The short answer
- Small Claims Court now handles disputes up to $50,000 — often faster and cheaper than Superior Court.
- Trial adjournments in Small Claims Court now generally require a court order — delay tactics are harder to use.
- Superior Court claims must be started where the dispute actually has a real connection, not wherever is most convenient for one side.
- The time and cost of litigation must be proportionate to what’s actually at stake.
- Partial settlements in multi-party lawsuits may need to be disclosed to the other parties on a short deadline.
Civil litigation in Ontario is changing
The courts are moving toward a system that is faster, more practical, and more proportionate. For business owners, that matters. These changes can affect where a claim is started, how quickly it moves, how much it costs, and how prepared you need to be from the start.
More claims can go to Small Claims Court
Small Claims Court can now hear claims up to $50,000.
That is a major change for businesses. Many unpaid invoices, contractor disputes, debt collection matters, and smaller contract claims can now be brought in Small Claims Court instead of the Superior Court.
This can mean a simpler, faster, and less expensive process. There are no formal examinations for discovery, only two mandatory hearings (a settlement conference and trial), and cost awards are generally more limited.
The appeal threshold has also increased. A party generally needs a judgment of at least $5,000 before appealing a Small Claims Court decision.
For a business owner, that means most Small Claims Court decisions are effectively final — get your evidence and strategy right from the start rather than counting on an appeal.
Delays are harder to get
The courts are also making it harder to drag out smaller disputes.
In Small Claims Court, parties can no longer simply agree between themselves to adjourn a trial. A trial adjournment generally requires a court order.
That matters because delay is often used as leverage. The new rules make it harder for a debtor or opposing party to keep postponing the case.
For businesses, the lesson is simple: be ready earlier. Don’t wait for a hearing date to start pulling your records together.
The court location must make sense
For Superior Court actions, parties now have less freedom to choose any courthouse they want.
A claim generally has to be started in a county with a real connection to the dispute — where the contract was signed, where the breach happened, where the defendant lives, or where the business operates.
This change is meant to reduce forum shopping. In plain English, a party should not be able to start a lawsuit in an inconvenient courthouse just to create pressure or gain a tactical advantage.
Litigation must be proportionate
Ontario’s civil rules now place more emphasis on proportionality: the time, cost, and complexity of a lawsuit should match the importance and value of the dispute.
A $40,000 invoice claim should not be litigated like a multi-million-dollar commercial fraud case. Judges have more room to push back against steps that are excessive, unnecessary, or mainly designed to increase financial pressure on the other side.
In practice, that can mean pushing back if the other side demands extensive document production or brings motions that cost more than the claim itself is worth.
Partial settlements need care
If a lawsuit involves multiple parties, and some parties settle while the case continues against others, the settlement may need to be disclosed. This can matter in construction disputes, professional negligence claims, shareholder disputes, and other multi-party commercial cases.
The rules require the key terms of certain partial settlements to be disclosed to the remaining parties within a short deadline. The settlement amount itself does not usually have to be disclosed — just that a settlement was reached.
Failing to handle this properly can lead to serious consequences, including costs, further discoveries, limits on evidence, adjournments, or even a stay of the proceeding.
What businesses should do now
The direction of the court system is clear: cases are expected to move faster, cost less, and be more organized from the start.
That is good news for businesses with strong records. It is risky for businesses that rely on verbal agreements, scattered emails, missing invoices, unclear payment histories, or poorly documented change orders.
Before starting or defending a claim, gather your key documents, including:
- Contracts and purchase orders
- Invoices and payment records
- Emails and other correspondence
- Delivery records and change orders
- Settlement communications
If your business has a claim, you need to know what documents support it. If your business is being sued, you need to understand your defence early.
The better organized you are at the beginning, the better positioned you will be. A quick review of your records now can save significant time and cost if a dispute arises. Contact Presvelos Law P.C. today to discuss your options.