Available Remedies: Within Small Claims Court Cases

Question: What is meant by the limited jurisdiction of the Small Claims Court in Ontario?

Answer: The Ontario Small Claims Court is restricted to handling cases involving monetary compensation or the return of property, with a maximum claim limit of $35,000 as outlined by the Courts of Justice Act, R.S.O. 1990, c. C-43 and Small Claims Court Jurisdiction, O. Reg. 626/00. It cannot order injunctions or provide declarative relief. For legal help navigating Small Claims Court, Pollock Paralegal offers a free consultation.

What Is Meant By Limited Jurisdiction of the Small Claims Court?

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.

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

The Small Claims Court is limited powers division of the Superior Court of Justice rather than a separate and independent forum, within which judges are restricted to granting only certain forms of remedy; and accordingly, parties in Small Claims Court proceedings must seek only the remedies that fall within the jurisdiction of judges sitting in the Small Claims Court.

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 shown, the Small Claims Court is empowered only to grant a monetary award up to $35,000.00 as well as to order the return of property valued up to $35,000; and accordingly, the Small Claims Court is unable to provide remedies known as injunctive relief, meaning a directive that someone do something or that someone stop doing something, or declarative relief, meaning an opinion on a legal rights question.  For cases proceeding within the Small Claims Court, the issues must strictly be kept to compensatory relief issues involving the payment of money or the return of property.

Whereas the Small Claims Court is restricted to the powers as shown above, only remedies that fall within those powers may be sought.  Remedies that may be sought from the Small Claims Court include, among possible others:

• Claims seeking an award of actual damages, which may also be referred to as special damages, being a form of monetary compensation that relates to losses that are precisely calculable such as debt amounts or costs of repairs, among other things;
• Claims for general damages, which may also be referred to as non-pecuniary damages, being a form of monetary compensation that is incapable of a precise calculation such as awards for pain due to a physical injury or emotional suffering due to stress or disappointment;
• Claims for punitive damages, which may also be referred to as exemplary damages, being a form of financial punishment that is awarded to show disdain for malicious and egregious misconduct and to deter similar misconduct in the future or by others ;
• Claims for rescission which involves a figurative reset that puts the parties in dispute back into the same position, financially, as existed previously to the dealings between the disputing parties and where a reset involves only the payment of money or return of property or both; and
• Claims for disgorgement which involve ill-gotten gains such as illegally obtained benefits or profits being stripped from an illegally acting party and instead being paid to the victim of the illegally acting party.

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.