Small Claims, Big Changes – What You Need to Know in 2025

By: Kristin Ley and Megan Alexander

The Ontario Small Claims Court is a simplified branch of the Superior Court of Justice for resolving civil disputes up to $35,000, as of the date of this bulletin. It offers streamlined procedures and reduced formalities to make the process faster and more cost-effective. This makes it an efficient option for individuals and businesses seeking timely resolution of common legal issues, mainly pertaining to contracts or torts (ex. negligence, defamation, nuisance, etc.). The Small Claims Court also handles enforcement of Landlord and Tenant Board (“LTB”) orders, including remedies such as writs of seizure and sale or garnishment (see Megan’s enforcement overview article here).

Amendments to O. Reg 258/98 under the Courts of Justice Act (Rules of the Small Claims Court) – Effective June 1, 2025

On January 13, 2025, the Ontario Legislature announced amendments to the Rules of the Small Claims Court, O. Reg. 258/98, aimed at improving clarity and efficiency in court procedures. Taking effect June 1, 2025, the changes introduce new trial management processes, updated hearing procedures, and increased compensation for self-represented litigants. These changes will be outlined further in a future bulletin for additional clarification.

Amendment to O. Reg 626/00 – Small Claims Court Jurisdiction and Appeal Limit – Effective October 1, 2025

The big news, however, is that effective October 1, 2025, the Small Claims Court monetary limit increases from $35,000 to $50,000 (CAD). In addition, the appeal threshold increases as well, from $3,500 to $5,000.00 – meaning a higher threshold for appeals to the Divisional Court.

Jurisdiction

·     1. (1) The maximum amount of a claim in the Small Claims Court is $35,000.  O. Reg. 626/00, s. 1 (1); O. Reg. 439/08, s. 1 (1); O. Reg. 343/19, s. 1.

·     (2) The maximum amount of a claim over which a deputy judge may preside is $35,000.  O. Reg. 626/00, s. 1 (2); O. Reg. 439/08, s. 1 (2); O. Reg. 343/19, s. 1.

·     Note: On October 1, 2025, section 1 of the Regulation is amended by striking out “$35,000” wherever it appears and substituting in each case “$50,000”. (See: O. Reg. 42/25, s. 1)

Appeal limit

·     2. (1) For the purposes of clause 31 (a) of the Act, the prescribed amount is $3,500.  O. Reg. 317/11, s. 1; O. Reg. 343/19, s. 2.

·     (2) For the purposes of clause 31 (b) of the Act, the prescribed amount is $3,500.  O. Reg. 317/11, s. 1 O. Reg. 343/19, s. 2.

·     Note: On  October 1, 2025, section 2 of the Regulation is amended by striking out “$3,500” wherever it appears and substituting in each case “$5,000” (See: O. Reg. 42/25, s. 2)

·     3. Omitted (provides for coming into force of provisions of this Regulation).  O. Reg. 626/00, s. 3.

This highly-anticipated change under Ontario Regulation 626/00 enhances access to justice, as a party can be represented by a lawyer, licensed paralegal or be self-represented. Notably, this change elevates the role of licensed paralegals in Ontario and opens the door to pursuing higher value claims in a faster, more cost-effective forum for clients. Click here to view Cohen Highley’s licensed paralegals available to assist you.

These updates demonstrate Ontario’s commitment to improving efficiency and access in Small Claims Court. To navigate the process effectively, ensure you follow the Rules, use the proper forms, and seek legal advice where appropriate.

What does this mean for the LTB?

Pursuant to s. 207(1) of the Residential Tenancies Act, 2006 (the “RTA”) which states that the Small Claims Court and the LTB monetary limits are “tied”, this change will also increase the LTB’s monetary cap from $35,000 to $50,000.

This will be a welcome change for landlords pursuing rent arrears and other amounts before the LTB. Current monthly rental amounts and significant delays before the LTB have seen many landlords in recent months “bumping up against” the monetary jurisdiction of $35,000 and, worse, often waiving entitlement to amounts exceeding $35,000.00 in favour of having matters fully and finally concluded and/or to avoid what can be costly proceedings before the Superior Court.

The LTB is also currently limited to $35,000 when ordering fines payable to the LTB by a landlord. The increased monetary limit will also mean the maximum fine that may be ordered by the LTB will be $50,000 after October 1, 2025.

Conclusion

Ontario’s 2025 reforms, as outlined above, mark a significant shift for both the Small Claims Court and the LTB. With higher monetary limits and more streamlined procedures, individuals, landlords, tenants, and businesses can resolve larger disputes more efficiently and affordably. These changes enhance access to justice and make both forums more effective tools for everyday legal issues.

Bigger claims, faster lanes – here’s to hoping that justice gets a little more user-friendly.

If you are interested in pursuing litigation through the Small Claims Court or the LTB, I would encourage you to seek legal advice from an experienced legal representative such as a lawyer or licensed paralegal to navigate these steps efficiently.

If you have any questions on this bulletin or any other matter, please reach out.

Kristin Ley is a Partner and the Practice Group Leader in the Multi-Residential Housing Group and she can be reached at: 

Megan A. Alexander is a licensed paralegal who works within the Commercial Litigation and Multi-Residential Housing Groups at Cohen Highley LLP in London, Kitchener, Stratford, Strathroy and Windsor. Ms. Alexander’s main areas of practice is within the Ontario Small Claims Court (including enforcement) and the Condominium Authority Tribunal (“CAT”). Ms. Alexander can be reached at: