Amendment to O. Reg. 258/98 under the Courts of Justice Act (Rules of the Small Claims Court)
The Small Claims Court is intended to be a simplified process to promptly resolve and dispose of disputes under $35,000. On January 13, 2025, the Ontario Legislature introduced its intention to amend the Rules of the Small Claims Court, O. Reg. 258/98 (the “Rules”) , which brings many important amendments to this court’s processes. These amendments, which come into effect on June 1, 2025, are designed to clarify and expedite the Small Claims Court processes. The changes, which will be further discussed below, include new trial management processes, increased compensation for self-represented individuals and updates to hearing procedures.
The first amendment brought under O.Reg. 3/25 is the introduction of a Statement of Primary Objective, and a duty on the court and participants to promote the primary objective. Pursuant to Rule 1.03(1), the primary objective of the Rules is to enable the court to secure the just, most expeditious and least expensive determination of every proceeding on its merits. It is the duty of the court and their participants to promote and practice the primary objective. This can be achieved by (a) ensuring that the procedure is fair to all parties; (b) saving expenses and time; (c) dealing with a proceeding in ways that are appropriate to its complexity; and (d) giving appropriate court resources to a proceeding while taking account of the need to give resources to other proceedings. The Rules allow the Court to determine cases more expeditiously and at a lower cost than in the Superior Court of Justice, and this new primary objective will ensure that the Small Claims Court continues to align with this streamlined procedure.
O.Reg. 3/25 also brings changes to modernize and consolidate the provisions regarding hearing and attendance methods, including establishing a new procedure to request a different method and to object to such a request (rr. 1.07, 15.02, 20.10, and others). This permits parties to have their hearings scheduled either in person, by video conference, or by telephone conference. A party may request a change in the method by which the party is to attend a step by serving a request, in Form 1B, setting out the party’s reasons at least 30 days before the hearing date. If there are any objections, the other party may serve an objection, in Form 1C, no later than seven days after being served with the request. The court may then either accept or reject the request.
Under O.Reg. 3/25, rule 16.1 of the Rules sets a new framework for Trial Management Conferences, which will be scheduled at the discretion of the Court. The purposes of a trial management conference are (a) to assess the parties’ readiness for trial; (b) to assist the parties in effective preparation for trial; (c) to provide full disclosure between the parties of the relevant facts and evidence; (d) to resolve or narrow the issues in the action; (e) to expedite the disposition of the action; (f) to encourage settlement of the action; and (g) to set the trial date, if necessary. At the trial management conference, the parties and their representatives will openly and frankly discuss the issues involved in the action. A judge conducting a trial management conference may make any order relating to the conduct of the action that the court could make, including an order (a) respecting the scheduling of the trial; (b) directing the production of documents; and (c) awarding costs if a party fails to attend the conference, if
required to do so. Costs at a trial management conference will not exceed $100.00, unless the court orders otherwise if there are any special circumstances to consider. A judge who conducts a trial management conference will not be permitted to preside at the trial of the action. Further, pursuant to the amendment of rule 17.02, any trial adjournments will now require a formal Court Order, which will ensure that all adjournments of trials are approved by the court. This new rule should reduce the number of adjournments and assist with the backlog in matters.
The amendments have also brought an increase to the costs that a successful self-represented party may be awarded in an action. Previously, if an amount was awarded to a self-represented party, the court could also award the party an amount not exceeding $500 as compensation for inconvenience and expense. Under the amendment to rule 14.07, this has been increased from $500 to $1,500. The self-represented party may be granted these additional costs from the court where the other party failed to accept an offer to settle that was as favourable to them as the final judgment made by the court. Other various cost-related provisions have been updated to improve clarity, which can be found at rules 19.01, 19.02, and 19.06.
These changes reflect Ontario’s ongoing efforts to make the Small Claims Court as efficient and accessible as possible for all participants. Staying informed is key. Be sure to review the updated Rules, use the correct forms, and consider seeking legal advice if you have any doubts about how these amendments may affect your case.
Written by Lauren Price and Nicolas Guevara-Mann