a claim against the plaintiff, or against another person where the claim arises out of the same transaction or is related to the plaintiff's claim. A defendant's claim (Form 10A) may be issued within 20 days after the day the defence is filed, or later with the court's leave, before trial or default judgment (r. 10.01(2)).

The settlement conference

Rule 13.01(1) is plain: "A settlement conference shall be held in every defended action." It must be held within 90 days after the first defence is filed (r. 13.01(3)). The parties, and their representatives if they have them, must take part unless the court orders otherwise (r. 13.02(1)).

Rule 13.03(1) lists the purposes, which include resolving or narrowing the issues, encouraging settlement, helping the parties prepare for trial and providing full disclosure of the relevant facts and evidence. At least 14 days before the conference, each party must serve and file any document it will rely on at trial that is not already attached to its claim or defence, along with a list of proposed witnesses (r. 13.03(2)).

If the dispute does not settle, it moves toward trial. The court hears and decides cases "in a summary way" (Courts of Justice Act, s. 25).

Appeals

An appeal from a final order of the Small Claims Court goes to the Divisional Court only where the final order is in an action for the payment of more than $5,000, excluding costs, or for the recovery of property worth more than $5,000 (Courts of Justice Act, s. 31; O. Reg. 626/00, s. 2).

Who can represent you in Small Claims Court in Ontario

You can represent yourself. The rules provide for it: a self-represented party puts their own address, telephone number and email (if any) on the claim or defence (r. 7.01(2), para. 1; r. 9.02(1), para. 1).

If you want help, section 26 of the Courts of Justice Act says a party may be represented in Small Claims Court by a person authorized under the Law Society Act to represent the party. In Ontario that includes a licensed paralegal. The Law Society of Ontario's By-Law 4 authorizes a paralegal licensee to represent a party before the Small Claims Court, and to advise a party about a proceeding there, including an intended one that has not started yet (By-Law 4, s. 6(1) and s. 6(2), paras. 1 and 2).

That right of representation applies to either side. A paralegal can act for the homeowner bringing a claim or for the contractor defending one, and the reverse.

A paralegal licence has limits outside this court, so it is reasonable to ask what someone is licensed to do before you hire them. We looked at one of those limits in our article on Caruso v. the LSO and paralegal licence scope. You can check any paralegal's or lawyer's status in the Lawyer and Paralegal Directory on the Law Society of Ontario's website.

Where we fit

Roger Dinner is a licensed paralegal with the Law Society of Ontario, and he built an HVAC business before he built a legal practice. You can read more about Roger's background in the trades, and about our Small Claims Court services for contractors and homeowners, which cover unpaid invoices, deficient or unfinished work, settlement conferences and trial.

If you have a contractor dispute and are not sure whether it belongs in Small Claims Court, book a free consultation and we can look at it together. We reply within 24 to 48 hours.

Frequently asked questions

Can I sue a contractor in Ontario Small Claims Court for more than $50,000?

Not in Small Claims Court. Its limit for a money claim is $50,000, not counting interest and costs (Courts of Justice Act, s. 23(1)(a); O. Reg. 626/00, s. 1(1)). A claim cannot be divided into two or more actions to bring it under the limit (r. 6.02).

Who can represent you in Small Claims Court in Ontario?

You can act for yourself, or be represented by a person authorized under the Law Society Act (Courts of Justice Act, s. 26). That includes a licensed paralegal, who may represent and advise a party in a Small Claims Court proceeding (By-Law 4, s. 6(2)). A paralegal can act for a homeowner or a contractor.

How long do I have to respond to a Small Claims Court claim?

A defendant who disputes the claim must serve and file a defence within 20 days of being served (r. 9.01). If no defence is filed in time, the clerk may note the defendant in default at the plaintiff's request (r. 11.01(1)).

The homeowner sued me over the work, but they still owe me money. Can I claim it in the same case?

A defendant may make a claim against the plaintiff, or against another person where the claim arises from the same transaction or relates to the plaintiff's claim (r. 10.01(1)). It may be issued within 20 days after the defence is filed, or later with the court's leave (r. 10.01(2)).

Does every Small Claims Court case go to trial?

No. Every defended action has a settlement conference first, held within 90 days after the first defence is filed (r. 13.01), unless the defence admits the whole claim and proposes terms of payment (r. 13.01(4)). One of its purposes is to encourage settlement (r. 13.03(1)). A case that does not settle can move on to trial.

Can a Small Claims Court decision be appealed?

A final order can be appealed to the Divisional Court if it is made in an action for the payment of more than $5,000, excluding costs, or for the recovery of property worth more than $5,000 (Courts of Justice Act, s. 31; O. Reg. 626/00, s. 2).

This article is general information about Ontario's Small Claims Court, current as of its publication date. It is not legal advice and does not create a paralegal-client relationship. Court rules change; speak with a licensed professional about your own situation.