By Oluwaseun (Seun) Quadri, Barrister & Solicitor, Livingstone Law Professional Corporation · Last reviewed: October 2026
Quick answer
- Up to $50,000: Ontario Small Claims Court
- $50,000 to $200,000: Superior Court of Justice, Simplified Procedure (Rule 76)
- Over $200,000, or complex cases and court orders such as injunctions: Superior Court of Justice, ordinary procedure
- Deadline: most contract claims must be started within 2 years of when you discovered the claim
- If you’ve been sued: you usually have 20 days from service to file a defence
If a client hasn’t paid your invoice, a contractor took your deposit and disappeared, or a business partner walked away from a deal, Ontario law gives you ways to enforce your rights. Knowing you have a claim is the easy part. The harder questions are which court to use, how long you have, what it will cost, and whether you will actually get paid at the end.
This guide answers those questions for individuals and businesses across the Greater Toronto Area (Toronto, Mississauga, Brampton, Vaughan, Markham) and London, Ontario.
What Counts as a Breach of Contract in Ontario?
A breach of contract happens when one party fails to do what a legally binding agreement requires. Common examples include:
- A customer refuses to pay an invoice for completed work or delivered goods
- A contractor takes a deposit but does not finish (or start) the job
- A borrower fails to repay a personal or business loan
- A supplier fails to deliver goods as promised
- A party ends an agreement early without a valid reason
- A seller or buyer backs out of a transaction after signing
To succeed, you generally have to prove four things:
- A contract existed, whether written, oral, or shown by conduct
- Its terms (who had to do what, and when)
- The other party breached one of those terms
- You suffered a loss because of the breach
Not every disappointment is a breach. A court will look at what the contract actually says, not what either side hoped it meant. That is why reviewing the agreement and the evidence before you sue matters. The courts looks more at the substance rather than the form.
Do I need a written contract?
Not always. Ontario courts enforce oral agreements and contracts formed through emails, text messages, WhatsApp chats, invoices, and payment history. Some agreements, such as contracts for an interest in land and personal guarantees, generally must be in writing.
Without a signed document, the challenge is proving the terms. Keep every message, invoice, receipt, and bank record connected to the deal.
How Long Do I Have to Sue? (Ontario Limitation Periods)
This is the single most important deadline in a civil dispute.
Under Ontario’s Limitations Act, 2002, the basic limitation period is two years from the day you discovered (or reasonably should have discovered) the claim. For most unpaid-debt and breach-of-contract claims, the clock starts around the time payment was due or the breach became known.
Key points:
- Miss the deadline and your claim is likely gone for good, no matter how strong it is.
- There is also an ultimate limitation period of 15 years from the act or omission.
- Sending demand letters or negotiating does not automatically pause the clock.
- Some business contracts can vary limitation periods, so check your agreement.
If your dispute is approaching the two-year mark, get legal advice immediately.
Which Ontario Court Should You Use?
Ontario civil claims follow one of three routes. The amount you claim is the starting point, but it isn’t the only factor.
| Small Claims Court | Simplified Procedure (Rule 76) | Ordinary Procedure | |
| Claim amount | Up to $50,000 | Up to $200,000 | Over $200,000, or non-monetary relief |
| Court | Small Claims Court (a branch of the Superior Court) | Superior Court of Justice | Superior Court of Justice |
| Oral discovery | None | Limited to 3 hours per party | Full discovery |
| Trial length | Usually short | Generally 5 days or less | Can be weeks |
| Costs you can recover (or owe) | Generally capped at 15% of the amount claimed | Capped at $50,000 costs + $25,000 disbursements | Not capped; can be significant |
| Best for | Unpaid invoices, loans, deposits, straightforward disputes | Mid-sized commercial and contract claims | High-value, complex or multi-party disputes, injunctions |
1. Ontario Small Claims Court: Claims up to $50,000
As of October 1, 2025, the Small Claims Court limit increased from $35,000 to $50,000. This means many more disputes can now be resolved in a faster, less expensive court.
Small Claims Court is a good fit for:
- Unpaid invoices and accounts receivable
- Unpaid personal or business loans
- Construction and renovation disputes
- Deposits that weren’t returned
- Property damage
- Consumer and service disputes
Example: A Brampton contractor completes $25,000 of renovation work, but the homeowner pays only $10,000. The contractor can sue in Small Claims Court for the $15,000 balance plus interest.
How it works: You file a Plaintiff’s Claim (often online), serve the defendant, and the defendant has 20 days to file a Defence. Most cases then go to a mandatory settlement conference before a judge, where many disputes resolve. Cases that don’t settle go to trial.
Why the 15% costs cap matters: If you lose, your exposure to the other side’s legal costs is generally limited. If you win, you usually can’t recover all your legal fees. Factor that into your budget.
Do I need a lawyer for Small Claims Court? No, but the court still expects you to prove your case with evidence. Many people represent themselves with a lawyer’s help on specific steps (see Limited-Scope Help below).
2. Simplified Procedure: Claims up to $200,000
If your claim is over $50,000 but $200,000 or less (excluding interest and costs) and is only for money or property, it will generally proceed under Simplified Procedure in the Superior Court of Justice.
Simplified Procedure is designed to keep mid-sized cases proportionate:
- Oral examinations for discovery are limited to 3 hours per party
- Trials are generally 5 days or less, without a jury
- Recoverable costs are capped at $50,000, plus $25,000 in disbursements
Example: A Mississauga distributor is owed $140,000 by a retailer for goods delivered over six months. The claim would generally proceed under Simplified Procedure.
3. Ordinary Procedure: Larger or Complex Claims
Claims over $200,000, or claims asking the court to order someone to do something (such as an injunction or specific performance), go through ordinary procedure in the Superior Court. These cases involve full documentary production, examinations for discovery, motions, and often mediation. In Toronto, Ottawa and Windsor, mandatory mediation applies to many civil actions.
Because ordinary litigation can be expensive and lengthy, strategy and cost analysis at the start are essential.
Size isn’t everything. A $40,000 unpaid invoice with clear paperwork is very different from a $40,000 dispute involving several contracts, multiple parties and conflicting evidence. The right route depends on the facts, not just the number.
Cases are won based on evidence. It is essential to know that cases are won mainly based on evidence so its best to start putting all your evidence together in order to build a strong case.
What Can You Recover in a Civil Claim?
Depending on your case, a court may award:
- Damages: money to put you in the position you would have been in had the contract been performed
- The debt owed: unpaid invoices, loan balances or contract payments
- Interest: at the contract rate if one was agreed, or prejudgment and postjudgment interest under Ontario’s Courts of Justice Act
- Return of property: in appropriate cases
- Specific performance: an order requiring the other party to carry out the contract (usually only where money isn’t an adequate remedy, such as unique property)
- Injunction: an order requiring someone to do, or stop doing, something
- Costs: a contribution toward your legal fees from the losing party, subject to the limits above
Evidence: What You Need to Prove Your Claim
Courts decide cases on evidence, not on who is “obviously” right. Start gathering:
- Signed contracts, quotes, estimates and purchase orders
- Emails, text messages and WhatsApp conversations
- Invoices, receipts, and statements of account
- Bank records and e-transfer confirmations
- Photos and videos (for example, of incomplete or defective work)
- Delivery records and signed acknowledgements
- Names of witnesses
- Expert reports, where quality of work or valuation is disputed
Tip: Export and back up your message history now. Phones get lost and accounts get closed.
What If the Other Side Fights Back?
Expect the defendant to dispute your claim. Common defences include:
- There was no contract, or it meant something different
- They did perform their obligations
- You breached the contract first
- The amount claimed is wrong or inflated
- You failed to reduce (mitigate) your losses
- The claim is out of time (limitation period)
- You sued the wrong person or company
They may also file a counterclaim against you. At that point, a simple collection matter can become a two-sided lawsuit, and that is often when legal advice pays for itself.
Step-by-Step: How a Civil Lawsuit Works in Ontario
- Assess the claim: review the contract, evidence, limitation period and the defendant’s ability to pay
- Send a demand letter: a firm, well-drafted demand from a lawyer often resolves matters without a lawsuit
- Issue the claim: file a Plaintiff’s Claim (Small Claims) or Statement of Claim (Superior Court)
- Serve the defendant: proper service is required before the case can proceed
- Defence: generally due 20 days after service in Ontario. If no defence is filed, you may be able to obtain default judgment
- Disclosure: exchange relevant documents
- Discovery or settlement conference: test the evidence and explore settlement
- Mediation: mandatory in some cases and regions, and often useful in any case
- Trial: if the dispute doesn’t settle
- Judgment and enforcement: collect what you’re owed
Winning Isn’t the Same as Getting Paid: Enforcing a Judgment
A judgment confirms the debt. If the debtor still doesn’t pay, Ontario law provides enforcement tools, including:
- Garnishment: taking a portion of the debtor’s wages or money in their bank account
- Writ of seizure and sale: filed against the debtor’s land or personal property, which can block a sale or refinancing and lead to a sheriff’s sale
- Examination of the debtor: a court-ordered hearing where the debtor must answer questions under oath about their income, assets and debts
Before you sue, ask: Does this person or business have income or assets I can realistically collect from? A judgment against someone with nothing to collect may not be worth the cost.
When the Other Party Is Outside Ontario or Canada
Disputes increasingly involve parties in other provinces or countries, for example a supplier, buyer or business partner based in South Africa, the U.S. or the U.K. These cases raise extra questions:
- Can an Ontario court hear the case?
- How do you serve someone outside Ontario? (Defence deadlines are longer for defendants served outside Ontario.)
- Will an Ontario judgment be recognized and enforced where the defendant’s assets are?
- Dose the person have assets within the Jurisdiction of the Court in Ontario I can enforce my judgment against?
Have You Been Sued? Don’t Ignore It.
If you’ve been served with a Plaintiff’s Claim, Statement of Claim, or motion materials:
- Note the date you were served. Your defence is generally due within 20 days if served in Ontario.
- If you do nothing, the plaintiff may obtain default judgment against you, and then enforce it against your wages, bank accounts or property.
- You may have defences, or a counterclaim of your own.
Get legal advice as soon as possible.
Should You Settle Instead of Suing?
Often, yes. Litigation is a business decision as well as a legal one. Before starting, weigh:
- Legal fees and court fees
- Your time and the stress involved
- The strength of your evidence
- The amount you can realistically recover
- The defendant’s ability to pay
- Your exposure to the other side’s costs if you lose
- Commercial relationships you may want to preserve
A $10,000 claim may not be worth $20,000 in legal fees. Then again, a small claim can be worth pursuing on principle or to set a precedent with other customers. A lawyer can help you run the numbers honestly.
Limited-Scope Help: You Don’t Have to Hire a Lawyer for Everything
Many people avoid lawyers because they assume it means paying for full representation from start to finish. It doesn’t have to.
With unbundled (limited-scope) legal services, you can hire a lawyer for just the parts you need:
- Reviewing your contract and assessing your claim
- Drafting a demand letter
- Drafting or reviewing your Plaintiff’s Claim or Defence
- Preparing you for a settlement conference or trial
- Advising on a settlement offer
- Representing you at a single hearing or motion
- Advising on how to enforce a judgment
This gives you professional guidance at key moments while keeping costs under control. It’s a particularly good fit for Small Claims Court or matters above $50,000 and below $200,000.
Frequently Asked Questions
How much can I sue for in Ontario Small Claims Court?
Up to $50,000, excluding interest and costs. The limit increased from $35,000 on October 1, 2025.
What is the limit for Simplified Procedure in Ontario?
Claims for money or property of $200,000 or less (excluding interest and costs) generally proceed under Simplified Procedure in the Superior Court of Justice.
How long do I have to sue for breach of contract in Ontario?
Generally two years from when you discovered, or ought to have discovered, the claim, under the Limitations Act, 2002.
Can I sue someone in Ontario without a written contract?
Yes. Oral contracts and agreements formed through emails, texts and conduct can be enforced, but you will need evidence of the terms. Some agreements, such as land contracts and guarantees, generally must be in writing.
Can I recover my legal fees if I win?
Partly. Courts usually award a portion of your costs. In Small Claims Court, costs are generally capped at 15% of the amount claimed, and under Simplified Procedure at $50,000 plus $25,000 in disbursements.
What happens if the defendant doesn’t pay after I win?
You can use enforcement tools such as garnishment of wages or bank accounts, a writ of seizure and sale against property, and an examination of the debtor about their assets.
How long do I have to respond if I’ve been sued in Ontario?
Generally 20 days from service if you were served in Ontario. If you miss the deadline, default judgment may be entered against you.
Do I need a lawyer for Small Claims Court?
No, but legal advice can significantly improve your chances, especially on evidence, damages and settlement. Limited-scope help is available.
Can I sue someone who lives outside Canada?
Often, yes, but service, jurisdiction and enforcement abroad require careful planning. Get advice before you start.
What’s Changing in Ontario Civil Litigation (2026 Update)
Ontario’s Civil Rules Review has recommended a major overhaul of civil procedure, including a proposed three-track system with stronger pre-litigation requirements. The province has said these reforms will be introduced in stages, beginning with targeted amendments in 2026. The broader restructuring is not yet in force. We will update this guide as changes take effect.
Speak With an Ontario Civil Litigation Lawyer
If someone owes you money, has breached a contract, or has sued you, the right first step is understanding your rights, your deadline, and the most cost-effective route for your situation.
Livingstone Law helps individuals and businesses across Toronto, the GTA and London, Ontario with:
- Breach of contract claims and defences
- Unpaid invoices and debt recovery
- Small Claims Court matters
- Simplified Procedure and Superior Court litigation
- Demand letters and settlement negotiations
- Judgment enforcement
- Cross-border commercial disputes
Book your free 30-minute consultation → 📞 · +1-226-559-3887✉️ livingstonelawca@gmail.com · www.livingstonelaw.ca
Livingstone Law Professional Corporation Clarity in Counsel, Excellence in Advocacy
This article provides general information about Ontario law and is not legal advice. Every situation is different; please consult a lawyer about your specific circumstances. Information is current as of October 2026.