Small Claims and Contractor Dispute Process in Canada

The short answer

This guide describes process only. It is not legal advice, and it is not advice for your specific dispute. For a contractor dispute, start with a written demand, check whether your amount fits the small claims limit in your province, file the court form, serve the other party, attend any settlement step, and then a hearing if the dispute does not settle. Limits run from $15,000 in Quebec to $100,000 in Alberta, and the court name, form, fee, and response deadline differ by province. If the amount is over the limit, you can file in a higher court for the full amount, or in some provinces abandon the excess and file in small claims court for the limit amount. Do not split one claim into several smaller claims to fit the limit.

Step 1: Send a written demand first

Before you file, put the dispute in writing. A demand letter should state what was agreed, what went wrong, the amount you say is owed and how you calculated it, and a deadline to pay or fix the work. Keep proof you sent it and a copy of the letter. Courts and settlement officers often ask whether you tried to resolve the dispute before filing, and a dated demand letter shows you did. It also forces you to work out the amount before you pick a court, which matters because the amount decides which court can hear the claim.

For a contractor dispute, the demand should point to specific contract items: work not done, work done badly, materials not supplied, or a completion date missed. Attach the contract page or quote that supports each item, rather than sending a general complaint.

Step 2: Check the limit and the right court

The table below gives the small claims limit for each province and territory, verified from official court or government sources. Amounts are exclusive of interest and costs unless a court states otherwise, and several courts let you claim the return of personal property up to the same limit.

• British Columbia: most small claims up to $5,000 go to the Civil Resolution Tribunal, an online tribunal. Small Claims Court in Provincial Court hears claims from $5,001 to $35,000.
• Alberta: the Civil Division of the Court of Justice hears claims up to $100,000 plus interest and costs.
• Saskatchewan: Small Claims Court in Provincial Court hears claims up to $50,000.
• Manitoba: Small Claims under the Court of King's Bench Small Claims Practices Act covers an amount not exceeding $20,000, effective January 1, 2025.
• Ontario: Small Claims Court covers claims up to $50,000, raised from $35,000 by Ontario Regulation 42/25 effective October 1, 2025.
• Quebec: the Small Claims Division of the Court of Quebec hears applications where the amount in dispute is $15,000 or less, before interest.
• New Brunswick: Small Claims Court hears actions for debt, damages, or return of personal property up to $20,000.
• Nova Scotia: Small Claims Court hears claims up to $25,000, with some limits, including a $100 limit on general damages.
• Prince Edward Island: the Small Claims Section hears actions where the debt or damages claimed do not exceed $16,000.
• Newfoundland and Labrador: Small Claims Court hears claims up to $25,000, not including interest or expenses.
• Yukon: Small Claims Court hears civil cases where the amount or the value of personal property claimed is $25,000 or less.
• Northwest Territories: the Territorial Court hears civil claims up to $35,000, not including interest and expenses.
• Nunavut: if someone owes you money and the amount is $20,000 or less, you go through the Small Claims process in the Nunavut Court of Justice.

If your claim is over the limit, your options are to file in the higher court for the full amount, or to abandon the excess and file in small claims court for the limit amount. Abandonment means giving up the part over the limit. You cannot sue for that part later. Check the court rules for your province before you choose, because the abandonment wording and effect are set out in those rules.

Step 3: File the claim

Filing means completing the court form for your province, paying the filing fee, and filing copies with the court office. Use the form name and office for your court, not a form from another province. The claim should set out the correct legal names and addresses of all parties, the amount claimed, and a short, clear account of what happened and why you say you are owed the amount. If the claim is made up of several parts, list each part and its amount separately. That breakdown helps the other party respond and helps a judge follow the claim.

Filing fees are listed in the fee table above for Alberta, New Brunswick, and Newfoundland and Labrador. Fees for other provinces were not verified and are not stated here. Check the court site or registry for your province for the current fee, and ask about a fee waiver if you cannot afford the fee. Alberta, for example, allows an application to waive a filing fee on financial hardship grounds, effective for six months.

Step 4: Serve the other party and watch the response deadline

After filing, you must serve the claim on the other party in the way your court rules require, and keep proof of service. Service is not a formality: the case cannot move forward fairly until the other party has received the claim. In New Brunswick, a defendant has 30 days to file a Response, and may admit the claim, dispute it with reasons, file a counterclaim or third party claim, or admit the claim and request a payment hearing. Response deadlines differ by province and by how service was made, so read the deadline on your filed claim and on the court instructions for your province.

If the other party files a defence or counterclaim, read it promptly. A counterclaim is a claim back against you arising from the same dispute, and it may need its own response within a deadline. If the other party does not respond at all, ask the court registry what step applies in your court, such as a request for default judgment, rather than assuming the case ends on its own.

Step 5: Attend settlement, mediation, or a hearing

Many small claims processes include a settlement step before a trial. In Ontario, parties usually attend a settlement conference before any trial. In British Columbia, claims between $10,000 and $35,000 have a mediation guide, and the Civil Resolution Tribunal process moves through negotiation and facilitation before adjudication. Bring your evidence to the settlement step, not only to the hearing. A settlement officer or mediator can only help settle a claim they can follow, and a well organized file often settles faster than a thin one.

At a hearing, each party presents its side and its evidence, and the judge or adjudicator decides. Small claims hearings are less formal than higher court trials, but you still have to prove your claim. That means showing the contract, the payment trail, and the defect or shortfall, not only stating that you are unhappy with the work.

Step 6: After the decision, enforcement is separate

If you win, the court issues a judgment or decision stating what is owed. If the other party pays within the time set, the matter ends. If not, you may need enforcement steps through the court. Enforcement options and forms differ by province. Before you file, weigh this step: a judgment against a party with no income or assets to satisfy it may be hard to collect, and enforcement has its own costs and time. That weighing is part of deciding whether to file, settle for less, or use another route such as a consumer complaint process.

Contractor evidence checklist

Build this file before you file, and keep updating it as the dispute moves:

• Signed contract, including scope of work, price, payment schedule, and completion date.
• Written change orders or scope changes, with prices and dates.
• Quotes, estimates, and invoices, including any second quote for repair or completion work.
• Payment records: receipts, bank transfers, cheques, and any deposit record.
• Dated photos and video of the work before, during, and after, with notes tying each image to a contract item.
• Messages with the contractor: email and text records showing requests, promises, and missed dates.
• Inspection reports, permit records, or deficiency lists, where they exist.
• A one page timeline: contract date, payment dates, work dates, defect dates, demand letter date.

Do not alter photos, messages, or invoices. If a document helps the other party, keep it in the file too. A judge will notice a file that hides unfavourable material, and a complete file is easier to defend.

What small claims court usually does not hear

Small claims courts do not hear every kind of dispute, and the excluded list differs by province. Common exclusions include land title disputes, wills and estates, and defamation claims. New Brunswick excludes family matters, land title, wills, and libel, slander, breach of promise of marriage, malicious arrest, malicious prosecution, and false imprisonment. Nova Scotia excludes land ownership, wills and estates, malicious prosecution, wrongful imprisonment, and defamation. Newfoundland and Labrador excludes land title, will validity, malicious prosecution, false imprisonment, defamation, and breach of promise of marriage. Quebec small claims also excludes defamation. Check the exclusions for your court before you file, because filing in the wrong court wastes the filing fee and time.

Contractor disputes that fit small claims court are typically debt, damages for breach of contract, and recovery of personal property within the limit. A dispute that also involves a construction lien, a landlord and tenant issue, or a regulated trade complaint may have a separate process or tribunal. Check whether another body must hear that part first.

Common mistakes to avoid

• Filing in the wrong province or court because the contractor is based elsewhere. Check where the defendant resides or carries on business and where the work was done, using the court rules for your province.
• Claiming a round number with no breakdown. List each contract item and amount.
• Splitting one claim into several smaller claims to fit the limit. Do not do this.
• Missing the response or hearing date. Note every deadline on the filed forms in your calendar.
• Assuming a judgment is payment. Plan for enforcement before you file.
• Treating this guide as advice for your case. It is process information only, not legal advice.

Related guides: how to get a contractor licence in Ontario, how to get a contractor licence in BC, how to check if a contractor or plumber is licensed in Ontario, how to escalate a consumer complaint in Canada, how to start a handyman business in Ontario.

Sources

• Government of Ontario, O. Reg. 626/00: Small Claims Court Jurisdiction and Appeal Limit — the $50,000 maximum claim, in force from October 1, 2025 under O. Reg. 42/25.
• Clicklaw (Courthouse Libraries BC), Small claims & the Civil Resolution Tribunal — claims up to $5,000 go to the Civil Resolution Tribunal; Small Claims Court hears $5,001 to $35,000; mediation for claims between $10,000 and $35,000.
• Alberta Court of Justice, Filing Fees and Payments into Court — Civil Claim $100 for claims up to $7,500 and $200 for claims over $7,500 up to $100,000; fee waiver on financial-hardship grounds, effective for six months.
• Government of Quebec, Small claims — the Small Claims Division of the Court of Québec hears applications where the amount in dispute is $15,000 or less.
• Government of New Brunswick, Small Claims Court — the $20,000 limit, $50 and $150 filing fees, 30 days to file a Response, and the matters the court cannot hear.
• Provincial Court of Newfoundland and Labrador, Small Claims Court FAQ — the $25,000 limit, $50 and $100 filing fees, the rule against dividing one claim into smaller claims, and the 10-day reply deadline.
• Government of Newfoundland and Labrador, Changes to Small Claims Act Increase Access to Justice — the 2010 amendments raising the Small Claims Court limit from $5,000 to $25,000.