Available Remedies:

Question:What powers does the Small Claims Court have to order remedies in Ontario?

Answer:In Ontario, the Small Claims Court can grant compensatory relief, including monetary awards for payment of money and orders to recover possession of personal property, but it generally cannot grant injunctions (orders to stop or do specific conduct) or declaratory relief (statements about legal rights). The court’s authority is limited by the Courts of Justice Act, R.S.O. 1990, c. C-43 and the Small Claims Court Jurisdiction, O. Reg. 626/00, including the $35,000 maximum claim limit, so parties should structure their claim around allowable remedies like actual damages, general damages, punitive damages, rescission, or disgorgement where appropriate. If you are planning a Small Claims case and need help matching your facts to the right remedies, SFG Paralegal Services LLP can assist you across Ontario, call (888) 398-0121.

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What Power Does the Small Claims Court Hold?

The Small Claims Court Is Unable to Grant Requests For An Injunction or Requests For Declarations. The Small Claims Court Is Empowered Only to Grant Various Forms of Compensatory Relief.

Note: Please contact SFG Paralegal Services LLP by phone at: (888) 398-0121 to discuss any specific questions that you may have.

Understanding the Powers of the Small Claims Court Involving the Restriction to Handling Compensatory Relief Matters

Although the Small Claims Court is a division within the Superior Court of Justice, the Small Claims Court is a forum within which the judges, and usually deputy judges, are prescribed with limited powers; and accordingly, parties to Small Claims Court proceedings must restrict the remedies sought from the court to only those remedies falling within the Small Claims Court jurisdiction.

The Law

The limited jurisdiction of the Small Claims Court imposes restrictions upon the remedies that are available. Specifically, the Courts of Justice Act, R.S.O. 1990, c. C-43, as well as the Small Claims Court Jurisdiction, O.Reg. 626/00, regulation, limit the powers of a judge in the Small Claims Court whereas the statute and the regulation respective state:

As such, the Small Claims Court is permitted to grant monetary awards to a maximum of $35,000.00 as well as permitted to order the return of property that is valued at a maximum of $35,000; and thus the Small Claims Court is without the authority to grant injunctive relief such as a directive that a person perform specific conduct or cease specific conduct as well as without the authority to grant declarative relief such as an opinion regarding a legal rights issue.

Whereas the Small Claims Court is limited the powers above, only certain remedies may be claimed.  The remedies that may be claimed include, among possible others:

• Claims for actual damages, also known as special damages, being monetary compensation for precisely accountable losses suffered;
• Claims for general damages, sometimes referred to as non-pecuniary damages, being monetary compensation that is imprecise and incapable of exact calculation such as awards for pain and suffering;
• Claims for punitive damages, also known as exemplary damages, as a form of punishment intended by the court to show disdain for malicious and egregious conduct;
• Claims for rescission which involves putting parties back into the same financial position that existed prior to dealings between the parties where such includes ordering the return of property or the return of money or both; and
• Claims for disgorgement which involve the stripping of ill-gotten gains such as benefits or profits from a wrongdoer and payment of such ill-gotten gains to the victim of the wrongdoing.

Conclusion

The Small Claims Court holds limited powers to grant remedies that may be sought.  The Small Claims Court is empowered to provide for the payment of money or to direct the return of property.  The Small Claims Court is also limited in monetary jurisdiction, being matters where the payment of money, or the return of property, relates to sums or values of $35,000 or less per party.