21 May Small Claims Court Mandatory as of July 1, 2024
A significant amendment to the Courts of Justice Act is set to take effect on July 1, 2024.
In June 2023, the Strengthening Safety and Modernizing Justice Act received Royal Assent. However, a crucial revision to section 23 of the Courts of Justice Act was slated to be enacted on a date specified by proclamation of the Lieutenant Governor. That date has now been confirmed: July 1, 2024.
So, what exactly does this amendment entail?
According to section 23 of the Courts of Justice Act, the Small Claims Court has jurisdiction over claims up to $35,000. Nonetheless, a plaintiff previously had the option to initiate an action falling within the Small Claims Court’s jurisdiction in the Superior Court of Justice.
Effectively, the utilization of the Small Claims Court was considered ‘optional,’ although potential reprimands from the bench were conceivable.
However, starting from July 1, 2024, any action falling within the jurisdiction of the Small Claims Court cannot be initiated in the Superior Court of Justice without obtaining leave from the latter.
There are various reasons why a plaintiff might have preferred to commence an action in the Superior Court of Justice rather than the Small Claims Court. Nevertheless, as of July 1, 2024, that choice will no longer be available.
For further details, please refer to Government of Ontario Proclamations.
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