Difference between revisions of "Do You Have a Small Claim? (20:III)"

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{{LSLAP Manual TOC|expanded = smallclaims}}
{{LSLAP Manual TOC|expanded = smallclaims}}


In order to have a legal claim, it must be recognised by the law.  A frivolous claim is one that does not disclose a legal cause of action, is incapable of proof, or is otherwise bound to fail.  A vexatious claim is one that is brought in order to annoy, frustrate, or antagonise the defendant.  A claim may be both frivolous and vexatious.
In order to have a legal claim, it must be recognized by the law.  A frivolous claim is one that does not disclose a legal cause of action, is incapable of proof, or is otherwise bound to fail.  A vexatious claim is one that is brought in order to annoy, frustrate, or antagonize the defendant.  A claim may be both frivolous and vexatious.


If a claim is frivolous or vexatious, the claimant will lose and may be penalised up to 10% of the amount of the claim (Small Claims Rules, BC Reg 261/93, 20(5) [SCR]).   The penalty could be up to $8,750 on a $35,000 claim; it pays to research your cause of action and limit your claim to the proper amount.
If a claim is frivolous or vexatious, the claimant will lose and may be penalized up to 10% of the amount of the claim (''Small Claims Rules'', BC Reg 261/93, 20(5) [SCR]). The penalty could be up to $8,750 on a $35,000 claim; it pays to research your cause of action and limit your claim to the proper amount.




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=== 1. Tort ===
=== 1. Tort ===


Torts are offences committed by one person against another. Examples include assault, battery, and negligence. Each tort has its own test and defences. Tort law continues to evolve and a person planning to bring a claim in tort should research what must be proven to be successful and which defences may be available to the defendant. Resources include CanLII.org, the courthouse library, and a practicing lawyer.  
Torts are offences committed by one person against another. Examples include assault, battery, and negligence. Each tort has its own test and defences. Tort law continues to evolve and a person planning to bring a claim in tort should research what must be proven to be successful and which defences may be available to the defendant. Resources include CanLII.org, the courthouse library, and a practicing lawyer.  


=== 2. Contract ===
=== 2. Contract ===


Contract law governs voluntary relationships between parties. It is a complicated and nuanced area of the law and a person planning to bring a claim in contract should research what must be proven to be successful and which defences may be available to the defendant. Resources include CanLII.org, the courthouse library, and a practicing lawyer.  
Contract law governs voluntary relationships between parties. It is a complicated and nuanced area of the law and a person planning to bring a claim in contract law should research what must be proven to be successful and which defences may be available to the defendant. Resources include CanLII.org, the courthouse library, and a practicing lawyer.  


'''NOTE:''' Courts will generally not enforce illegal contracts or dishonest transactions (See ''[http://canlii.ca/t/1djfx Faraguna v Storoz]'', [1993] BCJ No. 2114). However, ''[http://canlii.ca/t/1gd53 Transport North American Express Inc. v New Solutions Financial Corp.]'', 2004 SCC 7 states that a court may enforce legal portions of a contract, thus effectively severing the illegal portion. A common example involves contracts purporting to charge interest rates prohibited under s 347 of the ''Criminal Code''. The court will not enforce a term in a contract purporting to charge such a rate. (However,  section 347.1 exempts payday loans from criminal sanctions, if certain conditions are met; see [[Direct Sales, Future Performance, and Time Share Contracts (11:V)#G. Regulation of Payday Lenders and Criminal Rate of Interest | Section V.G: Regulation of Payday Lenders and Criminal Rate of Interest]] in Chapter 9: Consumer Protection).
'''NOTE:''' Courts will generally not enforce illegal contracts or dishonest transactions (See ''[http://canlii.ca/t/1djfx Faraguna v Storoz]'', [1993] BCJ No. 2114). However, ''[http://canlii.ca/t/1gd53 Transport North American Express Inc. v New Solutions Financial Corp.]'', 2004 SCC 7 states that a court may enforce legal portions of a contract, thus effectively severing the illegal portion. A common example involves contracts purporting to charge interest rates prohibited under s 347 of the ''Criminal Code''. The court will not enforce a term in a contract purporting to charge such a rate. (However,  section 347.1 exempts payday loans from criminal sanctions, if certain conditions are met; see [[Direct Sales, Future Performance, and Time Share Contracts (11:V)#G. Regulation of Payday Lenders and Criminal Rate of Interest | Section V.G: Regulation of Payday Lenders and Criminal Rate of Interest]] in Chapter 9: Consumer Protection).
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=== 4. Restitution ===
=== 4. Restitution ===


The law of restitution (See ''[http://canlii.ca/t/1gzjn Garland v Consumers' Gas Co.]'', 2004 SCC 25; ''[http://canlii.ca/t/2fs3h Kerr v Baranow]'', 2011 SCC 10; ''[http://canlii.ca/t/fpm5g Skibinski v Community Living British Columbia]'', 2012 BCCA 17) applies to circumstances where a party has benefited, the other party has suffered a loss as a result, and there is no legal basis for the party to have benefited ("[http://canlii.ca/t/1gzjn Garland v Consumers' Gas Co.", 2004 SCC 25;" [http://canlii.ca/t/2fs3h Kerr v Baranow", 2011 SCC 10]; ''[http://canlii.ca/t/fpm5g Skibinski v Community Living British Columbia'', 2012 BCCA 17]). The type of claim commonly pursued for a restitution remedy is referred to as “unjust enrichment” and is a complicated and evolving area of the law. A party planning to attain a restitution remedy should consult a lawyer, research what must be proved to be successful and which defences may be available to the defendant. Resources include CanLII.org, the courthouse library, and a practising lawyer.   
The law of restitution (See ''[http://canlii.ca/t/1gzjn Garland v Consumers' Gas Co.]'', 2004 SCC 25; ''[http://canlii.ca/t/2fs3h Kerr v Baranow]'', 2011 SCC 10; ''[http://canlii.ca/t/fpm5g Skibinski v Community Living British Columbia]'', 2012 BCCA 17) applies to circumstances where a party has benefited, the other party has suffered a loss as a result, and there is no legal basis for the party to have benefited ("[http://canlii.ca/t/1gzjn Garland v Consumers' Gas Co.", 2004 SCC 25;" [http://canlii.ca/t/2fs3h Kerr v Baranow", 2011 SCC 10]; ''[http://canlii.ca/t/fpm5g Skibinski v Community Living British Columbia'', 2012 BCCA 17]). The type of claim commonly pursued for a restitution remedy is referred to as “unjust enrichment” and is a complicated and evolving area of the law. A party planning to attain a restitution remedy should consult a lawyer, research what must be proved to be successful and which defences may be available to the defendant. Resources include CanLII.org, the courthouse library, and a practicing lawyer.   


=== 5. Statute ===
=== 5. Statute ===
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=== 1. General Damages ===
=== 1. General Damages ===


General damages, also called non-pecuniary damages, are those that are not easy to quantify and for which a judge must assess the amount of money that, in the circumstances, will compensate for the loss. A common example of general damages is “pain and suffering”. The purpose of general damages is to compensate and not to punish; a party should not expect to profit or realise a windfall through an award of general damages. A person planning to claim general damages should provide evidence of the loss and research the case law to determine how the courts have assessed damages in cases with similar losses and circumstances.  Resources include CanLII.org, the courthouse library, and a practising lawyer.
General damages, also called non-pecuniary damages, are those that are not easy to quantify and for which a judge must assess the amount of money that, in the circumstances, will compensate for the loss. A common example of general damages is “pain and suffering”. The purpose of general damages is to compensate and not to punish; a party should not expect to profit or realize a windfall through an award of general damages. A person planning to claim general damages should provide evidence of the loss and research the case law to determine how the courts have assessed damages in cases with similar losses and circumstances.  Resources include CanLII.org, the courthouse library, and a practicing lawyer.


=== 2. Special Damages ===
=== 2. Special Damages ===
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expires March 26, 2023. In this way, a limitation period that began to run during the suspension starts to run when the suspension is lifted.  
expires March 26, 2023. In this way, a limitation period that began to run during the suspension starts to run when the suspension is lifted.  


The CRT remained open and operating normally during the COVID-19 pandemic. The automatic suspension of limitation dates did not apply to the CRT. The CRT may waive, suspend or extend mandatory time periods set out in a statute, which includes both limitation dates and the 28-day deadline to file a notice of objection to a CRT decision; however, the CRT can only exercise this discretionary power during the declaration of the state of emergency. The CRT also has discretion to extend any timeline set out in the CRT’s Rules. Requests to the CRT relating to any time periods should be filed '''as soon as possible'''. Note: Since the CRT process is easily accessible online, it may be difficult for a person to prove they need an extension. For the latest information, consult https://civilresolutionbc.ca/.  
The CRT remained open and operating normally during the COVID-19 pandemic. The automatic suspension of limitation dates did not apply to the CRT. The CRT may waive, suspend or extend mandatory time periods set out in a statute, which includes both limitation dates and the 28-day deadline to file a notice of objection to a CRT decision; however, the CRT can only exercise this discretionary power during the declaration of the state of emergency. The CRT also has the discretion to extend any timeline set out in the CRT’s Rules. Requests to the CRT relating to any time periods should be filed '''as soon as possible'''. Note: Since the CRT process is easily accessible online, it may be difficult for a person to prove they need an extension. For the latest information, consult https://civilresolutionbc.ca/.  




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After a certain amount of time has passed, a person loses the right to commence a claim. The amount of time that must pass before the limitation period expires depends on which act applies to the claim.  
After a certain amount of time has passed, a person loses the right to commence a claim. The amount of time that must pass before the limitation period expires depends on which act applies to the claim.  


The new ''Limitation Act'', SBC 2012, c 13 [''Limitation Act''] came into effect on June 1, 2013. A claim is governed by this Act if the claim was discovered after this date, unless the facts underlying the claim arose before the effective date and the limitation period under the old ''Limitation Act'', RSBC 1996, c 266 [''Old Limitation Act''] has expired (''Limitation Act'', SBC 2012, c 13, s 30(3-4) [''Limitation Act'']). Under the new ''Limitation Act'', the basic limitation period that applies to most claims is 2 years after the day on which the claim is discovered (''Limitation Act'' s 6(1)).  
The ''Limitation Act'', SBC 2012, c 13 [Limitation Act] came into effect on June 1, 2013. A claim is governed by this Act if the claim was discovered after this date. Under the ''Limitation Act'', s 6(1), the basic limitation period that applies to most claims is 2 years after the day on which the claim is discovered.
 
Discovery occurs the day on which the claimant knew or reasonably ought to have known all of the following:


Discovery occurs the day on which the claimant knew or reasonably ought to have known all of the following:
*a) That injury, loss or damage had occurred;  
*a) That injury, loss or damage had occurred;  
*b) That the injury, loss or damage was caused by or contributed to by an act or omission;  
*b) That the injury, loss or damage was caused by or contributed to by an act or omission;  
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*d) That, having regard to the nature of the injury, loss or damage, a court proceeding would be an appropriate means to seek to remedy the injury, loss or damage (''Limitation Act'', s 8).  
*d) That, having regard to the nature of the injury, loss or damage, a court proceeding would be an appropriate means to seek to remedy the injury, loss or damage (''Limitation Act'', s 8).  


Special rules for discovery apply in various circumstances. For example, when a person signs a document acknowledging liability for a claim, discovery is deemed to occur on the date the acknowledgement is made unless the limitation period has already expired (''Limitation Act'', s 24(1)). Generally, there is an ultimate limitation period of 15 years from the date the basis of the claim occurred, regardless of when discovery happens (''Limitation Act'', s 21(1)). If it has been close to 2 years since the events giving rise to your claim occurred, act quickly and refer to Appendix F: Limitation Periods or consult a lawyer.
Special rules for discovery apply in various circumstances. For example, when a person signs a document acknowledging liability for a claim, discovery is deemed to occur on the date the acknowledgment is made unless the limitation period has already expired (''Limitation Act'', s 24(1). Generally, there is an ultimate limitation period of 15 years from the date the basis of the claim occurred, regardless of when discovery happens (''Limitation Act'', s 21(1). If it has been close to 2 years since the events giving rise to your claim occurred, act quickly and refer to '''Appendix F: Limitation Periods''' or consult a lawyer.
 
Under this act, the limitation period depends on the type of claim and who the other party is. A claim may consist of several causes of action and each cause of action may have a separate limitation period. For example, if a claimant waits three years, they may be unable to bring a claim in negligence but may still be able to claim for breach of contract. Litigants should review the ''Old Limitation Act'' to determine which limitation period applies.


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