On July 1, there will be new rules for the small claims court. The rules govern the procedure that must be followed throughout a court action by both the plaintiff and the defendant. Some of the rules remain the same but there are many changes.
You will now be able to obtain the forms from a government website at www.ontariocourtforms.on.ca. The forms will no longer be on legal size paper. The statement of claim issued from the court will now have a special seal on it. This innovation will be in place because some people have sent out “mock” statements of claim as a collection mechanism for money owing.
A party may now provide the court with a self-addressed, stamped envelope and receive copies of certain decisions and certain activities on the file if not attending court. Commercial couriers may be used to deliver (“serve”) documents. A pre-trial conference is now called a settlement conference and may be conducted by telephone or video. If the defendant has a claim against the plaintiff, the defendant’s claim must now be filed within twenty days after filing the statement of defence. Previously, a self-represented party, an agent, or lawyer representing a party at trial could only receive a maximum of $300 for the trial. The new rules have raised the amount to $500 for self-representation and permit the court to award a party a reasonable representation fee at trial if represented. The representation fee is an important new factor to consider when going to trial. Winning or losing at trial may now have serious monetary consequences beyond the amount of money at stake.
There is a significant change in regard to judgment debtor examinations. These examinations take place after judgment and allow the creditor to ask questions about the debtor’s financial situation. If the debtor does not attend the examination, the Small Claims Court judge may order the debtor to appear before a Superior Court Judge for a contempt of court hearing. As in any contempt hearing, incarceration is an option.
Other changes may take place. The government recently appointed a law professor to review the Small Claims Court. Part of this mandate is to make recommendations about the structure of the court and the monetary jurisdiction of the court. Two of the provinces already have a ceiling of $25,000. Other provinces are considering an increase to $30,000. Ontario is presently at $10,000.