New changes that expand the jurisdiction of the Small Claims Court are coming into effect on October 1, 2025. Known as the “People’s Court”, the Small Claims Court is a branch of the Superior Court of Justice that hears civil matters within certain monetary limits. Currently, the court has authority to hear most civil matters valued up to $35,000 (excluding interest and costs). However, the monetary ceiling will be raised to $50,000 (excluding interest and costs) on October 1, 2025.
The Small Claims Court aims to provide an efficient, just and cost-effective means to resolve civil disputes. Litigation is an expensive and long process. Small Claims proceedings are usually less formal than proceedings heard by the Superior Court. By cutting out the administrative steps and rigid procedural requirements found in traditional litigation, the Small Claims Court aims to make the legal system more accessible, especially in smaller cases where the cost of litigation may exceed the value of the claim itself.
The Courts of Justice Act allows the Small Claims Court to adopt a more relaxed evidentiary standard. The Small Claims Court may consider any evidence, including hearsay evidence, if it is relevant and not unduly repetitious. Evidence may be admitted at the hearing and does not need to be in the record beforehand. Relaxed evidentiary standards allow laypersons to present their case without needing to understand and maneuver the intricacies of evidence law. Litigants can also be self-represented or obtain legal representation. In Small Claims proceedings, the legal representation need not be a lawyer: parties can be represented by a paralegal or an articling student.
While the monetary jurisdiction of the Small Claims Court is expanding, the types of claims that can be heard by the Court remain the same. Only actions relating to the payment of money or the recovery of personal property are eligible to be heard by the Small Claims Court. Matters in Toronto relating to estates, capacity and trust law remain under the jurisdiction of the Estates List.
By expanding the jurisdiction of the Small Claim Court, the province hopes to promote access to justice, reduce the backlog of the Superior Court, and allow litigants obtain a quicker and cost-effective resolution to civil disputes.
The expanded jurisdiction of the Small Claims Court is an exciting change. However, litigants should consider whether the subject-matter of their claim falls within the jurisdiction of the Small Claims Court. Litigants should also be mindful that the rules of the Small Claims Court differ from those of the Superior Court and should refer to the Rules of the Small Claims Court to ensure compliance with these special procedures.
