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Small Claims Court Costs Limits:
Multiple Processes Such as a Counterclaim
Last Updated: July 02 2026
Question: How can Woodcock Legal Services help me estimate the maximum legal costs I could be ordered to pay or recover in an Ontario Small Claims Court matter involving both my claim and the other party’s claim?
Answer: Section 29 of the Courts of Justice Act caps Small Claims Court costs (other than disbursements) for representation at 15% of the “amount claimed,” and in matters where the plaintiff’s claim and defendant’s claim are heard together, the Divisional Court in 10.1 Inc. v. 2248951 Ontario Inc., 2018 ONSC 381 explains the “amount claimed” for the 15% calculation can include the combined value of both claims, subject to the judge’s discretion and any potential increase for unreasonable behaviour; Woodcock Legal Services provides Professional Legal Services across Ontario and can help you budget realistic settlement and risk scenarios, including when a paralegal or lawyer’s fees may be reduced or the exposure could rise, call (613) 334-6721 to discuss your file.
Calculating Costs Awards Within Small Claims Court Proceedings
Generally, and with some exceptions, section 29 of the Courts of Justice Act, R.S.O. 1990, c. C.43 limits a costs award, for the portion as reimbursement to a litigant for expenses for representation (lawyer, student-at-law, or paralegal) to fifteen (15%) percent of the total value of the claim. Of course, this is always subject to the discretion of the Judge and some judges prefer to view the limit as applicable based on the final award rather than based on the amount of the claim. Specially, section 29 of the Courts of Justice Act states:
An award of costs in the Small Claims Court, other than disbursements, shall not exceed 15 per cent of the amount claimed or the value of the property sought to be recovered unless the court considers it necessary in the interests of justice to penalize a party or a party’s representative for unreasonable behaviour in the proceeding.
Whereas the Small Claims Court jurisdiction is limited to claims up to a maximum of thirty-five thousand ($50,000.00) dollars per Plaintiff, the general limit on reimbursement for representation expenses is five thousand two hundred fifty ($5,250.00) dollars, being the fifteen (15%) percent of the maximum claim limit. As indicated, this limit is subject to exceptions for penalties as sanctions or deterent for unreasonable behaviour in the proceeding; however, the question of what is deemed a "proceeding" often arises as does the question of what happens to the limit when there are joined together as multiple proceedings heard concurrently such as is commonplace for matters involving a Plaintiff's Claim and a Defendant's Claim.
Per the Divisional Court in the matter of 10.1 Inc. v. 2248951 Ontario Inc., 2018 ONSC 381, where multiple proceedings are heard concurrently, such as a Plaintiff's Claim and a Defendant's Claim, the general fifteen (15%) limit is available based on the combined amount of the proceedings:
[53] There is no reason why the amount of the defendant’s claim should not be considered when determining costs under s. 29. Certainly the defendant would have insisted that costs be calculated on the amount of its claim had it been successful in this case. Parties in Small Claims Court proceedings must understand that there are potential adverse costs consequences if they exaggerate or inflate their claims or advance unmeritorious counter-claims. This, too, promotes settlement. See: Zuker and Winny, Ontario Small Claims Court Practice, 2018, at p. 58:
In cases involving a defendant’s claim, the amount claimed in the defendant’s claim and the amount claimed in the plaintiff’s claim are added to determine the “amount claimed” for the purposes of s. 29 [citations omitted].
[54] The appellant argues that the Small Claims Court cannot award costs on the combined total of the plaintiff’s and defendant’s claims ($35,500 in this case) because that amount exceeds the $25,000 monetary limit of the Small Claims Court. I do not agree. There is no dispute that the Small Claims Court has the jurisdiction to hear both the plaintiff’s claim and defendant’s claim when the combined total of the two claims exceeds $25,000, provided that each party’s claim is under the monetary limit. Section 29 does not increase the monetary limit of the court, but sets out a method for calculating the maximum costs that the court can award in any particular case. Clearly the cost associated with a case involving a plaintiff’s claim and a defendant’s claim will usually exceed the costs of a case with only one claim, and it is only logical that the Deputy Judge can take into account the value of both claims when determining the maximum costs that can be awarded.
Conclusion
As stated by the Divisional Court in 10.1 Inc. by basing calculation of the fifteen (15%) percent on the amount claimed, including the combined claims where multiple processes are involved, parties are encouraged to carefully consider settlement positions. Additionally, the risk of substantial costs penalties discourages frivolous processes whereas, if the limit was stuck at a maximum of fifteen (15%) percent of thirty five thousand ($50,000.00) dollars, a Defendant would be without discouragement from bringing a frivolous counterclaim.
With the flexibility shown in 10.1 Inc., among other cases, the costs rules for the Small Claims Court provide a reasonable and effective control mechanism that balances both the need to reimburse successful parties for a substantial portion, and perhaps all, of the costs incurred for representation along with the encouragement to engage in constructive settlement discussions and discouragement of frivolous litigation.
NOTE: A significant quantity of online searches for “lawyers near me” or “best lawyer in” typically indicates a need for prompt and competent legal assistance, rather than a particular professional designation. In Ontario, licensed paralegals are governed by the same Law Society that regulates lawyers and are permitted to represent clients in specified litigation matters. Advocacy, legal analysis, and procedural expertise are essential to this role. Woodcock Legal Services provides legal representation within its licensed parameters, focusing on strategic positioning, evidentiary preparation, and persuasive advocacy designed to achieve effective and advantageous outcomes for clients.
