Starting June 1, 2025, significant amendments to the Rules of the Small Claims Court (the “Rules”) will come into effect in Ontario. These changes reflect a clear shift towards improving efficiency and reducing costs for litigants. While Small Claims Court has always aimed to offer an accessible forum for disputes under $35,000, these amendments reinforce that mission through updated procedures and expanded judicial discretion. Below, we break down some of the key changes to the Rules —and how they can help litigants manage costs and time more effectively.
1. A New Primary Objective: Efficiency and Fairness (Rule 1.03)
The revised Rule 1.03 explicitly states that the primary objective of the Small Claims Court is to “secure the just, most expeditious and least expensive determination” of cases. While the Court’s purpose was always rooted in access to justice, this amendment codifies a more modern, efficiency-driven approach. Judges, parties, and their representatives are now legally obligated to apply the Rules in a way that promotes this objective. Rule 1.03(3) provides the following examples that may promote the primary objective of the Rules:
- (a) ensuring that the procedure is fair to all parties;
- (b) savingexpense 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. O. Reg. 3/25, s. 1.
This means that behavior or litigation strategies that delay proceedings or inflate costs, whether intentional or not, are more likely to draw judicial scrutiny and potential cost consequences. In practice, this means simpler cases should be resolved more quickly, without being bogged down by unnecessary procedural steps.
2. Greater Flexibility in Hearing Formats (Rule 1.07 & 15.02)
Litigants will now benefit from more flexible hearing formats. Except for written steps (which remain unaffected), all proceedings that require party attendance can now be conducted:
- a) In person
- b) By video conference
- c) By telephone (limited to terms of payment hearings, settlement conferences, motions, and trial management conferences)
This flexibility offers potential cost savings across the board. Parties can avoid travel expenses, time off work, and the logistical burden of in-person appearances, particularly useful for businesses and individuals outside of major urban centres.
Moreover, parties can request a change in the hearing method using Forms 1B and 1C, with the court retaining discretion to determine the most appropriate format. The court must consider technology availability, fairness, and access issues when making these determinations.
This could have a negative impact on small business owners and low-income litigants who might otherwise encounter challenges in attending court in person.
3. Trial Management Conferences Are Coming (New Rule 16.1)
Perhaps the most noteworthy addition is the introduction of trial management conferences (TMCs). The court may now require a TMC after a request to set a trial date is filed. These conferences are mandatory unless otherwise directed and serve multiple purposes:
- Assessing trial readiness
- Encouraging settlement
- Narrowing issues
- Setting trial dates
- Facilitating document and fact disclosure
Critically, the judge presiding over the TMC cannot preside at the trial, ensuring a measure of impartiality is preserved.
TMCs are designed to reduce last-minute surprises at trial—something that frequently leads to adjournments and added cost. Judges can also issue orders at the TMC, including production orders or cost awards for failures to attend or for inadequate preparation.
In short, TMCs aim to ensure that cases go to trial only when they’re truly ready and that both parties know what to expect, saving time and money.
4. Stricter Adjournment Rules (Rule 17.02)
Adjournments will now be permitted only by court order and may come with cost consequences. The court can award compensation for inconvenience and expense to the opposing party when an adjournment is granted. This discourages strategic or careless delay tactics and promotes trial readiness.
For litigants, this reinforces the importance of preparation and meeting deadlines. It also
provides a mechanism to recover costs when the other side’s actions result in wasted time or effort.
5. Cost Penalties for Unreasonable Conduct (Rule 19.06)
Litigants and their representatives now face clearer consequences for unnecessarily complicating or prolonging an action. Courts can order a penalty under section 29 of the Courts of Justice Act for unreasonable conduct that inflates costs or delays resolution.
This provision is especially important for self-represented parties or those facing opponents who use litigation as a weapon. It arms judges with the ability to penalize obstructive behavior and helps level the playing field.
Conclusion
At its core, the revised Rules reflect a broader judicial trend: courts are increasingly prioritizing efficiency, proportionality, and cost-effectiveness. These changes are good news for those seeking justice without being priced out of the process.
If you’re planning to file or defend a Small Claims Court matter after June 1, 2025, preparation will be more important than ever. Knowing the rules and respecting the court’s time can directly impact your bottom line. If you have questions about how these changes to the rules could affect your Small Claims Court matter, contact us for a consultation.
