Small Claims, Bigger Stakes

• 
  Michael McCluskey
  Lawyer

This article was originally featured in Guelph Today.

Now that Small Claims Court cases are capped at $50,000, working with a lawyer can help you navigate the process and avoid costly mistakes

Many people are surprised to learn that Small Claims, Bigger Stakes is more than just a phrase. It reflects the reality that the Ontario’s Small Claims Court limit has increased to $50,000, an amount that is far from small for most people.

Because Small Claims Court is designed to be more simplified, accessible, and straightforward, many individuals assume they can manage the process on their own. However, as Mike McCluskey, lawyer and litigator at McKenzie Lake Lawyers in Guelph points out, “When that level of money is on the line, the risks increase significantly. Consulting a lawyer at an early stage can be a wise decision because a lawyer can help avoid costly mistakes and ensure your claim or defence is presented clearly and effectively.”

Getting it Right from the Start

In Small Claims Court, pleadings are the backbone of your case. McCluskey says, “When you’re bringing a claim or defending a claim brought against you in Small Claims Court, in my opinion, the most important aspect of the process is the pleading, which is the claim or defense itself.”

This is where you tell your story, clearly set out your legal position, and explain why you should succeed or why a claim against you should fail. Pleadings also identify the key documents and evidence you intend to rely on. McCluskey adds, “While the process may seem simple, the pleadings stage is the most important. A lawyer can help frame your claim or defence so the facts, documents, and narrative are presented clearly and exactly as you intend.”

In Small Claims Court, the claim is the case itself. In a contract dispute, the contract is attached. If someone owes you money, invoices, emails, and letters are included as tabs. McCluskey says, “The claim is a foundational document that tells the full story, sets out your arguments, and shows proof all in one place and as such, a lawyer can provide a lot of value with assisting in putting that together.”

Quick Resolutions, Streamlined Process

The Small Claims Court process unfolds in three steps. It begins with the pleadings, where each party sets out their claim or defence and outlines the issues in dispute. Next comes the Settlement Conference, a non-binding proceeding before a judge designed for the parties to explore resolution. If no agreement is reached, the judge will permit the matter to move forward to trial with a different judge.

Raising the Small Claims limit to $50,000 helps ease congestion in Superior Court by allowing more disputes to be resolved in a faster, more efficient forum. McCluskey says, “Parties with claims over $50,000 can choose to reduce their claim to avoid Superior Court for a quicker resolution. If you had a claim for $55,000, with the additional legal fees and steps in Superior Court, it may make more sense to limit your claims to $50,000 and bring your claim to Small Claims Court. Consider consulting with a lawyer to get your game plan, narratives, and general strategy developed.”

Whether the dispute involves services, goods, or payment obligations, Small Claims Court is a practical forum for resolution. Residential landlord and tenant disputes are heard by the Landlord and Tenant Board.

Legal Advice Sets You Up for Success

It can make sense to bring in a lawyer early for the pleadings stage, as it’s the most important aspect of Small Claims Court claim. As McCluskey points out, “People should not assume that they must hire a lawyer to complete the entire process, all the way to trial. That might not be what someone who is bringing a claim or defending a claim in Small Claims Court wants to do.”

Getting legal help early ensures you understand the deadlines, filing rules, and service requirements that can derail a case if missed. The general limitation is two years from the day you discovered the loss. For example, if you returned from vacation to discover a flood in your basement because the hot water tank failed, the day you discovered the flood would mark day one of the limitation clock. McCluskey points out, “It’s very important to keep an eye on the limitation clock. If you continue trying to resolve the dispute on your own and go beyond the limitation, it makes the other side lose any incentive to settle.” In uncertain economic times, some parties may look for ways to delay payment or complicate matters, making strong preparation even more important. Legal guidance at the outset sets a strong foundation for the rest of the process. Because if it goes to trial, a lot of the heavy lifting has already been done.

When tens of thousands of dollars are on the line, involving very real financial consequences, peace of mind is invaluable. An experienced lawyer like Mike McCluskey can help put together a solid, well-supported claim that clearly tells your story and protects your rights.

Mike McCluskey stresses, “Don’t be intimidated by involving a lawyer. We are here to guide, support, and advocate for you. When money matters, Small Claims Court files are exactly the kind of cases where legal advice can make a meaningful difference.”

Conclusion

Contact Mike McCluskey at (519) 826-4333, email: Mike.Mccluskey@mckenzielake.com.