New Ontario Small Claims Court Monetary Limit

As of October 1, 2025, the monetary limit for claims brought before the Ontario Small Claims Court will see a substantial increase, a change that will directly affect future litigants. Currently, claims can be commenced in Small Claims Court for amounts up to $35,000.00. Appeals from Small Claims Court to the Divisional Court are permitted only where the amount in dispute exceeds $3,500.00. However, beginning October 1, 2025, both limits are set to increase to $50,000.00 for new claims and $5,000.00 for appeals.

What Does This Change Mean For You?

Small Claims Court is commonly referred to as the "People's Court." This term has been used as Small Claims Court provides an accessible system to individuals with smaller monetary disputes. It contains simple procedural rules, lower costs, and theoretically faster timelines, which makes it a practical alternative to the Superior Court of Justice. In accordance with these advantages, the upcoming increase in monetary limits will further enhance the ability of the courts in Ontario to provide access to the justice system in a convenient, effective manner, as well as ensure claims under $50,000 can be litigated more cost-effectively.

This increased monetary limit ought to mean that the burden on the Superior Courts of Justice should be slightly eased, which should enhance the efficiency of Ontario's justice system.

Practical Implications for Claimants

When a litigant experiences a loss of $45,000.00, in order to keep legal fees within reason, the litigant may elect to commence the claim in Small Claims Court, thereby electing to reduce the claim by $10,000 for the sake of cost effectiveness and efficiency.

With the revised monetary threshold now in effect as of October 1, 2025, that same litigant would now be able to advance their entire claim. Of course, if the claim is over $50,000, a litigant would have to conduct the cost-benefit analysis of commencing a claim in Small Claims Court versus the Superior Court of Justice.

With this new monetary increase, litigants will have the option to wait until October 2025 to file and serve their claim, amend an existing Small Claims proceeding, or alternatively transfer their existing claim from the Superior Court of Justice to Small Claims Court.

Amending Existing Claims

If, as a litigant, you already filed and served a claim in Small Claims Court, you may be able to amend the claim filed after October 1, 2025. However, amending the claim will only be successful if:

1. the amended claim is served on all parties, including any party noted in default; and
2. the amended claim is filed and served at least 30 days before the originally scheduled trial date, unless the court, on motion, allows a shorter notice period or a clerk's order permitting the amendment is obtained.

If these requirements are not met, it will be unlikely that amending your current claim to fit within the new monetary limit will be successful.

Transfer Your Existing Claim

If you filed and served your claim with the Superior Court of Justice because your claim exceeded the current Small Claims limit ($35,000.00), you may be able to transfer your proceeding to the Small Claims Court as of October 1, 2025, provided it falls within the new monetary limit of $50,000.00.

In order to transfer a claim successfully, important procedural steps are required to be taken:

1. If all parties to the lawsuit agree to the transfer, you must:
   1. receive written consent from all parties;
   2. complete a requisition (Form 4E);
   3. file the requisition and written consent from all parties with the Superior Court of Justice; and
   4. pay the required fee.
2. If all parties do not agree to the transfer, you can:
   1. bring a motion to the Superior Court of Justice to ask the court for permission to do so. Motions are costly, and you will have to weigh the costs of the motion vs the cost savings of proceeding to Small Claims Court, as well as the time and the likelihood of success of such a motion.

While these changes are definitely for the better in making the courts more accessible to the people, the transition will undoubtedly have an impact on litigants in the short term. While litigants can and often retain counsel for Small Claims Court matters, the People's Court is designed so that parties can attend as self-represented litigants to ensure that they are garnering the highest possible amounts for their claims, assuming their claims are successful.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.