The $50,000 Question: Ontario's Small Claims Limit and When to Abandon the Excess

Ontario's Small Claims Court cap is $50,000. If you are owed $65,000, you have two options: sue in the Superior Court of Justice for the full amount, or sue in Small Claims Court and abandon $15,000.

Abandoning fifteen thousand dollars sounds absurd. Often it is the rational choice.

The real cost of the Superior Court

A Simplified Procedure action in the Superior Court involves mandatory mediation in some regions, examinations for discovery, extensive documentary discovery, and a trial that may be two years away or more. Legal fees for a defended action routinely exceed the amount you were trying not to abandon — and if you lose, adverse cost awards are dramatically higher.

The Small Claims alternative

The same dispute in Small Claims Court: streamlined pleadings, one settlement conference, a trial measured in hours rather than days, capped cost exposure, and paralegal representation at paralegal rates.

The break-even analysis

The question is never "how much am I owed?" It is "what is my expected net recovery through each door?" Factor in fees, time, cost risk, and — critically — the defendant's ability to pay. A $50,000 judgment you can actually collect beats a $65,000 judgment that bankrupts you to obtain.

Where it tips the other way

Abandonment is permanent — you cannot come back for the rest later, and you cannot split one debt into two claims. Where the excess is large, liability is near-certain, and the defendant has deep pockets, the Superior Court earns its keep. That is a judgment call worth making with advice.