It is not easy to give a clear definition of civil litigation in one sentence. Civil litigation is a lawsuit that does not involve family law or criminal law. It involves virtually every other aspect of the law. Thus, for example, civil litigation involves the areas of negligence, insurance, banking, product liability, construction, collections, partnerships, estates, leases, real estate, land disputes, injunctions, wrongful dismissal, and fraud.
As of January 1, 2010, there is a dramatic change to civil litigation. The monetary jurisdiction of the Small Claims Court will increase from $10,000 to $25,000. This change is fuelled by the need for citizens to have affordable access to justice and because of the present high cost of civil litigation. In the higher court, the Superior Court of Justice, the cost of a civil lawsuit varies from case to case depending on its complexity. But an average lawsuit could cost between $40,000 and $50,000 to the end of pre-trial for lawyer’s fees, out of pocket expenses, and taxes.
With the new $25,000 limit in the Small Claims Court, many cases will now be brought to court more quickly with less cost to the parties because the Small Claims Court has a straightforward procedure to get to the trial door. There is also a companion change in the Superior Court for cases using the “simplified procedure” rules in that court. These rules are a scaled down version of the complicated Superior Court rules used in lawsuits. They will now apply for all lawsuits involving money between $25,000 and $100,000.
The policy behind the simplified rules is to reduce the legal cost of suing or defending for smaller claims by reducing the amount of procedure required in such cases. Less procedure means less expense to the parties. For example, there are no examinations for discovery prior to trial (oral evidence disclosure) under the simplified procedure.
There will be other changes on January 1, 2010. Those cases in the Superior Court that are entitled to examinations for discovery will be limited to one day of examinations. Civil litigation will also be subject to the principle of proportionality. This means that the time and expense involved in a lawsuit must reflect what is at stake.
So in 2010, if your claim is just over $25,000, you should abandon the extra amount so that you can sue in the Small Claims Court or, similarly, if it is just over $100,000, you should abandon the extra amount so that you can sue under the simplified rules in the Superior Court.