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See our explanation of the stages involved in Small Claims Court litigation by clicking here.

While some legal costs can be recovered in Small Claims Court, the amounts awarded to successful parties are significantly limited by the Rules of the Small Claims Court and the Courts of Justice Act. This is why it is important that you seek legal representation that is experienced with Small Claims Court litigation, and offers fees that are proportional to the nature of these claims.

In cases where the parties reach a settlement out of court, your lawyer may agree as part of the settlement with the other party(ies) to include some amount in the agreement to cover for the legal expenses of the litigation.

In matters that proceed to trial, Rule 19 of the Rules of the Small Claims Court (in conjunction with section 29 of the Courts of Justice Act) provides that a successful party may recover expenses associated with legal representation fees (i.e. your lawyers' fees) for up to 15% of the amount being claimed in the action. That means that if the action seeks an award of $20,000 dollars, the successful party may be awarded up to $3,000 in lawyers' fees. A successful self-represented party will not be awarded more than $500 for the inconvenience and expense associated with the action.

Parties may be able to recover amounts in excess of this 15% rule for their lawyers' fees in cases where a successful party made an offer to settle, that was not accepted by the opposing side, and the party obtains a judgment that is as favourable, or less favourable than the offer. This is provided in Rule 14.07 of the Rules of the Small Claims Court. The cost consequences associated with this failure to accept an offer cannot amount to more than twice the costs that would be awarded to the successful party.

Disbursements (other costs associated with the litigation) are recoverable in addition to the lawyers' fees, though there are also some limitations provided in Rule 19 of the Rules of the Small Claims Court. For example, a party will not normally be awarded more than $60 for the costs to effecting service. The amounts of disbursements associated with preparing a Plaintiff's Claim or Defendant's Claim shall not exceed $100. Examples of other costs that may be recovered in addition to your lawyers' fees are expert fees, copying costs, and reasonable expenses for travel and accomodation.

Rule 19.06 of the Rules of the Small Claims Court also provides that a penalty may be awarded against a party which has unreasonably complicated or prolonged the action, though this type of award is rare.

Since all these rules are complex, you should be represented by someone familiar with them in order to maximize the costs that may be awarded to you if you are successful in the litigation. A competent representative will also help minimize the costs awarded against you, if you do not succeed in your claim.

In short, yes. Rule 13.02 of the Rules of the Small Claims Court provides that each party to the litigation and their lawyer or agent shall attend the settlement conference, unless the court orders otherwise. Special accommodations can sometimes be made for a party to attend via telephone or video conference.

Settlement conferences are intended to help parties narrow the issues involved in their dispute, encourage settlement of the action, provide for disclosure of relevant facts and evidence, and assist the parties in preparation for their trial.

Settlement conferences are to take place in every defended action within 90 days after the first Defence is filed.

These conferences are very informal and normally involve the parties, their lawyers or agents, and a Deputy Judge (who will not be gowned). They normally last between 30 minutes to an hour.

The manner in which settlement conferences are conducted will largely depend on the Deputy Judge. Some Deputy Judges will hear the parties in order and then offer their own thoughts, while others proceed to ask specific questions to the parties or their lawyers right from the beginning.

Having a competent representative beside you at the settlement conference will ensure that you make the most if it, and in many cases, facilitate the prompt resolution of your matter without the need to go to trial.

Small Claims Court trials usually last between a couple of hours to a full day. Sometimes they may last longer than a day. All of this will largely depend on the issues involved in the action, the number of parties involved and the number of witnesses that will be called by the parties.

You can bring motions in small claims matters, either at trial, during the settlement conference or at other stages of the litigation. Nonetheless, motions do not play such a significant role in small claims litigation and their scope is more limited than in regular litigation. The reasoning behind this, is that small claims litigation is shorter and the system is designed to move to trial relatively quickly with a minimum of pretrial proceedings.

It is advisable to have a competent representative determine whether a pre-trial motion is necessary in your case, as well as prepare any motion materials that need to be filed with the court prior to the motion.

If you have been reading the rest of these frequently asked questions, you would have realized by now that there is a body of rules found in the Rules of the Small Claims Court. This is why it is important to follow the advice of competent counsel that is overly familiar with Small Claims Court actions and the rules that regulate them.

To access the Rules of the Small Claims Court click here.

An example of a remedy that is not as readily available by motion in Small Claims Court, as it is in general litigation, is summary judgment.

Rule 12.02 of the Small Claims Court Rules allow for a motion to strike out or amend a pleading (e.g. a Plaintiff's Claim or Defence) that does not disclose a reasonable cause of action, may delay or make it difficult to have a fair trial, or is inflammatory or a waste of the court's time. The legal threshold for this remedy is high, however, and is more akin to a Rule 21 motion under the Rules of Civil Procedure in regular litigation, and not what is available under Rule 20 of those Rules.