Small Claims Court is intended to be a simplified process to promptly resolve and dispose of disputes under $35,000.
On January 7, 2025, the Ontario Legislature introduced new regulations under the Courts of Justice Act, R.S.O. 1990, c. C.43, to amend the Rules of the Small Claims Court, O. Reg. 258/98 (the “Rules”) to better achieve this intention[1] These reforms will come into effect on June 1, 2025, and are designed to promote access to justice and make the court process more efficient and accessible for all parties.
Under the updated Rule 1.03, the Court, parties, and their representatives, must work together to achieve the primary objective of the Rules, which is to secure the “just, most expeditious and least expensive determination of every proceeding.” In plain language, this means that everyone involved in a case should strive to move it along quickly and fairly, without unnecessary delays or costs. Subrule 1.03(3) provides examples for promoting the primary objective, including but not limited to, allocating appropriate court resources to a proceeding.[2]
Additionally, hearing attendance methods have been modernized under Rule 1.07 of the Rules.[3] Small Claims Court steps (such as motions, settlement conferences, and now trial management conferences) can take place in person, by video conference, or by telephone conference in certain circumstances.The default mode of attendance for trials and contempt hearings is in-person, whereas the default mode of attendance for motions for assessment of damages is in-writing, and the default mode of attendance for most other steps (including most motions, settlement conferences, terms of payment hearings, garnishment hearings, and examinations of debtors) is virtual.[4]
If a party seeks to change the default mode of attendance assigned to its case, it is required to file a Form 1B (Request to Change Attendance Method) in accordance with subrule 1.07(4). The other parties can object to the request by filing a Form 1C (Objection to Request to Change Attendance Method) under subrule 1.07(5). The new process aims to make remote or alternative attendance simpler, while ensuring fairness for all sides.
Where a party seeks to amend its pleading, it must underline any new text, and attach or re-attach supporting documents,even if those documents were filed before, as required by subrules 12.01(1) and 12.01(1.1). This change removes any ambiguity about what has changed in a pleading, and ensures the court has the correct documents on file.
New Rule 14.07(3) increases potential compensation to self-represented litigants. Where a party is self-represented, and ,makes a reasonable offer to settle, but the other side rejects the offer, and the offering party is ultimately granted judgment that is as good as, or better than, the offer, it may be awarded up to $1,500 (tripled from the previous $500) for inconvenience and expense. Thie change acknowledges the significant time and effort self-represented individuals invest in their particular court action.[5]
One of the most notable additions to the Rules is the new Trial Management Conference, pursuant to Rule 16.1.01. Once an action is set down for trial, the Court may direct the parties to attend a conference to: (i) discuss readiness for trial; (ii) narrow or resolve issues; (iii) encourage settlement; and (iv) schedule the trial date, if the action is ready for trial. Trial Management Conferences are similar to settlement conferences, but a Trial Management Conference focuses on ensuring that the parties are fully prepared for an efficient trial. Attendance is mandatory unless the Court orders otherwise.[6]
If a party wishes to adjourn its trial date, it must obtain a Court order in accordance with Rule 17.02. Courts will be more actively involved in deciding whether and on what terms a trial can be adjourned. The Court may adjourn the trial on such terms that are just, which may include payment by one party to another to compensate for the inconvenience and expense of wasted trial preparation time. This change is intended to reduce unnecessary delays and encourage timely resolutions of proceedings.[7]
Several cost-related rules have also been amended. Notably, the term “costs” now expressly excludes disbursements in certain contexts, as reflected in Rule 15.07, and the maximum allowable costs in some situations have been adjusted under subrule 19.01(4).[8] If a party unnecessarily complicates the case, the court can impose penalties—even against a party’s representative—under Rule 19.06.[9]
These changes reflect Ontario’s ongoing efforts to make the Small Claims Court as efficient and accessible as possible for all participants. Staying informed is key—be sure to review the updated Rules, use the correct forms, and consider seeking legal advice if you have any doubts about how these amendments may affect your case.
[1] O. Reg 3/25, under the Courts of Justice Act, R.S.O. 1990, c. C.43.
[2] Rules of the Small Claims Court, O. Reg. 258/98, rule 1.03.
[3] Rules of the Small Claims Court, O. Reg. 258/98, rule 1.07.
[4] Ontario Superior Court of Justice, “Guidelines to Determine Hearing Method in the Small Claims Court,” online: Ontario Superior Court of Justice
[5] Rules of the Small Claims Court, O. Reg. 258/98, rule 14.07(3).
[6] Rules of the Small Claims Court, O. Reg. 258/98, rule 16.1.01.
[7] Rules of the Small Claims Court, O. Reg. 258/98, rule 17.02.
[8] Rules of the Small Claims Court, O. Reg. 258/98, rules 15.07 and 19.01(4).
[9] Rules of the Small Claims Court, O. Reg. 258/98, rule 19.06.
The author would like to thank Harinder Singh, Student-at-Law, for his assistance with this blog.