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Adjudicative Jurisdiction:
The Types of Cases Handled Within Small Claims Court Proceedings
Question: What types of cases can be heard in the Small Claims Court?
Answer: The Small Claims Court can hear a wide range of disputes involving claims for "the payment of money" or "the recovery of possession of personal property," regardless of the legal issue at hand, providing an accessible and cost-effective means for individuals to resolve their disputes efficiently.
Litigative Subject-Matter Authority
As a more approachable arm of the Superior Court of Justice, the Small Claims Court provides a forum where individuals can seek resolution of civil disputes without the cost and complexity of higher courts. Statutory and regulatory provisions define its subject-matter jurisdiction, setting the parameters for the kinds of cases that may proceed.
The Law
The authority of the Small Claims Court is set out in section 23(1) of the Courts of Justice Act, R.S.O. 1990, c. C.43, which says in simple terms that the Court may only grant remedies for the payment of money or the return of personal property, each within the prescribed monetary limit. Other forms of relief, such as injunctions, declarations, contract rescission, or accountings, are outside its reach and must be pursued in higher court. At the same time, section 25 directs the Small Claims Court to decide “all questions of law and fact” that arise in cases properly before it. This means that as long as the claim is for money or personal property within the limit, the Small Claims Court may hear virtually any cause of action, from breach of contract to negligence and beyond. Put plainly, the Small Claims Court is narrow in remedies but broad in subject matter: it can deal with almost any type of dispute, but only where the requested outcome is money or the return of property within its jurisdiction.
Jurisdiction
23 (1) The Small Claims Court,
(a) has jurisdiction in any action for the payment of money where the amount claimed does not exceed the prescribed amount exclusive of interest and costs; and
(b) has jurisdiction in any action for the recovery of possession of personal property where the value of the property does not exceed the prescribed amount.
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Summary hearings
25 The Small Claims Court shall hear and determine in a summary way all questions of law and fact and may make such order as is considered just and agreeable to good conscience.
In Maple Ridge Community Management Ltd. v. Peel Condominium Corporation No. 231, 2015 ONCA 520, the Ontario Court of Appeal recognized how important the Small Claims Court is for making justice affordable and accessible. Referring to the Supreme Court’s decision in Hryniak v. Mauldin, [2014] 1 S.C.R. 87, the Court noted that long delays and high costs are major barriers that threaten the rule of law. To address this, the Court explained that the Small Claims Court’s mandate in section 25 of the Courts of Justice Act, to “hear and determine in a summary way all questions of law and fact”, allows disputes over modest claims to be resolved quickly and fairly. With simplified rules and procedures designed to move cases efficiently, the Small Claims Court gives people who might otherwise be priced out of the system a chance to have their rights heard and protected.
[33] The Supreme Court of Canada has recognized that access to justice is a significant and ongoing challenge to the justice system with the potential to threaten the rule of law. In Hryniak v. Mauldin, 2014 SCC 7, [2014] 1 S.C.R. 87, at para. 1, the court held:
Ensuring access to justice is the greatest challenge to the rule of law in Canada today. Trials have become increasingly expensive and protracted. Most Canadians cannot afford to sue when they are wronged or defend themselves when they are sued, and cannot afford to go to trial. Without an effective and accessible means of enforcing rights, the rule of law is threatened. Without public adjudication of civil cases, the development of the common law is stunted.
[34] The Small Claims Court is mandated under s. 25 of the Courts of Justice Act, R.S.O. 1990, c. C.43, to “hear and determine in a summary way all questions of law and fact and may make such order as is considered just and agreeable to good conscience.” The Small Claims Court plays a vital role in the administration of justice in the province by ensuring meaningful and cost effective access to justice for cases involving relatively modest claims for damages. In order to meet its mandate, the Small Claims Court’s process and procedures are designed to ensure that it can handle a large volume of cases in an efficient and economical manner.
In Ontario Deputy Judges Association v. Ontario, 2005 CanLII 42263, the Superior Court commented indirectly on the range of matters that may be addressed in the Small Claims Court. Although the case was primarily concerned with the powers and responsibilities of Deputy Judges, the Court noted that they preside over disputes involving subjects as diverse as Charter rights, defamation, creditor rights, intellectual property, estate issues, and medical malpractice. While the remedies available in the Small Claims Court are limited to the payment of money or the recovery of personal property, the acknowledgment underscores the broad scope of legal issues that may still come before Deputy Judges. As the decision observed, the Small Claims Court is the busiest court in Ontario, frequently confronting increasingly complex legal problems despite its modest monetary jurisdiction.
[18] Deputy judges can hear a wide range of cases and have broad jurisdiction over proceedings involving the Canadian Charter of Rights and Freedoms, defamation, creditors' rights, intellectual property claims, estate litigation, and medical malpractice, among others. Deputy judges also exercise a form of equitable jurisdiction, which adds to their role and responsibilities as judicial officers. The Small Claims Court can hear and determine all questions of law and fact and may make orders considered just and agreeable to good conscience.
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[20] Deputy judges carry out judicial functions for large numbers of litigants contesting significant sums of money. The Small Claims Court is the busiest court in Ontario and the court that citizens are most likely to encounter. Litigants in Small Claims Court are increasingly represented by counsel and contend with increasingly complex legal issues. ...
Conclusion
The subject-matter jurisdiction of the Small Claims Court is both limited and expansive. It is limited in the sense that only certain remedies; namely, the payment of money or the recovery of personal property within the prescribed threshold may be granted. Yet within those boundaries, the adjudicative jurisdiction is expansive, allowing a wide range of legal disputes across many causes of action. This balance reflects the statutory design: to provide a simplified, efficient, and cost-effective forum, for resolving disputes that might otherwise be inaccessible to many litigants. By doing so, the Small Claims Court fulfills an essential role in advancing access to justice while ensuring the rule of law is meaningfully available.