If you’ve ever lent money and not been paid back, had a contract dispute, or dealt with property damage, chances are you’ve heard of Ontario’s Small Claims Court. It’s the place people go to resolve everyday legal problems without the high cost and long delays of higher courts.
Now, this court is about to undergo major reforms in 2025. These changes are designed to make the system faster, easier to access, and fairer for everyone. Whether you’re an individual fighting for your rights, a small business protecting its interests, or a legal professional guiding clients, knowing what’s ahead will be essential.
This new reform for Ontario’s justice system could transform how ordinary people handle legal disputes.
What Is Ontario Small Claims Court and What Cases Does It Handle?
Small Claims Court falls under the Ontario Superior Court of Justice, which handles civil disputes involving relatively small sums of money. The cases typically include matters such as unpaid invoices, loan defaults, breach of contract, construction disputes, and even personal injury claims.
Generally, these cases have simpler procedures and are more affordable for individuals to pursue without requiring expensive legal representation.
Ontario Small Claims Court Reforms – Effective October 2025
The Ontario government has announced several reforms to the Small Claims Court that will take effect in October 2025 and they are:
1. New Ontario Small Claims Court Limit Raised to $50,000
One of the most important changes is the monetary jurisdiction increase, which raises the $35,000 to $50,000 cap. This means that claims involving up to $50,000 can now be filed in Small Claims Court, allowing individuals and businesses to resolve a wider range of cases without the need to go through the more complex and expensive Superior Court system.
This change is an important development because it allows people to handle larger claims in a court designed for faster, more affordable resolutions.
2. Higher Appeal Threshold for Ontario Small Claims Court Cases
Ontario has raised the appeal threshold in Small Claims Court from $3,500 to $5,000. This means that if you disagree with a court decision, you can only appeal if the dispute involves $5,000 or more.
Small Claims Court in Ontario generally handles disputes up to $35,000 (as of 2020, increased from $25,000). If the amount in question is less than $5,000, the court’s ruling will be final, and no appeal will be allowed.
The main goal of this change is to reduce delays and costs caused by appeals on small disputes. At the same time, it ensures that people still have the right to appeal in cases involving more significant sums of money. This change balances access to justice with the need to keep the courts running smoothly.
3. New Ontario Small Claims Court Rules and Regulation Changes
Several new regulations will also come into play as part of the reforms. These include amendments to O. Reg. 258/98, along with new regulations such as O. Reg. 3/25 and O. Reg. 42/25.
These changes will affect everything from how cases are handled to how certain claims are processed. For example, the new regulations will help clarify the rules surrounding trial management conferences, setting the stage for clearer guidelines on how cases proceed.
4. Trial Management Conferences in Ontario Small Claims Court
A trial management conference is a meeting that takes place before a trial in Ontario’s Small Claims Court. During this meeting, the people involved in the case meet with a judge or court staff member to talk about the issues in dispute.
The main goals of the conference are:
- To simplify the court process for everyone.
- To reduce delays so cases move forward more quickly.
- To solve problems early, sometimes avoiding the need for a trial altogether.
At the conference, the judge may:
- Encourage the parties to reach a settlement instead of going to trial.
- Review and organize the procedures needed if the case does move ahead.
- Narrow down the issues, so the trial is shorter and more focused.
This step is especially helpful for disputes that can be resolved through mediation or negotiation, saving both time and money. It ensures trials are only held for issues that truly require a judge’s decision.
5. Ontario Small Claims Court Hearing Options – In Person, Video, or Phone
Ontario’s Small Claims Court now offers more ways to attend hearings. People can appear in person, by video conference, or by telephone. This flexibility is part of the court system’s ongoing digital modernization.
The goal is to make the process easier and more accessible. For example, people who live far from the courthouse, have mobility issues, or face scheduling difficulties can now participate without having to travel. This change aligns with broader trends in the justice system, where many courts across Canada and globally are adopting virtual hearing options.
6. Increased Cost Recovery for Self-Represented Litigants
Many people represent themselves in Small Claims Court because the process is meant to be simpler and less formal than higher courts. However, even without a lawyer, preparing for court can still cost time and money.
Previously, self-represented litigants could recover only up to $500 in costs. With the new reforms, that amount has been increased to $1,500. This means individuals who choose to represent themselves can now claim more of the expenses related to court preparation, such as printing, filing, or lost wages for attending hearings.
This change not only reduces the financial burden but also encourages fairness. It helps ensure that people without legal representation are not at a major disadvantage compared to those who can afford lawyers.
7. Limitation Periods and Amending Claims in Ontario Small Claims Court
The reforms will also address limitation periods and amending claims. Limitation periods are the maximum time you have to file a lawsuit. In Small Claims Court, the limitation period for most cases is generally two years from the date the claim arises.
The new regulations aim to clarify how these periods apply, ensuring that claims are filed in a timely manner.
Also, these changes will make it easier to change claims, allowing litigants to adjust their claims in response to new information or evidence without having to start over from scratch.
8. Types of Cases Allowed in Ontario Small Claims Court
Under the new reforms, you can file various types of claims in Small Claims Court. These include:
- Unpaid invoices: If someone owes you money for goods or services you’ve provided.
- Loan defaults: If a borrower fails to repay a loan.
- Breach of contract: If one party fails to fulfill their obligations under a contract.
- Construction disputes: If there are disagreements between contractors, subcontractors, and homeowners.
- Personal injury: If you’re seeking compensation for injuries caused by someone else’s negligence.
These are just some examples of the types of claims you can file under the new $50,000 limit.
9. Ontario Small Claims Court vs. Superior Court: Cost and Time Differences
One of the biggest advantages of using Small Claims Court instead of the Superior Court is the difference in time and money.
- Superior Court cases often take years to finish and usually involve high legal fees because of their complexity.
- Small Claims Court cases are designed to be faster and more affordable, with simpler rules and fewer procedural steps.
With the recent reforms that raised the monetary limits of Small Claims Court, more people can now resolve disputes here rather than going to Superior Court. This means quicker outcomes and lower costs for many everyday disputes, such as unpaid bills, property damage, or contract disagreements.
10. How Ontario Small Claims Court Changes Affect the Landlord and Tenant Board (LTB)
The Landlord and Tenant Board (LTB) handles disputes between landlords and tenants, such as issues about rent, eviction, or maintenance.
As Small Claims Court expands its jurisdiction, the LTB will also see adjustments in its limits. This ensures better alignment between the two systems. For example, if a dispute begins with the LTB but also involves financial claims, it will be easier to move or connect those matters with the Small Claims Court.
This change creates a more seamless process for landlords and tenants, reducing confusion about where to file a claim and helping both sides resolve issues more efficiently.
Filing a Claim Under Ontario’s New $50,000 Small Claims Court Limit
Ontario has increased the maximum claim amount in Small Claims Court to $50,000. This change allows more people to bring a wider range of disputes to Small Claims Court, rather than being forced into the more complex and costly Superior Court.
Common types of disputes that can now fall under this limit include:
- Contract disagreements (for example, unpaid invoices or service disputes)
- Unpaid debts or loans
- Property damage claims
- Certain landlord-tenant financial disputes connected to rental agreements
Before you file, confirm that your case qualifies for Small Claims Court. Two key regulations set the rules:
- O. Reg. 626/00: outlines the procedures for Small Claims Court
- O. Reg. 42/25: details the types of claims and updated limits
Reviewing these regulations helps ensure your claim is valid and properly prepared. Filing a claim outside of jurisdiction could result in delays or dismissal.
How to Prepare for Ontario Small Claims Court Changes in 2025
With these reforms taking effect in 2025, it’s important for both the public and legal professionals to stay updated.
Key steps to prepare:
- Learn the new rules: Understand the increased $50,000 limit, cost recovery changes, and digital hearing options (in-person, video, or phone).
- Use digital tools: Courts are expanding online filing systems and remote hearing access, which can save time and travel costs.
- Plan your case carefully: Gather evidence, documents, and witnesses early, since Small Claims Court still follows strict timelines.
- Consider professional advice: While you don’t need a lawyer, speaking with a paralegal or duty counsel may improve your chances of success.
The overall goal of these reforms is to make Small Claims Court more efficient, affordable, and accessible, so people can resolve disputes fairly without the heavy burden of Superior Court procedures.
Conclusion
Starting in October 2025, Ontario’s Small Claims Court will undergo important reforms aimed at making the system easier to use and fairer for everyone. With the claim limit raised to $50,000, more disputes can be handled in this simpler, less costly court instead of moving up to Superior Court.
The changes also give people more ways to attend hearings, in person, by video, or over the phone, and increase the amount that self-represented litigants can recover for their expenses. Together, these updates reduce barriers and help level the playing field for those without legal representation.
By aligning more closely with the Landlord and Tenant Board and introducing more digital tools, the court process will be faster, more flexible, and better suited to the needs of Ontarians today. Whether you’re filing a claim or responding to one, these reforms are designed to make the experience more straightforward, affordable, and accessible.
Quick FAQs
The Ontario Small Claims Court limit will increase to $50,000 starting October 2025, allowing individuals to file claims for higher amounts within Small Claims Court.
The appeal threshold will increase from $3,500 to $5,000, meaning you can only appeal Small Claims Court decisions if your case is worth more than $5,000.
Under the new $50,000 limit, you can file claims for disputes like unpaid invoices, loan defaults, breach of contract, construction issues, and personal injury claims.
You don’t have to wait, but if your claim is between $35,000 and $50,000, it may be better to wait until October 2025 to take advantage of the new limit.
On June 1, 2025, important rule changes include trial management conferences, higher compensation for self-represented parties (up to $1,500), and new digital court services to make filing and attending hearings easier.
The reforms will raise the limits for the Landlord and Tenant Board, making it easier for landlords and tenants to handle disputes within the Small Claims Court system instead of other courts.
You can represent yourself in Small Claims Court, but if your case is complicated, it may be helpful to consult with a lawyer to make sure you understand the process and protect your rights.
Disclaimer: The information provided in this blog is for general informational purposes only. It is not legal advice and should not be relied on as such.
