Question

Many business contracts that go into default leave the business owner in a quandary: the remedy for a breach of the contract's terms is a lawsuit claiming breach of contract and asking the court to enforce payment and other terms.

But the law is not free. As a result, specialized courts to make legal redress more accessible have been created. These are called (in Ontario) Small Claims Courts. They are much cheaper and faster than the regular legal system.

But they're still not completely free. As a group, investigate Ontario's Small Claims Court system. (Start at ontario.ca and go to the Ministry of Justice to find it.) What can this court handle? What contract law cases won't it hear? What breaches of contract aren't worth pursuing though the courts due to the cost of fighting vs the benefits from winning?

Answer 1

What can this court handle?

In Ontario, the Small Claims Court is a branch of the Superior Court of Justice. It deals with civil disputes of a monetary value of up to $35,000 (Canadian). Small Claims Court has simplified rules and procedures. If you are being sued in small claims court, you will receive a court-stamped form from the person or business (or their representative). This document is called either a Plaintiff's Claim or a Defendant's Claim. The court may order you to pay money or deliver goods to the plaintiff.

What contract law cases won't it hear?

The court won’t hear the legal cases that involve the contract for the transaction of more than $35000 (Canadian) and such cases are then taken to the superior court of justice.

What breaches of contract aren't worth pursuing though the courts due to the cost of fighting vs the benefits from winning?

The breaches of contracts that compensates the plaintiff less than the fees that he paid for contending his claim in the court is not worth fighting. There are various cost associated with filing the case. Knowing the financial status of the defendant is fundamental to starting any legal action and then collecting on any judgment in your favour. There are situations which require that a person exercise discretion as to whether there is a realistic likelihood of recovering monies owed. Hence, plaintiff should take into consideration the financial status of defendant before filing the case or he will end up incurring cost of filing the case and will be in loss from both the end.