Proposed Changes to Small Claims Court

There is a new Amendment to O. Reg. 258/98 under the Courts of Justice Act (Rules of the Small Claims Court) effective on June 1, 2025,

Primary Objective

The primary objective of the Rules is to enable the court to secure the just, most expeditious and least expensive determination of every proceeding on its merits.

It is the duty of the Court and their participants to promote and practice the primary objective. This can be achieved by:

(a) ensuring that the procedure is fair to all parties;

(b) saving expenses and time;

(c) dealing with a proceeding in ways that are appropriate to its complexity; and

(d) giving appropriate court resources to a proceeding while taking account of the need to give resources to other proceedings.

The Rules allow the Court to determine cases more expeditiously and at a lower cost than in the Superior Court of Justice.

Hearings

Parties to have their hearings scheduled either:

  1. in person,

    2) by video conference, or

    3) by telephone conference.

    A party may request a change in the method by which the party is to attend a step by serving a request, in Form 1B, setting out the party’s reasons at least 30 days before the hearing date.

    If there are any objections, the other party may serve an objection, in Form 1C, no later than seven days after being served with the request. The court may then either accept or reject the request.

    Management Conferences

    Management Conferences will be scheduled at the discretion of the Court.

    The purposes of a trial management conference are:

    (a) to assess the parties’ readiness for trial;

    (b) to assist the parties in effective preparation for trial;

    (c) to provide full disclosure between the parties of the relevant facts and evidence;

    (d) to resolve or narrow the issues in the action;

    (e) to expedite the disposition of the action;

    (f) to encourage settlement of the action; and

    (g) to set the trial date, if necessary.

    At the trial management conference, the parties and their representatives will openly discuss the issues involved in the action. A judge conducting a trial management conference may make any order relating to the conduct of the action that the court could make, including an order:

    (a) respecting the scheduling of the trial;

    (b) directing the production of documents; and

    (c) awarding costs if a party fails to attend the conference, if required to do so.

    Costs at a trial management conference will not exceed $100.00, unless the Court orders otherwise if there are any special circumstances to consider.

    A judge who conducts a trial management conference will not be permitted to preside at the trial of the action. Further, any trial adjournments will now require a formal Court Order, which will ensure that all adjournments of trials are approved by the Court. This new rule should reduce the number of adjournments and assist with the backlog in matters.

    Costs to Self-represented Parties

    Costs that a successful self-represented party may be awarded in an action have been increased from $500 to $1,500.

    The self-represented party may be granted these additional costs from the court where the other party failed to accept an offer to settle that was as favourable to them as the final Judgment made by the Court.

    Brian Madigan LL.B., Broker

    www.OntarioRealEstateSource.com

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